Kazakhstan's railway industry is set to receive a significant boost as Kazakhstan Temir Zholy (KTZ), the national railway company, and Westinghouse Air Brake Technologies Corporation (Wabtec) inked a landmark framework agreement on strategic cooperation during President Kassym-Jomart Tokayev's visit to New York for the 78th session of the United Nations General Assembly on September 17. The agreement holds the promise of revitalizing the country's railway sector and elevating Kazakhstan's role in the international transport and logistics arena.
Wabtec, a Fortune 500 company and a global leader in transportation and logistics, is committing to invest approximately $1 bn in Kazakhstan's transport and logistics industry. This substantial investment will fuel the development of locomotives utilizing cutting-edge hydrogen technologies and related components. Wabtec President and CEO Rafael Santana outlined the ongoing projects designed to revolutionize locomotive production in the region and enhance the country's railway infrastructure. Furthermore, the partnership envisions the establishment of an engineering center and the transfer of advanced technology to Kazakhstan.
President Tokayev expressed his optimism about these initiatives, emphasizing their potential to bolster the Trans-Caspian International Transport Route, which serves as a cornerstone for other critical infrastructure projects in the region.
Wabtec stands as a global frontrunner in the field of transportation and logistics, boasting a workforce of over 27,000 individuals spread across over 50 nations.
In another significant development, KTZ also entered into an agreement with Citibank, the only American bank with a presence in Kazakhstan, to finance the procurement of Wabtec locomotives. This partnership is expected to have a substantial impact on the modernization of KTZ's locomotive fleet.
During a meeting with Citigroup CEO Jane Fraser, President Tokayev praised Citibank's pivotal role in connecting the Astana International Financial Centre (AIFC) with global investors and promoting the digital transformation of Kazakhstan's financial sector. Citigroup has expressed its commitment to finance various crucial projects aimed at enhancing Kazakhstan's transport and logistics potential.
The discussions between the parties extended beyond financing arrangements, as they also delved into macroeconomic forecasts and key trends in the global financial market. Citibank Kazakhstan, a major partner for international investors, the public sector, and large enterprises, was established in line with President Tokayev's directive to attract reliable foreign banks to the country, fostering competition and growth in this sector.
Renat Bekturov, the Governor of AIFC, highlighted the significance of the agreement, which provides a credit line worth $900 mn to procure nearly 240 new locomotives. This investment is poised to upgrade KTZ's locomotive fleet by 15%, marking a substantial step forward in Kazakhstan's efforts to modernize its railway infrastructure and strengthen its position in the global transportation and logistics industry.
The strategic cooperation between KTZ, Wabtec, and Citibank underscores Kazakhstan's commitment to transforming its railway industry and capitalizing on its strategic geographical location to become a key player in the international transportation and logistics sector. With substantial investments and partnerships in place, the nation is set to embark on a journey of growth and development in its railway and transport sectors, ultimately contributing to its economic prosperity and global connectivity.
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