Regional Hub. 40 New Trade Logistics Centers Planned to Be Built in Kyrgyzstan by 2030

Юлия Воробьева Economy / Exclusive
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Regional hub. In Kyrgyzstan, the construction of 40 new TLCs is planned by 2030

In Kyrgyzstan, the creation of another 40 trade and logistics centers is planned by 2030, aimed at increasing the export capabilities of agricultural products. This information was announced by representatives of the Ministry of Water Resources, Agriculture, and Processing Industry in an interview with the agency "Kabar".

Currently, there are already 40 TLCs operating in the republic, and this year the opening of another 8 facilities is expected.

According to the National Development Program of Kyrgyzstan until 2030, its strategically convenient location between major global and regional centers creates opportunities for the formation of a transport, logistics, and trade hub. In this regard, the state sets ambitious goals for modernizing the logistics infrastructure to meet international standards.

The main directions of the program include:

— increasing the capacity of railways to 15 million tons of cargo per year;

— developing warehouse and logistics infrastructure by creating at least 1 million square meters of new facilities;

— reconstructing and repairing at least half of the republican roads;

— increasing the contribution of the transport sector to GDP to 1.5 billion US dollars;

— increasing air transport volumes to 7 million passengers and 45 thousand tons of cargo per year.

From 2021 to 2024, the volume of cargo transportation by all modes of transport increased by more than 21%. The volume of transportation and storage services rose from 28.6 billion soms in 2021 to 46.8 billion soms in 2024, corresponding to a growth of 163.6%. Meanwhile, trucks still account for the majority of transportation.

Currently, there are 40 trade and logistics centers in the country that contribute to the development of export opportunities. More than 30,000 sellers from Kyrgyzstan are registered on various marketplaces, which is three times higher than the figures for 2022.

Sergey Ponomarev, an expert in economics and business, emphasizes the importance of logistics in modern conditions.

"Efficient and economical delivery of goods is the key to competitiveness in both domestic and international markets. Kyrgyzstan is actively working in this direction. An important step is the creation of a transcontinental railway that will connect major transport systems and give the country access to the sea. Such opportunities did not exist before, and the measures taken by the government will have significant importance for economic progress," he noted.
To increase transit through Kyrgyzstan, the construction of the China-Kyrgyzstan-Uzbekistan railway continues, and work is underway to reconstruct internal roads.

At a recent celebration of Nowruz in the Naryn region, the country's president, Sadyr Japarov, noted that the implementation of this project will significantly strengthen the economic and logistical potential of the republic.

"After the construction of the China-Kyrgyzstan-Uzbekistan railway is completed, new transit opportunities will open up, and the international status of the country will increase. This will improve the potential of both the Naryn region and all of Kyrgyzstan, reduce delivery times, and provide access to new markets. We will stop being an isolated country and become a transit hub. The project is expected to be completed by 2030," the president emphasized.
Almost all trade and logistics centers will be equipped with warehouses and specialized blocks for storing and cooling products. Packaging, labeling, certification, and transportation of agricultural products will also take place here.

Doctor of Economic Sciences Tolonbek Abdyrov noted that the logistics centers of Kyrgyzstan must meet international standards and the requirements of the EAEU.

"The presence of trade and logistics centers is an important factor. The development of trade stimulates production, agriculture, and processing. With the construction of the railway, transportation is expected to range from 7.5 to 13 million tons of cargo, which requires a developed storage system. Logistics centers play a key role in the transshipment and distribution of goods. There are about 53 regulations within the EAEU that define requirements for storage and equipment. This is extremely important for agricultural products, allowing them to be preserved and sold at more competitive prices," added the expert.
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