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The objective of the project is to assist Turkmenistan in diversifying and improving its access to world markets. The project involves trade facilitation and corporatization of the client, introducing the concepts of accountability and cost recovery in readiness for TSA's conversion into a commercially managed autonomous entity.

TKM: Proposed North-South Railway Project - Environmental Assessment Report. Based on its 2007 Presidential Decree, the Government of Turkmenistan (GT) signed a multilateral agreement in 2007, with its neighboring countries to construct new railway tracks to develop the North-South railway corridor for promoting regional trade, cooperation and integration. This is the region’s key route for transporting bulk goods, such as oil and oil products, mineral resources, agricultural products, and textiles.

The significance of the Project is that the proposed north-south railway line will improve Turkmenistan's accessibility to Kazakhstan, the Arabian Gulf countries, the Russian Federation, and South Asia; and increase regional trade. The Project will also contribute to sustainable economic growth in Turkmenistan and development of an integrated, efficient railway system in the region. The Project will reduce the transport cost, cut travel time, and improve accessibility to rural areas of the country. This will generate benefits beyond railway transport cost and time savings.