Skoda Group Aims to Become Home Brand in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — Czech rail rolling stock manufacturer Skoda Group has signed a contract with Uzbekistan Railways to supply 10 passenger trains with speeds up to 160 km/h and announced its intention to transform Uzbekistan into its regional production base.

This was stated by Roman Sorkin, the company's Vice President for Sales in Central Asia and the South Caucasus, at a panel session of the Tashkent International Investment Forum.

According to Sorkin, the company views its presence in Uzbekistan not as a one-time supply of equipment, but as a long-term strategic partnership. Skoda plans to localize assembly and supply chain elements, as well as open a joint training academy with the Transport University of Uzbekistan to train national specialists.

The company, which has a history of more than 160 years, was the sole supplier of mainline passenger rolling stock for the entire Soviet Union for four decades, delivering over 70,000 units of equipment.

A significant portion of this fleet is still in operation in the countries of the region.

Sorkin specifically highlighted the concept of a barrier-free transport environment as a key element of the company's offering. Skoda intends to supply low-floor vehicles adapted for passengers with reduced mobility, a format that he said has not previously been presented in the market of Uzbekistan.

In a broader perspective, the company plans to supply metro cars and trams, thereby covering the full product line of urban mobility demanded in the context of the rapid urbanization of the country.

Sorkin called the financial structure of the deal a separate achievement. Together with the European Investment Bank, Skoda developed an export financing mechanism that made it possible to reduce the cost of the loan by approximately 15% compared to standard conditions.

According to him, this is the first time that through a minor adjustment of OECD agreement parameters, European manufacturers have managed to come close to the conditions of Asian export credits. The scheme involves covering part of the risk costs in the export financing structure with the participation of the EIB.

In addition to the financial aspect, Sorkin raised the issue of technical standardization, calling it a necessary condition for reducing the cost of integrating new technologies.

Skoda is one of the initiators of the development of TSI 1520 standards — interoperability rules for 1520 mm gauge railways — within a working group under the European Commission, and called on Uzbekistan to delegate national experts to this structure.

Sorkin concluded that in the future Uzbekistan could become not only a consumer but also an exporter of railway technologies in the region for the markets of Central Asia and the South Caucasus.