Uzbekistan is transforming into a new logistics hub through the development of transport diplomacy

Historically, a state's economic significance was determined by its natural resources, access to seaports, or the presence of a large domestic market. However, in the 21st century, another critically important factor has been added—a place in the global supply chain. Today, a country's economic strength is assessed not only by what it produces but also by the trade flows passing through its territory. Consequently, transport infrastructure has ceased to be merely an engineering object and has become an integral part of foreign policy and economic strategy.

Factors Accelerating Logistics Development

This process has accelerated in recent years. The COVID-19 pandemic demonstrated the vulnerability of global supply chains. Furthermore, the conflict between Russia and Ukraine forced a reassessment of traditional Eurasian logistics routes, while security issues in the Red Sea increased shipping risks. As a result, states and large companies began developing strategies for transporting goods along several alternative routes rather than just one. This process has significantly increased the importance of Central Asia.

Central Asia as a Logistics Hub

The region, once viewed as landlocked on the world map, is now valued as one of the most crucial links in the overland corridor connecting Europe and Asia. International institutions such as the World Bank, the Asian Development Bank, CAREC, and TRACECA note in their latest reports that Central Asia is a key link in the Eurasian logistics system. These changes open up entirely new opportunities for Uzbekistan. If previously the lack of sea access was a serious limitation for foreign trade, its location in the center of Central Asia is now turning into a strategic advantage.

Strategy for Developing Transport Corridors

Since 2017, expanding transport links with neighboring countries, forming new international routes, and increasing the country's transit potential have been among the priorities of its foreign policy. President Shavkat Mirziyoyev consistently promotes the development of transport corridors at various international summits and negotiations, asserting that this is the main condition for economic integration. The head of state has repeatedly emphasized that developing transport communications is crucial for enhancing Central Asia's competitiveness, expanding access to external markets, and ensuring the economic stability of the region's countries.

Uzbekistan's Geoeconomic Strategy

Today, this policy manifests not as a set of individual projects, but as a coherent geoeconomic strategy. Initiatives aimed at developing the China–Kyrgyzstan–Uzbekistan railway, the Trans-Afghan railway, the Trans-Caspian International Transport Route, as well as the Termiz logistics center and the harmonization of transport infrastructure with neighboring countries, serve one goal—transforming New Uzbekistan into one of Eurasia's most important transport and logistics centers.

Diversification as the Basis of Sustainability

In light of the current global situation, where the main criterion for companies used to be transport costs, the key indicators today are delivery reliability and route diversification. Simply put, the world no longer needs one, but several reliable routes. This need has significantly enhanced the importance of Central Asia. World Bank experts emphasize that the growth of trade flows in Eurasia and the need to diversify supply chains increase the demand for overland transport routes. The region has the opportunity to turn its geographical position into an economic advantage.

Three Key Transport Directions

Currently, three major strategic transport axes are being formed in the region. The first is the China–Kyrgyzstan–Uzbekistan railway, the second is the Trans-Afghan railway, and the third is the Trans-Caspian International Transport Route. Although these projects can be considered separately, their true value lies in their interconnectedness. Looking at the world map, it becomes clear that cargo from China can reach Uzbekistan via Kyrgyzstan. From there, some cargo is directed via the Trans-Afghan railway to Pakistani ports. Another part reaches the Caspian Sea coast through Kazakhstan and Turkmenistan, reaching European markets via Azerbaijan, Georgia, and Turkey.

Uzbekistan as a Transport Hub

Thus, Uzbekistan aims to become not just a participant in one transport route, but a transport hub connecting numerous international logistics systems. While some countries depend on a single international route, Uzbekistan is developing various directions simultaneously to enhance the security of foreign trade. This is a strategy for managing geoeconomic risks. If a problem arises on one route due to political or military reasons, the country's foreign trade can continue along other transport paths. Recent world events have clearly demonstrated the importance of such diversification. From this perspective, every transport project involving Uzbekistan is not just an individual investment, but part of a unified strategy centered on the idea of turning the country's geographical location into economic value.

Foreign Policy Priorities

Therefore, in recent years, President Shavkat Mirziyoyev has consistently promoted issues of transport links, the development of new transport corridors, and the harmonization of logistics infrastructure in the region as one of the key directions of foreign policy at international meetings. This approach serves not only Uzbekistan but also contributes to the deeper integration of the entire Central Asian region into the global economic system.

Significance of the China–Kyrgyzstan–Uzbekistan Railway

Among the transport projects being implemented in Central Asia, the China–Kyrgyzstan–Uzbekistan railway is one of the most discussed topics. Its significance is determined not so much by the cost or scale of the engineering works, but by the potential to transform the economic map of Eurasia. The implementation of this project between the three countries required years of negotiations and repeated revisions of economic calculations and technical parameters. A trilateral agreement was signed only in 2023, facilitating the transition to the practical stage, and construction work is expected to enter an active phase by 2026. The total length of the railway is about 454 kilometers. The route starts in the city of Chashkar in China and passes through Turugart, Arpa, and Karasuv to Andijan. It is planned to be fully operational by 2030.

Role of the Railway in Diversification

Currently, most cargo traveling from China to Central Asia and then to Europe moves through Kazakhstan. This route has been established over the years, possesses relatively developed infrastructure, and functions as the main overland path. The China-Kyrgyzstan-Uzbekistan railway adds a second independent overland axis to this system. Thus, the main task of this railway is not competition, but diversification. Railways not only transport existing goods; they also contribute to the formation of new production zones. As analysts from the World Bank and the Asian Development Bank note, investment flows accelerate, the number of export-oriented industrial enterprises grows, and the market for logistics services expands in areas with improved transport infrastructure. Consequently, the importance of Andijan, Namangan, and the Fergana region increases. If the Fergana Valley was previously seen primarily as a center of domestic production, the new transport infrastructure could transform it into an export platform closely linked to external markets.

The Essence of Transport Diplomacy

In recent years, the Republic has been focusing not only on building transport infrastructure. The country is forming transport diplomacy as one of the important directions of its foreign policy. This term is increasingly used in international relations. Its essence is simple: states have begun using transport routes not only as means of transporting goods but also as tools for economic integration, attracting investment, and strengthening foreign policy influence. Modern Uzbek policy is based precisely on this approach.

Multimodality and Trade Security

The country is simultaneously working on developing new transport systems: a new railway connecting to China in the east; access to the Indian Ocean through Afghanistan in the south; and new routes via the Caspian Sea to the Caucasus and European markets in the west. Thanks to this, Uzbekistan seeks not to depend on any single state or single transport corridor, but to have several alternative routes for foreign trade. This allows for the management of geoeconomic risks. As Dilshod Hakimov noted, all this activity is part of a general strategy.

uza.uzJuly 22, 09:46

Watermelons from Mirzacho'l Gain Recognition in the Global Market

In the Mirzacho'l district, located in the Jizzakh region, active work is underway to harvest, sort, and prepare watermelons for export. The harvested crop undergoes thorough field sorting according to established requirements, is then packaged and sent by specialized transport to foreign markets.

Quality and Competitiveness of Products

Watermelons grown in the lands of Mirzacho'l have gained high praise not only among domestic consumers but also among foreign buyers due to their unique taste, aroma, juiciness, and high quality. The competitiveness of the products is further enhanced by favorable natural climate conditions, agricultural traditions, and well-organized agrotechnical measures.

Export Requirements

Special attention is paid to the quality of the goods when preparing the harvest for export. Watermelons are sorted according to export requirements based on their appearance, weight, and storage characteristics. This allows the product's appearance and quality to be maintained even during long-distance transportation.

Development of Agricultural Exports

Efforts continue to be made to expand the export of agricultural products in the Mirzacho'l district, increase the share of national products in foreign markets, and consequently raise the income of farmers and agriculturalists. Priority tasks include expanding the geographical scope of exports, improving the logistics system, and growing products that meet the demands of external markets.

International Recognition of Uzbek Products

Reforms aimed at expanding fruit and vegetable exports in the country are showing positive results in recent years. Uzbekistan's watermelon has established itself as one of the most famous irrigated products in Central Asia and is regularly supplied to the markets of Russia, Kazakhstan, Kyrgyzstan, Belarus, the Baltic states, and other countries. Measures taken to grow export-oriented products in agriculture, sort them according to international standards, and deliver them to foreign markets strengthen the country's export potential.

Contribution of Local Farmers

The sweet and aromatic watermelons, grown thanks to the dedicated labor of Mirzacho'l farmers, now grace tables both in the domestic market and contribute significantly to increasing the country's export potential and strengthening the authority of national agricultural products on the international stage.

uza.uzJuly 21, 09:39

Uzbekistan introduces procedure for partial VAT refund paid to the budget through the unified national tourism platform

The Cabinet of Ministers of the Republic of Uzbekistan has adopted a decision on introducing additional support measures for business entities organizing events in the republic that contribute to increasing tourist flow (MICE tourism).

VAT Refund Procedure

According to this decision, a regulation has been approved regarding the procedure for refunding 50 percent of the value-added tax (VAT) amount actually paid into the republican budget to business entities conducting events in the republic to increase tourist flow.

Regulation Content

This regulation establishes requirements for business entities organizing MICE events; defines the procedure for submitting applications and the list of necessary documents; regulates the procedure for reviewing applications and making decisions; as well as the mechanism for calculating the refunded funds. Furthermore, it provides for the financing of these amounts from the republican budget and their transfer to the business entity's bank account.

Role of the Tourism Committee

The Tourism Committee, together with the Tax Committee, will introduce the procedure for submitting applications through the Unified National Tourism Platform within three months for the refund of part of the VAT paid to the budget to business entities in accordance with the approved regulation.

Conditions for Applying the Regulation

This regulation establishes the procedure for refunding 50% of the VAT amount actually paid into the republican budget to business entities that organize international conferences and events on the territory of the Republic of Uzbekistan and ensure the participation of at least 100 foreign tourists in such events. This norm does not apply to excess tax amounts arising from the submission of amended tax returns.

uza.uzJuly 19, 15:01

The 'Improvement and Generosity' Campaign Launched in Guliston District of Uzbekistan

To strengthen the atmosphere of goodwill, solidarity, and interconnectedness among the population, and to transform mahallas into more prosperous and pleasant places, efforts to develop local communities have been intensified. The 'Improvement and Generosity' month has begun in Guliston District to ensure the fulfillment of tasks defined at the video-selection meeting under the leadership of the President of the Republic of Uzbekistan.

Start of Work in Soyibobod

Early in the morning, a public cleanup for improvement began in the Soyibobod mahalla of Guliston District, involving residents, youth, state institutions, as well as teams from enterprises and organizations. Streets, paths, and drainage ditches were cleaned. Agronomic work was carried out on trees, and their trunks were cleared. Additionally, gravel was laid on some internal roads, which improved travel conditions for residents.

Participation of District Leadership

The head of Guliston District also took part in the improvement works, familiarized himself with the actions carried out jointly with mahalla activists and youth, and gave relevant instructions to responsible persons.

Goals of the 'Improvement and Generosity' Month

Within the framework of the 'Improvement and Generosity' month, it is planned to intensify improvement and landscaping work in all 24 mahallas of the district. Events will also be held to ensure sanitation and cleanliness, organize internal streets, improve the territories of social facilities, and collect information about families in need.

Significance of the Initiative

Shuhrat Khushmurodov, head of the Guliston District branch of the Mahalla Society of Uzbekistan, emphasized that important tasks regarding the improvement of mahallas, the creation of decent living conditions for the population, and uniting people around good deeds were set at the video-selection meeting under the President's leadership. He noted that the 'Improvement and Generosity' month has been launched in every mahalla of the district to implement these instructions. Mahalla activists, youth, state institutions, and work collectives are actively participating in this process.

According to him, improvement is not just cleaning a street or yard, but strengthening the sense of belonging to the fate of one's mahalla, as well as forming an atmosphere of mutual help and goodwill in every person. Therefore, during the month, in addition to improvement work, systematic events demonstrating generosity will be organized.

Sources of Well-being in Mahallas

It is emphasized that well-being in a mahalla begins with the activity of every household, every street, and above all, with the feeling of participation and solidarity among citizens. Thus, the 'Improvement and Generosity' month is designed not only to tidy up the territories but also to create a foundation for increasing positive values such as mutual respect, kindness, and solidarity among the population.