Digitalization of the OTS countries is a powerful impetus for transport connectivity
The President of Uzbekistan, within the framework of cooperation in the Organization of Turkic States, regularly draws attention to the issues of digitalization and the need for the early formation of unified digital platforms, the digitalization of customs procedures, which are an integral factor in increasing trade performance and strengthening transport connectivity between the Turkic countries.
During the Samarkand Summit, the Head of the state stated:
“Another urgent issue of strategic importance on the agenda is the strengthening the transport connectivity”.
The timeliness and relevance of this initiative once again prove the key and strategic importance of transport and digital connectivity in realizing the economic potential of OTS.
The OTS space, covering over 170 million people in an area of more than 4 million km2, is a large market connecting East-West, and North-South. The total GDP of member states and observers is about $1.4 trillion. The share of the total GDP of OTS members in the world GDP is about 1.4%, and in terms of purchasing power parity (PPP) – about $4.5 trillion (3% of the world).
The OTS countries account for 22.4% of the total trade turnover of Uzbekistan. In recent years, mutual trade with the states of the organization has grown by 2.4 times, amounting to $9.4 billion by the end of 2021.
In turn, it is important to note that one of the strategic areas of interaction between the OTS countries is the development of connectivity through the creation of efficient transport and logistics routes.
Even at last year’s Istanbul Summit of the OTS, the Head of Uzbekistan put forward an urgent initiative to develop a “Program for the connectivity of the OTS member states in the transport sector”.
At the same time, in October this year, Tashkent hosted the sixth meeting of the Ministers of Transport of the OTS, as a result of which two documents were signed – the Agreement on International Multimodal Transportation between the Member States of the OTS and the Program of Interaction in Transport.
These conceptual initiatives will allow the OTS member countries to increase transport and transit traffic, increase the volume of mutual trade, accelerate the digitalization of transport platforms, jointly enter the markets of third countries, create efficient logistics chains, and promote the identification of new alternative transport corridors.
It is important to emphasize that to strengthen the transport connectivity of the OTS member countries and observers, the implementation of the China – Kyrgyzstan – Uzbekistan and Termez – Mazar-i-Sharif – Kabul – Peshawar railway construction projects can also act as a more branched one.
Both projects can significantly expand the opportunities and strengthen the transport and transit potential of the OTS member countries and observers in the global transport and logistics component.
It is important to highlight that already in September this year, the first pilot train was successfully launched on the route “China – Kyrgyzstan – Uzbekistan – Afghanistan” (from Kashgar to Osh by road, and then from Uzbekistan to Mazar-i-Sharif by rail).
To increase the trade turnover, the member states of this corridor provided discounts for transportation up to 50%, and Uzbekistan – 70%, which will reduce the cost of cargo delivery by almost 3 times.
In turn, the implementation of these projects diversifies the transport flows of Central Asia and contributes to strengthening the connectivity and digitalization of the Turkic states.
We already have some experience in this area, the pilot project “ePermit” between Uzbekistan and Türkiye and the digital TIR, as well as the green corridor between Uzbekistan, Kazakhstan and Kyrgyzstan, have been launched in test mode.
At the same time, conferences were held for IT specialists in smart cities and a forum for young startups within the framework of the “ICT Week Uzbekistan-2022” and “InnoWeek.Uz” in October 2022.
Using the possibilities of digital technologies in the future will make it possible to simplify customs and transport procedures, solve the problems of idle cargo at the borders and contribute to the further development of trade and the growth of the economies of the OTS countries.
At the same time, the adopted Concept of the Turkic World 2040 will significantly expand the scope of cooperation within the framework of the OTS and significantly affect the economic potential of the organization, while strengthening the prospects for the development of transport, digital and telecommunications connectivity of the organization.
Taking into account the significance and role of this summit, the importance of the initiatives put forward, the topic of digital transformation will continue to be a key link in the development and further connectivity of the OTS countries.
In this context, it is worth noting the importance of the chairmanship of Uzbekistan in the OTS, which will undoubtedly give a new impetus to the formation of a single digital space.
The result of the above is the signing of the Samarkand Declaration of the Summit of the Organization of Turkic States, aimed at further enhancing multifaceted collaboration.
Shavkat Alimbekov,
Leading Researcher,
International Institute for Central Asia
