German logistics company Rhenus Logistics has signed a memorandum of cooperation with Kyrgyz Railways. It will help develop Kyrgyzstan’s transit potential, especially in light of the CKU line, which is currently being built.
The two parties dedicate themselves to enhancing Kyrgyzstan’s transit capabilities and logistics hubs, thereby creating an environment favourable to increased transit, export, and import.
Rhenus Logistics says that it will share its expertise on multimodal logistics, terminal development and rail freight. That includes consulting and analytical work, as well as the exchange of know-how and employee training.
“With this Memorandum, we are taking another decisive step in our mission along the Trans-Caspian Corridor”, explains Heinrich Kerstgens, Director of Board Projects at Rhenus Group. “As a family-owned company with a long-term vision and international footprint, we believe in strong partnerships and early investment in regions that are redefining their role in global logistics. Together with the national railway, we are committed to supporting the development of future-oriented logistics infrastructure in Kyrgyzstan and contributing to a more connected and resilient logistics landscape in Central Asia”, Kerstgens concludes.
China – Kyrgyzstan – Uzbekistan
Rhenus Logistics points to the CKU line, which will connect China and Uzbekistan through Kyrgyzstan, as a key ongoing infrastructure project. It will connect Kyrgyzstan to the Middle Corridor and reduce the distance between China and Europe by several hundred kilometres compared to existing routes through Kazakhstan, Rhenus explains.
“Beyond improving connectivity, the project also opens new opportunities for cooperation in rail logistics and infrastructure development – areas where Rhenus can actively contribute its expertise to support the region’s integration into global trade networks.”
Connectivity to international transport corridors is key for landlocked Kyrgyzstan. As such, it is willing to put large sums of money on the table for the expensive CKU line. However, that also means that access charges on the line will likely be rather high to pay for the construction costs. For that reason, Kazakhstan does not feel like it has much to fear from the upcoming competing route.