World Bank Urges Uzbekistan to Modernize Logistics

Tashkent, Uzbekistan (UzDaily.uz) — The World Bank has recommended that Uzbekistan undertake comprehensive modernization of its logistics sector to reduce transport costs, address the shortage of modern warehouse space and improve the country's attractiveness for private investment.

The recommendations are outlined in the World Bank Group's new report, Uzbekistan Country Private Sector Diagnostic.

According to the report, Uzbekistan's strategic location along the Eurasian Middle Corridor linking China and Europe creates significant potential for the development of international logistics. International road freight volumes reached 12.2 million tonnes in 2022 and are projected to increase to 20 million tonnes by 2030.

However, the existing infrastructure has not kept pace with growing demand. The World Bank estimates that logistics costs in Uzbekistan are 15% to 25% higher than on leading Eurasian transport routes, while the shortage of Class A warehouse space is about 90%.

To improve the sector's efficiency, the World Bank recommends introducing a certified carrier system, fully digitalizing the issuance of international road transport permits through the Dozvol system, and establishing a one-stop mechanism for obtaining land plots and construction permits for warehouse infrastructure.

According to the report's authors, implementing these measures could attract more than US$1 billion in private investment and create around 110,000 new jobs, strengthening Uzbekistan's position as one of Eurasia's key transport and logistics hubs.