How Central Asia Turns Geography into Power
Central Asia is geographically not adjacent to maritime borders, and it is well known that Uzbekistan, located in its very center, is one of only two countries in the world that must pass through the territory of two other countries to access the sea.
Located at the crossroads of trade routes during the era of the Great Silk Road, Uzbekistan has a unique opportunity to become an important logistics provider for cargo flows between China and Southern Europe on one side, and the Indian subcontinent, CIS countries, and Northern Europe on the other.
To sell domestic products at competitive global prices, it is necessary to develop additional export trade routes to countries such as China, Asia-Pacific region nations, the Middle East, India, and Pakistan. This requires competitive and efficient transport and transit corridors that would enable an increase in the volume of transit cargo passing through the Republic of Uzbekistan.
In turn, collaboration on developing an extensive transport and communication system will fully unlock the transport and transit potential of landlocked countries. According to UN estimates, global demand for freight transportation will triple by 2050. This trend poses a direct challenge for landlocked countries.
Landlocked countries account for less than 1% of global exports, and accordingly, Central Asian countries' share in global transport services exports is quite small, represented in the following proportions: Uzbekistan - 0.1%, Kazakhstan - 0.3%, Tajikistan - 0.007%, Kyrgyzstan - 0.03%.
A limited number of international transport corridors pass through Uzbekistan's territory. The main countries contributing to Uzbekistan's transit are its neighbors Afghanistan, Kazakhstan, Tajikistan, and Kyrgyzstan, as well as Russia, which is considered an important trade partner for Central Asian countries.
The region's transport isolation, the lack of diversified transport routes, and limited export deliveries mainly to the northern direction lead to a lack of profit due to the sale of domestic goods primarily to neighboring countries at a relatively low cost.
Transport isolation seriously hinders the economic growth of the countries in our region. The share of cargo transportation costs in Central Asian states reaches up to 60% of the final cost of goods, which is almost 5 times higher than the global average of 11%.
However, thanks to the comprehensive and strategically sound policy of the country's leadership in the field of cargo transportation logistics, Uzbekistan is successfully implementing measures to optimize transport routes, develop infrastructure, and improve logistics processes. The introduction of modern technologies in both rail and road transport, active cooperation with international transport partners, and the creation of favorable conditions for cargo owners contribute to significantly reducing transportation costs.
According to calculations by specialists from the Center for the Study of Problems of Transport and Logistics Development under the Ministry of Transport of the Republic of Uzbekistan, in 2024 the share of transportation costs in the value of national products averaged 11% for imports (compared to 17% in 2022 and 14% in 2023) and 3% for exports (compared to 6% in 2022 and 4% in 2023).
Furthermore, the rapid changes in the international situation and growing geopolitical tensions require us to join efforts in diversifying international transport routes and preventing disruptions in supply chains.
Considering the aforementioned trends, Uzbekistan has been taking practical measures in recent years to establish promising multimodal transport corridors in the region and develop existing ones, such as: “China - Central Asia - Caucasus – Europe”, “China - Kyrgyzstan - Uzbekistan - Turkmenistan - Iran – Turkiye”, and “CIS countries - Uzbekistan - Afghanistan – Pakistan” with access to the Indian Ocean. This will undoubtedly strengthen the transport and logistics potential of the region, fostering trade between the countries of Europe, the Caucasus, and South Asia.
Today, our neighboring countries actively support Uzbekistan's transport and transit projects, the implementation of which will enhance the attractiveness of Central Asia as a transit hub for East-West and North-South international corridors.
For instance, the construction of railway lines such as “China - Kyrgyzstan – Uzbekistan” and “Uzbekistan – Afghanistan – Pakistan” will provide the shortest routes to the Indian Ocean ports, connecting South Asia with the markets of Central Asia, China, and Europe.
According to experts, the “China - Kyrgyzstan – Uzbekistan” railway will become the shortest route from China to European countries and the Middle East. The distance will be reduced to 1000 kilometers, and the delivery time of the cargo is up to 10 days.
The construction of the “Uzbekistan - Afghanistan – Pakistan” railway is another key project of transregional cooperation. This project will connect the South Asian railway system with Central Asian and Eurasian. This railway will create a new paradigm of trade and economic cooperation at the continental level.
As a result of the project implementation, the cost of transporting cargo from Pakistan to Uzbekistan, according to preliminary calculations, will be reduced by 3 times, and the delivery time will be up to 5 days.
It is important to note that this project should be viewed not only from an economic perspective but also as part of efforts to achieve peace and economic progress in Afghanistan. By supporting Afghanistan's establishment as a bridge connecting Central and South Asia, we are not only addressing socio-economic and transport-communication challenges but also making a significant contribution to ensuring regional security and stability in these areas.
Undoubtedly, the corridor through Afghanistan, providing interconnectedness between the countries of Central Asia, the CIS, and South and Southeast Asia, opens up new opportunities and markets with a population of more than one and a half billion people.
However, the effective functioning of various corridor options is hindered by the lack of unified cargo transportation rules, a unified standard for transport documents used across all modes of transport, as well as the absence of digital platforms for providing clients with remote cargo transportation services from anywhere in the world. All this impedes the transport integration of Asian countries in the context of developing routes between Central and South Asia, and China, on the one hand, and the integration of Asian countries with European communications on the other.
Along with the creation of infrastructure, it is important to unite efforts harmonization and digitalization of customs clearance procedures for goods and border crossings, which will have a positive impact on deepening our transport interconnectedness.
The transition to electronic data exchange for the purpose of simplifying cargo transportation is especially important for landlocked countries, as it allows for the development of land routes and improves access to seaports and global markets.
In this regard, I would like to note that since 2012, Uzbekistan has been consistently working on the digitalization of the TIR system in the field of international road transport. This has led to Uzbekistan becoming the first country in Central Asia to implement TIR-EPD, Real-Time SafeTIR, and AskTIRweb technologies, and one of the first countries in the world to begin testing electronic guarantee technology.
In December 2022, the first transportation using the e-TIR system was carried out in full compliance with Annex 11 to the TIR Convention between Uzbekistan and Azerbaijan. "Digital TIR" pilot projects with Kazakhstan, Kyrgyzstan, and Tajikistan have also been successfully implemented, allowing vehicles carrying cargo to cross these countries' borders without hindrance. In the near future, it is planned to implement this system with Turkmenistan as well.
In 2021, a project for the electronic exchange of permit forms based on the E-PERMIT digital platform was implemented for the first time between Uzbekistan and Turkey. Uzbekistan, together with Turkey, Kazakhstan, and Azerbaijan, has fully transitioned to the electronic exchange of permit forms and has begun implementing this system with other countries.
In recent years, Uzbekistan has made significant progress in strengthening regional cooperation. This enables setting new ambitious goals - establishing closer ties within the framework of regional cooperation. A prime example is the Protocol of the multilateral meeting of the relevant transport ministries from four countries (Uzbekistan, Turkmenistan, Iran, and Turkey), signed in November 2023 in Tashkent, Republic of Uzbekistan. This protocol, signed within the framework of the ECO ministerial meeting, aims to establish an international multimodal corridor between Asia and Europe via the "Uzbekistan - Turkmenistan - Iran - Turkey" route.
Furthermore, Turkmenistan and Uzbekistan are working to fully harness the potential of the Turkmenbashi International Sea Port and the international multimodal route "Asia-Pacific Region (APR) - China - Kyrgyzstan - Uzbekistan - Turkmenistan - Azerbaijan - Georgia - Europe." This effort is part of the Protocol between the heads of railway administrations of Uzbekistan, Kyrgyzstan, Turkmenistan, Azerbaijan, Georgia, and Turkey.
In the first half of this year, the volume of export-import cargo transportation of the Republic of Uzbekistan through the Caspian Sea (in the direction of Turkey, Europe, countries of South America, Africa and other regions) amounted to about 500 thousand tons, which is 7% more than in the same period last year. At the same time, the main part of transportation was carried through the territory of Turkmenistan - 84%, the share of the route through Kazakhstan was 16%.
This demonstrates the importance of the transit corridor through Turkmenistan, ensuring stable and effective logistical connections with Western and Southern markets.
We all understand that the relevance of interaction is significantly increasing in the context of global geopolitical turbulence, disruptions in trade and transport-logistics chains, as well as the aggravation of food security problems, where transport plays a key link.
In such conditions, it is crucial to intensify joint efforts in finding new ways and mechanisms for cooperation, as well as promoting common and mutually beneficial goals.
With this in mind, to further enhance the transport potential of landlocked countries, we consider it necessary to coordinate efforts in the following directions:
Firstly, accelerating the implementation of the “Uzbekistan - Afghanistan – Pakistan” railway construction project. By creating a unified railway infrastructure of the CIS countries with the countries of South Asia (Afghanistan, Pakistan, India, Bangladesh), this project allows for the rapid transportation of goods along the “North-South” corridor without additional costs, connecting the largest markets of South Asia with the markets of the CIS and European countries.
Secondly, forming a new UN agenda focused on the digital transformation of international transportation, aimed at developing global unified standards for digital documentation in freight transportation, supporting cross-border digital corridors, and ensuring the resilience of global supply chains through the use of digital tools.
Thirdly, involving landlocked countries in the UN Convention project completed on July 14, 2025, on transferable documents for the modernization and digitalization of world trade.
The new draft UN Convention eliminates the legal gap in international trade by establishing a harmonized legal framework for negotiable transport documents across all modes of transport - air, road, rail, and sea - regardless of the various types of transport used for cargo transportation.
This will allow landlocked countries to participate more fully in global trade and build a more efficient, sustainable, and digital trade ecosystem.
Fourthly, creating an effective containerization system for international transportation in landlocked countries will significantly reduce transportation costs and delivery times, enhance the competitiveness of these countries in global markets, and accelerate their integration into global supply chains.
Thus, according to the 2023 Logistics Performance Index (LPI) published by the World Bank, the average delivery time from the moment cargo arrives at the port of the exporting country until it leaves the port of the importing country takes 44 days, which accounts for about 60% of the total time in international trade.
Using containerization in combination with digital technologies can reduce delays in ports by up to 70%, significantly improving the timeliness and reliability of deliveries.
Fifth, improving the level of education and developing knowledge exchange are key resources for any country's growth.
To this end, it is necessary to make joint efforts to create a platform for exchanging experience and knowledge in the field of logistics digitalization and international trade, which will help landlocked countries implement best practices and innovations, accelerating their economic growth.