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Economy 26/11/2024 Presentation on transformation processes in Uzbekistan’s transport sector held

Presentation on transformation processes in Uzbekistan’s transport sector held

Tashkent, Uzbekistan (UzDaily.com) —  On 26 November, President Shavkat Mirziyoyev reviewed a presentation on ongoing transformation processes in the railway and aviation sectors aimed at improving their economic efficiency and public convenience.

The joint-stock company Uzbekistan Railways has undergone extensive reforms, including the creation of six independent enterprises and the acquisition of 1,200 new freight cars. As a result, domestic freight transportation times have halved.

Digitizing the freight car ordering process reduced procedural steps from seven to three and cut the execution time from 72 to 12 hours. Train throughput capacity in the Tashkent region has increased by 30%. Previously operating at a loss, the company is expected to generate a profit of 30 billion soums this year.

Uzbekistan Airways has increased flight frequency by 25% and added eight new aircraft for domestic routes, leading to a 2.5-fold rise in domestic flights. The airline’s share in Central Asia’s international air transport market has reached 20%, and passenger numbers are projected to exceed 6 million this year.

Uzbekistan Airports manages aircraft, cargo, and passenger services. The involvement of private sector operators in airport management has shown positive results, with 44 international airlines now operating in Uzbekistan. Cargo volumes through airports are expected to rise by 22% this year.

Despite progress, challenges remain. President Mirziyoyev emphasized the critical role of transport networks amidst global challenges. Priorities include:

Diversifying routes.

Accelerating freight delivery.

Reducing service costs.

The development of transport infrastructure is pivotal for achieving Uzbekistan’s goal of a US$200 billion GDP by 2030, alongside growing trade, tourism, and rising incomes.

A revised Railway Transport Law has been adopted to replace outdated legislation from 25 years ago. The new law facilitates private sector involvement, investment attraction, and infrastructure modernization.

Key tasks for industry leaders include:

Accelerating company transformation.

Efficiently executing construction and modernization projects.

Securing international credit ratings.

Attracting investments without government guarantees.

Reducing service costs.

High operational costs hinder the reduction of airfare prices, and cost-cutting measures have been insufficient. A transformation program and a roadmap involving consulting firms will address these challenges.

Uzbekistan Airports will expand private partnerships and enhance service offerings. The successful model of Samarkand airport, where flights and passenger numbers increased fivefold after privatization, will be replicated in Namangan, Andijan, Bukhara, and Urgench airports. By year-end, airport revenues are expected to grow by 25%.

Additionally, the Navoi airport terminal will be fully utilized with increased international collaboration.

The President instructed leaders to accelerate digitalization in key companies, revise strategic plans and focus on economic efficiency.

These measures aim to solidify Uzbekistan’s transport sector as a cornerstone of economic growth and regional connectivity.

#Shavkat Mirziyoyev  
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