Transport and Logistics - The Times Of Central Asia

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Uzbek Afghan Business Forum

On July 3, an Uzbek-Afghan business forum was held in Tashkent to coincide with the visit of an Afghan delegation headed by Minister of Industry and Trade Nuriddin Azizi. The major event, the forum was attended by heads of ministries and government agencies, industry, and over 1,000 business representatives from both countries. As reported by the Uzbek Ministry of Investment, Industry and Trade, Afghanistan is Uzbekistan's fifth-largest export market. In the last five years, trade between the two countries has increased almost 1.5-fold, reaching $866 million in 2023. Uzbekistan currently receives Afghan investment in 550 enterprises, 443 of which are wholly funded with Afghan capital. In his welcoming speech, Laziz Kudratov, Minister of Investment, Industry and Trade of Uzbekistan, highlighted several promising areas of cooperation, including diversifying the range of goods traded, and bolstering cooperation between producers and exporters with support of both countries’ respective departments and industry associations. The forum focused on initiatives to further develop mutual trade, such as the transition to round-the-clock border crossing operations, the establishment of trading houses, and the execution of major transport and infrastructure projects. Attention was drawn to the significant impact of more proactive engagement at the International Trade Centre in Termez on the Uzbek-Afghan border, where the creation of business-friendly conditions include a 15-day visa-free regime and tax-free zone. Nuriddin Azizi, Minister of Industry and Trade of Afghanistan, commended Uzbekistan's efforts to foster an environment conducive to bilateral trade, economic and investment cooperation. He also encouraged more proactive engagement between Afghan and Uzbek entrepreneurs by offering assurance of both sides' readiness to support new ventures and initiatives. The forum was complemented by the exhibition "Made in Afghanistan" which showcased the produce of 75 major Afghan companies from jewellery, textiles and food to electrical engineering, mining, transportation and logistics. The event concluded with the signing of several trade agreements in the chemical and agricultural sectors, as well as an agreement to establish a logistics centre. According to the Uzbek Ministry of Transport, Afghanistan is one of the key links in ensuring regional connectivity across Central and South Asia. In recent years, cargo transportation across Afghanistan has risen significantly and in 2023, the volume carried along the multimodal transport corridor Uzbekistan – Afghanistan – Pakistan increased 1.5-fold compared to 2021.

International transport Transport and Logistics

Development of Uzbekistan–Afghanistan–Pakistan Transport Corridor

On June 29, representatives of Pakistan's and Uzbekistan’s leading transport and forwarding companies, and First Deputy Chairman of the Board of JSC Russian Railways, Alexey Pavlov, participated in a Logistics Forum in Tashkent. As reported by the Uzbek Ministry of Transport, the agenda focused on creating favourable conditions for bilateral and transit cargo transportation through the multimodal transport corridor Uzbekistan – Afghanistan – Pakistan, eliminating barriers and strengthening mutually beneficial strategic cooperation. Members of the Commonwealth of Independent States (former Soviet republics) have a keen interest in redirecting cargo flows to the multimodal transport corridor Uzbekistan - Afghanistan - Pakistan. According to statistics, in 2023 the volume of cargo transportation along this corridor increased 1.5-fold compared to 2021. Speaking at the forum, First Deputy Minister of Transport of Uzbekistan Mamanbiy Omarov emphasized the importance of the Uzbekistan-Afghanistan-Pakistan corridor and mooted proposals for its further development. Recommendations included reducing fees levied on freight transport and establishing fees on a parity basis in the territory of each state; developing mechanisms for insuring cargo along the route and ensuring the safety of goods during transportation; digitalizing the cargo transportation process; and developing proposals to increase the capacity of the Salang Pass in Afghanistan, which is the “heart” of this transport corridor.

Foreign Cooperation Transport and Logistics Export/Import

Iranian Cooperation with Kazakhstan on New Terminal at Bandar Abbas Port

On June 29, Deputy Prime Minister of Kazakhstan Serik Zhumangarin held a meeting with founder and president of the Iranian shipping company Golden Line, Ali Akbar Ehsani. Golden Line provides services for handling shipping containers and logistics in the port of Caspian on Iran’s Caspian coast. As reported by the Kazakh government’s press service, the Iranian company is interested in expanding its services for the export and transit of various cargoes from Kazakhstan, other Central Asian countries, Russia and Azerbaijan, to ports in the Persian Gulf, Indian Ocean, Asia and Africa. The Iranian port of Caspian, where the company’s main loading and unloading facilities and ships are located, was recently connected to the Iranian railway network, providing direct connections between ports in the Caspian Sea and the Persian Gulf. Regarding the above, the head of the shipping company proposed cooperating with Kazakhstan on the construction of a Kazakh terminal in the port of Bandar Abbas. “We have 25 hectares of container area at our disposal in the port of Bandar Abbas. We are also ready to allocate another 30 hectares in a convenient location for the Kazakh terminal in the port and invest in its construction,” said Ali Akbar Ehsani. In response, Deputy Prime Minister Zhumangarin invited the Iranian company to participate in the first international transport and logistics forum “North - South”, scheduled for the end of July in Aktau (Kazakhstan), to discuss the project with potential Kazakh partners.

Transport and Logistics Social Strategy Transport Economy Investments

Kazakhstan Facing Challenge of Developing Roads in Ninth Largest Country in World

Kazakhstan is one of the most active post-Soviet states in building roads. Over the past decade, KZT4 trillion ($8.55 billion) has been spent on highway construction in the country, yet in a world ranking of road quality, Kazakhstan stands 93rd out of 141 countries. Record year for road construction The focus of the current road construction season is completing the reconstruction of sections of the main road transport corridors: Karaganda–Balkhash–Almaty, Taldykorgan–Ust-Kamenogorsk, Aktobe–Kandyagash, and Atyrau–Astrakhan. Overall, the current season is due to be set new records. There are plans to repair, reconstruct and build twelve thousand kilometers of road. Another feature of the work this year is the implementation of a major new program for the “medium repair” of local roads to strengthen them structurally, which is designed to improve transport links between populated areas. This program is set to repair about 2,500 kilometers of road throughout the country. Betting on tolls In February, the government announced plans to increase tariffs on federal toll roads. However, the initiative is still under consideration. The current tariffs – KZT 1 per kilometer for passenger vehicles (0.002 US cents) and KZT 5-25 per kilometer for freight vehicles depending on the load capacity and transport class – were approved back in March 2013 for the first toll highway built in the country (Astana-Shchuchinsk). Since then, the tariffs have not changed. In 2024, there are plans to roll out a toll system on another 2,400 kilometers of federal roads, namely on the sections Kostanay–Troitsk, Aktobe–Russian border (toward the city of Orenburg), Aktau–Beineu, Kyzylorda–Aktobe Region border, Usharal–Dostyk, Kostanay–Denisovka, Makat–Kandyagash, Taraz bypass, Karaganda bypass, Balkhash–Burylbaital, and Shu– Burylbaital. According to the national company in charge of federal and international roads in Kazakhstan, KazAvtoZhol, the toll system will be introduced only after repair work is completed and the roads fully comply with regulatory requirements. In addition, attention is being paid to transit routes when introducing tolls. This is especially relevant in the context of the government’s plans to develop freight transit through Kazakhstan and make the country a regional transport and logistics hub. Thanks to international transport, including transit, tolls are expected to become a significant contributor to the country’s budget. Today in Kazakhstan, there are 17 toll road sections with a total length of more than 3,200 kilometers, which, along with the state budget, help finance the maintenance of federal roads. According to the Ministry of Transport, KZT60 billion ($130 million) is required annually to maintain the country’s roads. Internationally, road maintenance is financed by taxes allocated for transport, but this is not enough in Kazakhstan – it is one of the largest countries in the world, but has a low population density, meaning its road infrastructure remains underutilized. Because of this, historically, road maintenance in the country was financed from the state budget. Overall, the toll system will be gradually introduced on 11,000 kilometers of road by 2029 as reconstruction work is completed. The further rollout of the system, which aims to support year-round maintenance, should reduce the...

Trans-Caspian Corridor International Cooperation Transport and Logistics International Transport Forum

Kazakhstan Pushes New Measures to Utilize its Transit Potential

On June 20, Permanent Delegate of Kazakhstan to International Organizations in Paris, Askar Abdrakhmanov, attended the International Transport Forum (ITF) Day at the Organization for Economic Co-operation and Development (OECD) headquarters. In his presentation on “Connectivity in Times of Crisis,” Ambassador Abdrakhmanov focused on Kazakhstan’s measures to further develop its transport infrastructure and international freight transportation, and Astana’s efforts to develop transport cooperation with the country’s neighbouring states. Regarding the potential of both old and new routes, Abdrakhmanov highlighted the construction of second tracks on the Dostyk – Moynty railway on the Kazakhstan and China border, a container hub and dredging projects at Aktau and Kuryk seaports, a new Darbaza – Maktaral railway line with further access through Uzbekistan, Turkmenistan and Iran to the Persian Gulf and the Indian Ocean, and functioning the eastern branches of the North-South corridor. Special attention was paid to the Trans-Caspian International Transport Route (TITR), widely known as the Middle Corridor. He emphasized the importance of the recent joint government venture to establish a single, unified operation of cargo transportation along the Middle Corridor, as well as the launch of the TITR Coordination Platform with the participation of Central Asian states, the South Caucasus, and the European Commission. “The current geopolitical situation has created new economic and logistical challenges for Kazakhstan and other countries in the region, and the answers to them lie in closer cooperation with our neighbours and international partners,” stated the Kazakh diplomat. The International Transport Forum (ITF) at the OECD is an intergovernmental organization with 69 member countries which serves as a think tank for transport policy and organizes annual summits of transport ministers. Kazakhstan has been an ITF member since 2017.

Transport cooperation Transport and Logistics North-South International Corridor International Transit

Indian Companies Interested in Turkmenistan’s Seaport

Issues concerning the establishment of cooperation in the field of maritime transportation, as well as the possibility of cargo transit through Turkmenbashi International Sea Port, were recently discussed by representatives of the Agency Turkmendenizdaryaollary with the Ambassador of the Republic of India in Turkmenistan, according the Agency's website reports During the meeting, the excellent potential for cargo transit offered by the Turkmenbashi port, which occupies a crucial location in the North-South transport corridor, was noted and encouraged a proposal by representatives of “Turkmendenizdaryaollarya” to assist the Indian side in establishing an exchange of expertise in port management. In its summary of the meeting, the report stated, "The Indian Ambassador said that more than 30 Indian companies are interested in visiting Turkmenistan and familiarizing themselves with the opportunities of Turkmenbashi port. Following the meeting, the parties agreed to make every effort to develop cooperation in maritime transportation.”