EBRD evaluates prospects for connecting Uzbekistan to Trans-Caspian route

Using the transit potential of the Central Trans-Caspian Network (CTCN, Trans-Caspian International Transport Route (Middle Corridor)) will allow Uzbekistan and southern Central Asian countries to diversify their transport routes, as it provides an alternative to the southern land-based route going through Iran, Report informs referring to the European Bank for Reconstruction and Development (EBRD).

This will consequently play a key role in establishing the regular transportation of goods from Türkiye and Europe to the countries of Central Asia and Asia.

“The Ministry of Transport was developing a Strategy for the Development of the Transport System for the Republic of Uzbekistan to 2035. It highlights the Trans-Caspian Corridor as a key priority and notes competing needs for both cooperation and competition with Kazakhstan,” reads the report.

At the same time, the EBRD has identified priority needs for investment in the infrastructure of Uzbekistan in the short, medium and long term.

In the short term, three priority infrastructure investment needs have been identified.

“Oq-Kuprik railway station capacity enhancement project: There are currently four lanes in the station. In the short term, adding two more lanes of approximately 1,500 meters in length would reduce border congestion, increase capacity by more than 30 percent and enhance the efficiency of cross-border operations between Uzbekistan and Kazakhstan.

Expansion of the railway line into Namangan FEZ: As the distance between the railway line and the Namangan FEZ area is very short (approximately 1 km), the new rail connection through the urbanized area would provide direct access to FEZ for shippers and would avoid urban congestion. Gradually replicating this practice in other key FEZs would alleviate congestion and pollution problems and would give producers and exporters direct access to the railways.”

“Development of multimodal logistics centers and A-class warehouses in Fergana Valley, Tashkent Region, Samarkand/Bukhara and Navoi: These trade centers and logistic hubs have adequate road and rail connectivity, but lack the logistics facilities required for multimodal transport operations. The development of multimodal logistic centers will reduce the logistics costs for shippers and contribute to the overall efficiency of railways,” reads the report.

On August 23, Azerbaijan and Uzbekistan discussed measures to create a joint logistics company within the Trans-Caspian corridor, as well as the construction of warehouse infrastructure and logistics centers in the ports of Baku and third countries.

As Deputy Minister of Transport of Uzbekistan Abdusamat Muminov said earlier, the republic is considering the possibility of opening its own terminal in the Baku port. To do this, the country’s authorities expect to use public-private partnerships. He also said that in 2023 Uzbekistan will increase supplies through the ports of Azerbaijan and Georgia to 1.5 million tons.

In 2022, the transportation of Uzbek cargo through the port of Baku almost doubled, and the republic intends to further increase cargo transportation using the transport network of Azerbaijan.

“In the medium term, three priority infrastructure investment needs have been identified. Uchquduq (Uzbekistan)-Kyzylorda (Kazakhstan) road project – Uzbekistan section: There is currently no direct route between these cities and the travel time is more than 16 hours by road (approximately 1,200 km), even though the distance between Uchquduq and the border is only around 200 km as the crow flies. The construction of the road should be complemented by the construction of a BCP to support economic and trade activity between Uzbekistan and Kazakhstan, reduce travel time between the two countries and lower congestion at existing BCPs.

Nukus (Uzbekistan)-Beyneu (Kazakhstan) railway reconstruction project: This project is to rehabilitate the rail line from Nukus to the Uzbekistan-Kazakhstan border (approximately 400 km) in order to improve transit times, reliability and passenger comfort. The implementation of the project will improve trade and regional connectivity between Uzbekistan and Kazakhstan and link the Karakapalstan region in Uzbekistan with the Aktau/Mangystau region in Kazakhstan.”

“Further development of the Farap/Alat BCP and reconstruction of BCP approach roads: Farap/Alat is the main BCP between Uzbekistan and Turkmenistan. The roads and railway link through this BCP connect to Turkmenbashi port via Ashgabat. This project includes an upgrade of approximately 23 km of road and an upgrade of the existing BCP. The implementation of the project will reduce congestion and processing times at the border, as well as improve driving conditions,” the EBRD noted.

In the long term, two priority infrastructure investment needs have been identified.

“Capacity enhancement project on the Tashkent-Samarkand railway line: The construction of the Tashkent-Samarkand high-speed and electrified freight railway line will increase speeds by 30 percent, enhance the capacity for goods movement and provide environmental benefits. Given the expected cargo volumes on the line, the project could be conducted on a PPP basis, subject to further detailed assessment.

Construction of new roads from Tashkent to Samarkand and Tashkent to Andijan on a PPP basis: Given the current and expected traffic flows along the two road sections, it would be possible to undertake the construction of the new roads on a PPP basis to allow global investors to bid for tenders. These investments are expected to result in travel-time savings and improved service quality, mainly driven by private-sector participation.”

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