Transport / Rail transport (non-urban)

Railway transport has a competitive advantage over road transport for moving commodities and goods in bulk over long distances, and is more environmentally friendly. Railways in Uzbekistan have carried about 60 million tons of freight and 15 million passengers annually over the past decade, and remain a backbone to Uzbekistan's economy.

The joint stock company O'zbekiston Temir Yo'llari (UTY) is responsible for the management and operation of the nation-wide 4,669 km railway network. It has worked with development partners to undertake modernization and reforms. ADB has provided two loans for rehabilitation and modernization of infrastructure, and a loan for electrification of a railway line between Marakand and Karshi. Based on the government's Railway Electrification Program up to 2020, UTY is continuing to carry out electrification of main lines to improve hauling capacity, cut operating cost and improve environmental performance. Institutional reform of UTY was initiated by the Government in 1997 and supported by ADB, under which ancillary rail services have been largely separated from core operations. Downsizing of staff and non-core assets improved efficiency and sustainability of operations.

Despite these efforts, the railways still face long transport times, inadequate service quality, and high operating costs, because of aged or inadequate infrastructure, operational inefficiencies, competition from road transport, and an insufficient number of locomotives. This results in lost economic opportunities, suboptimal regional trade, and negative environmental impacts. The project tackles this core problem by accelerating investment in critical railway infrastructure, namely, the electrification of non-electrified tracks in the densely populated Fergana Valley.

The project will increase the mobility of goods and people in the Fergana Valley, improve environmental and safety performance of railways, and accelerate regional connectivity. As of 2016, rail operations on the Pap Namangan Andijan line are limited to two passenger trains and three freight trains per day. By extending an adjacent project being undertaken by UTY to electrify the Pap Kokand Margilan Andijan line, the project will allow reliable, more frequent, and higher-speed connections between the major cities and towns in the Fergana Valley.

Switching from diesel to electric traction will reduce the amount of noise, vibration, and air pollution from each train. By increasing the capacity and attractiveness of rail travel, the project will help shift transport away from roads and reduce local pollutants and greenhouse gases. The project will reduce carbon dioxide emissions by 10,000 tons per year. Operational safety in the Fergana Valley will be improved through a dedicated project component on railway safety.

The project supports the development of the Fergana Valley Tashkent Economic Corridor. The completion of the Pap Angren line in mid-2016 allowed for the first time a continuous, electrified railway link between the Fergana Valley and Tashkent. The project will extend the electrified network to major cities and towns in the Fergana Valley. Travel time from Namangan to Tashkent will be cut from the current 5 hours by road to about 3 hours by rail, enabling better access to employment opportunities in Tashkent. Also, businesses headquartered in Tashkent will be able to move more of its activities to the Fergana Valley. For freight transport, UTY forecasts up to a fourfold increase in the amount of freight to be carried annually between the Fergana Valley and Tashkent, subject to the electrification of lines in the Fergana Valley being completed.

The project railway is part of CAREC Corridor 2, linking Uzbekistan to the People's Republic of China to the east and Europe to the west. The project railway forms a central link on CAREC designated rail corridors 202 and 203.