China Builds USD 8 Billion Railway to Cut Europe-Asia Travel by 8 Days

China starts building a USD 8 billion railway to connect with Central Asia, cutting transport times to Europe by up to 8 days.

For years, China has heavily invested in railway infrastructure and shows no signs of slowing down. The latest project aims to connect northwestern China with Uzbekistan, marking a significant development in the Belt and Road Initiative (BRI).

#Uzbekistan is scrapping taxes on key services for int'l trade. From March: no tax on rail freight wagons & containers. By April: freight storage, loading/unloading, customs clearance & insurance also tax-free. Big move for #China-#Kazakhstan-Uzbekistan rail route #Logistics… pic.twitter.com/5n4pc0d0yp

— Aybaniz Ismayilova (@AybanizIsm) January 9, 2025

Construction Begins in Late 2024

At the end of 2024, construction began on a railway stretching from Kashgar in China’s Xinjiang Autonomous Region to Andijan in Uzbekistan, passing through Torugart, Makmal, and Jalalabad in Kyrgyzstan. The route follows the ancient Silk Road and is an integral part of China’s broader Belt and Road transport strategy.

The project is based on an intergovernmental investment agreement ratified in June 2024 by Kyrgyzstan and China. CKU Railway Company Ltd., established in July 2024, will oversee the design, construction, financing, operation, and maintenance of the railway.

The railway is expected to cost USD 8 billion, with a capacity to transport 15 million tons of cargo annually. It will span 523 kilometers, with 213 km in China, 260 km in Kyrgyzstan, and 50 km in Uzbekistan.

Infrastructure to Boost Global Trade

The project includes logistics centers, transfer hubs, and related infrastructure along the transport corridor. Kyrgyz President Sadyr Japarov views the project as a cornerstone for transforming Kyrgyzstan into a major transport hub and integrating it into the global economy.

On a broader scale, the railway will enhance connections between Europe, Central Asia, and China, shortening the shipping distance from Europe to China by 900 kilometers and saving 7-8 days in transit time. China is already considering extending this railway corridor into northern Afghanistan, further expanding its reach.

Decades in the Making

The CKU railway project has been under discussion since 1997, with numerous conflicting interests delaying progress. Disputes included disagreements over the track gauge. While Kyrgyzstan and Uzbekistan advocated for the existing broad-gauge system, China initially insisted on standard-gauge tracks. Ultimately, China conceded on this issue, paving the way for construction to begin.

Source: newsilkroaddiscovery.com