President of Uzbekistan proposes important initiatives to overcome common challenges facing landlocked countries

On August 5, the President of the Republic of Uzbekistan Shavkat Mirziyoyev took part in the Third UN Conference on Landlocked Developing Countries held in the Avaza National Tourist Zone in Turkmenbashi.

The event, chaired by the President of Turkmenistan Serdar Berdimuhamedov, was attended by the UN Secretary-General António Guterres, the President of the Republic of Kazakhstan Kassym-Jomart Tokayev, the President of the Republic of Tajikistan Emomali Rahmon, along with heads of several other states and governments, and representatives of international and regional organizations.

In line with the agenda, the participants addressed critical issues including enhancing transport connectivity, streamlining trade procedures, economic transformation, boosting resilience to climate change and environmental challenges, and advancing the implementation of Sustainable Development Goals.

At the beginning of his address, the President of Uzbekistan highly praised Turkmenistan’s efforts towards achieving Sustainable Development Goals and ensuring global and regional stability and prosperity.

He emphasized that the issues under discussion at the conference are of vital importance, as geographical remoteness from seaports and the necessity of crossing multiple national borders create several objective challenges.

Among these challenges are high tariffs, limited capacity of transport corridors and infrastructure, as well as dependence on the customs and transit policies of other countries.

According to data from the World Bank, due to significant transportation costs and transit instability, the Central Asian region loses up to 2 percent of its GDP annually.

Logistics costs reach up to 60 percent of the value of goods, significantly exceeding the global average.

In this context, the development of new reliable transit corridors and logistics infrastructure has become an essential condition for sustainable progress in Central Asia.

“The agenda uniting us today addresses a fundamental issue, an issue of fairness. It involves providing landlocked countries with the opportunity to participate in the global economy on equal terms”, the Leader of Uzbekistan emphasized.

He noted that addressing this critical challenge requires meeting three fundamental conditions.

These conditions are modernizing infrastructure as a foundation for sustainable development, enhancing connectivity to prevent transit challenges, and implementing the right to development as a core element of global equality.

In recent years, Uzbekistan has taken systematic steps to build a modern transportation and logistics network, actively involving the private sector. Significant efforts have been made toward the digitalization of trade and transportation processes.

Ongoing structural economic reforms, trade liberalization, and a significant improvement in the investment climate are yielding tangible results: competitiveness has increased, and innovative development has accelerated.

“A powerful impetus for dynamic transformation has been the achievement of a qualitatively new level of trust and partnership in Central Asia”, the President of Uzbekistan noted.

Today, a unified transport and logistics space is taking shape in the region. Programs and projects are being implemented to transform Central Asia into a full-fledged transit hub between East and West, North and South.

Over the past few years, trade volumes have increased 4.5 times, reaching over $11 billion. Investment has doubled, and the number of joint ventures has grown fivefold.

This year, together with partners, construction of the China – Kyrgyzstan – Uzbekistan railway has begun, and cargo traffic along the Uzbekistan – Turkmenistan – Iran – Türkiye transport corridor has significantly increased.

To address the common challenges and issues faced by landlocked countries, the President of Uzbekistan put forward several concrete proposals and initiatives.

First and foremost, he emphasized the need for coordinated efforts to ensure the accelerated development of international transport corridors and infrastructure.

In this context, he highlighted the importance of expediting the implementation of the Uzbekistan – Afghanistan – Pakistan railway project and linking it with the China – Kyrgyzstan – Uzbekistan railway line currently under construction.

“This will create an opportunity to establish a new trade and economic space and a sustainable transport infrastructure across our vast region”, the Leader of Uzbekistan stressed.

The Head of State also called for the full utilization of the potential of the Middle Corridor, primarily through the implementation of a coordinated transit policy, unification of regulations, and the introduction of optimal tariffs for container transportation.

The President of Uzbekistan proposed the development, under the auspices of the United Nations, of a Global Agreement on Transit Guarantees for Landlocked Countries.

This document is intended to ensure fair access to seaports and communication routes, reduce the risks associated with freight transport, and address inequalities in global logistics.

Considering the growing demand for flexible investment instruments to finance major infrastructure projects, the Leader of Uzbekistan advocated for the establishment, under the auspices of the United Nations, of a Fund for Promotion of Logistical Integration of Landlocked Countries. The investment needs of Central Asian countries in transport infrastructure are estimated at nearly $40 billion annually.

The President of Uzbekistan also proposed the development of a Global Vulnerability Index for Landlocked Countries to objectively assess limitations in transit capabilities, expand international financial and technical programs, and ensure the effective allocation of resources based on real-world conditions.

Attention was drawn to the importance of implementing the proposal to establish an Innovation Hub for Agricultural Sector Development in Uzbekistan. This initiative would support the introduction of adaptive agricultural technologies, promote innovative water-saving projects, enhance food security, and facilitate knowledge and experience sharing.

The Leader of Uzbekistan emphasized the importance of actively engaging leading experts and think tanks in developing proposals to address common challenges, including through the organization of international forums and roundtable discussions.

“The agenda of such events could include issues such as ensuring deep integration into global production chains, the accelerated development of artificial intelligence and digital technologies, the expansion of cross-border investment, and support for startups”, the President noted.

He also announced Uzbekistan’s intention to join the activities of the International Think Tank for Landlocked Developing Countries.

In conclusion, the Head of State reaffirmed Uzbekistan’s readiness for constructive and long-term partnership in shaping a more equitable architecture of global development.

Following the Conference, the Avaza Political Declaration was adopted.

UzA