BAKU, Azerbaijan, December 25. Trend News Agency presents an overview of the most important events of Uzbekistan’s transport sector in 2023.
Road transport
Signed documents
In February of 2023, the National Bank for Foreign Economic Activity of Uzbekistan signed an agreement with the China Development Bank (CDB) to attract a new credit line for 1.8 billion Chinese Yuan ($261.1 million) for the purchase of passenger buses from China.
This credit line will make it possible to finance Uzbekistan’s bus acquisition from major Chinese bus manufacturers, in particular, Chinese King Long will sell 200 city CNG buses to the Uzbek side, while Yutong will supply 500 CNG buses, as well as 300 electric buses.
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In July, Uzbekistan and the Chinese Yutong bus manufacturing business inked a bilateral memorandum that included an agreement to carry out cooperation projects in the field of unmanned autonomous vehicles.
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In October, Uzbekistan Temir Yullari (Railroads of Uzbekistan) and Russian Railways (RZD JSC) signed a memorandum on the development of bilateral and transit railway communication.
The document is aimed at strengthening the partnership in the field of rail transport between Russia and Uzbekistan, as well as the development of multimodal transport corridors and the digitalization of the industry. Education and training of personnel are also considered important aspects of cooperation.
Moreover, the memorandum provides for the realization of the potential of existing and the development of promising international transport corridors.
Meanwhile, RZD’s subsidiary, Russian Railways Logistics, plans to launch 'Pharmexpress', created for the delivery of pharmaceuticals and their components, as well as materials for cosmetics, to Uzbekistan.
Supply of fleet
In September of 2023, representatives from Dongfeng Motor, a car manufacturer, Luoyang Grasen Power Technology, which specializes in the research and development, manufacturing, sales, and service of new energy electric vehicle charging equipment, and Tunghsu Group, which primarily develops, manufactures, and sells liquid crystal displays and plasma display panel glass substrates, visited the region to discuss potential future collaboration.
Dongfeng Motor plans to open production of electric buses, investing $45 million in the project. The volume of investments will rise to $50 million in 2025 to localize the production of batteries and other components for electric vehicles, as well as organize a maintenance service.
Luoyang Grasen Power Technology Company plans to launch the production of electric vehicle chargers in Uzbekistan. The company's potential investment in this project is estimated at $30 million. In addition, Tunghsu Group is ready to invest $50 million in a solar panel project.
Railroad transport
In June of 2023, President of Uzbekistan Shavkat Mirziyoyev signed a decree, according to which part of the functions in the field of transport is transferred to the private sector.
An inspection for supervision in the field of transport is being formed under the Ministry of Transport, which performs supervision functions in the fields of automobile, railway, water, electric transport, metro and road facilities.
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By the end of September, Uzbekistan announced new rules for railway cargo transportation, which will come into force by the end of 2023.
The Rules for the Carriage of Goods by Rail of the Republic of Uzbekistan define the procedure and conditions for the organization of cargo transportation by rail to ensure traffic safety and the integrity of cargo and railway structures in motion.
The document is also aimed at compliance with environmental safety, taking into account the peculiarities of cargo on the public railways of Uzbekistan.
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In October, the International Road Transport Union (IRU) has inaugurated new cargo transportation between Uzbekistan and China, moving through Kazakhstan.
The first heavy trucks left from Uzbekistan’s Samarkand to deliver black currants to the Chinese city of Qingdao. As per data from IRU, the new cargo route will allow for a fast, economic, and safe solution for cargo transportation. The newly launched route is said to deliver goods in a 10-day period, while rail transportation usually takes up to three months.
Moreover, in October, Uzbekistan Temir Yullari (Railroads of Uzbekistan) and Russian Railways (RZD JSC) signed a memorandum on the development of bilateral and transit railway communication.
The document is aimed at strengthening the partnership in the field of rail transport between Russia and Uzbekistan, as well as the development of multimodal transport corridors and the digitalization of the industry. Education and training of personnel are also considered important aspects of cooperation.
Moreover, the memorandum provides for the realization of the potential of existing and the development of promising international transport corridors.
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In October of 2023, Uzbekistan Temir Yullari announced the creation of a number of new separate companies for development of infrastructure, freight cars and logistics, as well as passenger transportation and station management by the end of 2023.
The companies to be created:
Temiryulinfratuzilma JSC — to ensure the functioning of road facilities, power supply, signaling and communication facilities, as well as locomotive facilities, a single dispatch center and freight stations;
Temiryulkargo JSC — for the provision of cargo transportation services, maintenance of freight wagons and containers, organization of multimodal door-to-door transportation, logistics centers and terminals;
Temiryulexpress JSC — for the provision of passenger transportation services by high-speed trains, as well as the maintenance and development of the economy of high-speed trains.
Moreover, two limited liability companies will be created in the structure of Uztemiryulyulovchi JSC to ensure the activities of railway stations and for ensuring implementation of suburban transportation.
Uzbekistan Railways will provide accounting, finance, management, and digitalization, as well as procurement and professional development services to organizations within its structure.
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Agreements
In October, Uzbekistan Railways and Czech Škoda Group automobile company signed a contract for the supply of 30 electric trains worth 320 million euros.
The production of four-car trains for the broad-gauge railway will begin in 2024. The production of the main parts will be carried out at the plant in Czech Republic’s Ostrava, while part of the assembly of cars will be held in Uzbekistan.
The cars will be partially low-floor, equipped with Wi-Fi, as well as with indoor and outdoor video surveillance systems. The company produces similar trains for railway operators in Latvia and Estonia. The project is financed by Czech banks with the support of the EGAP Czech Export Insurance Company.
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In December, Uzbekistan and Russia agreed to create direct
container traffic between Tashkent and Moscow.
FESCO intends to participate in the development of transport infrastructure and projects in the field of digitalization of the logistics industry in Uzbekistan. The company carries out 35 percent of all container transportation to Uzbekistan.
Since the beginning of 2023, the local FESCO Tashkent Shuttle service has delivered more than 7,500 sea containers from Vladivostok to Tashkent.
Air transport
In January of 2023, a new low-cost carrier Centrum Air started its operations in Uzbekistan. The first flight of Centrum Air was carried out on January 18, 2023, on Vilnius - Tashkent route.
The new airline plans to carry out passenger air transportation both from Tashkent to five cities of the country: Nukus, Urgench, Termez, Namangan, and Fergana, as well as to 15 foreign countries on Airbus A320-232 aircraft, as well as on passenger board — a Boeing 737.
The low-cost airline plans to expand its feet to 20 aircraft in 2023, and in the next three years - to 100.
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In September, Uzbekistan opened a new airport in the region of Zaamin. Uzbekistan plans to attract up to 1.5 million domestic tourists and 140,000 foreign tourists a year to the region.
The opening of the airport will serve to increase employment of the population, in particular, in the areas of catering, hotel business, transport infrastructure and services.
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In November, Uzbekistan’s Deputy Head of the Air Transport Development Department of the Ministry of Transport Zhamoliddin Nazarov announced Uzbekistan’s plans to transfer 5 airports to the external management of investors.
He noted that two years prior the Samarkand airport was transferred to external management and got successfully reconstructed.
Agreements
In September of 2023, Uzbekistan and Israel signed a Protocol on Amendments to the Agreement between the Government of the Republic of Uzbekistan and the Government of the State of Israel on Air Traffic signed on July 4, 1994.
The protocol suggests lifting restrictions on the number of air carriers and destinations for air traffic between the two countries, as well as providing new opportunities for the two countries to open promising air routes, attract new airlines, and increase mutual tourist flow.
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In December, Uzbekistan and Bangladesh have signed an agreement on the development of cooperation in the sphere of air transportation. Uzbekistan’s Ministry of Transport said the document entails the elimination of royalty payments previously imposed by the authorities of Bangladesh on Uzbekistan's airlines for each passenger, kilogram of baggage, and cargo transported during flights to the South Asian country.
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In December, Uzbekistan and Canada signed a number of agreements on the provision of the Freedom of Air rights of the first and second degrees.
The signed agreement will allow airlines to fly over the territory of the other country without landing, as well as permit them to make a technical stop for refueling or maintenance without picking up or discharging passengers or cargo.
New flights
In January of 2023, Russian Utair airline has launched flights from Russian Samara to Uzbekistan's Samarkand. The flights on Samara-Samarkand-Samara route are operated weekly on Mondays.
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In May, Qanot Sharq, Uzbekistan’s first private airline, has launched charter flights to Israel’s Tel Aviv. The air carrier plans to operate flights in this direction twice a week – on Mondays and Wednesdays. Currently, the airpark of the air carrier consists of four planes, including Airbus A320-200 and Airbus A321-253NX aircraft.
Moreover, in June, Qanot Sharq line launched regular flights between Samarkand and the largest city of Türkiye, Istanbul. Flights are operated three times a week on Tuesdays, Thursdays and Saturdays.
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In August, Uzbekistan's UzAviation Agency has given several foreign airlines permission to operate regular flights to the country based on intergovernmental agreements on air communication.
Thus, starting on August 3, 2023, Uzbekistan Airways renewed air service on the Tashkent-Bangalore- Tashkent route.
IndiGo (India) has been permitted to fly on the Delhi-Tashkent-Delhi route using A320neo and A321neo planes, and LOT Polish Airlines (Poland) on the Warsaw-Tashkent-Warsaw route using Boeing 737-8MAX planes.
Besides, Malinda Airways (Malaysia) has received permission for Kuala Lumpur-Tashkent-Kuala Lumpur flights on A330 planes.
Also, Russian UVT Aero airline has received approval for regular flights to Uzbekistan on August 17, 2023. The transportation is carried out by CRJ-200 aircraft on the Kazan-Samarkand-Kazan route.
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In September, Turkish Freebird Airlines launched direct charter flights between Samarkand and Türkiye’s Bodrum.
Transport projects
In January 20, Uzbekistan and Kyrgyzstan have established an office for the coordination of the China-Kyrgyzstan-Uzbekistan railway construction project.
As per Uzbekistan Temir Yullari, the idea of creating a joint office was implemented in order to coordinate joint measures to accelerate the practical implementation of the project.
An agreement on the construction of the China-Kyrgyzstan-Uzbekistan railroad (section on the territory of Kyrgyzstan) was signed on the sidelines of the Shanghai Cooperation Organization Summit in Samarkand on September 14, 2022. The deadline for completion of all work on the feasibility study (including the time of the assessment) was assigned for June 1, 2023.
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On July 4, North China's Hebei province launched a new international multimodal transport route to Uzbekistan. After arriving at Kashgar City in China's Xinjiang Uygur Autonomous Region, the goods will be transported via cross-border highways to Kyrgyzstan, where they will be loaded back into trains and transshipped to the final destination of Tashkent, Uzbekistan. The total length of this route, which connects China with Uzbekistan, is about 6,000 km. The train is expected to arrive in Tashkent in about 12 days.
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On July 19, 2023, during the summit of the Gulf Cooperation Council (GCC) and Central Asian countries held in Jeddah, President Shavkat Mirziyoyev proposed to work on applying favorable transit tariffs along the Trans-Caspian International Transport Route (TITR).
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In the beginning of August, Uzbekistan announced its readiness to increase the transshipment capacity of the Middle Corridor to 1.5 million tons. As per Bekzod Kholmatov, Director of the Center for the Study of Problems of Transport and Logistics Development under the Ministry of Transport of Uzbekistan, the volume of cargo transferred between Azerbaijan and Uzbekistan is increasing rapidly, and the Middle Corridor plays an important role in this context.
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In November, the Ministries of Transport of Turkmenistan, Uzbekistan, Iran, and Türkiye signed the Protocol of the Multilateral Meeting, which provides for the formation of an international multimodal corridor that will connect Asia and Europe via the Uzbekistan-Turkmenistan-Iran–Türkiye route.
As per Uzbekistan’s transport ministry, the signed protocol provides for the following:
- organization of cargo transportation from the countries of the Asia-Pacific region to the countries of the European Union through the territories of Uzbekistan, Turkmenistan, Iran, and Türkiye
- application of competitive tariff rates and creation of favorable conditions for the transportation of goods by railways in Uzbekistan, Turkmenistan, Iran, and Türkiye
- joint development of measures to unify regulatory and legal technical standards in the organization of cargo transportation along the route
- increasing the transport interconnectedness of the countries participating in the route
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Moreover, in November, Uzbekistan and Afghanistan have agreed to start work on modernization and development of the Afghan Hairaton—Mazar-I-Sharif railway.
As per data provided by Uzbekistan Railways, the modernization of the railway will provide for the increase in volume of bilateral trade with Afghanistan. The reconstruction of the branch will be carried out by specialists of Uzbekistan Railways.
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Furthermore, in November of 2023, during the First Transport Forum of SCO member countries held in Uzbekistan’s Tashkent, two documents were signed aimed at expanding the cooperation of member states via new transport corridors.
Thus, a Memorandum of Understanding on the creation and development of the Belarus - Russia - Kazakhstan - Uzbekistan - Afghanistan – Pakistan international transport corridor was signed between Minister of Transport of Uzbekistan Ilkhom Makhkamov, Deputy Minister of Transport of the Russian Federation Dmitry Zverev and Deputy Minister of Transport of Kazakhstan Talgat Lastaev.
Moreover, Uzbek transport minister Makhkamov, Russian transport minister Zverev, and Minister of Transport and Communications of the Kyrgyz Republic Tilek Tekebayev signed a Memorandum of Understanding on the formation and development of the Russia - Caspian Sea - Turkmenistan - Uzbekistan – Kyrgyzstan international multimodal transport corridor.
Cooperation with international partners
Uzbekistan’s President Shavkat Mirziyoyev proposed to create a unified transport connectivity map between the Shanghai Cooperation Organization (SCO) members. He made the remark while addressing the participants of a virtual SCO Summit hosted by India on July 4.
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In October of 2023, Uzbekistan and the South Korean Hyundai Rotem, specializing in manufacturing of rolling stock, reached an agreement of the supply of high-speed trains to Uzbekistan. This project will receive its financial backing from the South Korea Economic Partnership Development Fund (EDCF), which will provide a loan in the amount of 185 million euros.
The loan is established to carry a preferential rate of 0.1 percent and will remain in effect until 2058.
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Furthermore, in October, Uzbekistan Railways and Czech Škoda Group automobile company signed a contract for the supply of 30 electric trains worth 320 million euros.
The production of four-car trains for the broad-gauge railway will begin in 2024. The production of the main parts will be carried out at the plant in the Czech Republic’s Ostrava, while part of the assembly of cars will be held in Uzbekistan.
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In November, Minister of Transport of Uzbekistan Ilkhom Makhkamov has put forward a series of proposals aimed at advancing the transport and logistics capabilities of Shanghai Cooperation Organization (SCO) member states.
As per the minister, these alternative pathways would not only enhance the robustness of existing connections but also contribute to the resilience of the SCO's transportation network, reducing the risks of relying on a single corridor.
Another pivotal proposal revolves around standardization within the transport sector. Makhkamov urged the member states to work together in harmonizing transportation standards, encompassing everything from road and rail systems to maritime and air transportation.
A common set of standards would streamline logistics operations and facilitate the movement of goods across borders, making the process more efficient and cost-effective.
In addition to standardization, Makhkamov emphasized the importance of adopting a flexible tariff policy, which would not only encourage trade and transport between member states but also attract investments from outside the organization.
Makhkamov's proposals extended to the physical infrastructure as well. He recommended the construction of large multimodal logistics centers along key transportation arteries and at border territories. These logistics centers would serve as hubs for the efficient consolidation, transfer, and distribution of goods, further bolstering the connectivity within the region.
Furthermore, the minister urged SCO countries to modernize and streamline border control points by operating them in a 24/7 format.
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In November, Uzbekistan and Russia have signed a Memorandum of Understanding on the development of cooperation in the fields of road transport, road management, and railway transport.
The signed memorandum is said to establish cooperation in the following areas:
- exchange of experience in law enforcement practice by the parties involved
- exchange of information on violations of traffic safety rules and the operation of railway transport
- introduction of digitalization and modern technologies
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Moreover, in November, the Eurasian Agrologistics Company, a subsidiary of Russian Railways Logistics, and Uzbekistan signed a memorandum on launching container trains from the Russian region of Ulyanovsk to Uzbekistan.
As per the document, the region will designate areas for the establishment of hubs where block trains will be assembled and dispatched to the countries of Central Asia, including Uzbekistan, and the Middle East.
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In December, the European Bank for Reconstruction and Development allocated a grant of $1.5 million for the development of the Tashkent — Samarkand toll highway construction project.
The Tashkent—Samarkand toll road project entails the construction of a 305-kilometer-long six-lane highway. It is also intended to construct new bridges and overpasses over interchanges and structures, as well as to implement an intelligent transportation system.
The track's load capacity will be 13 tons and its service life will be 25 years, both of which are worldwide norms.
According to Uzbekistan's Public-Private Partnership Development Agency, the toll for passenger cars traveling from Tashkent to Samarkand and Andijan will be between $5 million and $6 million. Furthermore, the maximum speed restriction is expected to be 150 km/h.
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In December, the Asian Development Bank (ADB) has approved a $240 million loan to Uzbekistan for the reconstruction of 700 kilometers of rural roads.
As per data by ADB, the new investment project is aimed to make the rural road infrastructure safer and more resilient to climate change, as well as improve transport links and promote rural development.
The main focus of the investment project will be on local and inter-farm rural roads in 12 regions and the Uzbek Republic of Karakalpakstan.
As of 10 months of 2023, Uzbekistan has entered into agreements with ADB for 25 projects totaling approximately $3.5 billion.
Plans for 2024
In October it was announced that Uzbekistan Tashkent Metro State Unitary Enterprise plans to purchase 160 subway cars from 2023 through 2024. As per the Ministry of Transport of Uzbekistan, Tashkent Metro will receive 56 subway cars in 2023, while in 2024 the company will purchase another 104 cars.
The new carriages will be distributed between all four lines of the capital’s metro to shorten the interval of train traffic.
Tashkent Metro notes that currently, the average number of passengers using metro lines per day amounts to 700,000 people. Further, the number of passengers is continuously growing due to traffic jams on the roads.
In order to avoid overloads, six trains consisting of five subway cars were launched, and by the end of the year, their number is planned to be increased to 13.
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Moreover, in October, Uzbekistan revealed its plans to introduce several significant changes in the management and development of its road infrastructure for enhancing efficiency and quality.
Starting in 2024, the private sector will be involved in management of public roads. The endeavor will initially focus on roads up to 20 kilometers in length located in Uzbekistan’s region of Karakalpakstan, with the aim of exploring the benefits and challenges associated with private sector involvement in road management.
In 2025, the transformation will extend to the construction of new roads, featuring engineering management and technical oversight facilitated by independent private sector organizations. These changes will align with the high standards established by the International Federation of Consulting Engineers (FIDIC), ensuring that road construction adheres to internationally recognized norms.
Furthermore, the allocation of funds for the construction and repair of rural roads, streets within urban areas, towns, and villages is set to undergo a significant overhaul as a new system will be implemented, integrating volume and quality indicators into the acceptance process for road design and construction projects. Notably, there will be an emphasis on guaranteeing the longevity of the main structural elements, with a minimum requirement of 3 years during the laying and repair of roads.
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In November of 2023, Minister of Transport of Uzbekistan Ilkhom Makhkamov announced that the construction of the Trans-Afghan Railway and the Uzbekistan-Kyrgyzstan-China railway will start in 2024.
The minister stated that the expected cost of the construction project as of September 2023 was $5-7 billion; however, the financing plan for the completed project remains uncertain.
Makhkamov stated that the Trans-Afghan Railway project, which spans 600 kilometers, was previously estimated to cost $4.8 billion. The official also stated that the project is still in its early stages, and that a preliminary technical specification is being produced to aid in the preparation of a feasibility study. To accomplish this, the three parties are collaborating to acquire project finance.
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In December it was revealed that Russian Sinara Transport Machines is set to supply Uzbekistan with six locomotives in 2024.
The announcement was made during a meeting between Governor of the Russian Sverdlovsk area Yevgeny Kuyvashev, Chairman of the Government of the Russian Federation Mikhail Mishustin, and a delegation of CIS heads of government.
According to the official, Sinara Transport equipment professionals have given training sessions for personnel in Uzbekistan on the operation and maintenance of the equipment. In addition, the business intends to open warranty and after-sales service centers in 2024, ensuring the locomotives' optimal operation and durability.
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Furthermore, in December of 2023 it was announced that Uzbekistan will establish an institution for the country’s transport supervision in 2024.
As per data from Uzbekistan’s National Legislation Database, the institution will be busy with the following:
- provision of services with minimum requirements for the state registration of existing railway infrastructure facilities;
- registration, re-registration of existing railway structures and infrastructure facilities, as well as the issuance of a certificate of registration.
Moreover, the Uzbek Ministry of Transport has been instructed to:
- develop and put into operation an information system for the state registration of railway structures and infrastructure facilities in operation by November 1, 2024;
- ensure the integration of the information system with the EPIGU and the introduction of public services by December 1, 2024, in cooperation with the Uzbek Ministry of Digital Technologies.
