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Kyrgy, Uzbek export trends

point to China-Kyrgyz-Uzbek

railway potential

CHINA KYRGYZSTAN boosted its commodity exports logistics hub in Kyzyl-Kiya and collaboration on
to Uzbekistan in the first quarter of 2022, Silk infrastructure projects. This would include the
Road Briefing has reported, citing the country’s Nooken District project in the Jalal-Abad region
National Statistical Committee. of Kyrgyzstan, which aims to build a cotton and
The export of goods from Kyrgyzstan to textile cluster complex that includes a yarn and
Uzbekistan reportedly reached $61.1mn from textile factory, mechanical tractor park and veg-
January to April, up 7.9% y/y. Uzbek exports to etable cotton production plant.
Kyrgyzstan in the reporting period amounted to The planned CKU railway would become
$84.9mn, up 3% y/y. part of the southern branch of the China-Eu-
The news might be seen as a shot in the arm rope freight railway network, connecting China,
for those enthusiastic about the recent decision Kyrgyzstan and Uzbekistan with Central and
made to begin construction on the long-awaited Eastern Europe via Iran and Turkey. The total
China-Kyrgyzstan-Uzbekistan (CKU) railway, length of the CKU railway would be around
with the export trends pointing to how the route 523 kilometres, with 213 km in China, 260 km
can help traders reap growing rewards. in Kyrgyzstan and around 50 km in Uzbekistan.
Bilateral trade turnover between Kyrgyzstan From Uzbekistan, the CKU would connect
and Uzbekistan was reported as $146mn in to the Turkmenbashi port in Turkmenistan on
1Q22, up 5% y/y. Kyrgyzstan’s top five trading the Caspian Sea, from where trade consignments
partners were China, Russia, Kazakhstan, Tur- can then flow to ports in Georgia, Turkey and the
key, and Uzbekistan over the period. EU Black Sea countries of Bulgaria and Roma-
The Kyrgyz and Uzbek governments have nia. Freight could reach the southern Iranian
plans to increase bilateral trade to $2bn annu- oceanic port at Chabahar via the International
ally. The countries plan to cooperate in the areas North-South Transport Corridor (INSTC),
of energy, transport and logistics. opening up Persian Gulf and Indian Ocean
The Uzbek-Kyrgyz Development Fund has shipping options to the Middle East, East Africa
been created with a $200mn fund to support and India.
regional projects. In terms of making use of Uzbek officials say the railway would be the
the development fund’s potential, both coun- shortest route between China and Europe and
tries are considering construction of the Irke- the Middle East, cutting the freight journey by
shtam-Daroot-Korgon-Uchkurgan road, the 900 km and saving seven to eight days in ship-
establishment of a cross-border commerce and ping time.™

Week 25 22•June•2022 www. NEWSBASE .com P11