Uzbekistan is a dual landlocked state that has suffered for many years from its remoteness from the sea. High transport costs have affected the economy: according to President Shavkat Mirziyoyev, transportation costs in Central Asia reach up to 50% of the cost of goods, with a global average of about 11%. However, today the country is entering a new stage in its transport policy, turning a geographical disadvantage into a strategic advantage.
The government is implementing large-scale projects to develop sustainable transport infrastructure and diversify routes, and is actively strengthening regional integration. These measures are aimed at increasing the reliability of logistics, reducing costs and deeper inclusion of Uzbekistan in international economic ties.
The reason for the transition to a new approach is associated not only with the geopolitical changes of recent years, but also with the demands of the economy itself. Uzbek exporters and importers need stable routes, predictable tariffs and risk minimization. Business increasingly evaluates not only the speed of delivery, but also its reliability: the fewer deviations from the schedule and unexpected delays, the higher the trust in the route. For the state, the task is even broader: to use the advantageous position in the center of Eurasia to turn into a full-fledged transit hub through which cargo will pass to different parts of the world.
The main principle of the new stage is sustainability through flexibility. Instead of depending on one direction, Uzbekistan is forming a portfolio of routes so that in the event of interruptions on one of them, it can quickly switch flows to alternatives. By 2022, this had already produced an effect: when transit through Russia became complicated, the volume of Uzbekistan’s cargo sent along the Trans-Caspian route (via the Caspian, the Caucasus and Turkey) increased by 72% – to 864 thousand tons, and by 2023-2024 exceeded 1 million tons.
Particular attention is paid to the eastern direction. The China-Kyrgyzstan-Uzbekistan railway project is seen as a step towards the formation of a new corridor that will directly connect Central Asia with China’s transport network. This road makes it possible to reduce the distance between China and Europe by almost a thousand kilometers, and the delivery time by about a week. For Uzbekistan itself, this is not only transit income, but also an opportunity to develop logistics centers, warehouses and production clusters around the route. The southern vector is considered no less promising. The development of a trans-Afghan corridor that will connect Uzbekistan with Pakistani ports on the Indian Ocean can change the strategic picture for all of Central Asia. According to experts, the new route will reduce the delivery of goods from Uzbekistan to the sea from several weeks to three to five days, and reduce the cost of transportation by almost three times. Not only the economic, but also the political effect is important: the involvement of Afghanistan in the regional economy increases the chances of its stability. For Uzbekistan, this project means long-awaited access to the sea, which significantly increases the stability of the entire trade system. According to the schedule, construction will take several years, but the first steps have already been taken. In 2023, a single route and technical and economic parameters were agreed upon, and in 2024, a financial mechanism was approved. Thus, the eastern corridor from the dream of the 1990s is becoming a reality.
When the train runs along the rails from Tashkent to Kashgar, Uzbekistan will receive a direct connection with one of the largest economies in the world, and all of Central Asia will have an alternative route to the markets of China and further to the Pacific ports.
Western directions are also becoming part of the new logic. The Middle, or Trans-Caspian, corridor connects Central Asia with Europe via the Caspian Sea, the South Caucasus and Turkey. Its development is supported by both regional and European partners. In July 2025, the presidents of Uzbekistan and Azerbaijan signed a package of agreements in Baku to increase the transit of Uzbek goods through Azerbaijan along the Middle Corridor. Under the agreements, Azerbaijan will assist Uzbekistan in designing and building cargo ships to operate in the Caspian Sea. In addition, Baku has extended preferential tariffs for container transportation on its railway network for Uzbek clients – a discount of up to 70%. This makes transportation along the Middle Corridor more cost-effective and predictable.
At the same time, the capabilities of the southwestern route through Iran and Turkey, where agreements on the development of transit transportation have already been signed, are expanding. This direction allows Uzbek businesses to enter the markets of the Middle East and Europe without additional detours.
Northern routes remain important, but their role is gradually changing. If earlier they were actually the only option for large exporters and transit flows, now they are becoming part of the route portfolio. This means that in the event of interruptions or overload in one direction, the country can quickly redistribute flows to others. It is this flexibility that is the main criterion for the sustainability of the transport system.
Along with the development of external directions, Uzbekistan is modernizing its internal infrastructure. New railway lines are being built, marshalling yards are being expanded, and key sections are being electrified. More than half of the country’s railway network has already been converted to electric traction, which reduces costs and increases throughput. Modern dry ports and logistics parks are being created, where cargo is not only reloaded, but also undergoes preliminary customs clearance, cross-docking or light processing. This turns Uzbekistan not just into a transit corridor, but into an active participant in value chains.
A new stage of transport policy is unthinkable without regional integration. In recent years, Uzbekistan has been able to establish close contacts with its neighbors, open new bridges, restore railway lines with Tajikistan and expand connections with Turkmenistan and Kazakhstan. Regular meetings of Central Asian leaders have become a platform for discussing not only political issues, but also specific projects in the field of transport and logistics. This has led to an increase in mutual transportation: if ten years ago regional routes played a supporting role, today they account for a significant share of the country’s cargo turnover.
The next step is to harmonize rules and digitalize. Rules and standards are being coordinated at all levels. Central Asian countries have begun to digitalize transit in order to eliminate bureaucratic barriers. Uzbekistan was the first country in the region to implement the TIR (International TIR Carnet) system and begin testing e-TIR electronic guarantees. As monitoring has shown, trucks with the TIR procedure cross Central Asian borders in an average of 1.1 hours, while without TIR – in 3.1 hours. And the average cost of registration at the border under the TIR system is $62, which is 6 times cheaper than for cars without a book. This clearly demonstrates the benefits of digital tools.
Since 2020, Uzbekistan has been actively promoting the electronic permit system (E-permit) for road transport. The first to be launched was the connection of electronic permits with Turkey. As a result, drivers can receive all documents online, without paper forms and visits to ministries. In 2023-2024, the baton was picked up by neighbors: the e-permit exchange with Kazakhstan and Azerbaijan began to work, and the inclusion of China, Tajikistan and Turkmenistan is being discussed.
All of the above measures are links in a single strategy. The new stage of Uzbekistan’s transport policy implies a change in the country’s self-perception, into an integral node of the Eurasian logistics network. Diversification of routes makes this network sustainable, and deepening integration with neighbors makes it trustworthy and predictable. All parties benefit. Exporters (Uzbek and regional) gain access to new markets and cheaper delivery. Importers – stable supply chains that do not depend on a single border. Uzbekistan’s neighbors – transit revenues, an influx of investment in infrastructure, and an incentive for joint development.
Uzbekistan is already seeing the first fruits: thanks to transport reforms, its GDP and trade are growing at an accelerated pace. The country has attracted $35 billion in investments in 2023 alone, a significant part of which is in infrastructure projects. Uzbekistan has improved its positions in global rankings of logistics efficiency and economic freedom.
In conclusion, we can say that Uzbekistan is going through an important turning point. Geography, which was long perceived as a limitation, is now becoming an advantage. Thanks to route diversification, development of internal infrastructure, and deepening integration, the country is taking a step towards becoming a sustainable transport hub for Central Asia. Each new corridor, each digital platform, and each agreement with neighbors strengthens this vision. The new stage is not just about building roads and tunnels, it is about forming a system where logistics works for the development of the economy and stability of the region.
Dildora Ibragimova,
Head of the Department,
Center for the Study of Problems of
Transport and Logistics Development
under the Ministry of Transport
of the Republic of Uzbekistan
