Kazakhstan is one of the world’s most dynamically growing railway markets. Against the backdrop of geopolitical and economic turbulence in recent years, sharp competition has emerged among rolling stock manufacturers from various countries. Specifically prepared for the TransLogistica Kazakhstan exhibition almanac, ROLLINGSTOCK analysts offer a swift review covering different industry segments — freight and passenger transport, production of freight and passenger wagons, as well as locomotive manufacturing.
Published in the almanac “Rolling Stock Market. Kazakhstan” for the TransLogistica Kazakhstan transport and logistics exhibition
Role in the economy
The modernisation and reform of Kazakhstan’s railway transport have been ongoing for almost 30 years — the sector reform began in 1997. Since then, significant changes have taken place in its organisational structure. During the reform under the unified state holding Kazakhstan Temir Zholy (KTZ), several companies were created — an owner of railway infrastructure, national freight and passenger and freight wagon operators. The market for freight wagon operations has emerged, the locomotive traction market is developing, and repair companies were privatised and handed over to the competitive sector.
Railways play a major role in Kazakhstan’s transport logistics. In 2024, rail accounted for 63.7% of Kazakhstan’s freight turnover (89.6% excluding pipeline transport), and 20.7% of passenger turnover. The operational length of public-use railway lines exceeds 16,000 km, this figure including railways of neighbouring states crossing Kazakhstan and Kazakh railways on other countries’ territories.
Since 2015, freight rail transport in Kazakhstan has shown a general increase. By the end of 2024, 438.7 million t of various goods were transported, 28.5% higher than in 2015. Despite this growth, the share of rail transport in the overall freight transport structure across all modes has declined — from 51.6% in 2015 to 40.2% in 2024. This is mainly due to growing competition from alternative transport modes, especially road transport. For example, freight transport by road in Kazakhstan increased over 3.4 times in ten years.
Freight turnover on Kazakhstan railways is also rising. In 2024, it amounted to 332.1 bln tonne-kilometers, 24.2% higher than in 2015. The rail share in total freight turnover slightly decreased from 66.4% in 2015 to 63.7% in 2024.
Freight rail transport key indicators dynamics in Kazakhstan over 10 years (enlarge). Source: National Bureau of Statistics of the Agency for Strategic Planning and Reforms of Kazakhstan
Passenger transportation and passenger turnover by rail had mixed dynamics from 2015 to 2024. The lowest levels occurred in 2020 due to COVID-19 and related restrictions. Since then, passenger numbers have rebounded, with 20.7 mln passengers carried in 2024, although still below pre-pandemic levels of 22.4 mln in 2019. Passenger turnover remained stable at 16.4 bln passenger-kilometres in recent years.
The rail share in total passenger transport remained practically unchanged over ten years at 1.2% in 2024. However, rail passenger turnover shrank from 29.1% in 2015 to 20.7% in 2024, reflecting competition from air and bus transport.
Passenger rail transport key indicators dynamics in Kazakhstan over 10 years (enlarge). Source: National Bureau of Statistics of the Agency for Strategic Planning and Reforms of Kazakhstan
Freight wagon market
Kazakhstan has the second-largest freight wagon fleet among the countries of the 1,520 mm gauge space. As of early 2025, the fleet comprised 141,500 units, distributed among more than 400 Kazakh operators and over 350 owners. Railway operators from neighbouring countries may also run trains on Kazakhstan’s tracks.
The largest operator and owner of freight wagons in Kazakhstan is the KTZ subsidiary Kaztemirtrans. Established in 2003 during the railway reform, the company provides a full range of transport and logistics services. At the start of 2025, Kaztemirtrans owned over 35,000 freight wagons, accounting for more than 25% of the total fleet in Kazakhstan. The fleet operated by the company exceeded 27,000 wagons, predominantly gondola and box cars.
One of the large private market players is PTC Operator, the main operator of rolling stock for the PTC Holding group, specialising in tank wagons for transporting oil and petrochemical products. The company operates a fleet of over 12,500 tank cars.
The KZ4AT electric locomotive with passenger coaches. Source: Nikolay Bazhanov / railgallery
Eastcomtrans is another major private operator of freight wagons in Kazakhstan. Established in 2002, the company provides a wide range of logistics services for freight transport by rail. As of early 2025, it operated more than 11,000 freight wagons, primarily gondola cars, tank cars and container flat cars.
Another KTZ subsidiary active in the operations market is KTZ Express. Founded in 2013, it specialises in multimodal transportation. As of early 2025, its fleet under operation amounted to around 6,700 wagons, consisting mainly of container flat cars.
Kazakhstan’s market faces large-scale withdrawals of freight wagons in the coming years. According to ROLLINGSTOCK, more than 27,800 freight wagons may be retired by 2030, representing 19.7% of the national fleet. In the longer term, by 2035, withdrawals could reach 53,600 units, or 37.9% of the total fleet.
In anticipation of this demand, wagon-building capacity in Kazakhstan is developing rapidly. This is reflected in the dynamics of new rolling stock registrations. In 2024, some 2,800 newly built wagons produced in Kazakhstan were registered — 3.9 times more than in 2023, marking the highest number since 2013. In the first half of 2025 alone, 1,550 new wagons were registered, 3.6 times more than in the same period a year earlier.
Registration dynamics of new freight wagons produced in Kazakhstan (enlarge). Source: ROLLINGSTOCK estimates
The growth trend in freight wagon production and registration in Kazakhstan is expected to continue. As noted by the Minister of Transport, Mr Nurlan Sauranbayev, in August 2025, market players in Kazakhstan plan to procure more than 7,000 freight wagons by 2029. Currently, five Kazakh companies are capable of serial production of various models of freight wagons: Atyrau Freight Car Building Plant (part of TEXOL Group), ZIKSTO (part of Railways Systems KZ), Kazakhstan Car-Building Company (within SMP Group), Cool Infinity, and Semipalatinsk Machine Building Plant.
Atyrau Freight Car Building Plant (ASVZ)
TEXOL Group is one of the country’s largest private operators, primarily specialising in the transportation of oil cargoes, and in recent years has been actively developing its own wagon-building capabilities. Construction of the Atyrau Freight Car Building Plant began in 2023. Once fully completed, the facility will cover 62,000 m², enabling the production of up to 8,000 freight wagons per year.
The 12-9846 gondola car produced by the Kazakhstan Car-Building Company. Source: The Press Service of the Government of the Republic of Kazakhstan
Production at ASVZ was launched in summer 2024, when the plant rolled out its first gondola cars of model 12-6785 and container flat cars of model 13-6792. These are equipped with 18-6786 bogies with a 23.5 tf axle load, developed in-house by ASVZ engineers. The plant is now bringing to market new tank wagons, including model 15-3237 for oil products and model 15-3234 for LPG, while also working on other new wagon designs, including an articulated configuration.
The development of ASVZ forms part of a wider initiative to establish a major wagon-building cluster in Atyrau. As part of this strategy, TEXOL Group is producing and servicing the necessary components. In July 2025, the group launched an automated workshop for the production and overhaul of wheelsets with an annual capacity of up to 10,000 units. Earlier, in spring 2025, the company began developing production facilities for wagon castings with an annual capacity of up to 30,000 tonnes of small and medium-sized cast components, as well as tank shells. The Atyrau cluster is further strengthened by the operation of its own engineering centre, KazTsTT, and by the development of facilities for rolling stock testing and certification.
ZIKSTO
The wagon manufacturer ZIKSTO, part of Railways Systems KZ, is located in Petropavlovsk and boasts more than 80 years of production history. It has been manufacturing freight wagons since 2008, becoming the country’s first enterprise to master this type of rolling stock. Production scaling began in the early 2020s with the launch of 80-foot container flat cars manufactured under licence from Russia’s Kanash Car-Building Plant for KTZ Express. According to ROLLINGSTOCK estimates, more than 550 wagons were produced at ZIKSTO in 2024. The company’s record output came in 2021, when over 1,000 freight wagons were registered.
The well car from ZIKSTO. Source: KTZ
ZIKSTO is currently expanding its production capacity. According to the plant’s director, Mr Danis Araslanov, an investment project is under way to build a new 12,000 m² workshop, which will enable annual output to reach 3,000 wagons.
The 15-3214 tank wagon from ZIKSTO. Source: Social Media
The plant is also expanding its freight wagon portfolio. In summer 2025, ZIKSTO rolled out the country’s first tank wagon, model 15-3214. However, its tank shell was sourced from another CIS manufacturer, as the plant is still working on establishing its own production of tank shells. Another innovation was the prototype of a piggyback car, built in autumn 2024 for testing double-stack container transport. In the near future, new models of gondola cars, autoracks and box cars are expected to be introduced to the market.
Other wagon builders in Kazakhstan
Kazakhstan Car-Building Company is also one of the established players in the country’s wagon-building market. It was founded on the basis of the Taman wagon repair depot in Ekibastuz in 2008. Formerly owned by Kaztemirtrans, the plant is now part of SMP Group. The enterprise produces mainly gondola cars with unloading hatches, model 12-9846. During a visit to the plant in spring 2025, Kazakhstan’s Prime Minister Olzhas Bektenov noted that the plant’s production capacity had expanded to 240 wagons per month.
Cool Infinity was established in 2018. Freight wagon manufacturing is carried out at the facilities of the Petropavlovsk Heavy Engineering Plant, based on the company’s own design documentation. The company specialises in the production of isothermal wagons, including thermal wagons, models 16-1807-04 and 16-9577, and autonomous refrigerated wagons, model 16-1881.
First gondola cars built at the Semipalatinsk Machine-Building Plant. Source: SMZ
The youngest national manufacturer is Semipalatinsk Machine Building Plant, which has recovered after several years of financial difficulties. At the end of 2024 it obtained a conformity certificate under TR CU 001/2011 for the serial production of gondola cars, model 12-6777. Government officials noted that the plant will reach a production capacity of 600 wagons per year.
Passenger coach market
Kazakhstan’s passenger coach fleet numbers around 2,500 units. The main owner and operator is Passenger Transportation, a subsidiary of KTZ. Established in 1998, the company provides railway services for passengers, postal consignments, luggage and parcel freight on regional, interregional and international routes. It was granted the status of national operator in December 2004.
Coaches by Talgo in the Passenger Transportation fleet. Source: KTZ
As of August 2025, Passenger Transportation had a fleet of 2,204 units: 1,346 coaches, 732 Talgo 250 coaches, and 126 MU cars. The average age of the operator’s fleet is estimated at 16 years. The rest of the passenger rolling stock is distributed among private operators, including Turan Express (100 coaches) and Turksib Astana (more than 140 coaches).
Passenger coaches of the Turan Express operator. Source: Turan Express
In recent years Kazakhstan has been implementing a large-scale programme for renewing its passenger coach fleet. In 2023, Passenger Transportation received 102 new coaches from ZIKSTO, followed by a further 118 in 2024. At the end of 2025, the operator is also due to begin receiving coaches from Swiss manufacturer Stadler Rail.
At present, ZIKSTO and Stadler Rail are the two key players shaping the passenger coach manufacturing sector in Kazakhstan.
ZIKSTO
The development of passenger coach production competencies at the Petropavlovsk plant began in 2022, when it obtained a conformity certificate under TR CU 001/2011 for the manufacture of compartment coaches, model 61-4440, and non-compartment coaches, model 61-4447, intended for subsequent deliveries to KTZ. The first 11 compartment coaches from ZIKSTO were handed over to the operator in early 2023.
Passenger coaches produced by ZIKSTO. Source: KTZ
Both coach models were developed by the TMH plant in Tver and have been produced in Russia since 2008. As TMH General Director Mr Kirill Lipa recently told LogiStan, the passenger rolling stock project in Kazakhstan envisages a phased increase in the share of locally manufactured components. At present, the Russian side supplies coach kits and various assemblies and components. Railways Systems KZ has stated that by 2030 it aims to achieve more than 50% localisation in passenger coach production.
The EP3D electric multiple unit at the Karaganda-Sortirovochnaya depot. Source: Maxim Aleksandrov / railgallery
The expansion of ZIKSTO’s passenger rolling stock portfolio is ongoing. In 2024, the company launched SKD assembly of EP3D EMUs, also developed by TMH and in serial production since 2016 at the TMH plant in Demikhovo. According to KTZ, the Passenger Transportation company has already received three of these EMUs from ZIKSTO. In addition, the plant has set up serial production of baggage-mail coaches. According to the official website of Railways Systems KZ, its facilities are capable of producing up to 500 units of passenger rolling stock per year.
Stadler Rail
The Swiss manufacturer entered the Kazakhstan market in 2022 by securing a large-scale contract for the supply and maintenance of 537 coaches of various modifications (with a subsequent order placed for an additional 20 coaches). Along with the contract, the company took over Tulpar, a car-building plant in Astana, which was built in 2011 as part of a previous major KTZ order for passenger rolling stock from the Spanish company Talgo. In the brief period between ownership by European players, Tulpar was managed by the Russian TMH, which revived production after a significant downtime and assembled over 200 passenger coaches.
The body of a passenger coach by Stadler for Kazakhstan. Source: Egemen
This year, Stadler Rail is producing its first coaches: as noted by the Samruk-Kazyna investment holding, 51 coaches are scheduled for delivery to Passenger Transportation by December 2025. The contract envisages a gradual increase in local production of rolling stock to 35.2% by 2030, when, according to the approved schedule, Stadler Rail will complete its deliveries. It is worth noting that before this, Stadler had experience only in small-series production of passenger coaches.
Locomotive market
As of August 2025, Kazakhstan’s locomotive fleet comprised approximately 1,900 units. The largest freight and locomotive operator is KTZ – Freight Transportation, established in 2016 as part of KTZ. Its production complex includes 1,700 locomotives and 30 locomotive depots. A dedicated legal entity, KTZ – Passenger Locomotives, is managing passenger locomotives.
The country is also seeing development of private freight operators managing their own locomotive fleets. Since 2018, two private operators—DAR Rail and Silkway Transit represented by TTT-Service—have been active in the market. DAR Rail owns a fleet of 44 mainline electric and diesel locomotives of Soviet design and plans to purchase about 110 locomotives in future, according to the local Association of Freight Rail Carriers.
TTT-Service operates a fleet including 33 mainline diesel and electric locomotives, as well as 33 shunting diesel locomotives. The company is already investing in fleet renewal and purchased 11 2ES7 electric locomotives in the early 2020s.
KZ4AT electric locomotives by Alstom at the Almaty-2 railway station. Source: wikimedia
Overall, Kazakhstan’s locomotive fleet is characterised by a high degree of wear and ageing: in 2024, 43.8% of locomotives had been in service more than 25 years. Against this backdrop, the fleet is undergoing active renewal, with the share of locomotives aged up to 5 years increasing from 7.7% in 2021 to 23.9% in 2024. Currently, locomotive production takes place at two plants in Astana: Locomotive Kurastyru Zauyty (LKZ), part of the American Wabtec, and Elektrovoz Kurastyru Zauyty (EKZ), owned by the French Alstom. Russian manufacturers remain active competitors in the market, while in recent years Chinese producer CRRC has strengthened its presence significantly.
LKZ of Wabtec
LKZ began operations in 2009 as a facility of the American GE Transportation, acquired by Wabtec in 2019. The plant specialises in the production of diesel locomotives. Between 2013 and 2024, 50% of the asset was also owned by TMH, but in February 2024 Wabtec bought out the Russian manufacturer’s share and became the sole owner of the plant.
The factory produces single-section mainline diesel locomotives based on the Evolution series: the freight TE33AS and the passenger version TEP33A. Since 2020, the production of shunting diesel locomotives TEM11A has also been established.
Diesel locomotives production at LKZ. Source: egemen
Current production capacity at LKZ of Wabtec is estimated at 130 locomotives per year, with a localisation level of around 40%. Plans are in place to increase localisation to over 50% amid future deliveries. In 2023, Citibank granted a credit line to KTZ, which, according to negotiation participants, is expected to enable the purchase of about 240 locomotives from Wabtec.
LKZ supplies diesel locomotives both to Kazakhstan’s domestic market and for export. The rolling stock has already been delivered to Mongolia, Kyrgyzstan and Tajikistan. One of the company’s planned projects is converting some previously delivered mainline diesel locomotives to liquefied natural gas for KTZ.
EKZ of Alstom
EKZ started operating in 2012 as a joint venture between Alstom, KTZ and TMH to produce freight and passenger electric locomotives based on the Prima platform. Since March 2022, the enterprise has been 100% owned by Alstom.
KZ8A electric locomotives production at EKZ. Source: Alstom
Under long-term contracts with KTZ, the plant has put into serial production the two-section mainline freight electric locomotive KZ8A and the single-section passenger electric locomotive KZ4AT. According to Alstom, EKZ’s production capacity today allows for up to 100 electric locomotive sections per year. The manufacturer states that localisation has reached 31%, but this is expected to increase to 39% with the implementation of future contracts.
It was additionally announced that the plant would commence production of a new model of freight electric locomotives with asynchronous traction motors, the six-axle KZ6A. This locomotive will also be built on the Prima platform.
Other locomotive suppliers
Kazakhstan’s locomotives have also been supplied from other countries, including locomotive manufacturers in Russia. For example, in 2023 TMH delivered four 2TE25KM mainline freight diesel locomotives to KTZ – Freight Transportation. Russian locomotives have also been supplied to private operators: the 2ES7 electric locomotives for TTT-Service were delivered by Sinara – Transport Machines.
2TE25KM mainline diesel locomotives by TMH for KTZ. Source: Andrey Remin / railgallery
However, a key trend in recent years on Kazakhstan’s locomotive market is the expanding presence of the Chinese manufacturer CRRC. In October 2023, CRRC and KTZ signed a framework agreement for the supply of 100 mainline and 100 shunting locomotives, including the establishment of an engineering and service centre, with total investments announced at $200 mln. The delivery of the first CKD6S shunting diesel locomotives began in summer 2024, while the mainline TE36A diesel locomotive is currently undergoing certification tests.
The CKD6H hybrid shunter by CRRC. Source: KTZ
The expansion of CRRC in Kazakhstan and, accordingly, the 1,520 mm gauge space market continues. In 2025, a new shunting locomotive model, the CKD6H with hybrid traction from a diesel engine and batteries, was produced, and plans were announced to acquire 270 hybrid locomotives. Meanwhile, the CEA1 electric locomotive was produced on order from TTT-Service, marking CRRC’s first electric locomotive for the Kazakhstan market. Furthermore, the Chinese manufacturer has been working on local production facilities for KTZ, with agreements on creating integrated centres for the production and overhaul of mainline and shunting diesel locomotives fixed in June 2025.
Prospects
Kazakhstan’s transport and logistics market is growing rapidly, aided by the country’s geographic location between Europe and Asia. Railways play a significant role in Kazakhstan’s transport system both for local cargo shipments and transit traffic. High growth rates are expected to continue in the country’s railway sector, positively impacting connected industries.
As the review shows, the transport building industry in Kazakhstan has actively developed in recent years. Besides domestic manufacturers, global players compete in the Kazakhstan market today, including Chinese, European, American, and Russian producers. The development of rolling stock production for Kazakhstan’s public-use railways opens up markets in all Eurasian Economic Union countries unified by shared technical regulation. Thus, rolling stock and component production in Kazakhstan has high export potential.
Author: Aleksandr Slobodyanik, Analysis and Consulting Project Head Manager, ROLLINGSTOCK Agency
Read further:
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Alstom to launch production of new electric locomotives in Kazakhstan
CRRC produces new mainline diesel locomotive for EAEU market
CRRC produces first hybrid shunting locomotive for Kazakhstan
CRRC produces first mainline electric locomotive for Kazakhstan
