Transporters, logistics specialists and representatives of investment companies discussed a range of issues concerning the development of new ideas in logistics and management. The main topics of discussion were: practical application of innovative ideas in transit communications in Central Asian countries; an analysis of best international practices in transport logistics and transit; factor of international economic consulting in definition of freight, prospects for regional cooperation in cargo transit, growth prospects of continental cargo flows and their relation to the future development of the world economy; attracting investments to the transport sector of Central Asia.

As it is known well, today Asian economies are actively gaining momentum. According to international experts, shifting of the center of the world economy into Asia is being more often registered. It is obvious that new transportation corridors promote the trends of economic development.

In this context, participants noted that the geographical location of key economic centers of the continent suggests a special role of transport communications to ensure the ongoing freight turnover. Growing volumes of international cargo, as well as growth of economies of countries inside the continent, particularly the CIS countries and China, more and more actualize the need for accelerated development of land transport linkages, including through the territory of Central Asia.  

Meanwhile, we cannot say that the hinterland corridors do not have well-developed communications infrastructure. For example, a lot of work has been done in the Central Asian region in recent years to modernize the transport sector and establish new international routes. Moreover, this work has never been closed, as evidenced by the national concepts of modernization and development of transport communications, as well as a number of currently ongoing projects.

In this regard, a particular attention was paid to the ongoing efforts by Uzbekistan to develop a regional transport infrastructure, particularly, in the context of the initiative of President Islam Karimov on the creation of an Uzbekistan-Turkmenistan-Iran-Oman-Qatar transport corridor. Foreign experts noted that through this route the Central Asian countries would have access to one of the most attractive markets of the Gulf, whose total annual imports of more than $335 billion.

In this regard, Rustam Makhmudov, Deputy Director of the Center for Political Studies noted that at a recent ministerial meeting of the Dialogue on Cooperation in Asia in Tehran President Islam Karimov’s initiative on creation of transport corridor linking the countries of the region and the Persian Gulf had found support from leaderships of Iran and Oman. Earlier, as it is known, the initiative was supported by the Government of Turkmenistan. At a meeting in Tehran it was noted that the implementation of this idea in the future would be an effective bridgehead for the development of regional trade and economic processes.

Participants also stressed the importance of Uzbekistan’s steps on development of transport corridors through Afghanistan. First of all, the construction of the Hairaton-Mazar-i-Sharif railroad, which will become a significant contribution of our country to the economic revival of its Afghan neighbor. As Boyko Nitsov, Director of Atlantic Council programs said, the railroad will allow implementing a project on construction of the Trans-Afghan corridor and will provide the shortest route for goods transit by rail from Central Asia to the nearby ports of the Indian Ocean, and will promote for the economic development of Afghanistan.

A convenient geopolitical location of Uzbekistan in the heart of the region provides rail transport more likely to get the best benefits of the transit-transport potential of the country presenting the shortest route connecting Europe and Asia overland.

The conference also discussed the activities related to operation and expansion of the capacity of the Navoi Free Industrial Economic zone designed to become a regional strategic hub of logistics to ensure efficient freight traffic in the North-South and the East-West directions. According to Jasur Tadjiev, Director of the Uzinfoinvest Agency, “the concept of creating FIEZ is based on the principle of synergy of its four sections: transport and logistics, industrial, innovation, tourism and cultural and recreational. Located in the central Uzbekistan, FIEZ offers great opportunities for immediate transportation of industrial goods produced there to the end-users in Asia and Europe”.

It should be noted that FIEZ was created to maximize the benefits of a multimodal transport and logistics hub in close proximity to the international airport of the city of Navoi, which is under the Korean Air’s management. Today, the territory of free industrial-economic zone is completely ready to accommodate new facilities. The entire external infrastructure including the access road from the international highway, railway, water and gas pipelines, power lines, and broadband communications was brought to the FIEZ. A developed multi-modal network is an important competitive advantage that can significantly reduce time and cost of goods delivery from Uzbekistan, and transit through the territory of our country.

One can recall that in March 2009 the President of the Republic of Uzbekistan approved the integrated program of development and modernization of the railway industry for 2009-2013. One of the main directions of this document is construction of new railways and electrification of railways, introduction of modern signaling and telecommunications.

Under the program the construction of a new railway line Tashguzar-Baysun-Kumkurgan was completed. A work continues on device of the permanent way, man-made structures, including bridges and railroad overpass tunnel-type reconstruction of power lines and gas pipelines on construction of double track electrified railway line of Yangiyer-Jizzak and a single-track line Yangiyer-Farhad, as well as further improving of infrastructure of the railway line Navoi-Uchkuduk-Sultanuizdag-Nukus.

Taking into account that the theme of transportation is closely linked to aspects of economic development, serious discussions revolved around the question of the future world economy. It was noted that Asia’s rapid development is becoming a major catalyst for the stabilization of the global economy, which, of course, has a beneficial impact on the world trade turnover, and on transit cargo transportation through Central Asia.

M.Ronconi, Head of Centralized Operations Management, dealing with countries in Asia and Central Asia, EuropeAid Cooperation Office, said: “We support the regional cooperation in Central Asia in such areas as energy, security, and etc. Today, we are ready to promote a development strategy of transport routes, in particular, the expansion of multimodal corridors that are able to attract significant volumes of international transit of goods”.

 Such a strategy, according to participants, should include not only the aspect of improving the quality of communications systems, but a moment as the presence of sequential steps of a practical nature in attracting freight on long-term basis.

During the conference, representatives shared their experiences of leading logistics companies and hubs in Europe and Asia. They highlighted the key provisions of their policies to improve efficiency, including through innovations in the face of increasing competition for freight traffic. They noted the key role of Uzbekistan in implementing projects of logistics on a global scale and development of land transport in the Central Asian region.

According to participants, an extensive exchange of views, ideas and assessments, joint analysis of the status and prospects of development of the transport network was useful and the results of the international conference will be required in practical work on further development of transport and transit potential of the region, the use of which would raise the existing trade and economic ties in Central Asia to a qualitatively new level.

The active globalization process observed in Central Asia over the last years is aimed first of all at binding the Central Asian region with its geopolitical significance to big transportation networks. Currently Uzbekistan is a part of the civil aviation project valued at three million euro. The new TRASECA project is under elaboration. European Union specified key trends of TRASECA development strategy till 2015. The major goals include development of the modern infrastructure and interaction with the European transeuropean networks system. The launch of establishment of new logistics centers in Central Asian states is projected for February, 2011 together with stakeholders to be accomplished within six years.

P. Morwidge,

President Islam Karimov proposed the transport corridor project from Uzbekistan to Persian Gulf through the territory of Turkmenistan this October.  The corridor will empower the countries of the region to expand their trade and economic resources and increase exporting and importing volumes between them.

Initiatives of Islam Karimov are always well-considered and opportune thanks to his correct policy. In 2009 Uzbekistan reckoned among few countries of the world for its sustainable economic development. The country’s GDP increased 8.1% at the height of the global economic crisis. This is another evidence of the strong economic background of the Uzbek President who thinks many years in advance.

D. Tomina,

Central Asian region is a dynamically developing link of the global transport and communication system. This status requires the development of the whole transport infrastructure in the countries of the region and transportation strategy pertaining to the regional development.

The high potential of Uzbekistan favored the establishment of our representative office in Tashkent. Uzbekistan is the key platform of Ahlers Company in Central Asia. Our company is dealing with the marketing research on freighting, so we offer transport and logistics solutions for the companies interested in expanding their business in the Central Asian region, and particularly in Uzbekistan.

B. Nitsov,

program manager, Atlantic Council:

The general cooperation program, including its political and practical aspects, shows a good progress. We will keep implementation of this kind of programs in Uzbekistan in future. As it is known, foreign trade relationships generate the transportation streams. I think the participation and optimism of business is crucial in this process. Investment and traffic load are all-important in transportation networks. In any case, these issues cannot be addressed without a share of business.   

D. Tajiev,

Located in the crossroad of international overland and air corridors North-South and East-West the Navoi Airport is an ideal regional center for international cargo traffic management. By now the first stage of its upgrade has been finalized with the construction of the international intermodal logistics center and cargo terminal with the capacity of 300 tones of cargo a day.

The logistics center is destined as the full-fledged cargo distribution system to forward freights from the Navoi Airport overland throughout the region, as well as for redistribution of cargo traffic by air in the directions North-South and East-West.

S. Imandosov,

It is impossible to ensure the expansion and intensification of trade and economic relationships between the member states of the Shanghai Cooperation Organization and all states of the Central Asian region without modern communications, convenient transport corridors and favorable conditions for cargo transportation.

Development of transit potential and transportation network is the priority of the long-term program for multilateral trade and economic cooperation.

The huge human, economic and resource potential of six SCO member states empowers us to build up bold transport projects that would ensure the common prosperity. 

M. Daud,

The growing market of Afghanistan may become an additional incentive for the development of transport corridors in the region. The commodity turnover between Afghanistan and Central Asian countries is recorded over the last years. The Afghan market turns into the promising outlet for energy suppliers, producers of food, grain, manufactured and consumer goods.

The poor traffic capacity of the northern corridor is the obstacle for the commodity delivery to Afghanistan. Afghan businessmen express confidence that the development of railway networks and construction of cargo terminals inside of Afghanistan would increase the traffic capacity of the Khayraton traffic center.    

Development of transit corridors in Central Asia and Transafghan transport corridor might change radically the traditional transit map of the Asian continent. It will enhance the competitiveness of Asian countries in the global market, improve the business climate in the region, decrease the cargo delivery terms, cut down transportation costs and create the favorable environment for big foreign investment. The Central Asian sector might become a beneficial operation market for western investors since Central Asian countries are the key transit states.

A. Jaymurzina,

The overland transport potential is very high. The UNECE together with the United Nations ESCAP is currently developing a project for Europe-Asia transport communications which outlines the promising railways and automobile routes, as well as their interoperability. The project is in its second phase. The first phase was dedicated to estimation of the promising European and Asian transportation communications. Uzbekistan joined the community by signing a ministerial declaration in the framework of the session of the Inland Transport Committee under the UNECE in 2008 in Jeneva. 

Upon the meeting with a group of Europe-Asia transport communications experts in Tashkent I got added evidence that Uzbekistan is actively contributing into the further development of international transport corridors as a member of conventions in this area.

N. Chul,

regional representative, Korean Air Company:

Navoi Airport is the most promising airport in Central Asia. It is developing both as a multimodal hub, and a combined service for automobile, railway and air transport.

Navoi hosts the major trade corridors Russia-Europe, Turkmenistan-Middle East, Tajikistan-Kyrgyzstan-Kazakhstan. Analysis of the flight rate shows a stable growth: 445 flights in 2008, 1,282 – in 2009, and 2,243 flights this year so far.

Today Uzbekistan takes the lead in the region in origination of integral infrastructure elements. Experts say, Uzbekistan has much experience to share due to its short but scaled development content, and it has much to show in terms of investment into the transport sector.

A. Abdullaev,

Three international corridors linking 18 European and Asian states transit the territory of Uzbekistan. Transport corridors are chiefly a cargo traffic market where the SJSRC O’zbekiston Temir Yo’llari is challenged by a severe competition from both foreign railway companies, and other transportation vehicles.

International transport terminals and logistics centers hold a specific place in attracting transit cargos. These centers coordinate the operation of different transportation vehicles. This is essential in conditions of Central Asian countries having no outlets to the sea. Therefore, logistics centers are established in major transit corridors as well as under borders between the states, and perform a function of land ports.  

The formation and development of international railway transport corridors on the territory of the Republic of Uzbekistan is targeted at the arrangement of favorable ground for attraction of international traffic flows to the national transport communications and improvement of transport communication inside of the country.

A. Mukhametjanova,

Transit traffic smoothly composes geopolitical interests of any state.  On one hand, they foster integration processes, and on the other hand, they facilitate the development of the national economy through the attraction of investment and creation of new workplaces.

The advantageous geographical location of the Central Asian region requires the outrunning transport infrastructure development.

In the transport sector the globalization appears not so much in aggregation of capital, as in upgrade of logistics technologies. In this case the interacting transportation vehicles, terminals and other means should supplement each other and operate for good the end result.