Uzbekistan Eyes Caspian and Black Sea Ports to Break Out of Central Asia

Uzbekistan is intent on establishing logistics lily pads on the shores of the Caspian and Black Seas to advance Tashkent’s Middle Corridor trade agenda.A statement published by President Shavkat Mirziyoyev’s office on September 21 revealed that Uzbek and Georgian officials have already signed an agreement to establish Uzbek warehousing and transport facilities at the Georgian Black Sea port of Poti. A feasibility study is being planned, the statement added.Uzbek trade officials also have plans to get involved in the expansion of Caspian port infrastructure at Aktau in Kazakhstan, Turkmenbashi in Turkmenistan and Baku on the sea’s western shore. In addition, Uzbekistan is angling for access to the planned Georgian port of Anaklia, a project plagued by financing uncertainty and construction delays. Uzbekistan first announced its interest in obtaining a stake in Anaklia following Mirziyoyev’s state visit to Georgia in early July.“These projects will allow for the diversification of supply routes to foreign markets for textile, chemical, agricultural, and mining and metallurgical products,” according to the Mirziyoyev statement. It noted that financing to build out Tashkent’s trade blueprint remains an open question.Uzbekistan is concurrently working to improve transit connectivity among the logistics centers, developing plans to fully electrify the country’s domestic freight rail network and add high-speed rail sections, while improving infrastructure at airports across the country.Beyond the country’s borders, officials are exploring the possibility of Uzbek involvement in the development of TRIPP, envisioned as a key conduit for Middle Corridor trade enabling the passage of goods from Azerbaijan to Turkey via Armenian territory, the statement added. Specifically, Uzbek officials are pondering an investment in the refurbishment of a railway section in the Azerbaijani exclave of Nakhchivan to open access to Turkish ports at Samsun and Istanbul.Another important aspect of Uzbekistan’s strategy involves the digitalization of freight transport, both to reduce transit times and to reduce the role of the shadow economy in trade. Eliminating gray-market commerce would go a long way toward helping the government reach its trade targets, including doubling “the volume of transport services” by 2030, and increasing “service exports to $5.7 billion.”To curb shadow traffic, officials intend to establish a unified digital transport system and registry, develop real-time tracking capabilities for cross-border transit, and create a comprehensive electronic permit database. “The share of the shadow economy in freight transportation still exceeds 42 percent,” the presidential statement said. “Among the main problems in this sector is the lack of … a unified electronic system integrating electronic order processing and all transportation services.”By Eurasianet.orgMore Top Reads From Oilprice.comTotalEnergies to Develop Offshore Gas Field to Boost Nigeria LNG SupplyChina's 80% Grip on Iranian Oil Looms Over Trump-Xi SummitCopper Erases Tariff Selloff as Shanghai Stockpiles Hit Three-Year Low