Who Will Actually Benefit From the China-Kyrgyzstan-Uzbekistan Railroad?
The DiplomatChina’s Premier Li Qiang visited Kyrgyzstan in late October to attend a meeting of leaders from the Shanghai Cooperation Organization. Russia’s invasion of Ukraine and subsequent sanctions on Russia have created an appetite for alternative routes from China to Europe and the Middle East, leading to the 20-year-old railroad project’s renaissance. The new route will reduce the time it takes to deliver goods to Europe by seven or eight days, creating an opportunity for Central Asia to regain the role of being “central” to continental trade. “In my perspective, one of the foremost issues plaguing the import of Chinese goods into Uzbekistan is the exorbitant cost of transportation,” said Otabek Siddikov, proprietor of a Tashkent-based logistics firm. Transporting via trucks is cheaper, but can still cost up to $130 per cubic meter On top of transport costs, there is also the additional burden of state duties on goods exported from China to Uzbekistan.