Uzbekistan has emerged as the frontrunner in Central Asia and Transcaucasia in terms of the growth rate of high-quality warehouse real estate. While logistics infrastructure in the region has historically been associated with Kazakhstan, 2024 marked a turning point with Uzbekistan doubling its warehouse space in a single season.
By the end of 2024, Uzbekistan's total high-quality warehouse area exceeded 500,000 square meters, a 165% increase compared to the previous year. This growth was driven by significant developments, including the Grand Pharm logistics center, part of the Tashkent Pharmaceutical Park in Zangiata, and a logistics center in the Yangiyul district of Tashkent. In addition, the second phase of the Orient Logistics center (21,500 square meters) and the Balton Trading Asia warehouse complex (20,000 square meters) were also commissioned.
In comparison, Kazakhstan expanded its warehouse space by just 20% (from 1.358mn square meters to 1.630mn square meters), while Georgia increased its warehouse capacity by 65% (from 72,000 square meters to 120,000 square meters), Armenia by 30%, and Kyrgyzstan by 30%.
While Uzbekistan’s progress is impressive, experts agree that the country is still at the early stages of building a comprehensive logistics infrastructure. According to Stanislav Akhmedzyanov, Managing Partner of IBC Global, Uzbekistan needs to build an additional 2.3-2.4mn square meters of warehouse space to match its northern neighbors’ logistics capacity.
Uzbekistan's per capita warehouse space remains low, with only 0.01 square meters of high-quality warehouse real estate per person, despite the growth. IBC Global predicts that the country will need 7-8 years to reach its target of 2.8-2.9mn square meters in total logistics infrastructure. If the Russian norm is considered, Uzbekistan would need 12.7mn square meters.
The country’s warehouse market is being driven by both domestic and international players. The national marketplace Uzum Market, which recently reached "unicorn" status, requires significant warehouse space—about 150,000-170,000 square meters in the short term and up to 600,000 square meters in the medium term. In 2024, Uzum Market opened a 112,000-square-meter warehouse complex, the largest of its kind in Uzbekistan.
E-commerce giants from Russia, such as Wildberries, are also making significant investments. Wildberries plans to construct a 150,000-square-meter logistics complex in the Tashkent region, with an investment of $137mn. Ozon has acquired a 1,000-square-meter sorting center in Tashkent and plans to expand it over time.
International companies are also contributing to the growth of Uzbekistan’s logistics sector. During the Berlin summit in September 2023, Uzbekistan Railways and Rhenus Group signed a memorandum of cooperation to expand multimodal transport and logistics centers in the Andijan region and Tashkent and Samarkand. Chinese investors, such as Shenzhen Neptune Logistics, are investing in container shipping services, while Pakistan's National Logistics Corporation plans to open a warehouse complex in the Termez Cargo Centre.
The Uzbek government has prioritized the development of logistics infrastructure as a critical factor for economic growth. President Shavkat Mirziyoyev has emphasized that modernizing the logistics sector is essential for ensuring stable economic development. The government’s strategy aims to integrate Uzbekistan’s logistics centers into international transportation networks, especially within the framework of the Belt and Road initiative.
Despite the progress, Uzbekistan faces several challenges, including a shortage of advanced technologies, modern equipment, and qualified personnel. The logistics network remains highly concentrated in the Tashkent agglomeration, and only 22% of the high-quality warehouse real estate is classified as class A, compared to 41% in Kazakhstan and 33% in Kyrgyzstan. This has resulted in high rental prices, with rates for class A warehouses reaching $150+ per square meter per year, which is 30% higher than in the Moscow region.
Experts believe that while Uzbekistan’s logistics industry has made substantial progress in 2024, it will need large-scale reforms and continued investment to close the gap with more developed economies in Eurasia.
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