The Agency for Strategic Development and Reforms under the President of Uzbekistan has initiated the introduction of a non-territorial free port regime at multimodal logistics centers and dry ports across the country, as well as the adoption of a dry port law.
Furthermore, the agency proposed transferring some terminals to international operators, which would allow private companies to provide locomotive traction services, and establishing a national fund for the development of logistics infrastructure.
These proposals are outlined in an analytical report titled 'Proposals for Developing the Dry Port Network and Increasing Uzbekistan's Transit Potential.' The report authors note that 27 of the country's dry ports are not yet functioning as a unified national system.
The agency warns that if infrastructural, digital, financial, and institutional barriers are not removed in the near future, a significant portion of the added value generated by cargo transit may remain outside of Uzbekistan.
Market Growth Outpaces Infrastructure Development
Since 2017, the annual volume of transport services in Uzbekistan has increased more than fivefold—from 36 trillion sums to 188.2 trillion sums. According to the National Statistical Committee, in the first half of 2026, this figure reached 85.3 trillion sums, which is 43% higher compared to the previous year. Transport ranks third in the services sector, behind trade and public catering.
The Eurasian Development Bank reported that in 2025, railway container traffic in Uzbekistan reached 100,000 TEUs for the first time, and total rail freight turnover exceeded 107.9 million tons. However, the agency estimates that containers account for less than 1.5% of rail freight turnover, while coal, ore, and construction materials continue to constitute the main bulk of cargo. According to Kazakh media, containerization in Kazakhstan reached 8.5% in 2026, with total container traffic amounting to 2.2 million TEUs.
At a meeting of the UN Economic and Social Commission for Asia and the Pacific (ESCAP) working group in Bangkok at the end of 2025, 27 of Uzbekistan's largest logistics centers were included in the international dry port network under a Multilateral Agreement on Dry Ports involving 17 countries. These centers include Navoi Cargo, Kungrad Cargo Impex, and Termez Cargo Centre. Their inclusion expanded the agreement's network by 15%.
The Trans-Caspian route is also growing, having transported 4.2 million tons of cargo in 2025. It is projected that this volume will reach 5.2 million tons by 2026 and 11 million tons by 2030. Container traffic on this route was about 77,000 TEUs and could increase to 300,000 TEUs by 2030.
Warehouses Are Nearly Fully Occupied
In April 2026, the consulting firm IBC Global published its first global warehouse market ranking covering 200 countries. Uzbekistan ranked seventh with a score of 40.2 points, positioned between Turkey and Mexico, surpassing India and Kazakhstan. The country did not receive penalty points for geopolitical risks or sanctions pressure.
The total area of Class A and B warehouses is approximately 795,000 square meters, while unmet demand is estimated at nearly 400,000 square meters. Over 98% of Class A space is occupied, and about 370,000 square meters are under construction. Modern warehouse space amounts to only 0.02 square meters per capita, compared to approximately 0.7 square meters in Turkey, 0.9 square meters in Poland, and 2.1 square meters in Germany.
The average rent for Class A warehouses in Tashkent has reached approximately 12 US dollars per square meter per month. With a construction cost of 670–700 US dollars per square meter, the annual return for developers is estimated at 15–18%, with a payback period of five to seven years. For comparison, the return on residential real estate in Tashkent for investors is 8–12% annually.
Barriers to Transit Development
The agency identifies infrastructure as the main limiting factor. More than 75% of modern warehouse space is concentrated in the Tashkent transport hub, whereas most regional terminals are Class B or C facilities lacking automated management systems, modern crane equipment, or dedicated railway tracks.
Until August 2025, the national operator Uztemiryulcargo was forced to use wagons belonging to Kazakh companies on the Tashkent–Altynkol route. In nine years, the population of Uzbekistan has grown by almost 30%, and nominal GDP has increased by almost 2.5 times, while the length of main railway lines has increased by only 12–14%, reaching 4,800 kilometers. According to regulator calculations, the country requires about 7,560 kilometers of railway tracks, leaving a deficit of approximately 2,800 kilometers. Required investments are estimated at 9–13 billion US dollars over 10–15 years.
Digital barriers also impede development. There is no unified digital ecosystem with neighboring countries or full mutual recognition of electronic signatures, and participants in the Trans-Caspian route have not yet agreed on transit tariffs. Another problem is the imbalance of cargo flows. Imports from Asia significantly exceed exports in the reverse direction, forcing operators to return empty containers to China at their own expense.
Financing is constrained by high borrowing costs. Interest rates on loans in national currency are 21–23% per annum, which exceeds the return on warehouse projects. According to the World Bank, bureaucracy increases the construction cycle of a logistics center from six to nine months to two years. Investors must go through four separate procedures just to obtain land.
The agency also points to conflicts of interest in sector management. Uzbek Railways owns the infrastructure, transports goods, and manages terminals, while its subsidiary holds a monopoly on all mainline locomotives in the country.
International Experience
The report provides examples from landlocked countries. Rwanda granted DP World a 25-year concession to operate a dry port in Kigali with an annual capacity of 50,000 TEUs and moved customs clearance inland. As a result, transit time was reduced from 14 days to three, and the country saves about 50 million US dollars annually.
With support from the International Finance Corporation, Laos built the Tanaleng dry port in 2021, reducing delivery times to Europe from 45 to 15 days. Kazakhstan privatized its fleet of railway wagons; 74% of the wagons are now privately owned, and since 2018, it has allowed private locomotives to operate. Two private carriers already own about 100 locomotives and plan to acquire another 110.
Seven Proposals from the Agency
The central proposal is the introduction of the free port regime. This involves moving customs, phytosanitary, and veterinary controls inside the terminals, allowing for the import and storage of foreign goods without paying duties. Commercial disputes will be heard by the Tashkent International Commercial Court in the Tashkent International Financial Centre (TIFC), and all forwarders and carriers will have equal access to hub capacity. To implement the regime, the agency proposes adopting a dry port law and amending the Customs and Tax Codes.
The second proposal is to create partnerships with international operators based on public-private partnership models. This will involve transferring state-owned dry ports to private management for modernization and the construction of new hubs. Potential partners mentioned in the report include DP World, AD Ports Group, Duisburger Hafen, PSA International, Lotte Global Logistics, and COSCO Shipping. The agency suggests preparing agreements with the participation of the International Finance Corporation.
The agency also proposed:
- Creating a National Fund for Logistics Infrastructure Development with mixed financing from state assets, loans from international development banks, sovereign funds, and infrastructure bonds, including sukuk.
- Implementing a pilot scheme allowing private operators to provide locomotive traction services on selected routes.
- Launching a national digital platform, the 'Cargo Community System,' integrating railways, customs, terminals, banks, and insurers, with the aim of reducing document processing time from several days to 10–15 minutes.
- Allowing small road carriers to form cooperatives.
- Simplifying and digitizing land allocation and the issuance of permits for constructing logistics facilities.
