Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Infrastructure as a Foundation for Job Creation
Table 2.5: L
ogis
tics P
erf
ormanc
e I
nde
x R
ank, Selected Countries, 2018
R
ank
Country
Ov
er
all 
LPI
Cus
toms
Infr
as
tructur
e
Interna
tional 
Shipments
Lo
gis
tics 
Competenc
e
Tr
acking and T
racing
Timelines
s
Sc
or
e
R
ank
Sc
or
e
R
ank
Sc
or
e
R
ank
Sc
or
e
R
ank
Sc
or
e
R
ank
Sc
or
e
R
ank
Sc
or
e
5
Japan
4.03
3
3.99
2
4.25
14
3.59
4
4.09
10
4.05
10
4.25
25
Kor
ea, R
ep. o
f
3.61
25
3.40
22
3.73
33
3.33
28
3.59
22
3.75
25
3.92
26
PRC
3.61
31
3.29
20
3.75
18
3.54
27
3.59
27
3.65
27
3.84
71
Kazakhst
an
2.81
65
2.66
81
2.55
84
2.73
90
2.58
83
2.78
50
3.53
99
U
zbekis
tan
2.58
140
2.10
77
2.57
120
2.42
88
2.59
90
2.71
91
3.09
108
Kyr
gyz R
epublic
2.55
55
2.75
103
2.38
138
2.22
114
2.36
99
2.64
106
2.94
126
Turkmenist
an
2.41
111
2.35
117
2.23
136
2.29
120
2.31
107
2.56
130
2.72
130
Mongolia
2.37
127
2.22
135
2.10
117
2.49
140
2.21
152
2.10
93
3.06
134
Tajikist
an
2.34
150
1.92
127
2.17
133
2.31
116
2.33
131
2.33
104
2.95
160
A
fghanist
an
1.95
158
1.73
158
1.81
152
2.10
158
1.92
159
1.70
153
2.38
LPI = L
ogistics P
erf
ormanc
e I
ndex, PR
C = P
eople
’s R
epublic o
f China.
Sour
ce: W
orld Bank. 2018. L
ogistics P
erf
ormanc
e I
ndex h
ttps://lpi
.w
orldbank.
or
g/in
terna
tional/
global (ac
ces
sed 14 D
ec
ember 2018).

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46
Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
2.1.4. Challenges and opportunities in the transport sector
The transport sector could play a significant role in achieving Uzbekistan’s goal 
of sustaining its very high growth rate. This would require continued planning 
and coordination among the governing agencies of the transport modes to 
ensure that development strategies are harmonious and complementary, 
and to rationalize the functions of each transport subsector. Other serious 
challenges also need to be confronted. 
Continuing electrification of rail networks.
For Uzbekistan to continue to 
be a key transit country between Asia and Europe, its rail network needs to 
be modernized by increased electrification, to put it on par with neighboring 
countries’ very high electrification rates. Such electrification of the rail network 
would contribute to energy and environmental benefits and would lower the 
cost of transporting goods in and out of the country; but it would require 
increased investment, as acknowledged by the UTY in its development plans.
Regularly replacing and updating dilapidated rolling stock.
Because a 
completely electrified rail system cannot be realized in the short term, a large 
portion of the country’s outdated rolling stock needs to be replaced/updated. 
Maintenance works also need to be upgraded. Although such activities will 
divert some funds that may otherwise be used for electrification, neglecting 
these improvements will mean persistent erratic train schedules and a lower 
volume of rail freight transport due to mechanical breakdowns and the reduced 
dependability of rail transport.
Minimizing barriers to trade.
A survey of stakeholders in the South Caucasus 
and Central Asia by the World Economic Forum (WEF) highlighted the need 
for greater integration into global supply chains (WEF 2014). Improvements in 
the rail system can spur cooperation among regions and between neighboring 
countries, and allow easier movement of goods and services. For this to 
happen, the challenge for Uzbekistan is to reduce the barriers to trade that are 
within its control.