Transport and Logistics

The Most Important Factor of Economic Integration

1-2/2025

 
     The transport and logistics system are a particularly important area in the economy of every country. The sequential development of the transport and logistics system contributes to the expansion of foreign trade routes, further development of international and regional cooperation, and reduction of delivery times for goods to foreign markets.
     In connection therewith, certain measures are being implemented in Uzbekistan, primarily aimed at the radical development of the transport and logistics system, which aids in the further diversification of foreign trade routes, removal of existing barriers, and optimization of costs. Important initiatives are being carried out, especially to expand cooperation in this field with Turkic countries, opening and developing new corridors. In a context where Uzbekistan is actively pursuing a policy within the Organization of Turkic States, the development of the transport sector with its member states is one of the pressing issues.
     Throughout the conversation with the Minister of Transport of the Republic of Uzbekistan, Ilkhom MAKHAMOV, practical reforms in our country’s transport and logistics system, the development of new corridors, and cooperation with Turkic-speaking countries were discussed.
 
     – Ilkhom Rustamovich, recently the President of the Republic of Uzbekistan adopted a resolution «On measures for the further development of the transport and logistics system of the Republic of Uzbekistan», which approved the concept for the development of the transport and logistics system of Uzbekistan until 2030. Could you please tell us more about this document? What tasks are reflected in it?
     – Actually, a resolution was adopted by the President of Uzbekistan «On measures for the further development of the transport and logistics system of the Republic of Uzbekistan», which includes the approved concept for the development of Uzbekistan’s transport and logistics system until 2030 and a «roadmap» for its implementation.
     The development concept until 2030 defines medium-term and short-term goals, tasks, and key areas for the advancement of the transport and logistics system, which ensures the creation of conditions for sustainable economic growth. The main objective of the concept is to fully meet the needs of the economy and businesses for high-quality cargo transportation services, to achieve the full realization of the country’s transit potential, to reduce transportation costs in monetary terms during import-export operations, and to continue reforms aimed at establishing promising transport corridors. Its priority areas include further diversification of foreign trade routes, optimization of transport and logistics costs, establishment of a modern network of logistics centers, effective use of the country’s transit potential, development of the logistics services market to maximally realize the principle of multimodality, encouragement of the creation of large national transport operators specializing in providing services in 3PL format and above, widespread implementation of digital and innovative technologies in international freight transport, and improvement of the training and retraining system for personnel in the logistics sector.
     In one word, the Concept will serve as a basis for the development of programs and comprehensive measures for the advancement of the transport and logistics system.
     – When the Concept was announced, Uzbekistan was reminded of the need to develop alternative transport corridors. In particular, these corridors run through the territories of Turkmenistan, Azerbaijan, and Turkey. Does this mean that Uzbekistan will be able to balance the share of freight transported via the traditional northern route with the new routes across the Caspian Sea? Considering that changing the mode of transport when crossing the Caspian Sea will lead to increased transport costs, what should be done in this regard?
     – Factors such as the rapidly changing international situation and the rise in geopolitical tension require a comprehensive and coordinated effort to improve transport infrastructure and diversify international trade routes for cargo transportation. The establishment of new international transport corridors and the development of existing ones are part of our daily work plans.
     The importance of international transport corridors is highlighted by the emphasis placed on their development in the Concept. Today, the countries of Central Asia and the Caucasus are developing rapidly, and the sustainable economic growth necessitates further development of the transport and communication complex of our countries.
     The route you mentioned is part of the transport corridor “Countries of the Asia-Pacific Region – China – Kyrgyzstan – Uzbekistan – Turkmenistan – Azerbaijan – Georgia – Turkey – European countries”, to which China is joined, and is being developed as an alternative corridor connecting Central Asian countries with Europe. A number of works have been carried out to develop this corridor, including the signing of the Protocol from the 5-party meeting of the heads of railway administrations (Azerbaijan, Georgia, Kyrgyzstan, Turkmenistan, and Uzbekistan) regarding its development. On December 17, 2021, the Turkish state joined this Protocol, and a Protocol from the 6-party meeting was signed between the parties. These documents provide for the organization of multimodal transport of containerized route trains from China along the “Middle Corridor” and “Southern Corridor” routes, as well as discounts on railway transportation of up to 70 percent.
     The “Middle Corridor” has several routes, and although the route ‘Kyrgyzstan – Uzbekistan – Turkmenistan – Azerbaijan – Georgia – Turkey – European countries’ is geographically considered the shortest in distance on the “China – Europe” route, a number of factors such as high transport costs and the lack of a single cargo document hinder the development of this corridor. To stimulate it, we all (participants of the corridor) must work together. We all need to offer discounts for transit through the corridor and develop infrastructure. A unified cargo order must also be introduced across the corridor, transport processes need to be digitized, and information exchange systems must be implemented at border crossing points. Naturally, all these processes are achieved through the implementation of corresponding measures in mutual harmony of partner relationships. Based on the results of the meeting of the heads of railway administrations held in Baku in 2024, a Coordination Committee for the development of this route was established, and logistics companies responsible for organizing transit container trains were identified.
     There is potential for further development of this corridor through the provision of discounts on both railway freight transport in wagons and container transport, as well as the introduction of a unified freight document. By involving China in this agreement, we will be able to enhance the transit potential of our countries by attracting cargo transported along the China – Europe route.
     – Could you please tell us about how Uzbekistan is integrated into the Trans-Caspian transport corridor. How actively does our country utilize this corridor and what is its share in Uzbek cargo flows?
     – Given the rise in geopolitical tensions in recent years, the Trans-Caspian International Transport Corridor has become the focus of the global community. Speaking at the meeting of leaders from Central Asian countries and the European Union held in Kyrgyzstan in June 2023, the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, emphasized the importance of developing transport and communication links between Central Asia and Europe, primarily through the establishment of the “Middle Corridor”. Currently, Uzbekistan is one of its active users: in 2024, the volume of international freight transportation between Uzbekistan and partners such as EU countries, Turkey, the Caucasus region, the USA, and Brazil reached 2.8 million tons, which accounts for about 5% of the total freight volume transported via the “Middle Corridor”. Furthermore, while the volume of freight through the Baku port in 2023 was 867 thousand tons, it increased by 27% by the end of 2024, reaching 1.1 million tons.
However, there are still issues related to delivery times, high transport costs, limited capacity of the route, and there is also a global problem of the Caspian Sea shrinking.
     Timely systematic work has begun between our countries to address these issues.
     – What steps are being taken to finance transportation projects, particularly those aimed at developing the Trans-Caspian Corridor?
 
 
 
You can read the whole interview in the printed version of the magazine.

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