President Shavkat Mirziyoyev was briefed on the ongoing reforms and future plans for Uzbekistan Railways during a presentation held in Tashkent, on August 6. The review was part of the government's efforts to overhaul the railway sector, following the adoption of a presidential resolution on October 10 of the previous year.
The resolution mandated the transformation of Uzbekistan Railways into a more efficient and profitable entity. To assist with this transformation, an international consulting firm was brought in to streamline operations and address inefficiencies. As a result, the organization was restructured into six independent enterprises focused on various functions, including infrastructure, wagon maintenance, and passenger transportation. Ineffective and overlapping tasks were consolidated, while redundant processes were eliminated.
The reforms led to notable improvements in the railway sector. The rolling stock fleet was upgraded with the addition of 1,040 freight cars and 45 passenger cars. This expansion has effectively halved the duration of freight transportation on domestic routes. Additionally, the capacity for trains around Tashkent increased by 30% due to the construction of two additional electrified lines at the Keles station.
These changes have had a positive financial impact. Uzbekistan Railways, which had been struggling with financial losses for years, has now started generating profits. Despite this progress, the presentation highlighted several ongoing challenges that need addressing.
There have been numerous consumer complaints regarding the condition of passenger cars and issues with the cooling systems. Currently, 143 cars are in need of repairs, and 59 locomotives have reached the end of their service life. In response, $50mn has been allocated from the Industrial Development Fund to produce new cars. Furthermore, an agreement with Chinese partners has been reached for the supply of 38 locomotives and the modernization of 12 electric locomotives, with a total investment of $181mn.
Plans are underway to modernize the train fleet with these funds, which will include the purchase of six high-speed electric trains from the South Korean company Hyundai Rotem. This is part of a broader initiative to launch a high-speed train service from Tashkent to Nukus.
The electrification of the 465-kilometer Bukhara-Urgench-Khiva railway is expected to be completed by the end of the year, with the 196-kilometer Miskin-Nukus line scheduled for electrification in the coming years. These improvements are projected to reduce travel time from 16 hours to just 7 hours.
Additionally, the presentation addressed the privatization of non-core facilities within the joint-stock company and emphasized the need to improve service quality and increase exports in the sector.
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