Publication Details
Abstract
Uzbekistan’s transport sector has expanded rapidly in recent years alongside economic growth, placing new strains on infrastructure and service quality. The government recognizes that efficient transport services are vital for national development and trade, especially for a double-landlocked country seeking to become a regional transit hub. This paper examines the current state of transport services in Uzbekistan – characterized by a dominance of road transport, underutilization of rail, and emerging reforms – and identifies key challenges in financing, regulation, and sustainability. It proposes a set of economic instruments and policy measures to improve the management of transport services. These proposals include enhancing infrastructure financing through public-private partnerships (PPPs) and dedicated road funds, introducing targeted user charges and land value capture mechanisms to fund maintenance, encouraging greater private sector participation and competition in transport services, optimizing subsidies and pricing strategies (for example, for fuel and public transit) to balance cost recovery with accessibility, and incentivizing sustainable practices such as the adoption of cleaner vehicles. The recommendations are aligned with Uzbekistan’s strategic goals of reducing transport costs, improving logistics performance, and expanding transit potential, while ensuring social equity and avoiding any criticism of existing systems. By implementing these improved economic instruments, Uzbekistan can modernize its transport sector management, support economic growth, and better integrate into regional and global transport networks.