Prospects for the development of transport and logistics interconnectedness within the ECO

On 9 November, the 16th summit of the Economic Cooperation Organization (ECO) was held in Tashkent.

At the summit, chaired by the President of Uzbekistan Shavkat Mirziyoyev, the event participants considered issues of expanding trade, economic, investment, transport, cultural and humanitarian cooperation, as well as strengthening and developing industrial cooperation.

The development of transport and communication links, which play an important role in strengthening mutually beneficial partnerships and creating favorable conditions for the sustainable development of the entire region, is highlighted as one of the key areas of the Organization’s activities.

It is important to emphasize that the landlocked countries of Central Asia face difficulties in integrating into world markets due to significant transport costs. Thus, according to the World Bank, the cost of delivering cargo exported from the region is twice as high as the cost of cargo transportation in coastal states. This factor reinforces the importance of developing both intra- and extra-regional transport connectivity.

In this regard, during the summit, the Leader of Uzbekistan emphasized the importance of fully using the potential of transcontinental transport corridors connecting large markets in Eurasia, including in the countries of South Asia, the Middle East, Europe, as well as the Asia-Pacific region.

In this context, it was noted that the formation of international multimodal corridors along the route «China – Kyrgyzstan – Uzbekistan», «Uzbekistan – Turkmenistan – Iran – Turkey» and the Trans-Afghan Road seem promising for all ECO participants.

In addition, it was highlighted that an important factor in the development of cooperation is the digitalization of customs clearance procedures for goods and relevant documents through the E-Permit, E-TIR and E-Transit mechanisms.

This contributes to a significant reduction in costs in freight transportation. In particular, E-TIR (global harmonized customs transit system) reduces transportation times by up to 80% and costs by up to 38%.

As President Shavkat Mirziyoyev noted, Uzbekistan has already carried out digitalization of cargo transportation data with Azerbaijan and Turkey. In particular, in January of this year. For the first time, cargo was delivered from Uzbekistan to Azerbaijan using the electronic TIR system.

Considering the importance of introducing digital technologies to facilitate transport and transit procedures, the Head of Uzbekistan proposed creating an ECO Digital Transport and Customs Office in Tashkent. He will be involved in the widespread implementation of digitalization of cargo transportation and customs clearance procedures.

In general, combining the efforts of the ECO member countries in the development of the transport industry undoubtedly meets the common interests and aspirations of the parties, and will also serve sustainable economic development in the member countries of the Organization.

Leading Researcher at MICA

Bakhtiyorov Nurmukhammad

 Source of information:https://www.uzdaily.uz/en/post/84668