Volume 03 Issue 10-2023
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ABSTRACT
The transport and logistics hub section of the Uzbek Foresight Technology Programme and the study compiled in
accordance with the relevant legal document of the government summarizes the main purpose, tasks, and results of
the research conducted on the future analysis of transport. It describes the characteristics and methodology of the
Uzbek Foresight Technology Programme, based on scenario building, professional workshops, and a large-scale
Delphi survey, and evaluates in detail the specific research methods and results of the Transport and Logistics hub
panel. The research outputs so far are panel guidelines, panel images, and Delphi statements on transport and
logistics. Further tasks include creating a scenario based on the panel images, holding professional meetings to discuss
future development paths, and writing a panel report summarizing the results and making recommendations for
transport policy.
KEYWORDS
Logistics, transport, logistics hub, CAREC, logistics management.
INTRODUCTION
Transport logistics hubs are one of the most important
aspects of freight transport and are increasingly used
and managed by transport logistics hubs. They play a
crucial role in transport processes. However, there is
still little empirical data on these hubs and they are not
sufficiently considered in models of high freight
demand. Empirical research and model-based
calculations are important tools for understanding the
role of logistics hubs in transportation systems. They
help determine the impact of measures on the
transport system and answer the question of transport
demand and the drivers behind it. Lack of empirical
knowledge and insufficient integration in freight
demand models are different.
Research Article
ESTABLISHMENT OF TRANSPORT LOGISTICS HUB
Submission Date:
October 20, 2023,
Accepted Date:
October 25, 2023,
Published Date:
October 30, 2023
Crossref doi:
https://doi.org/10.37547/ijhps/Volume03Issue10-07
Jasur Ekhsonov
Kokand Branch Of Tashkent State Technical University Named After Islam Karimov, Department Of
Education Quality Control, Kokand City, Uzbekistan
Elmurod Khoshimov
The Banking And Finance Academy Republic Of Uzbekistan, Ceo, Tashkent City, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijhps
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
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Logistics is understood as the process of planning,
implementation, and control of processes for efficient,
high-quality transportation and storage of goods,
including services according to customer requirements
and the relevant database. It covers the entire
transport chain from the point of origin to the point of
consumption and includes inbound, outbound,
internal, and external movements. Logistics hubs are
intermediate points between the origin and final
destination of goods flows. They provide the ability to
adjust flows temporally and spatially. Logistics hubs
represent places that determine the free flow of goods
and provide information to both sides (customer and
operator). In this context, logistics hub can be defined
as places where goods are stored in warehouses or
transferred between different types of transport and
vehicles. Below we distinguish transport logistics hub
and distribution logistics hubs. Transport logistics hubs
mainly have the function of freight forwarding, as well
as the buffer function of the time change. Therefore,
transport logistics hub, such as airports, railway
stations, terminals for intermodal transport, as well as
freight forwarders and courier, express, and shipment
service providers (cep service providers). In addition,
distribution logistics hubs are aimed at storing goods
for a longer period of time. Examples of distribution n
logistics hubs can be found in central or regional
warehouses.
The Decree of the President of the Republic of
Uzbekistan dated January 28, 2022
, №DP
-60 "On the
Development Strategy of New Uzbekistan for 2022-
2026" defines a number of tasks, such as improving the
transport logistics system and bringing it to high
results. In particular, in accordance with the 3rd
direction of the strategy "Advancing the development
of the national economy and ensuring high growth
rates" for goal No. 36 "Development of a unified
transport system with an integral connection of all
modes of transport, creating the possibility of reaching
and returning to the destination based on daily
transport trips between major cities", such tasks are
recognized at the level of governments.
Improving the national economy, making it
increasingly competitive, and the associated structural
changes prompted politicians in many industrialized
countries to re-focus on innovation as a means of
industrial and manufacturing policy. In the 1980s, this
was evident in the emergence of national and
international projects to support collaborative
research known as" new technologies". Mainly IT,
telecommunications, transport, new materials and
biotechnology. Despite the position of low
intergovernmental interaction, i.e. non-interference,
these technologies were deemed to be at risk of being
left behind.
The development of this technology has sought not to
disclose the focus on cooperation, another reason for
the support of these areas and the fact that these are
technologies that represent advances in other
technologies and a wide spectrum of industrial activity
in their integrated form, as well as widespread
technologies for practice. The problem that arises
about the consequences of the situation to maintain
competitiveness was observed in European countries
at the сenter for technology in early 1990. However,
this new passion for foresight technology policy
coincided with the reduction of the main
unconventional sources of indirect support for
industrial technological development, in particular the
defense sector. Together with the constant
optimization of public spending, this created
conditions in which a large level of priority is
considered necessary. From this, the technological
choices that are sought from priority are the
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manifestations that generate the greatest economic
and social income.
Current year, in cooperation with the Chinese logistics
company “Chongqing International Logistics Hub
Park”, a large project has been achieved, namely, the
establishment of a logistics hub on the territory of the
Republic. It is definitely a state reform aimed at the
development of the transport and logistics sector,
creating relief for entrepreneurs, optimizing costs, and
lacing the principle of door-to-door.
The Technology Foresight Program of the Republic of
Uzbekistan announced the Decree of the government
on the improvement of the state management system
for the development of scientific and innovative
activities in 2021. In the context of research to enrich
the scientific base, ensure the quality of education and
develop human capital, the Technology Foresight
Program has two broad objectives. In particular, it is
the establishment of collaboration between scientists
and industrialists who are best placed to assess
emerging market opportunities and technological
trends and to make decisions about the balance and
direction of publicly funded science and technology.
While this list contains many topics that are usually
found in critical technology analysis, the overall
balance reflects the specific needs of Uzbekistan. In
addition, each of them is described in more detail both
in the management team report and in the reports of
individual panels. The final set of priorities was
achieved using a framework developed during the
preview phase, which developed a number of sub-
criteria under five main headings:
•
Economic and social amenities;
•
Ability of Uzbekistan to receive economic and
social benefits;
•
Pillars of the science and innovation base of
Uzbekistan;
•
Costs of investing in new science, technology
and innovative projects;
•
The time frame in which the new technology
may exist.
Elsewhere, the successful use of the Delphi method
influenced its adoption for the Uzbekistan program.
Support can also come from consultation seminars and
sessions throughout the country at the research and
review stage, in accordance with the relevant decisions
of the Uzbek government. However, it was never
foreseen that the use of Delphi in Uzbekistan would
lead to a repeat of the questions of Japan and the
United Kingdom. They reflect the agenda of the
industry and scientists of the two countries and do not
necessarily correspond to the specific goals of the
Uzbekistan program. In particular, it is necessary to
study the advantages of forming new networks
between the scientific base and production, pay great
attention to market size and quality of life in
Uzbekistan, and national efforts to identify networks.
To achieve these goals, Delphi was used as a consulting
tool for panels that directly reflect the themes and
problems created by the panels and their concerns. It
also provides a means of communication. Specific
goals include:
•
Acquaintance with the opinions of the business
and scientific and technical communities on future
changes in markets and technologies;
•
Loyalty to results and assistance in achieving
consensus on developments;
•
To inform the wider business and scientific and
technology communities of the major challenges under
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consideration in the technology prediction program
and how their peers will assess these challenges.
These three goals highlight an interactive approach. In
addition to the most obvious function of assembling
options for panels, the Delphi survey aims to attract a
large number of professionals who would otherwise
be excluded, and therefore significantly expand the
consistency of participants who feel the right to
ownership of the results and, consequently, their
commitment to performing them [1]. The end of this
approach is illustrated in Fig 1.
Fig. 1 Main foresight stage. Source: [1]
In the main foresight phase, the assigned task
managers take on their functions, which include
building scenarios for their areas with some degree of
freedom, identifying key issues and trends, and
critically consulting with relevant communities. From
the outset, it became clear that it was unlikely to
capture all the necessary experiences in panels of a
manageable size. In addition, extensive consultation
with relevant communities is necessary to obtain the
commitment and consensus necessary to implement
the final findings. Much of this consultation takes place
through direct contact between panel members and
organizations and even individuals with an interest in
the field. However, a more systematic approach is
needed to achieve a structured dialogue with the
widest range of experts in the country. This is provided
by the Delphi process, which is described in more detail
below [1].
A hub is defined as a regional interconnection point
where products from multiple supply sources arrive
and are sorted according to destination needs. As a
result, products are delivered to these points without
being stored in the hub. Some elements are necessary
for the development of a logistics hub, but there is no
consensus on them. Some authors say that natural
wealth is the main factor, while others argue that the
role of government is crucial. So far, traditional
literature has focused on the main elements rather
than their interaction. There is no prioritization of
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elements or certain methodologies
for the
development of the logistics hub.
If the hub develops, it will affect the region, especially
the logistics infrastructure. The study explains that the
development of the hub affects other transport
sectors in the region and changes the importance of
ports and stations in the shipping networks. In
addition, hub development will change trade patterns
and infrastructure needs. The development of
Uzbekistan's logistics hub will affect the port system in
Central Asia, which must decide whether to compete
or cooperate and compete. To holistically study the
development of Uzbekistan's logistics hub, this
research also analyzes the cargo transportation
network of the Republic of Uzbekistan and identifies
the ports or centers that will be directly affected in the
short term. For this, a qualitative analysis supported by
interviews with agents involved in Central Asian
shipping networks is used. Recommendations for the
Government of Uzbekistan and the Asian region for
affected ports are presented to maximize the benefits
of hub development.
In order to conclude about the excellent geographical
location, it should be said that Uzbekistan should
organize multimodal corridors of access to the sea and
the straits connecting it. Control over an important sea
route gives a country a strategic advantage and
enables the development of maritime infrastructure to
use it as a resource or logistics capacity. High-speed rail
and highway connections are essential for connecting
other land-based logistics infrastructures within the
country.
Relying on the results of research in recent years, it can
be said that globalization has increased the
international exchange of products and services, and
the identification and installation of cross-border
transport network connectivity throughout the Asian
region with analysis should now be one of the main
priority goals. A number of studies conducted in Asia
show that countries that are geographically close can
benefit significantly from more trade if the costs of
infrastructure and trade turnover are improved. All of
these studies require efficient and integrated transport
and logistics networks to improve the movement of
goods and Services; Asia is known for its scattered
production and economic networks across borders.
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Fig. 2 Formation and principle of operation of the logistics hub.
The ongoing global financial problems will take the
integration of transport and logistics networks to a
more critical stage to aid the growth of regional
demands for Asian countries. Asia is now facing a new
world economy that is radically different from what it
dominated until the 1990s. In the modern world, the
decline in communication and transport costs (along
with technological development) has changed the
comparative advantages of economies. However, if
the actual Pan-Asian connection of its logistics
infrastructures is not available, the current leading
position of Asian trade can be replaced. What Asia
needs now is to restore the modern “Silk Road”. The
ancient trade route stretching from Asia to Europe was
one of the most important transboundary arteries in
the world until the 13th century. While the trade
turnover between Asia and the rest of the world is
growing again, a modern Silk Road should be built for
Sustainable Economic Development in Asia. Attempts
to develop a transport network across Asia have begun
since the 1960s. However, it was not until the 1980s
that little success was achieved. Significant political
and economic changes in the region in the 1980s and
early 1990s eventually facilitated the mobility of trade
and production factors in Asia.
Fig. 3 Map of potential directions of transportation, using Uzbek territory as a logistics hub.
Of course, Uzbekistan's LPI rating is impressive (2023 -
88). In particular, it contributes to the formation of the
prospects of neighboring countries (Afghanistan - 138,
Tajikistan - 97, Kazakhstan - 79, Armenia - 97,
Kyrgyzstan - 123). These indicators bring Uzbekistan to
a standard that is popular among Asian countries,
which is evident in the LPI ranking, where according to
statistics, Uzbekistan scores higher than Tajikistan,
Kyrgyzstan and Afghanistan.
Table 1 Comparison of Uzb
ekistan’s 2016 –
2023 outputs in LPI with Kazakhstan.
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Country
Year
LPI
Rank
LPI
Score
Customs
score
Infrastructure
score
International
shipments
Logistics
competence
Timeliness
Kazakhstan
2016
77
2.75
2.52
2.76
2.75
2.57
3.06
2023
79
2.7
2.6
2.5
2.6
2.7
2.9
Uzbekistan
2016 118
2.4
2.32
2.45
2.36
2.39
2.83
2023
88
2.6
2.6
2.4
2.6
2.6
2.8
Uzbekistan is progressing in all categories noted by the
World Bank. At the same time, the modernization of
infrastructure is the most observed. From 2.39 points
in 2016 to 2.6 points in 2023.
In world practice, the establishment of special
economic zones with state regulatory support and
preferential tax regime for the development of
logistics hub, simplified and accelerated customs
operations, the presence of customs points and the
acquisition of land will help. From this point of view, it
would be more attractive for investors and operators if
the hub was given the same status as a free economic
zone. At the same time, this industrial and logistics hub
should be distinguished from other free economic
zones and provide unique features for a cross-border
center. For example, cooperation between Kazakhstan
and Uzbekistan should improve border crossing
procedures through development, production and
investment, and have a positive impact on the
economy at the international level.
This development is the result of huge infrastructure
projects in the field of transport construction. Within
the framework of the China-Kyrgyzstan-Uzbekistan
railway line construction project, the construction of
efficient crossings and the construction of high-speed
railways and highways attracting investments from the
private logistics sector has become a priority and
urgent topic. Fergana Valley, Termez, and above all,
Tashkent, which has 65% of all projects in the logistics
sector, are the locations for warehouse infrastructure
needed in these densely populated areas.
International
logistics
chains
serve
such
a
configuration of production processes, which helps to
obtain benefits arising from the use of opportunities
and potentials located anywhere in the world. These
connections make it possible to achieve modern
logistics achievements on a global scale. Countries that
have specific characteristics to create qualitative or
quantitative advantages in production processes
create an existing potential for logistics operators. In
Asia, this potential is highly developed technologies
and logistics management systems. Developing
countries such as China, which have the most
productive resources in the world, are interested in
cooperation with Asian producers. The view of trade as
a source of influence should be complemented by the
statement that trade partnerships allow for
maintaining a certain level or employment and
sustainable growth of the country's economy. Global
supply chains can help you find the potential and
opportunity to deliver value more efficiently. In other
words, the transformation to a green economy helps
to increase competitiveness by comparing the sources
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of value. It is necessary to pay attention to what is the
main product exported from Europe or other
countries. Because the largest share of exports outside
the EU is a group of products characterized as
machinery and transport equipment. These products
are mainly exported to the USA and China. It is a highly
specialized product in the high-tech European industry.
This is also due to the scientific and manufacturing
potential of Europe, as well as economic growth in
Asia, mainly China.
METHODOLOGY
A mixed research strategy was used in the preparation
of this article, which implies complementary
quantitative and qualitative methods. The main
research questions were as follows: - what factors are
important in the formation of an industrial and logistics
hub in the border regions of Kazakhstan and
Uzbekistan? Based on this, what components are
included in the industrial and logistics hub model? -
What are the directions of development of the
industrial logistics hub in the border regions of
Kazakhstan and Uzbekistan? This project uses a
descriptive type of research. It consists not only of a
systematic literature review and statistical data on the
research topic, but also includes the implementation of
theoretical research, comparison, summarization and
analysis of results, providing evidence and forming
conclusions,
practical
recommendations
and
suggestions. This made it possible to determine the
factors for the development of international cargo
transportation between Kazakhstan and Uzbekistan in
order to deepen the economic integration of the
border regions.
RESULTS
Strengthen cooperation on trans-Caspian international
transport corridors, work with relevant countries to
develop the "Fourth Logistics Corridor" (an
international road transport corridor between China
and Europe through Central Asia), further improve the
system of regional international road transport
agreements, and improve the efficiency of transport
logistics.
Further development and deepening of cooperation in
the field of transport and logistics, implementation of
mutually beneficial cooperation in the field of building
cross-border transport infrastructure, and facilitating
transportation.
Promote technological innovation in the transport
sector, promote the digital transformation and
intelligent
upgrading
of
transport,
and
the
improvement of transport services.
Promote the green and low-carbon transformation of
transport, improve the level of green, low-carbon, and
circular development, and promote the quality and
sustainable development of transport.
Over the past two years, Kazakhstan's exports to
Uzbekistan have decreased, while Uzbekistan's
exports to Kazakhstan have increased. The decrease in
Kazakhstan's export index is due to the reduction of
tonnage in the transportation of grain, metal scrap, oil
products and coal. The increase in the export of
Uzbekistan to Kazakhstan was caused by the increase
in the volume of transportation of construction
materials, chemicals, soda ash, ferrous and non-ferrous
metals. Transit shows the importance of transit trade,
similar to the sum of rail transport imports and exports.
Currently, more than 50 percent of the trade turnover
of Uzbekistan passes through the territory of
Kazakhstan. Road traffic recovered significantly in 2021
after declining in 2020. Exports of Uzbekistan to
Kazakhstan and transit transportation of Uzbekistan
through Kazakhstan showed strong double-digit
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growth. Goods transported from Kazakhstan to
Uzbekistan include wood and products made from it,
rubber and products made from it, chemicals,
apparatus and equipment. In the opposite direction,
goods such as consumer goods, gas, and textiles are
sent by trucks. The volume of cargo transportation
between Kazakhstan and Uzbekistan is presented in
Fig 4.
Fig. 4 Volumes of transportation between Uzbekistan and Kazakhstan, million tons.
Although in recent times the efforts of the two
countries have focused on the development of transit
corridors, it should be taken into account that the
interests of Uzbekistan and Kazakhstan do not overlap
in certain areas. For example, Uzbekistan is actively
supporting the China-Kyrgyzstan-Uzbekistan railway
project, bypassing the territory of Kazakhstan.
Kazakhstan also supported a project to build the
Mazori Sharif-Kabul-Peshawar Railway in Uzbekistan as
an opportunity to access the future transafgan
corridor. But without serious investments, without the
support of the Taliban and Pakistan, which should
guarantee the safety of the railway, this cannot be
done. For Central Asian countries, cooperation within
the framework of the North-South international
corridor with access to Iranian seaports is also
important for India [2].
The cases presented in the study showed the
importance of logistics centers for international freight
corridors. In addition, Uzbekistan may face a decrease
in transit revenues due to temporary restrictions on
cargo transportation in the territory of the Russian
Federation. The country has been the main beneficiary
of the United Transport and Logistics Company (UTLC)
regular cargo container train from China to Europe via
Kyrgyz Republic, Uzbekistan, Kazakhstan, Russia and
Belarus. Traffic from China to Europe has grown
rapidly, from 1,600 to 10,000 in 2021.
There are a few problems and factors to the
development of cross-border logistics centers:
Основной
Основной
Основной
Основной
0.501
0.815
1.623
2.939
0
5
10
15
20
25
From Kazakhstan to
Uzbekistan
From Uzbekistan to
Kazakhstan
Transit
Total
Road 2021
Rail 2021
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1.
Infrastructure underdevelopment. The railway
network in the region was built mainly during the
Soviet period, and many sections are not up to the level
of demand. The capacity of the railway stations located
in the border regions is not enough to transport such a
large amount of cargo. There is a lack of necessary
equipment at the entrances for receiving/dispatching
containers. Intrusive inspection equipment, such as X-
ray machines, is either non-existent or outdated and
often breaks down, forcing customs officials to
manually inspect vehicles and cargo. All of the above is
the reason for their high costs and the time it takes to
cross borders in the region. The shortage of freight
wagons in Uzbekistan is causing delays in the return of
wagons belonging to other countries from Uzbekistan.
This increases the cost of shipping goods to
Uzbekistan, as wagon owners in Kazakhstan do not
want to rent their wagons for shipping to Uzbekistan.
Solution. Adoption of a financing program with a rate
of up to 4 percent aimed at encouraging the purchase
of universal platforms for the transportation of goods
and containers.
2.
Low level of digitalization and application of
information systems. Due to the lack of information
support, foreign carriers and service consumers cannot
track their cargo and vehicles. Therefore, they are
suspicious of the transportation of goods through the
territory of Uzbekistan.
Solution. It is necessary to create and develop
integrated transport services based on a digital
platform. Thus, after analyzing the factors affecting
the development of the corridors between Uzbekistan
and Kazakhstan, it will be possible to determine the
components that should be included in the model of
the industrial and logistics hub in the border area.
Digitization of the logistics hub and the creation of an
"Intelligent Dry Port" is an open and neutral platform
that connects multiple systems and provides a secure
and intelligent exchange of information between the
various organizations that make up the port
community (CAREC, 2021).
CAREC 2030 was developed through consultation and
participation. In the first half of 2017, consultations
were held in all CAREC member countries with the
participation of more than 350 government
representatives,
multilateral
and
bilateral
development partners, think tanks, academia, the
private sector, and business associations. Valuable
guidance and comments received during these
consultations are reflected in this strategy paper.
Several CAREC-supported themes are prominent in the
national development strategies of participating
countries that are being implemented or are currently
under development. All development strategies focus
primarily on economic growth and job creation, with an
emphasis on sound macroeconomic structure and
financial sector stability. Kazakhstan's strategy is
aimed at economic diversification. The Afghan National
Peace and Development Framework seeks to improve
banking regulation and financial sector inclusiveness;
and Pakistan Vision 2025 aims to deepen financial
services. Three other strategies - Azerbaijan, the
Kyrgyz Republic and Uzbekistan - provide regional
approaches to contain economic and currency
volatility and are aimed at ensuring a stable monetary
policy and strengthening the financial sector.
Azerbaijan and Mongolia have made banking sector
and capital market reforms an important part of their
medium-term strategies. Georgia is also implementing
broad reforms, including capital market reforms and
pension reforms. The Development Strategy of
Xinjiang (PRC) places particular emphasis on financial
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inclusion. The liberalization of fiscal and monetary
policy and the development of insurance markets are
elements of the later stages of Turkmenistan's reform
strategy until 2030. Countries seek to stabilize cross-
country capital flows and develop capital markets.
Transport has a special place, especially in the context
of regional corridors, but also in the areas of improving
asset management, institutions, and financing -
Azerbaijan, Pakistan, and the countries of Central Asia.
A The ll countries in their national development
strategies recognize the critical importance of
improving water management (Pakistan), improving
water storage (Afghanistan, Pakistan, Uzbekistan) and
cooperation in optimizing water-energy linkages.
Fig. 5 Development of Uzbekistan’s performance in LPI (2007 –
2023). Source: LPI World Bank
Integrating the use of ICTs across the spectrum of
CAREC activities is a priority to improve the quality of
public services and support private sector growth.
CAREC countries still need to fill the digital gap, which
requires investment in ICT and knowledge services to
improve the availability and efficiency of public
services, increase productivity, ensure smoother
people-to-people contacts, and support integration
into regional and global value chains [3].
CONCLUSION
In conclusion, it should be said that Uzbekistan, like
neighboring countries, does not have direct access to
the sea. At the same time, Uzbekistan is increasing its
trade, export and transport potential. The study
showed that this situation implies finding a common
basis for participation in international transport
corridors, despite the fact that our country carries out
its own transport. In the context of global problems,
cross-border cooperation processes are deepening.
Cross-border relations of countries on participation in
existing international transport corridors stimulate the
development of not only border areas, but also the
entire national economy. Transport and trade
infrastructure will be developed due to the formation
of transport logistics centers that ensure the
continuous transportation of goods across the border.
It is possible to establish such centers in the bordering
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regions of neighboring countries, improve their
infrastructure, and ensure employment of the
population. However, the study identified the main
factors hindering the development of such centers,
which are detailed above. Currently, the most
intractable cases are delays in customs inspection and
inconsistencies in the legal basis of the transportation
process. Returning to the underdevelopment of the
infrastructure, this issue requires a comprehensive
solution at the government level. Special attention
should be paid to the low level of digitization and use
of information systems. The reason is to speed up the
process of creating and developing integrated
transport services based on a digital platform. In
addition, the use of non-tariff barriers is also a concern.
In this regard, it is necessary to move to an open and
transparent model of tariff and transit policy formation
by transit countries.
ACKNOWLEDGEMENTS
The article reflects the results of the author as part of
the research carried out at the Graduate School of
Business and Entrepreneurship (GSBE ) in 2021-2023 in
accordance with the relevant order of the Ministry of
Higher Education, Science and Innovation of the
Republic of Uzbekistan. Digital Economy and digital
international integration processes. In the end, the
research has a scientific approach to the formation of
the national brand of Uzbekistan in the international
environment (4th quarter of 2021 - 2nd quarter of 2023)
and readiness for hybrid strategies in the period of
changes.
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