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Uzbekistan offers China control over strategic railway stations

An agreement with Sino Road and Bridge could modernize infrastructure, but raises concerns over losing control of key national assets.
Apr 7, 2025 - 15:32
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Photo taken from public sources

Uzbekistan is considering handing over the management of several strategic railway stations to the Chinese corporation Sino Road and Bridge Corporation. The proposal covers the stations in Tashkent, Samarkand, and Kokand, and was discussed during a meeting between Deputy Minister of Transport Jasurbek Choriev and Chinese representatives. The project is being developed as a public-private partnership (PPP), aimed at attracting foreign investment for the country’s transport infrastructure.

According to Uzbek authorities, transferring management to a major international company would allow for the modernization of stations, the introduction of digital technologies, and improved logistics and services. Under the PPP format, the Chinese side is expected to fulfill investment obligations without additional pressure on the state budget.

This agreement follows a series of reforms in the transport sector that began in 2024. Amendments to the “Railway Transport” law opened the door for private and foreign operators to participate in railway infrastructure management. The updated legislation allows market-based pricing for transportation, giving investors flexibility in setting tariffs — except for public passenger services, which remain state-regulated.

However, despite the stated goals of modernization and cost optimization, the initiative has raised concerns among some experts. Critics point to a lack of transparency in the potential deal, with key details such as contract duration, investment volumes, and obligations remaining undisclosed. Against this backdrop, fears are growing that Uzbekistan could lose control over assets vital to the economy and national security.

Railways, as a component of critical infrastructure, play a key role in logistics, domestic mobility, and national defense. Therefore, even temporary foreign control is seen as a step that could increase external dependence. Analysts draw comparisons to Sri Lanka’s experience, where the 99-year lease of the Hambantota port to China became a symbol of the “debt trap” — a scenario in which a country, unable to repay its debts, is forced to cede strategic assets.

Moreover, under new legislation, the Uzbek state budget is obligated to compensate private operators for losses caused by regulated tariffs on transportation. Preliminary estimates suggest such compensations could reach 1.7 trillion soums in 2025, casting doubt on the financial sustainability of the partnership and its long-term impact on public finances.

Thus, the potential agreement between Uzbekistan and China presents both opportunities for infrastructure modernization and risks related to the loss of control over strategic facilities and growing dependence on a foreign partner.

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