Over Four Billion Dollars Approved for China-Kyrgyzstan-Uzbekistan Railway: New Freight Line Construction Begins, Enhancing Trade Connectivity

Published on December 20, 2025

A major step has been taken towards the construction of the China-Kyrgyzstan-Uzbekistan railway, with a $4.7 billion financing agreement officially signed. This deal, involving the China-Kyrgyzstan-Uzbekistan Railway Company and a consortium of Chinese banks including the China Development Bank and Exim Bank of China, will facilitate the construction of a 486 km railway that will link China, Kyrgyzstan, and Uzbekistan. The railway is set to create a vital transit route for freight between China and Europe, enhancing trade and regional connectivity.

Details of the Financing Agreement

The funding package consists of a $2.3 billion loan provided by Chinese banks, which will be repaid over a 35-year period. The remainder of the funding will be injected as equity into the project company, with China holding a 51% stake and Kyrgyzstan and Uzbekistan each owning 24.5%. This structure ensures that China remains the majority stakeholder, while also providing significant investment from the two Central Asian countries.

The agreement allows construction to proceed in earnest, with work officially starting on December 27, 2024. This marks a major milestone in the development of regional infrastructure and promises to open up new trade routes for the three countries.

Construction and Route Details

The new single-track railway will have a design speed of 120 km/h and will run from Kashgar in China to the Torugart border with Kyrgyzstan. From there, it will pass through the cities of Makmal and Jalalabad in Kyrgyzstan before reaching Andijan in Uzbekistan. The line will feature 50 bridges and 29 tunnels, totaling 120 km of tunnel infrastructure, and will be constructed with provisions for future electrification, ensuring long-term scalability and sustainability.

The railway’s capacity is expected to reach up to 12 million tonnes of freight per year, making it a critical link for goods traveling between China and Europe. Once completed, this route will offer a faster and more efficient alternative to existing overland transport routes, promoting economic growth in the region.

Strategic Importance for Trade and Connectivity

This new railway line will significantly enhance trade and connectivity between China, Kyrgyzstan, Uzbekistan, and beyond. By creating a direct route for freight transport, it will reduce transportation time and costs, making it an essential part of the broader infrastructure connecting Asia with Europe. The railway will support China’s Belt and Road Initiative (BRI), contributing to the development of trade corridors that facilitate the movement of goods between East Asia and the European markets.

The project also has broader geopolitical and economic implications, as it strengthens the ties between China and Central Asia, fostering closer cooperation in trade, energy, and infrastructure development. For Kyrgyzstan and Uzbekistan, the railway provides an opportunity to boost their economies by becoming key transit hubs for goods traveling between China and Europe.

China-Kyrgyzstan-Uzbekistan Railway Project Receives Major Financing for Construction

A significant milestone has been reached with the approval of a multi-billion-dollar financing package for the China-Kyrgyzstan-Uzbekistan railway project. The deal, which involves a consortium of Chinese banks and the three participating countries, will fund the construction of a 486km railway connecting China, Kyrgyzstan, and Uzbekistan. This new railway aims to improve freight transport efficiency between China and Europe, with the capacity to handle millions of tonnes of cargo annually. Starting construction in late December, the line will feature modern infrastructure, including bridges and tunnels, and will be designed for future electrification, ensuring long-term sustainability. Once completed, the railway will strengthen trade connections, reduce transport costs, and play a crucial role in the Belt and Road Initiative, boosting the economies of the three nations involved while enhancing global trade links.

Conclusion

With the $4.7 billion financing agreement now in place, the China-Kyrgyzstan-Uzbekistan railway is set to become a vital transportation corridor in Central Asia. Construction is already underway, and once completed, the railway will improve trade efficiency, increase regional connectivity, and support China’s broader economic ambitions in the region. The new route will not only serve as a transit link for freight but will also drive long-term economic growth and development for all three countries involved.