Logistics and Transport Potential of the Region
The transport and logistics potential of Central Asia has always played a significant role in ensuring the development and well-being of the countries of the region. Everyone understands the importance of the Great Silk Road, which connected East Asia with the Mediterranean. This caravan road contributed to the development of cities, ensuring interethnic, interstate economic, cultural and spiritual relations in the region.
Indeed, global development and the life of mankind are directly related to the transport sector. With the expansion of transport logistics, the economy and cooperation are developing, and the bonds of friendship between peoples are strengthening.
The modern transport sector requires new approaches and the implementation of innovative projects. Therefore, the region pays special attention to this area, putting forward new ideas and initiatives to improve it.
In particular, President Shavkat Mirziyoyev, in his speech at the fifth Consultative Meeting of Heads of State in Dushanbe, touching on issues of transport connectivity, noted that taking into account the geographical distance from the main foreign markets, the share of costs for transporting goods in our countries is about 50 percent of the final cost of goods . At the same time, the world average does not exceed 11 percent. As a result, the economies of the Central Asian countries are forced to bear a transport load two to three times greater than in developed countries.
Based on this, the head of our state proposed, within the framework of meetings of sectoral ministers, to develop an Agreement on Transport and Transit in Central Asia, to form specific mechanisms for promoting effective transport corridors to enter the markets of China, the countries of South Asia and the Middle East, and the European Union using through tariffs, favorable for business. It was also proposed to prepare a Program of Measures to liberalize the transport services market, optimize permitting procedures and consider issues of creating an integrated digital platform for international transport.
The Central Asian region is a large consumer and production market. Its further development and expansion depends on the implementation of the above initiatives.
In the first half of this year, the volume of cargo transportation between Uzbekistan and the countries of the region amounted to 23.3 million tons, which is 22.9 percent more than for the same period in 2022. The indicators indicate the effectiveness of interaction in the transport, logistics and transit sector at all levels.
Today, as a result of political events taking place in the international arena, international logistics directions are changing dramatically. The development of transport infrastructure in Central Asia plays a stabilizing role in the vast expanse of Eurasia, acting not only as a transit corridor, but also as a production and logistics hub connecting North – South and East – West.
The Logistics Performance Index (LPI) is a rating index for comparative analysis of the efficiency of logistics systems in countries around the world. Published by the World Bank every two years. The report measures competitiveness using six components that define the Logistics Performance Index. About 160 countries are assessed. And the score varies between 1 and 5 points. The index is based on a survey.
In the 2023 logistics index, Uzbekistan rose by 11 positions and took 88th place. Kazakhstan dropped eight positions to 79th place. Tajikistan, having improved its results by 37 positions, ended up in 97th place. Kyrgyzstan dropped 15 positions and took 123rd place. The indicators require further strengthening of actions in this direction.
In order to develop the transport infrastructure of Central Asia, at the initiative of Uzbekistan, it is planned to implement two projects – the construction of the China – Kyrgyzstan – Uzbekistan and Uzbekistan – Afghanistan – Pakistan railway lines.
In the six months of this year, the number of freight trains running between China and European countries amounted to 8,641, which is 16 percent more than in the same period in 2022. Including 936 thousand containers were transported by freight trains on the route China – Europe (an increase of 30 percent).
The construction of the China-Kyrgyzstan-Uzbekistan railway will allow directing a certain part of China-Europe freight flows through Central Asia, including through Uzbekistan, and significantly reducing transport costs for export-import cargo transportation.
At the SCO summit held on September 15-16, 2022 in Samarkand, a trilateral memorandum of cooperation on the project for the construction of this railway was signed by the relevant departments of Uzbekistan, Kyrgyzstan and China. In addition, the Center for the Study of Problems of Transport and Logistics Development under the Ministry of Transport of the Republic of Uzbekistan conducted research on the formation of a multimodal transport corridor China – Kazakhstan – Kyrgyzstan – Uzbekistan – Turkmenistan – Iran – Turkey. As part of the SCO forum planned for November this year, it is expected that a working group will be created to develop this corridor and a road map will be signed.
And the construction of the Uzbekistan-Afghanistan-Pakistan railway line primarily contributes to improving the political situation in neighboring Afghanistan and the access of the countries of the region through Pakistani ports to the Indian Ocean. Tripartite negotiations were held on this issue in July this year in Islamabad (Pakistan).
In short, the Central Asian states actively cooperate in the name of sustainable development of the region and, against this background, give priority attention to issues of transport logistics. Because all Central Asian countries will be the beneficiaries of the measures taken to develop international transport corridors, improve the logistics system, and effectively use the transport and transit potential of the region.
