Turkmenistan and Afghanistan have signed a contract for the development and investment in the expansion of the Turgundi dry port in the Afghan province of Herat, the Tolo News portal reported.

According to the agreement, the initial investment in the expansion of the port will be 5 million USD. The project includes the construction of warehouses, design and creation of new facilities for loading and unloading commercial cargo.

The contract was signed between the ministry's Railways Authority and Turkmenistan's state railway construction company, "Demiryollary gurlushyk", the Afghan Ministry of Public Works confirmed. The deal is part of a broader bilateral effort to align the two countries' rail networks and facilitate cross-border trade.

"The agreement envisages the construction of new warehouses and facilities that will be used for cargo handling along the Turghundi-Herat railway line," said Mohammad Ashraf Haqshenas, spokesman for Afghanistan's Ministry of Public Works.

According to him, the investments will be made by Turkmenistan, but the project will be implemented on the territory of Afghanistan in accordance with national legislation. "Upon completion of the project, the costs will be reimbursed to the Turkmen company from the income received from the operation of the facilities," added Khakshenas.

The project is expected to increase trade transit between Afghanistan and Turkmenistan, which will contribute to broader regional economic integration.

Turkmenistan is one of Afghanistan's key economic and trade partners. In addition to supplying electricity, oil and gas, the countries cooperate on major regional projects, including the TAPI gas pipeline, the development of fiber-optic networks and railway infrastructure, Tolo news notes.