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THE DIGITALIZATION OF THE TRANSPORTATION INDUSTRY IN



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THE DIGITALIZATION OF THE TRANSPORTATION INDUSTRY IN 
TERMS OF THE INTEGRATION INTO THE WORLD ECONOMY
 
Abdullaev A.K. – Senior lecturer, 
World Economy and Diplomacy University 
The decree of the President of Uzbekistan sets further development of road 
transport infrastructure, introduction of information and communication technologies 
into the economy, social sphere, management system as a priority direction of in the 
Actions Strategy for Further Development of the Republic of Uzbekistan.
The President of Uzbekistan on October 16, 2020, during a meeting dedicated to 
the development of agriculture and the export of fruit and vegetable products, set a goal 
to increase the volume of annual deliveries abroad to the amount of $ 5 billion. The 
objectives associated with the increase in the volume of deliveries of national products 
to foreign markets deal with not only agriculture, but all exported products of the 
country. This task is directly related to the need to further improve the country's 
transport industry, in particular be means of advanced technologies. 
The digital transformation of the country's economic structure is associated with 
the increasing role of information, communication and transport systems in all sectors, 
in increasing the mobility of people, accelerating passenger and freight transport, and 
increasing the degree of connectivity of territories as well as business entities that 
create a modern environment for life. This is why the role of physical and digital 
integration of road, rail, sea, inland water, aviation, urban, suburban and intercity 
systems is significantly increasing, and they are becoming one of the main drivers of a 
successful transition to the digital economy.
Digital transformation of the economy is almost impossible without digital 
integration of all modes of transport on the territory of the country and neighboring 
States to ensure multimodal transportation of both passengers and cargo under a single 
management, which can and should be implemented on the basis of existing and widely 
used information and communication devices and systems, including those used in 
1
Gill, M. (2015) Digitize your business Strategy, Forrester. 
2
Муаллиф томонидан умумлаштирилган таъриф. 


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logistics. However, for the physical integration and management of multimodal cargo 
transportation, digital integration of transport systems is necessary, which is 
successfully implemented in Western countries.
Digitalizing and decarbonizing railway transport, harmonizing the operation as 
well as regulatory formalities, integrating with other modes of transport, bundling of 
freight, and partnering with other stakeholders are key areas of opportunities for 
railways post pandemic to enhance their competitiveness. Pandemic has given further 
momentum to digitalization of railway transport even in countries with relatively low 
level of digital services and has encouraged innovative solutions such as establishment 
of green lanes for medicine products.
In the digital transformation of the economy of Western countries, the role of 
railway transport, for instance, has increased, and there is a possibility of a digital 
railway as the base of a multimodal transport system of cities and adjacent 
agglomerations in the conditions of transformation of the digital economy.
The introduction of digital technologies will increase the efficiency of the 
transport infrastructure and the transport complex as a whole, which directly affects 
the effective and productive operation of all sectors of the economy, and therefore the 
country's prosperity. In the global economic space, the transport services market is one 
of the most promising areas of development. Sectoral integration of the transport 
complex has a direct impact on the entire economy of the regions, so it is necessary to 
emphasize the importance of developing this sector of the economy.
In areas of the economy that existed before the advent of digital technologies, 
such as Internet Commerce or IT services, we can distinguish three areas of positive 
impact of digitalization: 
1. Technical innovations that directly improve the quality of production of goods 
or rendering basic services. For example, in the transport sector, it is reflected in an 
increase in the speed of movement, automation in management, the possibility of 
consolidating the physical infrastructure and to improvement of distributing and 
grouping of goods. 
2. Qualitative changes in the level of service and the provision of additional 
functions. This is most often associated with online services available to customers. In 
the transport sector, consumers can get information about fares and routes, information 
on the status and delivery time of their cargo, as well as buy an online ticket, arrange 
insurance and customs payments. 
3. Transparency of the operation system, simplification of reporting and internal 
management scheme will improve the understanding and decision-making of 
regulatory authorities.
While the transportation industry is suffering from considerable inefficiencies for 
example, a huge number of trucks are empty when they return after making a delivery. 
In the given circumstances digitalization can bring important social and environmental 
benefits by means of increasing efficiency and reducing energy consumption and 
emissions. One of the analyses gives the evidence of the fact that there is $1.5 trillion 
of value at stake for logistics players and a further $2.4 trillion worth of societal 
benefits as a result of digital transformation of the industry up until 2025. Thus the 


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representatives of the transportation industry should understand the circumstances and 
it is advised for them to come together to prioritize digital transformation initiatives.
One can conclude that the introduction of digital technologies in the conditions of 
full transparency and availability of information has only positive aspects for all 
parties: the selection and ordering process is simplified for consumers, the risks of 
regulatory errors are reduced for government agencies, and the costs and risks of 
emergencies are ultimately reduced for manufacturers. Digitalization opens up great 
opportunities for the development of multimodal transport: full automation in logistics, 
cost reduction due to the absence of planning errors, technical support in the case of 
changing modes of transport, robotization of transport maintenance and cargo storage. 

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