How Kazakhstan is poised to drive Wabtec’s growth in Central Asia

Known as the ‘Land of the Nomads’, Kazakhstan gets its name from the Turkic work ‘Kazakh’ meaning ‘to wander’, and the Persian suffix ‘-stan’ that implies ‘the place of’. Kazakhstan’s historical significance goes back to the Silk route, the earliest known trade corridor connecting Asia and Europe. And this history extends into the modern world today. As the largest country in Central Asia, Kazakhstan is a crucial part of the ‘Middle Corridor’, also known as the Trans-Caspian International Transport Route (TITR), a trade route that connects Southeast Asia and China to Europe.

Between its most distant points, Kazakhstan measures about 1,820 miles (2,930 kilometers) east to west and 960 miles north to south. Given that the country is land-locked, and with primarily desert and mountainous terrain, railways form a critical part of Kazakhstan’s transportation infrastructure. This route has gained even greater significance in recent years due to the current geopolitical situation in Central Asia.

A rail technology hub for the Central Asia region
Over the past 20 years, GE Transportation, now Wabtec, has played a key role in the transformation of Kazakhstan`s rail industry. Between 2004-2007, more than 400 units of the existing diesel freight locomotive fleet were modernized, and since 2009, the transfer of advanced technology for the assembly of diesel freight, passenger and shunting locomotives has been underway.

While we initially started services in Kazakhstan with a locomotive modernization program, we began to grow engineering capability to build new locomotives. Gaini Duisenova, Vice President, Field Services and Maintenance Management, a long-time employee who has seen the evolution of Wabtec in Kazakhstan, shares, “GE Transportation, which later merged with Wabtec, came to Kazakhstan when there were no international companies in heavy engineering. Our company opened a new page in Kazakhstan history with the production and servicing of Evolution diesel mainline locomotives. I am glad to be part of that change.”

Growing our manufacturing might 
With a vision to become a manufacturing and technology center, construction of the Lokomotiv Kurastyru Zauyty (LKZ) factory in Astana began in 2007. LKZ was originally built in partnership with Kazakhstan Temir Zholy (KTZ), the country’s state-run railroad. The plant meets all global quality standards, such as ISO 9001-2001, and employs about 700 people, most of whom were trained at production sites in the United States.

Since opening in 2009, LKZ has manufactured more than 550 diesel Evolution Series diesel locomotives for KTZ and several regional customers. Wabtec acquired full ownership of the LKZ factory in December 2023. With the full manufacturing might of LKZ added to the Wabtec footprint, the ambition to drive exports for the region has grown stronger.

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“Since the LKZ factory manufactures locomotives for 1520-gauge operation, which is standard in Central Asia, we have exported to all countries in the region including Tajikistan, Mongolia, Moldova, Ukraine, etc. Now that LKZ is 100% owned by Wabtec, plans are on to expand the range of operations beyond the region as a supplier of components, systems and subsystems for our global operations,” says Gokhan.

Wabtec also has eight service shops in Kazakhstan providing scheduled and unscheduled maintenance of locomotives in the KTZ fleet as well as an engine overhaul facility, Astana Diesel Service (ADS). It’s the only facility outside the United States with state-of-the-art technology to remanufacture and overhaul not only our GEVO12 diesel engines but also other locomotive components.

The secret to Wabtec’s success – our people 
With growing business momentum and the LKZ factory in the fold, Wabtec is proud to maintain a strong, committed labor force. There are currently about 1,000 Wabtec employees working at facilities in Kazakhstan.

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“Most of our employees grew up with us in the last 20 years,” says Ruslan Unaibekov, Regional HR Business Partner. “We are proud to have truly diverse team with strong women leaders such Gaini, our country leader, our commercial leader, and our CFO.”

The Government recognizes the significant investments made by Wabtec in Kazakhstan. In November 2023, Kazakhstan’s Prime Minister awarded Wabtec for its continuous investments in the technology and people of the region.

“A progressive and open-thinking local government has been an important growth driver for Wabtec in Kazakhstan. They understand the importance of railways in driving the local economy,” says Gokhan Bayhan, Regional Sr. Vice President, Operations – Central Asia. “They are very open to new ideas, new projects, and they look very seriously to every project that's going to make their operation more effective and efficient. So, that has been a blessing.”

Wabtec has also been working to build the local skilled talent pool. We recently signed a memorandum of cooperation with the Bolashak program to attract young professionals and support the introduction and development of the railway industry.

New Technology and Engineering Center to develop next-generation sustainable products
On July 11, 2024, Wabtec opened a new Technology and Engineering Center in Astana, based out of the LKZ plant.

According to Yogesh Kumar, Vice President, Technology, the Center comprises a team of domain expert design engineers and manufacturing technologists who will lead the development of next-generation sustainable technology products to enable future growth in the region, while reducing the carbon footprint.

“This Center will play a pivotal role in integrating locomotives with smart technologies developed by Wabtec’s Digital Intelligence business. The experts at this Center will utilize modern engineering tools and contemporary collaboration technologies to integrate seamlessly with global teams. We’re also partnering with local universities and scholarship institutions to develop a talent pipeline,” says Kumar.

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From a position of strength to becoming a regional force 
Global reach, sustainability, and digitalization will drive Wabtec’s future growth in the region.

“With the Middle Corridor getting busier than ever, there is an even greater focus on running railway operations as efficiently as possible to cater to the burgeoning demand. We have the most efficient fleet. But how can we utilize it better? So, we see a switch towards digital products as well,” says Gokhan.

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In September 2023, Wabtec signed a framework agreement with KTZ and the President of Kazakhstan to extend and advance the production of Evolution locomotives. This memorandum will help address the increased demand for freight haulage in Kazakhstan and the central corridor.

“The Kazakh Government has set aggressive green targets for 2030 and beyond. While we have made considerable progress on making our diesel locomotives more green and sustainable, the next generation is LNG and hydrogen and battery locomotives, which will align with their sustainability goals,” Gokhan continues.

Wabtec’s partnership with KTZ continues to deliver positive results for Kazakhstan. Summing up his thoughts about the future, Gokhan says, “We're now moving on to the next phase with new sustainable technologies around locomotives, but also with digital. In addition to continued growth in Kazakhstan, we will look to spread our wings to the rest of Central Asia.”