O’zbekiston temir yo’llari (Uzbekistan Railways) rolling stock has a high wear level

The monopolies of a large state-owned companies were discussed at the session of the Uzbekistan  Senate. Uzbekistan Railways rolling stock has a high wear level and there is a shortage of wagons. About 80% of the company’s rail cars are more than 30 years old.

rolling stock

Reffering to Senate press-office, «Railway Supply» informs that during the meeting of the Senate Committee on Budget and Economic Reforms special attention was paid to implement «The Law on Competition» in «O’zbekiston temir yo’llari».

A number of factors have a negative impact on the competitiveness of the monopoly, as well as on the development of a competitive environment in the railway sector:

  • lack of competition in the domestic market
  • the presence of non-specialized assets at Uzbekistan Railways
  • weak digitization of the railway
  • high level of inventory wear
  • over-regulation of Uzbekistan Railways

O’zbekiston temir yo’llari (Uzbekistan Railways)

The total expanded length of the main lines of the company as of the 1st of January 2019 was 6950 kilometers, 2500 kilometers of which are electrified. The company employs 91000 people.

The annual turnover of the railway is about 25% of the total cargo turnover of all transport in the country (in 2015 the total volume of cargo turnover of all transport in Uzbekistan was 88.9 billion tons, Uzbekistan Railways – 22.9 billion tons).