Highs and lows – side by side
The Central Asian states are developing very differently, which has a direct effect on their logistics industries.
Mr Kohler, which is Central Asia’s most attractive national market?
Uzbekistan’s market is certainly the most attractive one in the region at the moment. The Uzbeki so‘m (UZS, the national currency) is freely convertible for companies, and stable against both the dollar and the euro. In 2018 more than USD 40 billion was invested in Uzbekistan by foreign companies alone, and a small and medium-sized enterprise reform enabled 38,000 SMEs to participate in free-market business.
What specific import and export requirements have you observed there?
The country’s dependence on cotton exports needs to be reduced, through the setting up of a national textile industry. Machinery, for example, accounts for a great proportion of imports. Fruit and vegetables are now exported to Europe, Lebanon, Israel and Vietnam. The government is also promoting the greater development of the pharmaceutical industry.
How is the Eurasian land bridge developing in Kazakhstan, which is so important to these activities?
In the logistics segment beyond the national market, the country is trying to make the best of the advantages its location offers players on the crucial railway and road corridors running between China and Europe. The government as well as private investors are making great efforts to build roads, railway lines, logistics centres and warehouses.
The port of Kuryk, 70 km from the port of Aktau on the Caspian Sea, plays a key role. Azerbaijan and Iran in particular are the focus of a new ferry connection that calls there.
The development of a logistics hub / dry port in Khorgas on the border with China is continuing. Kazakhstan is planning to manage import customs clearance, thanks to the opening of the new Nur Zholy Sino-Kazakh border crossing in October 2018. Transit procedures will then only apply to goods not destined for Kazakhstan.
How are things developing in Tajikistan?
The country benefits enormously from the easing of relations with Uzbekistan. After 20 years of very frosty relations, a thaw began in 2018, and now border crossings have been re-opened, which is particularly important for railway links via Uzbekistan. Options for trucks transiting through Uzbekistan were also simplified, and direct air connections between Tashkent and Dushanbe were established. A new cargo terminal was opened at Dushanbe airport, where an industrial zone is also about to be built.
And last but not least – what about Turkmenistan and Kyrgyzstan?
Turkmenistan is still the most closed country in the region. In May 2018 a new port became operational in Turkmenbashi, with a terminal to handle polypropylene.
The Bishkek –Torguart Pass line in Kyrgyzstan was also completed recently with Russian assistance.