Transformation processes in transport sector presented

26 Nov 2024

On November 26, President Shavkat Mirziyoyev reviewed a presentation on the progress of transformation processes in state-owned companies in the railway and aviation sectors.

Large-scale transformations are taking place in this sphere, both in terms of economic efficiency and convenience for the population. Six independent enterprises have been established within the joint stock company “Uzbekistan Temir Yollari”. 1,200 new freight cars have been purchased, and the time of cargo transportation on domestic routes has been halved.

As a result of digitalization, the process of ordering a wagon was reduced from 7 stages to 3, and the time for its execution was reduced from 72 hours to 12 hours. The capacity of trains around Tashkent increased by 30 percent. The joint-stock company, which previously operated at a loss, is making a profit of 30 billion soums this year.

Progress is also seen in aviation companies. The number of flights in Uzbekistan Airways system has increased by 25 percent. Eight new airplanes have been sent to domestic routes, and the number of domestic flights has increased 2.5 times. The share of the national airline in the international transportation of Central Asia reached 20 percent. Annual passenger traffic is expected to exceed 6 million people.

“Uzbekistan Airports” is engaged in servicing airplanes, cargo and passengers. Involvement of the private sector in airport management shows positive results. Uzbekistan is served by 44 airlines of the world. This year, cargo volumes through the airports are expected to grow by 22 percent.

However, there are still many challenges. The significance of transportation routes is growing in the current complicated situation in the world.

Therefore, it is important to diversify routes, speed up transportation and reduce the cost of transportation services.

The meeting discussed current issues in this field.

– The economy and foreign trade relations of our country are developing every year, incomes of the population and tourist potential of the regions are growing. We have set a goal to bring the gross domestic product to $200 billion by 2030. Therefore, we must pay particular attention to transportation arteries, – said the President.

For this purpose, the necessary organizational and legal conditions are being created. Until now, the railroad sector has been regulated by a law adopted 25 years ago. It was emphasized that the new version of the Law “On Railway Transport” signed today opens up wide opportunities for attracting private companies and investments, as well as for developing infrastructure.

Now the leaders of the industry need to radically change their working methods and approaches to achieve results. Primarily, the transformation of the sphere should be accelerated, construction and modernization projects should be implemented with high quality. Among the most important tasks are obtaining an international credit rating, attracting funds without a state guarantee and efficient use of investments.

Uzbekistan’s air communication has not yet reached the level satisfying the population. Obtaining an international rating and entering the external financial market is delayed. As a result, the high cost of services does not allow to significantly reduce the cost of air tickets. Cost reduction measures are implemented slowly.

In this regard, the task was set to develop a specific program and roadmap for transformation with the involvement of a consulting company.

The main focus of the Uzbekistan Airports system is to increase the volume of services provided and expand private partnership. After Samarkand airport was transferred to private management, the number of flights and passengers increased 5 times. Now the airports of Namangan, Andijan, Bukhara and Urgench are facing similar tasks. By the end of the year it is planned to double the number of additional services at the airports and increase revenues by 25 percent.

Measures have been identified to attract independent resources from the international market and fully utilize the terminal of Navoi airport.

The Head of State gave instructions to accelerate digitalization in three companies, revise development plans and improve economic efficiency.

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