COMPETITION VS PARTNERSHIP: UZBEKISTAN-KAZAKHSTAN RELATIONS IN THE FIELD OF TRANSPORT AND TRANSIT

By Nargiza Umarova

Recent geopolitical crises in Eastern Europe and the Middle East have created favorable conditions for the development of intercontinental land trade routes, significantly enhancing the role of Central Asia as a transit region linking major Eurasian markets. This shift was anticipated to improve intraregional transport connectivity and facilitate the integration of Central Asian republics into global supply chains – both essential for the region’s economic growth. However, unity among the five Central Asian states on these initiatives remains elusive. Currently, these countries prioritize the creation of international transit corridors over local connectivity. Low coordination between them leads to duplication of projects, and the focus on their own interests becomes a source of unhealthy competition. Rivalry is particularly evident in the actions of Kazakhstan and Uzbekistan, each seeking alternative access to Turkish and European markets via the Caspian Sea.

CPC | Kazakhstan and Uzbekistan Strengthen Strategic Alliance

BACKGROUND:  In 2018, the Central Asian states initiated a mechanism for regular Consultative Meetings aimed at enhancing multilateral cooperation in transport communications. A key priority identified was the alignment of national transport systems, a crucial prerequisite for boosting mutual trade and expanding the transit potential of the region’s countries. To facilitate this alignment, plans were proposed to establish a Regional Center for the Development of Transport and Communications Interconnectivity under the auspices of the United Nations, to develop a Strategy for Regional Transport Corridor Development in Central Asia, and to adopt a Regional Program for Transport Communication Development. However, years later, these initiatives remain unimplemented, although some positive developments have occurred. In 2018, Uzbekistan and Tajikistan resumed railway service along the critical Galaba-Amuzang-Khoshadi route, resulting in nearly a twofold increase in mutual trade. A similar outcome was observed between Uzbekistan and Kyrgyzstan following the launch of the multimodal corridor Tashkent-Andijan-Osh-Irkeshtam-Kashgar in the same year.  Uzbekistan and Kazakhstan have demonstrated considerable activity in advancing local transport projects. As the largest economies in Central Asia, these nations account for nearly the entire volume of intraregional trade, motivating them to develop new mutually beneficial freight routes. In 2021, the two countries agreed to construct the Uchkuduk-Kyzylorda road and railway, which will connect Kazakhstan's Kyzylorda region with Uzbekistan's industrial Navoi region, effectively reducing the distance between them by more than three times. Additional plans include the construction of the Darbaza-Maktaaral railway line and the Beineu-Shalkar road. Despite successful cooperation within the region, Astana and Tashkent occasionally find themselves in competition in the external transport and logistics arena, which can be characterized as a conflict of interests. A prominent example of this rivalry is the Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. Following the onset of the war in Ukraine, demand for the Middle Corridor among global cargo-generating centers in both the East and West has surged significantly. This land trade route from China to Europe traverses Central Asia, the Caspian Sea, the South Caucasus and Turkey. The TITR serves as an alternative to the Northern Corridor, whose operations are hindered by anti-Russian sanctions. The route is experiencing robust development, with transportation volumes reaching 2.7 million tons in 2023 and projected to increase to 4.2 million tons in 2024. Since the start of this year, container transit from China through the Middle Corridor has increased by a factor of 14. Within a few years, the route’s capacity could expand to accommodate 10 million tons of cargo annually. With appropriate infrastructure improvements and enhanced terminal capacities, the Trans-Caspian route is projected to become 35 percent faster and 40 percent more cost-effective than the Northern Corridor in the near future.

IMPLICATIONS:  It is important to emphasize that nearly all Central Asian countries are involved in the Trans-Caspian International Transport Route (TITR), not solely Kazakhstan. According to experts from the European Bank for Reconstruction and Development (EBRD), there are three primary transit routes within the Middle Corridor: the northern route, which passes through northern Kazakhstan; the central route, which traverses southern Kazakhstan; and the southern route, which runs through Kyrgyzstan, Uzbekistan, and Turkmenistan. Kazakhstan occupies a uniquely advantageous position within the Central Asian segment of the China–European Union–China supply chain. This strategic edge stems from its shared borders with both China and Russia. Meanwhile, Uzbekistan is also striving to establish a significant role in transit transportation between China and Europe. Uzbekistan’s involvement in multimodal transport routes such as Kyrgyzstan–Uzbekistan–Turkmenistan–Caspian Sea–Azerbaijan–Georgia–Black Sea region, or Georgia–Turkey–European Union (part of the Transport Corridor Europe-Caucasus-Asia, TRACECA), as well as Kyrgyzstan–Uzbekistan–Turkmenistan–Iran–Turkey–European Union, supports its ambitions in this area. It is relevant to highlight the China-Kyrgyzstan-Uzbekistan highway, which allows cargo from China to reach Uzbekistan in two days, compared to the ten days required via Kazakhstan. Plans are underway to construct a railway along a similar route, which would considerably enhance the positions of Tashkent and Bishkek in railway freight transportation from China to the Middle East, thereby bypassing Kazakhstan’s current monopoly. At present, Kazakhstan is the only Central Asian country with railway checkpoints on its border with China. In the development of trans-Caspian transport routes toward the West, Central Asian states operate as both partners and competitors. Partnership is evident in their collaborative efforts to develop connecting routes that enable the nations of the region to link up with various transit branches of the Middle Corridor. For instance, as noted earlier, Uzbekistan and Kazakhstan have agreed to construct the Uchkuduk-Kyzylorda railway, which will be integrated into the Kazakh section of the Trans-Caspian International Transport Route (TITR). In 2019, Uzbekistan, in collaboration with Kyrgyzstan, Turkmenistan, Azerbaijan, Georgia, and Turkey, launched an alternative trade route to Europe via the Caspian Sea, known as the CASCA+ (Central Asia–South Caucasus–Anatolia+) corridor. Recently, the participating countries agreed to establish a consortium—a specialized body to coordinate the activities of this route. This development marks the project’s advancement to an institutional level, which provides a solid foundation for enhancing its competitive potential and boosting the transit capabilities of both Central Asia and the South Caucasus. It is also worth noting that, as early as 2014, Kazakhstan, Azerbaijan, and Georgia institutionalized the Middle Corridor by first forming a Coordination Committee, which later evolved into the International Association “Trans-Caspian International Transport Route.” These instances highlight the ongoing fragmentation among Central Asian states in the development of extra-regional transport routes. This fragmentation carries the risk of fostering unhealthy competition, which could generate discord among the countries in the region.

CONCLUSIONS:  Given the growing trend of deepening intra-regional ties in Central Asia, driven by the current geopolitical realities, it is increasingly crucial for Uzbekistan and Kazakhstan to integrate their transport project potential and establish joint coordination mechanisms. A coordinated approach to managing transit transportation through the Caspian Sea along the China-Europe-China axis is necessary, grounded in principles of equality and mutual benefit. Ensuring that the interests of one party do not overshadow those of the other is key to fostering balanced cooperation. Moreover, harmonizing the activities of the CASCA+ corridor consortium with the International Association “Trans-Caspian International Transport Route” appears essential, with the goal of ultimately merging both structures into a unified coordinating body with legal status. Developing common approaches to international transport corridors and accelerating the adoption of the “Strategy for the Development of Transport Corridors in Central Asia,” which was first proposed in 2018, is equally important. Additionally, the proposal to establish a Regional Centre for Transport and Communications Interconnectivity under the auspices of the United Nations remains a pertinent issue.

AUTHOR'S BIO: Nargiza Umarova is a Senior Research Fellow at the Institute for Advanced International Studies (IAIS), University of World Economy and Diplomacy (UWED) and an analyst at the Non-governmental Research Institution  “Knowledge Caravan” (Tashkent, Uzbekistan). Her research activities are focused on studying the developments of Central Asia, trends in regional integration and the influence of great powers on this process. She also explores the current policy of Uzbekistan on the creation and development of international transport corridors.

Published in Analytical Articles

By Mamuka Tsereteli

September 15, 2023

Connectivity is a strategic value for the landlocked countries of Central Asia and the South Caucasus. The energy and general cargo transit between the Caspian Basin and Central Asia and the Black Sea and Europe is already significant and plays an important role in the functioning of the regional economy. But the transit potential of the region is still not fully utilized, affected by geopolitical and infrastructure constraints. Strong leadership and continuous intense coordination between state and private actors will be required to address existing bottlenecks in the transportation system, and to increase commercial attractiveness of the transit corridor.

  

Screenshot 2023-09-15 at 12.21.20 PM

 

 

 

 

Click here to download PDF

 

 

Published in Feature Articles
Monday, 31 August 2015 00:00

Armenia and the Iran deal

By Armen Grigoryan (19/08/2015 issue of the CACI Analyst)

The Iranian nuclear deal may create new opportunities for Armenia. However, whereas Armenia’s Ministry of Foreign Affairs and other governmental agencies should consider the opening prospects of energy cooperation with Iran seriously, their traditional pro-Russian attitude reduces the chance for taking advantage of the changing geopolitical situation and, at the same time, increases the risks for Armenia’s own security and regional stability in general.

arm iran

Published in Analytical Articles

Visit also

silkroad

AFPC

isdp

turkeyanalyst

Staff Publications

Screen Shot 2023-05-08 at 10.32.15 AMSilk Road Paper S. Frederick Starr, U.S. Policy in Central Asia through Central Asian Eyes, May 2023.


Analysis Svante E. Cornell, "Promise and Peril in the Caucasus," AFPC Insights, March 30, 2023.

Oped S. Frederick Starr, Putin's War In Ukraine and the Crimean War), 19fourtyfive, January 2, 2023

Oped S. Frederick Starr, Russia Needs Its Own Charles de Gaulle,  Foreign Policy, July 21, 2022.

2206-StarrSilk Road Paper S. Frederick Starr, Rethinking Greater Central Asia: American and Western Stakes in the Region and How to Advance Them, June 2022 

Oped Svante E. Cornell & Albert Barro, With referendum, Kazakh President pushes for reforms, Euractiv, June 3, 2022.

Oped Svante E. Cornell Russia's Southern Neighbors Take a Stand, The Hill, May 6, 2022.

Silk Road Paper Johan Engvall, Between Bandits and Bureaucrats: 30 Years of Parliamentary Development in Kyrgyzstan, January 2022.  

Oped Svante E. Cornell, No, The War in Ukraine is not about NATO, The Hill, March 9, 2022.

Analysis Svante E. Cornell, Kazakhstan’s Crisis Calls for a Central Asia Policy Reboot, The National Interest, January 34, 2022.

StronguniquecoverBook S. Frederick Starr and Svante E. Cornell, Strong and Unique: Three Decades of U.S.-Kazakhstan Partnership, Central Asia-Caucasus Institute, December 2021.  

Silk Road Paper Svante E. Cornell, S. Frederick Starr & Albert Barro, Political and Economic Reforms in Kazakhstan Under President Tokayev, November 2021.

The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

Newsletter

Sign up for upcoming events, latest news and articles from the CACI Analyst

Newsletter