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Economy 26/08/2025 Uzbekistan Transforms Transport Sector, Aiming to Become Central Asia’s Transit Hub

Uzbekistan Transforms Transport Sector, Aiming to Become Central Asia’s Transit Hub

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan is actively reforming its transport sector, focusing on railway electrification, modernization of road infrastructure, and fuel diversification. Experts note that these steps could provide valuable lessons for other landlocked developing economies.

“Uzbekistan aims to become the main transit hub of Central Asia,” states a joint analysis by specialists from the Asian Transport Outlook and the Asian Development Bank. The study emphasizes that the country’s transport network could become a driver of economic growth, potentially elevating Uzbekistan to an upper-middle-income status by the end of the decade.

The transport sector contributes significantly to the economy, accounting for around 8% of GDP, and employs over one million people. Over the past three decades, labor productivity in the sector has tripled, yet it remains below the average for Asia-Pacific countries. Roadways make up 97% of the transport network, with 95% paved and 83% in good condition. “Previously, investments were focused more on expansion than on maintenance,” the report notes.

Railways, comprising only 3% of the network, play a strategic logistical role. More than half of the country’s main rail lines are electrified, but 90% of rolling stock requires renewal. Urban rapid transit is expanding rapidly: Tashkent’s metro network has nearly doubled since 2017, though public transport accessibility remains below Central Asian and European standards.

The “tyranny of distance” remains a serious challenge. Domestic transport costs are comparable with neighboring countries, but international shipping expenses are higher due to Uzbekistan’s distance from global supply chains. To handle projected freight volumes, the road network will need to expand more than fivefold by 2030.

Energy consumption in the transport sector is growing rapidly, yet the shift to alternative fuels is showing positive results. The share of natural gas as a transport fuel has risen from 2.7% in 2010 to 57% today. “This transition is among the fastest in the world,” analysts highlight. Nonetheless, road transport remains the primary source of emissions, and traffic accidents cost the economy roughly 3% of GDP.

In response, Uzbekistan has developed a comprehensive reform package. The new transport strategy focuses on railway electrification, road modernization to increase transit flows, and year-round accessibility of rural roads by 2035. Urban policies prioritize public transport development, reducing private car use, and promoting cycling.

Decarbonization and reducing greenhouse gas emissions per unit of GDP by 35% by 2030 are key priorities. Experts stress the importance of fuel diversification and the adoption of electric transport. Although the electric vehicle market is still in its early stages, sales are growing, and local production is being encouraged through new import duties.

“Building a sustainable transport infrastructure requires significant investment and clear policies with concrete implementation timelines,” the analysts conclude. Uzbekistan aims not only to expand its network but also to make it efficient, environmentally safe, and resilient.

Authors of the study: Alvin Mejia and Sudhir Gota, co-chairs of the Asian Transport Outlook team, and James Leather, Director of the ADB Transport Department.

The views expressed are those of the authors and do not necessarily reflect the position of UzDaily.

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