Business
Afghanistan’s Railways Authority reviewing operating contracts
Afghanistan Railways Authority (ARA) officials have said that operating contracts with neighboring countries for Afghanistan’s railway stations were formalized without taking the country’s best interests into consideration.
According to officials, tens of millions of dollars has been paid annually to companies from neighboring countries to run the stations.
ARA’s new leadership is now however working on a plan to outsource the operation of railway stations to Afghan companies so that it can benefit the Afghan national economy directly.
Bakht-u-Rehman Sharafat, director of ARA, said an Uzbekistan company has the contract to operate the port of Hairatan at a cost of $18 million a year. However, local companies are prepared to do the same work for much less, he said.
“The port of Hairatan, through which we carry most of our shipments, has been contracted by an Uzbek company for $18 million a year, while Afghan companies will do this for less than 25 percent of this amount,” said Sharafat.
Afghanistan’s private sector has also called on the country’s railway authority to increase trade capacity at its ports.
Members of the private sector said the local economy will improve if railway services expand.
“If we can do our export by rail, it will be cheaper for us and with that we will be able to expand our exports and lower our prices,” said Abdul Jabar Safi, the director of the Afghanistan Industries Association.
Ariana Afghan Airlines has announced a reduction in cargo service rates on the Kabul–Delhi route as part of efforts to support Afghanistan’s trade and export sector.
The airline said the new cargo rate has been set at $1.20 per kilogram, a move intended to make air freight more affordable and accessible for Afghan traders and exporters.
Bakht-ur-Rahman Sharafat, head of Ariana Afghan Airlines, said the decision is expected to play a significant role in increasing exports of domestic products and strengthening commercial activity between Afghanistan and India.
He added that Ariana will continue to introduce new measures in the future to improve its services and better meet the needs of its customers.
Thirteen trade and investment memorandums of understanding (MoUs) worth more than $100 million were signed between private sector representatives of Afghanistan and Uzbekistan during a conference held in Kabul on Saturday.
The conference, which brought together business leaders and officials from both countries, focused on expanding bilateral economic cooperation, increasing trade volume, and identifying new investment opportunities.
Speaking at the event, Nooruddin Azizi, Minister of Industry and Commerce of Afghanistan, said economic relations between Afghanistan and Uzbekistan have gained notable momentum in recent months. He stressed that Afghanistan is actively working to strengthen regional trade ties and create a more favorable environment for investors.
Azizi added that Afghanistan offers significant investment potential, particularly due to its available workforce and emerging opportunities across multiple sectors, and is ready to welcome joint ventures with foreign partners.
Officials from the Ministry of Industry and Commerce of Afghanistan said the government has facilitated around $2 billion in investment across various sectors over the past year, reflecting growing investor interest in the country’s economy.
The Uzbek delegation also reiterated its commitment to expanding economic relations with Afghanistan, describing the agreements as an important step toward deeper regional cooperation.
Amanbay Orynbayev, head of Uzbekistan’s Karakalpakstan delegation, said his country places strong emphasis on long-term, transparent, and reliable economic partnerships. He encouraged Afghan traders to take advantage of joint investment opportunities to access new regional markets.
The Afghan private sector welcomed the agreements, expressing hope that increased trade engagement and business exchanges will further strengthen economic ties between the two neighboring countries.
Officials noted that the total value of agreements signed between Afghanistan and Uzbekistan has now exceeded $1.5 billion. If implemented effectively, these commitments are expected to contribute to increased trade flows and broader economic growth in Afghanistan.
A new multimodal freight corridor linking China and Afghanistan via Turkmenistan has been officially launched, aiming to improve the speed and efficiency of overland cargo transportation across Central Asia.
According to the Turkmenistan Embassy in London, the country has become part of a newly established route designed to accelerate freight deliveries between China and Afghanistan.
The corridor, developed with the involvement of Uzbekistan Railways’ subsidiary Uztemiryulcontainer, covers approximately 7,400 kilometers and is expected to reduce transit time to around 30 days, improving overall logistics efficiency.
Under the new route, containers are transported by rail from China through the Altynkol station in Kazakhstan, continuing via Uzbekistan to a logistics hub in Bukhara. From there, cargo is transferred to road transport and moved across Turkmenistan before reaching Herat in Afghanistan.
Officials say the new system integrates rail and road networks into a unified logistics chain, making transport more predictable and efficient.
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