Distinctive Features of Organization of Cargo Transportation in Uzbekistan Aytieva Sevara Allaberdievna Dept

International Journal of Research in Management & ISSN : 2348-6503 (Online) Business Studies (IJRMBS 2019) Vol. 6 Issue 2 April - June 2019 ISSN : 2348-893X (Print) Distinctive Features of Organization of Cargo Transportation in Uzbekistan Aytieva Sevara Allaberdievna Dept. of the Assistant "Infrastructure development and logistics", Tashkent state university of economics, Tashkent, Republic of Uzbekistan

Abstract This article describes the issues of improving the mechanism of container transportation, the use of global standards in the organization and management of container transportation when developing our foreign trade potential and expanding its geography.

Key words Container transportations, types of container transportation, container transportation systems, container transportation standards, railway container transportation, container traffic on motor transport.

Introduction railway transport enterprises and their services, industry and the International Conference on “Central Asian International state [5]. Transport Corridors: Strategic Perspectives and Unprecedented Today, the cost of carriage of goods by rail in containers is Opportunities” was held on 21st of November, 2018 in order to considerably expanded. Because transition to market relations has further improve the transport and transit capacities of our country led to the emergence of new expenditure groups. Costs Included and to improve the logistics service in our country. in the nomenclature of expenditure on shipping management in The speech of the President was read by the Prime Minister of the the Republic of Uzbekistan, the content of expenditure on the Republic of Uzbekistan. In particular, “the transport and transit production (sale) of products (works and services) included in costs of the countries of the region, which have no direct access to the cost of goods (works and services), as well as the order of seaports today, are noticeably high, up to 70-80% of the exported formation of the financial results taking into account the taxation value. The country is facing the challenge of further developing of profit the Regulation on the Procedure for the Formation of transit potential and increasing the share of transport in the structure Financial Results of a Number of Factors The of national economies. Attracting modern technologies and foreign Bowersox D. J., Closs D. J. Logistic Management. The Integrated investment in transport infrastructure, forming new prospective Supply Chain process. Improving the management system of transport corridors will help to solve this problem in practice. logistics and logistics businesses in their work, in the end, has In this connection, the President of the Republic of Uzbekistan highlighted the effectiveness of these logistics companies. proposed: Firstly, through the use of experts from the World Bank, A.Samatov, an economist from Uzbekistan, considers the issues of Asian and Islamic Development Banks and other international improving the management of global standards in the organization institutions, it is necessary to develop a regional transport corridor and management of container traffic on rail and road transport and development strategy in Central Asia and thereby adopt a regional the issues of further development of cargo deliveries. In particular, framework for the sustainable development of the Central Asian they considered the advantages of choosing vehicles that cost less transport system. Secondly, it is desirable to form a Regional than optimal routes for high-quality and fast delivery to containers Transport Communication Council of the Central Asian Countries, in containers. which will be a coordinating structure for the solution of existing problems in transport and logistics. Thirdly, it is necessary to Methodology of analysis develop transport communications and infrastructure in order to In the course of the research, it was noted that research, research increase the attractiveness of tourism in the region. “ and development of logistics infrastructures in organization and management of goods and transportation means of container Literature review transportation in Uzbekistan, research, systematic grains, A number of foreign and republican scientists have presented their comparisons, and other methods were used. scientific works in the field of the organization and management of container transportation in the Republic of Uzbekistan, high quality Results of analysis goods and services; one of which is S. Yu. Vitte’s work focuses The Decree of the President of the Republic of Uzbekistan «On on the organization and management of container traffic on rail Approval of the Strategy for Innovative Development of the transport. The scientifically-based principles of their organization Republic of Uzbekistan for 2019-2021» was defined as the main and management serve to serve the interests of the entire economy goal of the strategy in the strategy of innovation development of not only by rail, but also by other types of transportation [4]. the Republic of Uzbekistan in 2019-2021 - development of human Foreign literature also pays great attention to this problem. capital as a key factor determining the level of competitiveness of The competition between railway transport and road transport the country in the international arena and innovative development. is considered to be related to determining whether the tariffs The main objectives of the Strategy are to achieve the overall goal: are based on railroad (variable) and contingent costs, and the to increase the effectiveness of the activities of state power bodies effectiveness of the delivery management system. by achieving the entry of the Republic of Uzbekistan into the top Shakhanov DA the cost of transportation of goods (works, services) 50 most developed countries in the world by the Global Innovation in containers is specified in the structure of the mechanism of Index by 2030, the introduction of modern management methods coordination of mutual economic relations between users of and tools.

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One of the important directions of foreign economic activity and in December 2017. This corridor is a continuation of the first foreign economic policy of the Republic is the development of transport corridor, previously built by Uzbekistan - Hairaton - transport, transit and logistics infrastructure of the republic and Mazar-e-Sharif. In 2014, the US Treasury awarded the Asian the Central Asian Republics. Development Bank for funding the implementation of this historic «The official visit of President Shavkat Mirziyoev to the United project, which is crucial for the recovery of the Islamic economy States on May 15-17 this year gave a powerful impetus to the in Afghanistan. Currently, about half of Afghanistan's imports are development of bilateral cooperation. During the visit, more than being imported via this highway. Among them are the volumes 20 agreements worth 4.8 billion dollars were signed between our of humanitarian cargo. countries. In January-August 2018, the foreign trade turnover of The construction of this railroad and achieving its effective Uzbekistan was $ 20.6 billion, an increase of 18.5 percent compared functioning will contribute to the successful integration of Central to the same period last year. The share of the Commonwealth in the Asian countries and Afghanistan into international transport and eight months of this year increased by 5.6 percent to 38.8 percent trade systems. compared to the same period last year. It is a result of practical First of all, it will give a real contribution to international efforts measures to support foreign trade in the country, especially in the on socio-economic reconstruction of Afghanistan. For example, CIS, in the further enhancement of ties with the CIS countries. according to the Asian Development Bank, about 1.2 thousand « people were employed as part of the Hairaton-Mazar-i-Sharif The President of the Republic of Uzbekistan Sh.M.Mirziyoev in railroad. his appeal to the Parliament noted that it is necessary to pay a In addition, Kabul will be able to reduce the acute shortage of special attention to the consistent formation of reliable transport dependency on foreign donors through increased turnover and and transit corridors that lead to the foreign trade burden of the greater transit of goods. Today, this aid is about 90 percent of the Republic of Uzbekistan on major markets in the world and in country's GDP. the region. Experts estimate that the direct launch of the Iranian port of In December 2017, the President adopted a comprehensive Chabahar as a result of the implementation of the Mazari Sharif program to improve the transport infrastructure and diversify the - Herat railway project will increase the foreign trade turnover of foreign trade routes for cargoes from 2018 to 2022. The program Afghanistan by 50 percent. According to preliminary estimates, envisages intensified implementation of the agreements reached the volume of transit of goods by container can reach about 5.3 on the construction of the trans - Caspian transport corridor to the million tons in the first year after the construction of the railway sea ports of Uzbekistan - Turkmenistan - Iran - Oman, Uzbekistan - line, and in the future - up to 15 million tons per year. Kyrgyzstan - China international transport corridors as well as Iran Second, the implementation of the proposed project will be a new (Bandar Abbas, Chabahar) and Pakistan (Gvadar, Karachi) special stage in reaching regional consensus among the countries involved attention is given to the implementation of the It should be noted in the Afghan peace process and will create a neutral atmosphere that in March 2017, the leaders of Uzbekistan and Turkmenistan for cooperation, not for their mutual competition. Implementation started the implementation of an important section of the Uzbek of the project will benefit the almost all neighbors of Afghanistan, - Turkmen - Iran - Oman transport and communications corridor: primarily India, Iran and Pakistan. Turkmenistan - Turkmenistan - Farob railway and motor bridges Establishment of the transport corridor Mazar-i-Sharif - Herat, over Amu Darya. As a result, the volume of container shipping which will transport Iranian ports to Chabahar and Bandar Abbas, increased 2.5 times. Implementation of the idea of establishing will allow India to reach the markets of Afghanistan, Central Asia a direct transport and communications highway on the South and CIS countries in the shortest possible way. Today, the volume Caucasus - Tbilisi - Kars route through Uzbekistan - Turkmenistan of trade turnover between India and the Central Asian countries - the Caspian Sea - Baku, as well as the opportunity to access remains insignificant due to lack of direct transport, ie 1.1%. Georgia, Turkey, Romania and other ports along the Black Sea India invested $ 500 million in infrastructure development in coast. Chabahar port. Chabahar - Zahedan - Zaranj is participating in the In addition, after 20 years of negotiations, a serious shift has construction of the Iran - Afghanistan railway within the framework been made in the construction of a railway that connects China of the Southern Trade Path. This will allow the road to connect and Central Asia with Kyrgyzstan. For example, on December the major cities of Afghanistan, including Herat, Kandahar, Kabul 25 - 2017, at the trilateral meeting of the delegations of the PRC, and Mazar-i-Sharif. Kyrgyzstan and Uzbekistan in Tashkent, a practical decision was The launch of this route will enable Iran's port infrastructure to taken to accelerate the implementation of the Uzbek - Kyrgyz actively use transit potential, and will provide a new impetus - Chinese project. According to him, by the end of 2018, it is to Tehran's partnership with Central Asian countries. Therefore, expected to set specific targets, develop feasibility study and solve Tehran is actively involved in the implementation of transport and the financing issues. communication projects through the territory of Afghanistan. In This corridor will provide transportation from China to the September 2017, the part of Iran-Afghanistan railroad from Khaf countries of Central Asia through South Asia and the Middle East, to Shamty, which borders Afghanistan, has been completed. In via Transcaucasia along the shortest distance. the near future it is planned to complete the railway from Tehran According to the initial parameters of the project, the duration of to Hirat, Iran. delivery of goods by containers will be reduced by 7-8 days, and Mazar-i-Sharif - the Hirot line also creates conditions for the the distance from East Asia to the Middle East and South Europe transportation of cargo along the Central Asia-Pakistan route. will be reduced to 900 kilometers. Railways of Zahedan - Quetta - Karachi will be available in Iran It is worth mentioning the agreement on the construction of and Pakistan. Currently, the Pakistani side is actively promoting the Mazar-e-Sharif-Herat railway, which was signed during the the construction of Peshawar - Jalalabad railway. This will connect official visit of President of Afghanistan Ashraf Fan to our country Afghanistan’s integrated railway system to Pakistan’s Karachi www.ijrmbs.com 21 © All Rights Reserved, IJRMBS 2014 International Journal of Research in Management & ISSN : 2348-6503 (Online) Business Studies (IJRMBS 2019) Vol. 6 Issue 2 April - June 2019 ISSN : 2348-893X (Print) port. According to the Pakistan Railways, the World Bank has Foreign practice expressed interest in the technical parameters of this project. The analysis shows that at present, the methods of organizing Third, the prospects of the Uzbek-Afghan transit-infrastructure public transport are fundamentally different in many developed potential make Central Asian countries access to the Indian Ocean countries, especially in cities [9]. They are distinguished by the Way. The region has a high transport and transit potential for its national and local authorities in terms of the regulation of transport geographical location to turn into an important land route on the system, service financing, quality of transportation operations, and Eurasia continent, almost all - the South - North and East - West the use of competition or other mechanisms, taking into account routes. the type and types of ownership (Table 1). The construction of trans-Afghan transport and communications Despite the fact that there are different forms of urban transport projects will be an important factor in the development of other activity on transport services, the reform of transport sector of short-range intercontinental transit corridors, in line with other foreign countries has been largely accomplished using three models. major regional projects, including the international transport [3] They include, inter alia, the relationships between market and corridors Uzbekistan - Turkmenistan - Iran - Oman, Uzbekistan administrative mechanisms in regulating and transporting the - Kyrgyzstan - China. industry, namely: For example, the alternative road corridor between China - - Administrative management model (USA, Canada, Paris); Kyrgyzstan - Uzbekistan - Afghanistan - Iran is 3.5 thousand - limited competition model (London, capital of Scandinavian kilometers long and is four times shorter than the current (13.8 countries); thousand kilometers) distance from China to Iran. In turn, - a model of state control (Great Britain, outside of London, construction of the Mazar-i-Sharif-Hirot railway will allow Santiago-Chile). [8] Afghanistan to travel through China to Andijan within 3 days. As transport services in Paris, including the local authorities, It should be noted that the main highway connects two have been implemented in France, there is almost no competition destinations: CIS and Baltic States - Uzbekistan - Afghanistan between the types of transport services and in this area. This is due - Iran ports - Persian Gulf and Middle East and Persian Gulf to the fact that payment for services of the transport enterprise is countries - Afghanistan - Uzbekistan - Kyrgyz - China - Eastern made from two sources: travel and budget subsidies. and Southeastern Asia new railroads are an important part of the development of container transportation.

Table- 1 Implementation of urban passenger traffic regulation in foreign countries [10] Ptolitics direction Measures Country Carrying out transport services Organization of transportation services delivery based on Most European countries, USA, based on state-owned property predominance of state-owned property Russia and Uzbekistan Tariff carrier installs Great Britain, outside of London The tariff is set by the customer Stockholm, Copenhagen, London Tariff installation Urban tax assessment for urban passenger transport France Taxation of transport companies from local budgets for Greece coverage of trotuar and parking lots

Preferential taxation of employees in public transport United States

Based on the peculiarities of Taxation of commercial organizations, offices, buildings USA (Los Angeles), Canada, Italy, taxation and structures within a radius of 800 meters from the Spain territory under construction underground station Direct financing of city passenger transport by stopping Japan, Canada, Australia, USA, traffic near their commercial structures Germany and other countries Annual approval of Transport Department budget USA, Russia, and Uzbekistan Procurement of the proceeds from the federal funds United States Consideration of budget financing Assistance by the State in the investment of urban passenger Europe features transport Budget subsidy for urban passenger transport Luxemburg, Rome, Berlin, Vienna, Helsinki, Stockholm, Lyon, Athens, Paris, Madrid, Lisbon, Copenhagen, Bern Tickets for a few hours, days, rides and groups Europe, USA, Uzbekistan Based on a changeable tariff Transfer system United States policy Pay off a large amount of fines for unnamed travel USA, Europe

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However, due to the fact that investment costs are included in the elements of the deal. tariff, the carrier purchases the necessary equipment at its own In general, the development of transport services in Uzbekistan expense and carries out transport services on a contractual basis. using the experience of developed countries and increasing their They are designed for a period of five years, with the exception effectiveness is important and requires a number of researches of budget subsidies, imposing a fine or imposition of penalties in the future. for the performance or non-fulfillment of the terms of transport service. [7-9] Conclusions and Suggestions The world experience shows that the administrative model of the Under the high transport and transit potential of Uzbekistan, the transport system is characterized by both positive and negative economic priorities of the aforementioned projects will become aspects in the transition from limited competition and state control more apparent. Obviously, a great deal of work should be done to neutral models. In particular, positive results can be attributed in terms of the technical parameters of the railways construction, to the reduction of budget subsidies for each selected model of coordination of issues of security and financing, registration of the city. For example, 80 percent of subsidies in London, 100 normative-legal acts. percent in other UK cities, and 30 percent in Copenhagen and The initial agreement on the construction of new railway Stockholm. Today, the highest rates of travel costs are available infrastructure should be seen as an urgent step forward in in Europe (over 80% in the UK and about 50% in Scandinavian strengthening the transit position of the Central Asian region countries). The negative aspect is, at the same time, the result of and integration of Central Asia and Afghanistan into the world the Paris administrative model, which is 30%, which is one of economy, as well as increasing the economic potential and well- the lowest indicators in Europe [11]. being of the countries of the region. The practical realization Organization of transport activities is based on the function of the of these initiatives will also help Central Asia to become an local self-governing bodies around the world. Local authorities are important link not only to the international transit corridor, but responsible for providing transportation services to the population also transcontinental container transportation between South Asia, and are the customers of the trips. Also, in the practice of foreign the Asia-Pacific region, the CIS, Europe and the Middle East. countries, forms and mechanisms such as leasing, concessionaire All this will ultimately lead to a qualitatively new level of relations or creation of joint-stock companies are used, and business routes between Uzbekistan and all major foreign economic partners, for them are established by means of competitive bidding. In and will expand trade and economic cooperation with developed general, the world experience shows that the four main forms countries, such as India, Iran and Pakistan. of transportation activity can be distinguished: a) the institute of In particular, the International Center for Cross-Border Cooperation internal (utility) carriers, which has the right to provide public between Uzbekistan and Kazakhstan is planning to establish a transportation services; b) on the basis of tender contracts servicing transport and logistics center. the route and c) the subjects of the route network management Uzbekistan and Kazakhstan are planning to build an international on the basis of tender contracts, and d) forms based on the border-crossing center, a transport and logistics center (dry port) harmonization of the terms of the free market contract. in its border areas. It was announced on March 14, 2018 at the One of the most common forms of traffic management in most meeting of the Joint Intergovernmental Commission on Bilateral European countries is the institution of internal carriers. They are Cooperation. communal property and occupy a leading position in the market, According to the government of Kazakhstan, according to the and the legal basis of these forms are taken into account in different results of 2017, the volume of container traffic on rail transport directions. increased by 8% and amounted to more than 20.5 million tons. The French Transport (Public Transport) Act is based on the During the first two months of 2018, the volume of traffic has principle of pre-emptive government initiatives and grants public increased by 44 percent compared to the same period in 2017. service providers the exclusive right to provide passenger transport Production costs vary by type of service, as well as on cargo services. The government utilizes these services independently of categories. the law of direct carriers, ie the individual transport management All the services of the OJSC “Uzbekistan Railways”, as noted or public utility company. In this case, the order of execution of by the Asian Development Bank experts, should be categorized the contract shall be carried out on the basis of the exercise of as facilitating the relatively easy allocation of costs and benefits authority by other transport service providers. to achieve efficiency. It is desirable that the tariffs system is as The German law on transport (public transport) is based on the simple as possible. In containers, it is recommended that the principle of preference for market entitlement and provides the category of service be based on load handling characteristics right of transport services to any carrier in the market of transport (for example, liquids, cement, cereals, ore, fertilizer, container services. This right starts with the authorization procedure, covers or cotton warehouse in special motion). all procedures within the system, and regulates the design of a All expenses of railway company are distributed by types of defined transport service. activity. The locomotive, railcar, railway, signalization and If we analyze the experience of the Russian state, it should be communications, electrification and electric power stations, noted that transport services in the network of city routes are based as well as the expenses for maintenance of foreign railways in on public-private partnerships through attraction of investments containers in Uzbekistan and others are separated into separate into the transport sector. In a modern interpretation, public and sections. private partnerships are institutional and institutional associations One of the main objectives of the structural transformation of between public and private businesses. Legally, this project has the railway transport is to adapt to the conditions of the market a mutually beneficial rental agreement, which reflects a mixed economy, to improve the price regulation of the state, to develop contract, and incorporates leases, contracts, and service contracts. and adopt new approaches to the container transportation of The contract is not a financial lease because it does not have the railways in general use. www.ijrmbs.com 23 © All Rights Reserved, IJRMBS 2014 International Journal of Research in Management & ISSN : 2348-6503 (Online) Business Studies (IJRMBS 2019) Vol. 6 Issue 2 April - June 2019 ISSN : 2348-893X (Print)

It is necessary to eliminate the imbalances between national and international flights. Because today, containers in the national scale are several times lower than the cost of shipping. The transit of goods, as well as to increase the competitiveness of imported and exported goods, will not be exhaustive. This will help to create favorable conditions for the development of the industry.

References [1]. An international conference entitled “Central Asian International Transit Corridor: Strategic Perspectives and Unprecedented Opportunities” took place. December 21, 2018 [2]. The Decree of the President of the Republic of Uzbekistan “On Approval of the Strategy for Innovative Development of the Republic of Uzbekistan for 2019-2021”. [3]. Decree of the President of the Republic of Uzbekistan from December 2, 2017 # PP-3422 “On Measures for Diversification of Foreign Trade Direction of Freight and Transport Infrastructure in 2018-2022”. [4]. Witte S.Yu. Principles of railway tariffs for the carriage of goods.Kiev, 1883. - 281s, St. Petersburg, PGUPS, 1999. - 364s. [5]. Shakhanov D.A. The main directions of increasing the level of competitiveness in rail transport in Russia and abroad. Transport business of Russia. Issue number 5/2013. [6]. Tariffs for rail freight. Tariff Guide No. 1, T., 2000., Uzbekistan Railways JSC. [7]. T. Kadyrov, “The Approach to Evaluation of the Role of Transportation in Ensuring Competitiveness of the Economy”, Journal of Market, Money and Credit, 2013, No. 11, 38. [8]. V.P.Persianov va Boshkalar. “Economy of passenger transport”. - M .: KNORUS, 2012 yl. - 400 beta. [9]. Persianov V.A. “Foreign and domestic experience in the management of urban passenger transport in market conditions”, “ll маllanma, GUU. - M., 2006 yl. - 63 bet [10].Erihov, M.M. “Russian practice of management and financing of urban passenger transport in the light of foreign experience.” Khabarovsk: FESTU, 2011, yl. - 22 - 27 betlar. [11].Churilov A.G. Organizational and economic foundations of the formation of a competitive environment in the implementation of the municipal order for urban passenger bus transportation: author. dis. ... Cand.econ Sciences: 08.00.05 / Churilov AG .; [Place of protection: Mosk. state car. Inst. (Techn. Univ)]. - M., 2004. - 22 p.