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Overview of main events in Uzbekistan's transport sector in 1H2024

Uzbekistan Materials 12 July 2024 14:23 (UTC +04:00)
Kamol Ismailov
Kamol Ismailov
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TASHKENT, Uzbekistan, July 10. Trend News Agency summarizes Uzbekistan's transport sector's major events in the first half of 2024.

Manufacture of electric buses by Chinese company

China's Lanzhou Guangtong New Energy Automobile Co., Ltd intends to manufacture electric buses in Uzbekistan's Andijan region. In particular, an agreement was signed on realization of the project on production of electric buses with annual capacity of 2,000 vehicles. The investment cost of this project is estimated at $100 million.

Launching road freight transportation with Chinese logistics company

The Chinese Zhengzhou Hongyi Transportation Logistics Company has launched road freight transportation from Shenzhen to Tashkent. With a route length of 6,500 kilometers, the travel time was reduced almost three times—from 20 to 7 days. The opening of the new route will increase trade between Shenzhen and Tashkent, as well as further facilitate border procedures and reduce travel time and logistics costs.

Signing memorandum of understanding in logistics with Chinese company

Chinese Shandong Port Logistics Group Co., Ltd and Uzbekistan’s Temiryo'lkargo JSC signed a memorandum of understanding on utilization of available logistics opportunities. The document was signed during a meeting of Uzbekistan's Ministry of Transport, Temiryo'lkargo JSC and Chinese Shandong Port Logistics Group Co., Ltd. on January 18, 2024, in Jinan, Shandong province. The parties agreed to establish comprehensive cooperation on joint implementation of multimodal container transportation, exchange of information in all logistics processes with reliance on port and logistics resources.

Launching new cargo transportation route with China

Uzbekistan's Ministry of Transport worked on the organization of the corridor together with the Association of International Road Carriers in cooperation with the relevant ministries and departments of China. The new trade route connects Uzbekistan with Qingdao, located in the eastern part of China, and allows prompt, economical, and safe cargo transportation.

EBRD's investment in e-bus project

A project on purchase of electric buses and creation of necessary infrastructure will be implemented in Uzbekistan's Samarkand with the participation of the European Bank for Reconstruction and Development (EBRD). The EBRD will provide a $49 million loan for 18 years, including a grace period of three years. The remaining amount will be financed by the Uzbek authorities through VAT and customs privileges.

Discussion with with Yandex.Go on development and regulation of the passenger transportation market

Uzbekistan and Yandex.Go (a Russian transportation service) discussed the matters of development and regulation of the passenger transportation market. The discussion took place at a meeting between Uzbek Minister of Transport Ilkhom Mahkamov and representatives of the delegation headed by General Director for e-commerce and logistics services of Yandex.Go group of companies Daniil Shuleyko on February 20. In order to increase the efficiency of street and road network use, the parties exchanged views on the use of analytical data of Yandex maps, the development of taxi fleets owning vehicles.

Creation of a modern multimodal transport and logistics center with German Rhenus company

Uzbekistan Railways and German Rhenus SE&Co. KG logistics company will create a modern multimodal transport and logistics center in Andijan region. The modern logistics center will create opportunities for multimodal transportation, container loading and unloading zones, open and closed customs warehouses, as well as handling heavy cargo. Investments in the project will amount to 20 million euros between 2024 and 2026, which will allow the logistics center to handle from 250,000 to 300,000 tons of cargo annually.

Reconstruction of the Hairatan-Mazar-e-Sharif railway line

A start ceremony for reconstruction of the Hairatan-Mazar-e-Sharif railway line was held on the border of Uzbekistan and Afghanistan on February 21. Uzbekistan Railways has sent 120 workers to Afghanistan to carry out the first stage of work.

Easing road freight permits with Kazakhstan

Kazakhstan and Uzbekistan have simplified obtaining permits for road freight transportation. Thus, from April 15, a joint order of Kazakhstan and Uzbekistan came into force on the transfer to an electronic form of obtaining permits for the transportation of goods of the type "to/from third countries" for Kazakh carriers.

Chinese company intends to construct toll roads in Uzbekistan

Representatives of CITIC Construction Company (China) expressed interest in participating in the reconstruction of the Pungan-Namangan and Tashkent-Chinaz highways. They emphasized their international experience in improving transport infrastructure and using modern solutions in road construction.

Signing a MoU with Italian EU Wings to establish joint venture

Uzbekistan Airports and EU Wings, an Italian company specializing in aircraft maintenance, have signed a memorandum of understanding. According to the memorandum, the parties intend to elaborate and make proposals in the near future to establish a joint venture at Navoi Airport, which will provide basic aircraft maintenance and repair services, as well as line maintenance of aircraft at other international airports in Uzbekistan.

Granting Kazakhstan’s Qazaq Air a permission to operate regular flights

Uzbekistan's Civil Aviation Agency has granted Qazaq Air authorization to fly regularly to Uzbekistan via the Turkestan-Samarkand-Turkestan route. These flights will be flown by DHC-8-402 aircraft, increasing connectivity between the two countries.

Launching new international flights

Uzbekistan Airways starts operating flights to Rome (Italy) on March 31, flights to Mumbai (India) on April 1, to Georgian Batumi on May 29, and to Nha Trang (Vietnam) on May 4.

Planning to start producing electric trains and subway trains

Uzbekistan plans to start producing electric trains and subway trains at the Tashkent plant for the construction and repair of passenger cars in 2024. Rustam Rakhimov, the department head at Tambov State Technical University, stated that the first model will be suburban electric trains.

Planning to construct a cargo terminal at Namangan International Airport

Uzbekistan plans to develop a cargo terminal at Namangan International Airport as part of its modernization project. The project will also include the construction of catering and fueling complexes, as well as other economic buildings.

Belarusian BelAZ planning to start construction of an assembly site for the production of quarry equipment

Belarusian BelAZ plans to start construction of an assembly site for the production of quarry equipment in Uzbekistan in 2024. The site will be a full-cycle line of large-unit assembly, with paint booths and a running-in area.

Russian UWC in Uzbekistan will boost freight turnover along North-
South corridor

According to Uzbek Railway Transport Engineering CEO Rustam Rakhimov, Russian United Wagon Company's (UWC) first service center network in Uzbekistan will increase freight turnover along the North-South transport corridor. The United Wagon Company and Railway Transport Engineering signed an agreement on the establishment of service centers in Uzbekistan to provide warranty and post-warranty maintenance of freight cars on innovative bogies manufactured by UWC.

Developping the Trans-Afghan railway project

A delegation from Uzbekistan headed by Transport Minister Ilkhom Mahkamov visited Afghanistan. The delegation included specialists who will develop a feasibility study and prepare for the construction of the Uzbekistan-Afghanistan-Pakistan railroad.

EBRD signs mandate letters on long-term financing of Uzbekistan's electric bus projects

The European Bank for Reconstruction and Development (EBRD) has signed mandate letters on long-term financing of Uzbekistan's Samarkand electric buses and Namangan electric bus projects.

Opening of the Kyrgyz-Uzbek car manufacturing plant

The opening of the Kyrgyz-Uzbek car manufacturing plant was scheduled for May 28. The facility is located in the Sokuluk district of the Chuy region. It is expected to produce 30,000 vehicles and create 2,000 jobs within six years. The plant
will assemble 19 models of Chevrolet, Daewoo, and Isuzu vehicles. The total investment in the project is estimated at $50 million.

Signing an agreement with Spain in international air cargo transportation

Uzbekistan's MYFREIGHTER private airline has signed an interline agreement with Spanish Air Europa airline that will give the company access to eight new destinations. The destinations include Panama City, Cancun, and the Dominican Republic, Punta Cana, Colombia, Miami, New York, and Sao Paulo. Air Europa will gain access to Tashkent as a hub for Central Asia flights.

Signing a roadmap for the implementation of the project to build the China - Kyrgyzstan - Uzbekistan railroad

Uzbekistan, Kyrgyzstan and China signed a roadmap for the implementation of the project to build the China - Kyrgyzstan - Uzbekistan railroad.

Extention of the China-Kyrgyzstan-Uzbekistan railway route

The route of the China-Kyrgyzstan-Uzbekistan railway will extend from Chinese Kashgar through Kyrgyz Torugart, Makmal, and Jalal-Abad to Uzbek Andijan.
This proposal has been submitted to the Kyrgyzstan Cabinet of Ministers for parliamentary review. According to the document, a joint project company will be established to oversee the construction of the China-Kyrgyzstan-Uzbekistan railway. The entities designated for construction include China Railway International under the Chinese Railways state corporation, Kyrgyz Railways state enterprise, and Uzbekistan Railways.

Reaching an agreement over Latvian ports-passed freightage growth

Uzbekistan and Latvia reached an agreement on granting forms of special permits for organizing cargo transportation by road through Latvian ports. The importance of the route passing through Latvian ports is growing in terms of expanding trade relations between Uzbekistan and EU countries. Both countries discussed aspects related to the effective utilization of Latvia's port infrastructure potential.

Attracting financing with Kazakhstan for Kyzylorda-Uchkuduk project

The Ministries of Transport of Uzbekistan and Kazakhstan have submitted proposals to the European Bank for Reconstruction and Development, the European Investment Bank, and other international financial organizations to finance the technical and economic basis of the Kyzylorda-Uchkuduk railway line project.

Purchasing Hyundai high-speed trains

Uzbekistan Railways and South Korea's Hyundai Rotem have signed a contract for the delivery of six high-speed trains and their subsequent maintenance to Uzbekistan. The South Korean Fund for Economic Development and Cooperation plans to provide a loan of 185 million euros for their purchase for 35 years. The loan will be provided with a ten-year grace period (an interest rate of 0.1 percent per year).

Buying electric trains for $195.7 million

Contract for delivery of Hyundai Rotem electric trains to Uzbekistan is estimated at $195.7 million. Uzbekistan Railway Roads signed a contract with Hyundai Rotem for the purchase of electric trains during the visit of the President of the Republic of Korea to Uzbekistan. Hyundai Rotem will supply Uzbekistan with six high-speed electric trains with a total of 42 cars. In addition, the South Korean company will provide maintenance and repair services for these trains.

Establishing railway freight car manufacturing facility with Slovakia's AZC Group

Sanoat Energetika Guruhi (Saneg), the largest privately-owned oil and gas company in Uzbekistan, has signed a memorandum of understanding with the leading Slovak AZC Orbis Invest, as well as with the administration of the Gallaarel Special Industrial Zone located in the Jizzakh Region. The agreement includes the development of a facility for manufacturing railway freight cars in the Gallaaral Special Industrial Zone.

BYD plant debuts with its first electric cars

BYD Uzbekistan Factory (a joint venture with China) has produced its first electric cars in the Jizzakh region. The plant plans to increase the production of electric cars to 200,000 per year within the framework of the second stage of the project, and to increase the production of electric cars to 500,000 per year within the framework of the third stage worth $500 million.

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