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Economy 24/01/2024 Prospects for Uzbek-Chinese cooperation in the transport and logistics sector
Prospects for Uzbek-Chinese cooperation in the transport and logistics sector

Tashkent, Uzbekistan (UzDaily.com) -- Transport and logistics infrastructure plays a vital role in the modern economic development of Uzbekistan. The implementation of an open economic policy not only contributes to the republic’s entry into new markets, but also attracts major foreign partners in the field of transport and logistics. As part of these efforts, the republic seeks to diversify its export opportunities.

In this regard, Uzbekistan is also actively expanding its trade relations not only in traditional markets such as Central Asia, the CIS and Russia, but is also actively developing cooperation with the countries of the Middle East, the Persian Gulf, Europe, as well as the states of South and Southeast Asia.

In this context, the countries of East Asia stand out, where special attention is paid to China, which in the first 10 months of 2023 reached a total foreign trade turnover of about US$5 trillion. 

Thus, as part of the first China-Central Asia summit, on 18-19 May 2023, in Xi’an, the PRC leadership, along with issues of security, energy, etc., also touched upon the transport component. In particular, it was stated that the countries of Central Asia are “China’s path to Europe and the Middle East.”

Along with this, it is of no small importance for the states of the Central Asian region and China to ensure unimpeded trade and increase the volume of mutual supplies of finished products from Central Asian countries to China and back, the formation of a common space for industrial cooperation, and the production of products imported by the countries of the region using Chinese technologies.

In this regard, it would be appropriate to note that on 30 August 2023, As part of cargo transportation along the China-Central Asia route, the first train with 261 cars left from Liuzhou (southern China) to Uzbekistan and arrived in almost two weeks.

At the same time, Liuzhou (a city district in the Guangxi Zhuang Autonomous Region) is a major center in China for the export of automobiles, the production of auto parts and components, and the Liuzhou-Tashkent route has become the sixth cross-border channel.

At the same time, the priority of ensuring uninterrupted cargo flow and the development of a trans-regional transport and logistics network is increasing. As part of the One Belt, One Road initiative, special attention is paid to infrastructure projects, such as the construction of railway and road routes, including China-Kyrgyzstan-Uzbekistan.

Beijing is also showing interest in cooperation within the framework of China-Europe and China-Central Asia cargo transportation.

Thus, in recent years, the Office of the Chinese Railway in Nanning, the administrative center of the Chinese People’s Republic of China, where Liuzhou is located, has opened the routes "Nanning-Moscow", "Nanning-Almaty", "Liuzhou-Moscow", "Liuzhou-Almaty" and "Nanning-Tashkent" " Automobiles, heavy equipment, food and other goods are also exported from Guangxi Zhuang Autonomous Region.

In this regard, transport and logistics cooperation between Uzbekistan and China constitutes an important area of practical interaction, having achieved significant results.

Thus, Tashkent and Beijing are closely cooperating within the framework of the implementation of the Chinese initiative and the joint construction of “One Belt, One Road”. The President of Uzbekistan took part in the 3rd international forum, held in September 2023 in Beijing, and put forward a number of important initiatives aimed at implementing major projects within the framework of this initiative.

At the same time, the PRC, together with the Uzbek side, is ready to make joint efforts to practically implement the agreements reached between the heads of the two states, intensify interaction in the fields of transport and infrastructure construction, as well as develop logistics potential in order to increase the level of interconnectedness of the region for the benefit of the two countries and peoples.

In turn, Uzbekistan pays special attention to the issues of modernizing the transport, logistics and transit sphere, ensuring broad integration of our country into the international network of transport communications in order to provide access to sea ports.

This fact is explained by the importance of developing the transport and transit potential of the region, which is one of the key factors in ensuring sustainable economic growth of states. In this context, it is worth noting the rapid development of cargo transportation along the China-Europe route, where the average annual growth rate has exceeded 10% over the past few years.

At the same time, more than 96% of all cargo in the China-Europe direction is transported by sea. In this regard, there is great potential for reorientation from sea modes of transport to land ones - rail and road.

In addition, Beijing plans to develop the southern, southwestern and eastern corridors, which will allow Uzbekistan to gain access to the markets of European countries, Iran, Turkey, Afghanistan, Pakistan and India.

Moreover, as part of the implementation of the “Transport Strategy until 2035” Uzbekistan also pays important attention to the Middle Corridor.

At the same time, the ongoing interaction between Uzbekistan and China in the transport and logistics sector through road, air, and rail transportation is noted. So, in 10 months. 2023 the total volume of cargo transportation amounted to 4.1 million tons. (in 2022 - 3.5 million tons).

Along with this, in September 2023, Uzbekistan Temir Yollari JSC held a meeting with the Chinese company Xian Free Trade Port Construction and Operation Co.Ltd. to discuss issues of strengthening cooperation in the field of logistics and infrastructure construction.

Another Chinese company, Hichain, intends to create three new logistics centers in Uzbekistan: thus, at the Uzbek-Chinese business forum in November 2023 in Guangzhou, a delegation from the Ministry of Transport discussed with the president of the Chinese company Hichain Supply Chain the implementation of joint projects in the republic. The parties also signed a memorandum on accelerating cooperation and implementation of projects in the transport sector.

This company plans to open infrastructure facilities in Andijan, Navoi and Karakalpakstan.

Since China remains a key trading partner of Uzbekistan, the Uzbek side has been trading since 2017. actively supports the initiative to establish ties with China through the future China-Kyrgyzstan-Uzbekistan railway line.

This project aims to ensure more efficient and cost-effective transportation of goods.

In general, Uzbekistan strives to strengthen long-term cooperation with Chinese transport companies.

This includes large-scale interaction to achieve set goals, such as the creation of transport and logistics complexes and joint ventures for cargo transportation on the territory of the republic in order to optimize the supply chain.

In addition, both countries strive to introduce digital information technologies in the field of railways and public transport, exchange experience in the field of transport and improve the skills of personnel through the organization of joint development programs. Participation in projects to renew trains, construct toll roads and roadside infrastructure is also becoming an important area of interaction.

All of these measures will contribute not only to the further strengthening of partnerships, but also to the modern development of the transport sector of the two countries.

Chief Researcher of the International Institute of Central Asia A. Nazirov

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