Freight wagon surplus in Kazakhstan: pause in purchases

A freight wagon surplus in Kazakhstan has led the country’s largest market operator — “Kaztemirtrans” (part of KTZ) — to halt new purchases until real demand appears. The pause in fleet renewal, as company chairman Alexander Shyryaev explained, is directly linked to the current market situation. He outlined the decision in an interview with the industry newspaper “Қазақстан теміржолшысы”.

This is reported by the railway transport news portal Railway Supply.

Freight wagon surplus in Kazakhstan: Kaztemirtrans’ decision

Shyryaev recalled that in recent years the operator had been buying wagons exclusively from the domestic manufacturer, LLP “Kazakhstan Car Building Company” (KVK). Now, however, the 1520 mm network has accumulated a noticeable surplus of rolling stock, and there is no active demand for new freight wagons. According to the head of Kaztemirtrans, the existing fleet is sufficient to cover 100% of customer requests, so any further purchases are only possible if the market shows a genuine need.

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Over the past five years, the operator has steadily expanded its fleet. In 2021–2022, Kaztemirtrans acquired 1,000 open wagons, and in 2023–2025 it added another 3,000 units. One of these deliveries was covered in detail by Railway Supply. As a result, the freight wagon market in Kazakhstan has become saturated and, in the company’s view, now risks sliding into stagnation.

Kazakhstan’s freight wagon market: challenges and opportunities

Commenting on the current situation, Alexander Shyryaev highlighted several key challenges for operators. Among them are market stagnation, intensifying competition between players, the risk of fleet reduction, and the growing number of alternative freight routes. At the same time, he stressed that even with a freight wagon surplus, there are still areas where the sector can grow.

Shyryaev pointed to the development of long-term contracts with customers, reductions in empty runs, and the opening of new routes as the main opportunities. In his view, more efficient use of the existing fleet and building long-term relationships with shippers can help operators adapt to changing market conditions.

Freight wagon production and idle KVK capacity

Against the backdrop of this growing surplus, freight wagon production in Kazakhstan has also continued to increase. In 2023, domestic plants produced 536 wagons, and in 2024 output reached 2,565 units. Between January and October of the current year, 2,468 wagons were built in Kazakhstan — 56.3% more than in the same period a year earlier.

One of the drivers behind this growth was the launch, in July 2024, of production at the Atyrau Car Building Plant, owned by TeksоlTrans. The launch and initial results were previously reported by Rail-news.kz. The plant was expected to reach an annual output of up to 6,000–7,000 freight wagons after ramp-up, significantly increasing the sector’s overall production capacity.

Kazakhstan’s Minister of Industry and Construction, Ersayyn Nagaspaev, stated back in August that national operators plan to purchase more than 7,000 freight wagons by 2029. By late September, however, the situation for LLP “Kazakhstan Car Building Company” had become difficult: after completing its last order in May this year, the enterprise has since been idle. Senator Yernur Aitkenov assessed the sector’s potential by noting that the country is capable of producing up to 12,000 wagons per year — a factor that further reinforces the effect of the freight wagon surplus in Kazakhstan.

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