Uzbekistan is embarking on an ambitious transformation of its transport infrastructure, positioning itself as the premier transit hub for Central Asia through comprehensive reforms spanning railway electrification, road modernization, and fuel diversification. This strategic pivot represents more than infrastructure development — it’s a calculated move to unlock the country’s geographical potential and accelerate economic growth.
A joint analysis by Asian Transport Outlook specialists and the Asian Development Bank reveals the scope of Uzbekistan’s ambitions. “Uzbekistan strives to become the main transit hub of Central Asia,” the research states, highlighting how the country’s transport network could serve as an economic growth engine capable of elevating Uzbekistan to upper-middle-income status by decade’s end.
The transport sector already contributes significantly to the economy, accounting for approximately 8% of GDP and employing over one million people. While labor productivity in the sector has tripled over the past three decades, it remains below the average for Asia-Pacific countries, signaling untapped potential.
Infrastructure reality check
The current transport landscape presents both strengths and challenges. Road infrastructure dominates the network at 97%, with 95% paved and 83% in good condition. However, experts note that “previously, investments were directed more towards expansion rather than infrastructure maintenance.” Railways, while comprising only 3% of the network, play a strategic logistics role with over half of main lines electrified, though 90% of rolling stock requires renewal.
Urban rapid transit is developing rapidly — Tashkent’s metro network nearly doubled since 2017 — yet public transport accessibility remains below Central Asian and European benchmarks. The “tyranny of distance” poses a persistent challenge: while domestic transport costs align with neighboring countries, international expenses remain elevated due to remoteness from global supply chains.
The road network must expand more than fivefold by 2030 to handle projected freight volumes, highlighting the scale of infrastructure investment required.
Strategic reform blueprint
Responding to these challenges, Uzbekistan has developed a comprehensive reform package. The new transport strategy encompasses railway electrification, road modernization for increased transit freight flows, and ensuring year-round rural road accessibility by 2035. Urban areas will prioritize public transport development, reduced private vehicle usage, and bicycle movement promotion.
Decarbonization receives special attention, targeting a 35% reduction in greenhouse gas emissions per GDP unit by 2030. The country has already achieved remarkable progress in fuel diversification — natural gas’s share as transport fuel surged from 2.7% in 2010 to 57% currently. “This transition is one of the fastest in the world,” analysts observe.
Despite electric vehicle market nascency, sales are growing while local production gains stimulus through new import duties. Road transport remains the primary emissions source, and accidents cost the economy 3% of GDP, underlining the urgency of modernization efforts.
“Creating sustainable transport infrastructure requires serious investments and clear policy with specific implementation timelines,” analysts emphasize. Uzbekistan aims not merely to expand its network but to make it efficient, environmentally safe, and sustainable.
International business implications
For international companies in logistics, transport equipment, and related sectors, Uzbekistan’s transformation presents substantial opportunities. The massive infrastructure investment program will create demand for construction materials, railway equipment, electric vehicle technology, and logistics solutions. Foreign suppliers of transport infrastructure components, from railway electrification systems to road construction materials, can anticipate significant market expansion.
The country’s strategic positioning as a Central Asian transit hub opens prospects for logistics companies seeking alternative routes between Europe and Asia. As Uzbekistan develops its transport corridors and logistics centers, international freight forwarders and supply chain operators can leverage these improved connections to access previously difficult-to-reach markets in the region.
The emphasis on sustainable transport solutions — from electric vehicles to alternative fuels — creates openings for clean technology providers and renewable energy companies. As the government promotes local electric vehicle production through import duties, international automotive manufacturers may find opportunities for technology transfer and local partnerships, particularly given the growing domestic market and potential for regional export.
