Key Central Asian highway expands on trade route from China towards Europe
Freight operators report faster journeys and lower transport costs as infrastructure improvements strengthen regional trade links. But border delays remain a significant obstacle, prompting further investment in modernising cross-border procedures.
A significant highway expansion in Central Asia aims to boost freight transport along a vital trade route connecting China to Europe and beyond. In Karakalpakstan, an autonomous territory in northwestern Uzbekistan, a 25-kilometer stretch of the A380 highway linking Nukus and Urgench is being widened from two to four lanes. The construction, valued at $48.7 million, is nearing completion, with authorities anticipating its completion by the end of 2026.
Further north, a 240-kilometer segment of the same highway, extending from Kungrad to the Kazakhstan border, was fully completed in 2024. Transport experts report that this upgrade has drastically reduced travel times and vehicle maintenance expenses. Damir Mamutov, the general manager of Promizvest Servis, a freight transport company, explains that trucks previously took between 10 to 12 hours to cover the 240-250 kilometers between Kungrad and Beyneu. However, the improved road now allows them to complete the journey in just three to four hours.
Mamutov notes that the reduced journey time has also led to a decrease in frequent tyre and suspension repairs, which in turn has lowered maintenance costs. The ongoing project, part of a broader initiative supported by the Asian Development Bank (ADB), is estimated to cost $383.4 million ($274.2 million in loans and $109.2 million in government contributions).
The A380 forms part of the Central Asia Regional Economic Cooperation (CAREC) programme, which involves 11 countries working together to improve transport infrastructure, facilitate trade, and strengthen economic cooperation across the region. Begzod Djalilov, a regional cooperation specialist at the ADB, emphasizes that economic corridors require investments in various sectors, including tourism, agriculture, and services, to create jobs, increase local incomes, and expand export opportunities.
Despite the progress made on the road network, border crossing procedures and delays at international borders still pose challenges for freight traffic. Djalilov highlights ongoing efforts to modernize border crossing points, including the digitization of processes and the introduction of electronic queuing systems for trucks. An additional $400 million (€358 million) financing facility, the Border Upgrades for Integration, Logistics, and Development (BUILD), is set to further modernize road and rail border crossings across the CAREC region through improved digital systems and border management.
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