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the challenges facing landlocked developing countries: a case study ...

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Domestic transport is hampered by <strong>the</strong> now anachronistic Soviet road network. The<br />

independence of <strong>the</strong> republics now requires several major domestic roads to pass through<br />

neighboring <strong>countries</strong>’ territory. 31 Due to complex and time-consuming border procedures,<br />

trade within <strong>the</strong> country is significantly hampered. In particular Turkmenistan charges high<br />

transit fees on a number of commodities passing through its territory and continues to require<br />

special transit visas for each trip (Mayhew 2002).<br />

Rail<br />

As in most of <strong>the</strong> former Soviet republics, Tajikistan being a leading exception, railways play<br />

<strong>the</strong> dominant role in Uzbekistan’s international freight traffic, accounting for 86% of all<br />

import/export cargo compared to 14% for air and road. Its primary rail corridors pass through<br />

Russia, Ukraine, <strong>the</strong> Baltic States, and <strong>the</strong>n onward through eastern Europe. These routes are<br />

plagued not only by political <strong>challenges</strong>, but also extreme distances. Poor maintenance and<br />

limited rolling stock fur<strong>the</strong>r hamper <strong>the</strong> rail system.<br />

The following table summarizes <strong>the</strong> costs and duration of rail transit of cotton for several of<br />

<strong>the</strong> main corridors:<br />

Port Country Distance Duration Cost Cost/ton per<br />

(km) (days) (/t cotton) 1000km<br />

Riga Latvia 3929 20-23 84.82 21.59<br />

Ilichebvsk Ukraine 4312 25-26 98.90 22.94<br />

Nakhodka Russia (Sea of Japan) 8622 45-50 156.29 18.13<br />

Brest<br />

Belarus (border Poland, 4179 21-23 74.25 17.77<br />

via road)<br />

Lyanyunganang China (Yellow Sea) 5991 20-25 215.49 35.97<br />

Farob-Poti Georgia (Black Sea) 2025 10-15 75.32 37.20<br />

Source: (US Embassy Tashkent 2001)<br />

Rates for Georgian ports are given with 50% discounts based on 1996 agreement. Rate for Lyanyunganang given<br />

with 30% liability mark-up<br />

Uzbekistan’s domestic rail system is hampered by <strong>the</strong> inopportune border delineations<br />

discussed above. A number of domestic connections (i.e. Bukhara to Urgench to Nukus)<br />

currently pass through Turkmenistan. And since Turkmenistan has not signed <strong>the</strong> 72 hour<br />

transit agreement, all train passengers must acquire a transit visa for Turkmenistan or risk<br />

fines (Mayhew et al. 2000). To address this problem, Uzbekistan is now building a new train<br />

line bypassing Turkmenistan.<br />

Pipelines<br />

While Uzbekistan exports natural gas to both Kyrgyzstan and Tajikistan, its gas is exported<br />

mainly to Ukraine via Kazakh pipelines. Like most of <strong>the</strong> Central Asian republics,<br />

Kazakhstan is not able to sell oil through to Europe due to Russian restrictions.<br />

Ports/Waterways<br />

Uzbekistan uses <strong>the</strong> Baltic Sea ports (primarily Riga), Russian ports (e.g., Novorossiysk),<br />

European ports including Bremerhaven (Germany), and more recently <strong>the</strong> ports of Poti<br />

31 The principal road connecting Nukus in <strong>the</strong> east with <strong>the</strong> rest of <strong>the</strong> country passes twice through<br />

Turkmenistan. Similarly, The main eastbound road to <strong>the</strong> Fergana Valley crosses through Tajikistan.<br />

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