Wednesday, October 7, 2026

UKRAINE: From train procurement to domestic production: Uzbekistan expands railway engineering – Alyona Lebedeva

Alena Lebedeva

KYIV, UKRAINE, October 7, 2026 / EINPresswire.com / -- Uzbekistan is gradually changing its approach to railway modernization. The country continues to purchase modern locomotives and passenger trains abroad, but is increasingly focusing on

retaining railcar production, repair, maintenance, and some technological expertise within the country.

This became especially noticeable after InnoTrans 2026 in Berlin, where a delegation from Uzbekistan Railways held talks with several major players in the global rail industry.

One of the key partners was China's CRRC Corporation. The parties discussed the establishment of a locomotive repair and maintenance service center at Uzbekistan Railways facilities, further equipment supplies, and the launch of modern freight car production. Railcars with variable gauge capability were also discussed—a solution particularly relevant for international routes traversing rail networks with different standards.

According to Alena Lebedeva, owner of the Ukrainian industrial and investment group Aurum Group, the key here is the transition from the "buy equipment" model to the "create your own industrial infrastructure around it" model.

"When the state invests significantly in railways, it's not just the number of trains or cars purchased. It's important to consider what portion of this investment will remain within the economy—in production, service, components, jobs, and engineering expertise," she notes.

Production is already measured in thousands of cars.

Negotiations with CRRC essentially complement a program that Uzbekistan has been implementing for several years.
Between 2023 and 2025, 1,590 gondola cars were manufactured at Uzbekistan Railways enterprises as part of a $105 million project. The second phase of the $150 million program is scheduled for 2025–2026 and includes the production of 954 freight cars and 70 passenger cars, as well as the modernization of car-building facilities.

By February 2026, 45 passenger cars and 340 tank cars had already been produced as part of this phase. An additional 614 freight cars and 25 passenger cars were planned for production by the end of the year.

The next task is even more ambitious. An additional $100 million has been allocated for production expansion, and the fleet is to be expanded with an additional 1,350 freight cars. The plants' production capacity is planned to increase by 50%, to 2,000 freight cars per year.
This means that we are no longer talking about individual orders, but rather the gradual creation of a full-fledged domestic production base for the railway industry.

Service is becoming no less important than production .

It is significant that Uzbekistan is also using a similar model in its cooperation with European manufacturers.
In June, Uzbekistan Railways and the Czech company Škoda Transportation agreed to supply ten modern electric trains. However, the contract covers more than just the purchase of equipment. One of its components is the establishment of a joint venture in Uzbekistan for train maintenance.

Alena Lebedeva points out that it is the service component that can significantly increase the economic impact of such contracts.

A locomotive or train is purchased once, whereas its maintenance, diagnostics, repairs, and modernization continue for decades. If this work is performed domestically, it creates a constant demand for engineers, equipment, spare parts, and local suppliers.

A similar logic is evident in the negotiations with Hyundai Rotem. Uzbekistan continues to expand its high-speed train fleet, and following the meetings in Berlin, the parties discussed a new contract for additional electric trains and the further development of passenger service.
Thus, international manufacturers are gradually becoming not only suppliers of finished equipment for Uzbekistan, but also potential sources of technology, service expertise, and industrial cooperation.

New corridors are creating a market for domestic mechanical engineering.

Industrial localization has another reason: Uzbekistan is actively expanding the geography of rail transportation.
The country is participating in the construction of the China-Kyrgyzstan-Uzbekistan railway, which is intended to create a new route between China and Central Asia.

At the same time, the southern route is developing. On September 30, Kazakhstan, Uzbekistan, and the United Arab Emirates signed a memorandum on the joint development of the Kazakhstan-Uzbekistan-Afghanistan-Pakistan railway route, known as CASA. Its strategic feature is the potential access of Central Asian countries to Pakistan's seaports.

Each new transport corridor entails more than just infrastructure construction. Its operation requires locomotives, freight cars, repair facilities, traffic management systems, digital solutions, and the constant renewal of rolling stock.
Therefore, domestic railway engineering is gradually acquiring significance for Uzbekistan that extends far beyond the transportation sector.

The more components and services are produced domestically, the greater the impact on related industries—metallurgy, mechanical engineering, electrical engineering, electronics, and small and medium-sized businesses—that can enter supply chains.

From equipment importer to production chain participant.

Essentially, Uzbekistan is attempting to use the large-scale modernization of its railway system to address two objectives simultaneously.
The first is to acquire modern transport infrastructure and increase the capacity of international routes.
The second is to transform growing domestic demand for railway equipment into a stimulus for the development of its own industry.

According to Alena Lebedeva, the degree of localization will become one of the key indicators of how successfully the country is implementing this strategy in the coming years.

"The next stage is no longer just a question of the number of cars produced. It will be more important to assess the share of components produced domestically, the amount of service and engineering work performed by local companies, and the depth of technology transfer," she emphasizes.

In this context, the negotiations with CRRC should be viewed more broadly than just another railway equipment procurement project. They fit into a model in which Uzbekistan seeks to gradually transition from equipment imports to domestic production, service, and participation in more complex technological chains.

If this process continues, large-scale investments in new railway routes will benefit not only transit and logistics but also the development of a distinct industrial sector within the country.

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