China is to invest USD $600 million in the Khorgos Eastern Gate (KEG) free trade zone in Kazakhstan. This is part of China’s strategy of investing in neighbouring countries’ railways and logistics.

The two countries will work together to improve transit times of goods and look at reducing tariffs on cargo across Kazakhstan. The $600 million will be invested over five years in the KEG site, which is the largest free trade zone in Kazakhstan at over 6,000 hectares.

The Kazakh national railway company Kazakhstan Temir Zholy (KTZ) will receive significant sums to create inland ports, logistics and industrial projects that will further enhance the country’s relationship with China.

Relations between the two countries have improved over the years since the Kazakh – Chinese terminal at Lianyungang was opened several years ago.

China has a record of building high speed cargo and passenger railway lines across the wider region and is actively pushing for a railway ‘Silk Road’ across Asia to Europe, with Kazakhstan a major link in this chain.