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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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