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Uzbekistan unveils initiative on creation of regional transport hub

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Uzbek President Shavkat Mirziyoyev addresses his first U.N. speech at the general debate of the 72nd session of the U.N. General Assembly in New York in this Sept. 17, 2017 photo. / Courtesy of Embassy of Uzbekistan
Uzbek President Shavkat Mirziyoyev addresses his first U.N. speech at the general debate of the 72nd session of the U.N. General Assembly in New York in this Sept. 17, 2017 photo. / Courtesy of Embassy of Uzbekistan

By Kim Young-gu

On Sept. 23, President of the Republic of Uzbekistan Shavkat Mirziyoyev participated in the high-level meetings and the general debate of the 75th session of the United Nations General Assembly and put forward a number of important initiatives. One of them is the establishment of a Regional Center for the Development of Transport and Communication Interconnectivity under U.N. auspices.

First of all, it is worth noting that the President's proposals are aimed at enhancing Central Asia's transport, communication and transit capacity with the involvement, foremost, of the countries of the region itself as well as international organizations, particularly of the U.N.

Indeed, given the importance and relevance of the development of Central Asia as a single region, Uzbekistan's Leader Mirziyoyev, from day one of his presidency, outlined the pursuit of a proactive regional policy, the creation of a favorable political environment in Central Asia, the building of constructive and mutually beneficial relations with the countries of the region in all areas as the main priorities of Uzbekistan's foreign policy.

Korea-Uzbekistan Business Association Chairman Kim Young-gu poses after receiving the prestigious
Korea-Uzbekistan Business Association Chairman Kim Young-gu poses after receiving the prestigious "Dostlik Order" from the Uzbek government in recognition of his dedication to the development of bilateral relations, during a ceremony at the Embassy of Uzbekistan in Seoul in 2011. / Courtesy of Embassy of Uzbekistan
Thanks to the intensified dialogue and interactions in Central Asia, a new political atmosphere was created in a very short period of time after early 2017, an atmosphere which favors comprehensive and multifaceted cooperation in the region. And, the whole global community recognizes the positive dynamics in the region today.

Intentions of the regional countries to transform Central Asia into a zone of stability, sustainable development and good-neighborliness have become more realistic tasks than ever before.

One of the most striking testimonies to that is the first consultative meeting of the heads of the five Central Asian states, which was held on March 15, 2018, in Nur-Sultan, Kazakhstan, in order to discuss topical issues pertaining to the regional agenda. The meeting, held for the first time in 13 years, in such a format once again proved that even the most acute problems can be solved if there is good political will and readiness to compromise.

During the event, heads of states highlighted the important contribution of the President of Uzbekistan, Mirziyoyev, as the initiator of the creation of this platform. According to the estimates of international observers, the Uzbek leadership managed to achieve progress in just one year in a whole range of inter-state problems ― first of all, acute border and territorial issues, joint water use and exploitation of hydropower facilities, the resumption of disrupted transport, communications and electric power infrastructure.

Since 2017, mutual visits, regular meetings and negotiations between representatives of business circles and leading enterprises of the region's countries have greatly increased, which has allowed them to significantly strengthen economic ties and increase the volume of trade between countries.

For Central Asian countries, such dynamics are associated with priorities for ensuring sustainable development, diversified entry into world markets and modernization of national economies. Indeed, without the active interaction of neighboring countries and their close integration, it is impossible to implement major regional projects in transport and communication spheres.

The region is home to some of the shortest routes connecting large international markets. The transport and transit potential of the region is defined by its geostrategic location ― in the middle of the "Great Silk Road" ― which historically served as a bridge between East and West, between North and South.

By some estimates, the network of railroads across Central Asian countries stretches beyond 22,000 kilometers. Kazakhstan possesses the largest and the most-used rail network, which accounts for 66 percent of that of the whole region and carries out 84 percent of all freight traffic. About 18 percent of regional railways pass through the territory of Uzbekistan, which accounts for about 11 percent of all traffic. Turkmenistan has nearly 12 percent of regional railroads and 4 percent of traffic.

Today, one of the important challenges facing the countries of Central Asia is the creation of conditions for the transportation of goods through their territories. It primarily implies the need for the modernization of transport infrastructure and creation of logistical services that would be able to compete with sea transport, in terms of speed and cost-efficiency.

Moreover, there is a number of problems within the transport and transit system of Central Asia, addressing which requires consolidation of efforts by all countries of the region. For instance, today, the states of the region, which have no direct access to seaports, are bearing significant transportation costs, reaching up to 70-80 percent of the value of exported products. Up to 40 percent of the time spent on transportation is due to inefficient customs clearance procedures. Additionally, the circularity of the regional transportation system, coupled with lack of flexible tariff policies as well as complicated customs and administrative procedures pose substantial challenges requiring immediate attention.

Uzbek President Shavkat Mirziyoyev, right, and President Moon Jae-in shake hands after signing a Joint Declaration on Special Partnership between the two countries during Moon's state visit to Uzbekistan in April 2019. / Courtesy of Embassy of Uzbekistan
Uzbek President Shavkat Mirziyoyev, right, and President Moon Jae-in shake hands after signing a Joint Declaration on Special Partnership between the two countries during Moon's state visit to Uzbekistan in April 2019. / Courtesy of Embassy of Uzbekistan

Uzbek President Shavkat Mirziyoyev, right, shakes hands with U.N. Secretary-General Antonio Guterres during the latter's first visit to Uzbekistan in June, 2017. / Courtesy of Embassy of Uzbekistan
Uzbek President Shavkat Mirziyoyev, right, shakes hands with U.N. Secretary-General Antonio Guterres during the latter's first visit to Uzbekistan in June, 2017. / Courtesy of Embassy of Uzbekistan

In that regard, it is getting increasingly important to define a jointly agreed set of actions by the Central Asian countries in order to ensure comprehensive development of the region's transport and logistical potential. This is precisely why the initiative of Uzbekistan's Leader on creation of the Regional Center for the Development of Transport and Communication Interconnectivity under U.N. auspices is important at this point of time. Establishment of this Center should facilitate the following:

First, the coordination of collaborative efforts on the elaboration of strategic approaches to joint development of Central Asian transport and logistical potential.

Second, active involvement of the U.N. and its specialized agencies in the Central Asian transportation system. This should provide a new impetus to regional countries in attracting new foreign investment and expanding cooperation with all members of the organization in the sphere of transportation and logistics.

Currently, Uzbekistan has created all the necessary conditions for the implementation of investment projects. The country has liberalized its investment climate to support entrepreneurial ventures and incentivize foreign investments. Exemption from all types of taxes within the framework of free economic zones; the provision of territory and facilities at "zero" cost, under the condition of attracting the investment; relatively cheap infrastructure for organizing production; and highly qualified specialists can dramatically increase the profitability of any investment project.

It is well known that Uzbekistan views the Republic of Korea as one of its key strategic partners in its foreign policy agenda. Currently, Uzbekistan exports food, chemical products, machinery and equipment, mineral fertilizers and provides transport, communication and tourism services to Korea. Vehicles, mechanical and electronic equipment, plastics and its products are imported from Korea to Uzbekistan.

As the largest market in Central Asia with a population of 34 million, Uzbekistan is an industrial manufacturing hub and an entry gate for the markets of countries from the Commonwealth of Independent States (CIS) and Afghanistan, collectively populated by 300 million people. Taking advantage of the opportunities provided by the Government of Uzbekistan, Korean companies will be able to confidently create production facilities to make a profit, enter the markets of CIS countries and successfully contribute to the New Northern Policy initiated by the President of the Republic of Korea, Moon Jae-in.

President Mirziyoyev has repeatedly publicly expressed the full support for this initiative of President Moon. This circumstance gives all of us, Korean companies, confidence in creating new production facilities in Uzbekistan with the attraction of direct investments and modern technologies.

In order to practically implement the ideas and intentions of leading Korean companies in relation to Uzbekistan, we have established the Korea-Uzbekistan Business Association that is accredited by the Ministry of Trade, Industry and Energy of Korea. This organization, in our opinion, will become a pivot in bilateral investment and trade relations between Uzbekistan and Korea.

Today, for Uzbekistan, one of the priorities of foreign economic activity is the development of trade and economic partnership with Korea. Given the dynamic development of Seoul's transport potential, as well as the existing highly developed seaports, expanding cooperation in bilateral relations in the field of transport seems only relevant.

In this context, one must note that creation of the Regional Center for the Development of Transport and Communication Interconnectivity under U.N. auspices will enable the Central Asian countries to engage with other countries, particularly with Korea, to introduce new modern transportation technologies and to integrate into international transport corridors connecting North and South as well as East and West.

Finally, the Korea-Central Asia Cooperation Forum created in 2007 by Seoul's initiative is one of the key multilateral platforms, which has united the Republic of Korea and the countries of the region, and focuses on strengthening cooperation between the countries across all essential questions. Uzbekistan and all Central Asian countries participate actively in the Korea-Central Asia Cooperation Forum. One of the six promising cooperation fields is the transport sector, which I believe will lead to the "creation of integrated logistics in Central Asia and establishment of the transportation system." In this regard, this forum is also aimed at activation of transport cooperation in Central Asia with participation of the Republic of Korea.

Thus, creation of the Regional Center for the Development of Transport and Communication Interconnectivity under U.N. auspices will not only promote regional cooperation, but also foster international cooperation with the U.N.'s participation, its specialized agencies and foreign countries, in particular Korea, which is a reliable and time-tested strategic partner for Uzbekistan.


Kim Young-gu is the chairman of the Korea-Uzbekistan Business Association.


Yi Whan-woo yistory@koreatimes.co.kr


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