Transport and Logistics - The Times Of Central Asia

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CAMCA

At CAMCA, Uzbekistan Revives Push for a Stronger Regional Body

Uzbekistan has renewed its call for a stronger regional institution, with senior senator Sodiq Safoev urging Central Asian leaders to move beyond their consultative meeting format. His remarks in Baku return attention to a proposal President Shavkat Mirziyoyev outlined last November, when he called for a Community of Central Asia. Safoev, first deputy chairman of Uzbekistan’s Senate, told the CAMCA Regional Forum on October 1: “I think the time has come to transform the Consultative Meeting … into another institutional structure, not simply a Consultative Meeting, but something more.” S. Frederick Starr, chairman of the Central Asia-Caucasus Institute, also called for stronger regional institutions at the forum, arguing that institutional development needed to support the expansion of transport and commercial links across the region. At the November 16, 2025, summit in Tashkent, Mirziyoyev proposed a rotating secretariat and stronger rules governing the leaders’ meetings. He also proposed making national coordinators special presidential representatives, giving them greater political authority. The secretariat would coordinate work between summits. The machinery for regular cooperation is already developing. The Council of National Coordinators held its first meeting in Tashkent on January 30–31, 2025, where foreign ministry representatives from all five Central Asian states discussed preparations for Uzbekistan’s chairmanship and a schedule of joint events. Mirziyoyev returned to the institutional argument at the July 31 informal summit in Cholpon Ata, calling for closer contacts between government departments and long-term joint programs, alongside effective cooperation institutions. His agenda included further work on common digital services and investment platforms, as well as industrial links connecting production across national borders. He also urged stronger coordination in the Central Asia Plus diplomatic formats through which the region engages outside powers. Azerbaijan’s participation has widened the scope of those discussions. The five Central Asian presidents accepted Azerbaijan as a full participant in November 2025, extending the format across the Caspian. The six-country grouping, increasingly described as C6, connects Central Asian producers with a country whose ports and onward transport links provide access through the South Caucasus to European markets. At an August 12 discussion in Washington, Uzbekistan’s ambassador Furqat Sidiqov emphasized market access and called for further digitalization of the Middle Corridor. He said Uzbekistan had about 1,500 joint ventures with neighboring states, compared with close to 300 involving Central Asian countries in 2017. Turkmenistan’s ambassador, Esen Aydogdyyev, stressed simpler customs procedures and argued that his country’s permanent neutrality was compatible with deeper economic cooperation. The commercial ambition also extends to joint production. In Baku, Azerbaijan’s minister of the economy Mikayil Jabbarov urged countries to build regional value chains in sectors where their economies complement each other. “We should increasingly produce together,” he said, pointing to companies and financial institutions already operating in one another’s markets. Moving freight across the Caspian requires countries to coordinate customs procedures and transport services. The World Bank’s new Trans-Caspian corridor study identifies fragmented governance and uneven policy implementation as problems that compound infrastructure bottlenecks. It estimates that at least $25 billion is needed through 2040...

CKU Railway

Opinion: China-Kyrgyzstan-Uzbekistan Railway Opens New Options Beyond Europe

The China-Kyrgyzstan-Uzbekistan railway is often presented as a new route to Europe, but its first benefits are likely to be felt closer to home. It could give Central Asian shippers more choice and governments more room to negotiate transport costs, even where sanctions restrict access to European markets. Excavation of the 209.6-meter Kosh-Dobo North No. 2 tunnel was completed on August 5. Work is also underway on other tunnels along Kyrgyzstan’s mountainous section of the railway. CKU is advancing as falling Caspian water levels make the Middle Corridor more expensive to maintain. That could increase demand for alternative routes, although each comes with its own costs and restrictions. Kyrgyz officials have high expectations. Deputy Prime Minister Edil Baisalov told TCA that “this railroad will virtually transform Kyrgyzstan.” Fulfilling that ambition will require the country to earn more than transit fees. Much depends on Makmal, where a transshipment station and possible logistics center are planned. The Torugart-Makmal section will use the Chinese standard gauge of 1,435 mm, while the Makmal-Jalal-Abad section will use the 1,520 mm gauge common across the post-Soviet rail system. Changing gauge adds time and expense as cargo moves between trains. The planned station will handle transfers between the two systems, as well as cargo sorting and train assembly, operations which could support local logistics businesses, provided there is enough traffic. Warehousing and customs services would give Kyrgyzstan a chance to earn more from that traffic. Whether Makmal develops into a wider logistics hub will depend on the services available and their cost to shippers. The mountainous terrain makes the line expensive and slow to build. It also limits the options for competing routes through the Tien Shan. That may strengthen Kyrgyzstan’s negotiating position, but only if the railway offers a reliable service at competitive rates. The trans-Caspian Middle Corridor avoids Russia and Iran, making it more attractive to European companies concerned about sanctions. Yet, as TCA has reported, falling Caspian water levels are raising the cost of the route through Aktau and Kuryk. Low sea levels around Aktau and Kuryk reduce loading efficiency and increase transport costs. Kazakhstan has dredged Kuryk and launched deeper work at Aktau, aiming for a 7.7-meter depth in the operational part of the port. The Caspian route remains workable, but maintaining it requires continuing investment. If those costs rise, shippers will have more reason to compare alternatives. There are also delays to address. In a recent TCA interview, the TITR secretary general stressed the need to speed up the route and ease Caspian bottlenecks as freight volumes grow. A southern route could avoid Caspian transshipment. From Uzbekistan, cargo can move through Turkmenistan and Iran to Turkey. Uzbek, Iranian, and Turkish officials have already discussed linking this corridor with the CKU railway. Some freight already travels south on existing lines. In September, a 55-container block train was dispatched from Kazakhstan’s Altynkol station after crossing from China. Its announced route ran through Uzbekistan and Turkmenistan to Iran via the Sarakhs border station. It carried...

From Critical Minerals to Connectivity: South Korea’s Stakes in Central Asia

On September 16, Seoul hosted the first Korea–Central Asia Summit, bringing President Lee Jae Myung together with the heads of all five Central Asian states. The meeting elevated a dialogue that has run at a ministerial level since 2007 to the level of heads of state. The leaders adopted a Seoul Declaration setting the terms for future engagement and agreed to hold summits every two years. On September 14, trade and industry ministers from South Korea and the five Central Asian states met in Seoul for the first C5+Korea Industry Ministers’ Meeting. They signed a joint statement launching a standing platform for industrial cooperation. Uzbekistan’s Ministry of Investment, Industry and Trade used the occasion to push for a shift away from raw-material trade toward joint production and localization. Behind the diplomatic choreography sits a practical problem: the minerals both sides keep discussing cannot move without a route to carry them. A Minerals Agenda with Separate Tracks South Korea relies heavily on imported minerals for its manufacturing industries. Seoul has been developing separate plans with each country. With Tajikistan, discussions have focused on gold and silver, alongside antimony. With Kyrgyzstan, Seoul has been discussing antimony and tungsten. Cooperation with Uzbekistan covers minerals and digital manufacturing. With Kazakhstan, a central issue is moving beyond raw exports toward processing inside the country, as The Times of Central Asia reported ahead of the summit. South Korean firms are pursuing supply diversification independently. POSCO International and LX International have been expanding overseas mineral investments, including graphite and nickel projects, amid Chinese export restrictions. The Transport Connection Consider the Bolashak chrome mine in Kazakhstan, which Eurasian Resources Group launched in late 2024. The company plans to ramp it up to a design capacity of 7.5 million metric tons of chrome ore a year. Production on that scale makes reliable transport an essential part of the commercial equation. An Atlantic Council analysis identifies limited processing capacity and underdeveloped westward routes as obstacles to U.S. mineral partnerships with Central Asia. It presents the Trans-Caspian Middle Corridor as a route to Western markets that avoids Russian and Iranian territory. That argument needs a distinction when applied to Korea. The corridor runs westward toward Europe; it is not a prerequisite for minerals to reach South Korea. Its relevance is the wider choice of buyers it could offer Central Asian producers, including potential Korean-backed processing ventures serving those markets. That corridor is being built out. The Aktau container hub has a planned capacity of 240,000 twenty-foot equivalent units. The World Bank-backed Mointy–Kyzylzhar railway is meant to remove a 149-kilometer detour and accommodate 30 train pairs a day, against roughly ten on the existing constrained route. Traffic is already rising: 125 container trains crossed Kazakhstan on the Trans-Caspian route in the first quarter of 2026, up 34.4% year-on-year. Japan has also become involved, pledging in August 2025 to help modernize customs operations at the port of Aktau. The Seoul Declaration also backs Korean participation in transport infrastructure, including modernization and digitalization. In...

Central Asia’s First Korea Summit Produces Different Deals for Each Country

The first Central Asia-Republic of Korea Summit brought five countries to Seoul with very different records of working with Korean capital. Kazakhstan arrived with commercial agreements worth about $19 billion, while Uzbekistan is discussing multibillion-dollar financing through the state-owned Export-Import Bank of Korea. In Turkmenistan, Korean companies are expanding beyond their traditional role in the gas-chemical industry; Tajikistan is offering mineral resources; and Kyrgyzstan is establishing a dedicated government contact point to help attract Korean businesses. On September 16, the presidents of all five Central Asian states met South Korean President Lee Jae Myung together for the first time. Until now, the Korea-Central Asia Cooperation Forum, established in 2007, had operated mainly at a ministerial level. A permanent secretariat was established in 2017, and in 2020 the meetings were elevated to the level of foreign ministers. The leaders adopted the Seoul Declaration, agreeing to hold summits every two years, with Kazakhstan set to host the next in 2028. Ministerial meetings in the intervening years will review implementation and prepare the next summit’s agenda. The declaration also envisages Korea Desks across the five Central Asian countries to help businesses address administrative obstacles. The leaders expressed interest in combining Central Asian minerals with Korean technology to build joint production networks, and agreed to pursue measures to reduce non-tariff barriers. Seoul also sees Central Asia as part of its own industrial strategy. South Korea, one of the world’s leading producers of automobiles, electronics, batteries, and ships, needs stable supplies of energy and raw materials. Opening the summit, Lee spoke of combining the region’s resources with Korean exploration and processing technologies. Critical minerals, energy, and supply-chain resilience were among the main issues at the meeting. In 2025, South Korea’s trade with the five countries reached $10 billion for the first time: Korean exports totaled $8.67 billion, while imports from Central Asia amounted to $1.39 billion. Cumulative Korean investment in the region reached $6.48 billion. Kazakhstan and Uzbekistan continue to account for most of this trade and investment. The talks in Seoul showed how different the next step could look in each of the five countries. [caption id="attachment_56323" align="aligncenter" width="1774"] Image: Akorda[/caption] Kazakhstan: $19 Billion in Agreements and Large-Scale Industry Kazakhstan arrived at the summit with the largest announced commercial package. On September 15, a day before the regional summit, Kazakhstan and South Korea signed around 80 agreements worth approximately $19 billion through the Kazakhstan-Korea Business Council in Seoul. About $11 billion is associated with projects involving Samruk-Kazyna, Kazakhstan’s sovereign wealth fund, which controls major state assets in oil and gas, energy, transport, telecommunications, and uranium mining. The $19 billion figure represents the value of signed agreements and announced projects at different stages of development. Behind the headline figure are several major industrial projects. QazaqGaz and Hyundai Engineering agreed to implement a gas processing plant at Karachaganak with an annual capacity of 5 billion cubic meters. KazMunayGas and Samsung E&A signed an agreement on expanding the Pavlodar refinery’s capacity to 9 million metric tons a...

Central Asia-South Korea summit 2026

South Korea and Uzbekistan Sign 13 Agreements as Seoul Deepens Cooperation Across Central Asia

Uzbekistan and South Korea signed 13 cooperation documents during President Shavkat Mirziyoyev’s visit to Seoul on September 14, covering areas including critical minerals, artificial intelligence, rail transport and defense. South Korean President Lee Jae Myung will host the first summit with all five Central Asian states on September 16. The five Central Asian presidents due to attend are Kazakhstan’s Kassym-Jomart Tokayev, Uzbekistan’s Shavkat Mirziyoyev, Kyrgyzstan’s Sadyr Japarov, Tajikistan’s Emomali Rahmon, and Turkmenistan’s Serdar Berdimuhamedov. Mirziyoyev’s talks opened a series of bilateral meetings running through September 16, with Kazakhstan and Turkmenistan scheduled for September 15, and Tajikistan and Kyrgyzstan the following morning. Among the Uzbek agreements is a memorandum to launch feasibility studies under South Korea’s Economic Development Cooperation Fund on the introduction of eight high-speed train sets and the establishment of a national genome and biobank center. The projects’ scope will depend on the studies’ findings. Uzbekistan had already agreed to purchase six high-speed trains from Hyundai Rotem in 2024. The Export-Import Bank of Korea and Uzbekistan’s investment ministry also agreed to identify potential projects and explore financing in six priority areas. These include critical minerals, AI and data centers, smart cities, an industrial complex for Korean companies, pharmaceuticals and biotechnology, and food, beauty and cultural industries. The presidents also agreed to use the Korea–Uzbekistan Rare Metals Center as a base for strengthening cooperation across exploration, development and processing. They agreed to expand cooperation on the use of AI in manufacturing. The package includes a defense cooperation contract involving Korea Aerospace Industries and an Uzbek counterpart. The South Korean government’s published summary did not identify the equipment or disclose the contract’s value. The agreements build on South Korea’s established economic presence across Central Asia. Its foreign ministry identifies Kazakhstan as its largest investment destination in the region, based on investment data through 2023. Kazakhstan’s industry ministry has put bilateral industrial cooperation at 46 joint projects worth about $3.9 billion, covering Hyundai and Kia vehicle production, Hyundai trucks and buses, ferroalloys and Samsung home appliances. Hyundai Trans Kazakhstan, part of Kazakhstan’s Astana Motors, produced 52,040 vehicles in Almaty in 2025, while Kia Qazaqstan began operating in Kostanay late that year, according to TCA’s reporting on Kazakhstan’s automotive industry. Korean companies are also involved in transport infrastructure and urban development. A Turkish–South Korean consortium secured the Big Almaty Ring Road public-private partnership, while South Korean partners are involved in the planned K Smart City district at Alatau. South Korean companies have participated in major industrial projects in Turkmenistan, including the Kiyanly gas chemical complex and gas processing facilities at the Galkynysh field. Daewoo Engineering & Construction is working on a mineral fertilizer production complex in Turkmenabat, where South Korea’s ambassador reviewed construction preparations in June. Turkmenistan’s foreign ministry has also highlighted Korean participation in transport infrastructure and shipbuilding. In Kyrgyzstan, South Korea has provided technical assistance to the textile sector and committed funding for a five-year digital-transformation program starting in 2026. The two governments are also examining potential cooperation involving Kyrgyzstan’s antimony...

Middle Corridor Freight Grows, but Eastbound Cargo Lags

Container traffic is growing along the Middle Corridor from China and Central Asia toward Europe, but the route is far less busy in the opposite direction. In the first eight months of 2026, about 80% of container traffic moved westward and only 20% eastward. Operators are now looking for goods in Europe and Türkiye that can be shipped back across the Caspian Sea and Kazakhstan toward Central Asia and China. Container traffic totaled 53,574 TEU along the Trans-Caspian International Transport Route, also known as the Middle Corridor, in January–August. One TEU is equivalent to a standard 20-foot container. During the same period last year, the figure was 48,326 TEU, meaning traffic increased by 11%. But the flows were highly uneven. According to ADY Express, 42,642 TEU moved from east to west, compared with just 10,932 TEU in the opposite direction – a ratio of almost four to one. Interest in the route increased sharply after 2022, when companies began looking for additional ways to move goods between China and Europe without transiting Russia. Over the past several years, participants in the Middle Corridor have focused on increasing shipments from China. New train services have been introduced, while countries along the route have invested in railways, terminals, and Caspian ports. Chinese freight has grown, but there is still not enough cargo for the return journey. For transport operators, the issue comes down to finances. Once containers reach Europe, they need to be used again or repositioned. If there is cargo for the return journey, the equipment generates revenue in both directions. Without it, operators can face the cost of moving empty equipment. The 80%-to-20% split, however, does not establish how many containers actually make the return journey without cargo. Railway companies themselves are now acknowledging the shortage of eastbound cargo. “For this, backhaul freight is necessary,” Emil Mammadov, Adviser to the Chairman of Azerbaijan Railways, said at the Black Sea and Caspian Freight Forum 2026 in Baku. According to Mammadov, attracting cargo from Europe would help increase freight volumes, optimize transportation costs, and allow at least some containers to be returned to their countries of origin. Until now, the route has been promoted more actively in China, Kazakhstan, Azerbaijan, Georgia, and Türkiye. European companies have received less attention. Railway operators are now looking for customers at the western end of the corridor as well. A shipment from Türkiye showed what such a return journey could look like. In May, KTZ Express and Pasifik Eurasia dispatched a train from Izmir to China carrying household refrigerators. Fifty 40-foot containers crossed the Caspian Sea, traveled through Kazakhstan, and continued into China via the Altynkol border station. For now, such shipments remain limited. The Chinese side continues to push for more westbound traffic. On September 9, Azerbaijan Railways held talks with Shanghai International Port Group and Lianyungang Port on expanding shipments of Chinese goods through Kazakhstan, across the Caspian, and through Azerbaijan toward Europe. ADY Express also reported that 265 container block trains operated along...