Uzbekistan pushes rail manufacturing beyond imports

Uzbekistan is pairing new rail purchases with a broader push to build domestic production, repair and maintenance capacity. The shift could help turn major route expansion and foreign deals into a longer-term industrial base at home.

Why it matters: - Uzbekistan is trying to keep more of each rail investment inside the domestic economy through production, service, parts supply and engineering jobs. - The strategy could turn rail modernization into an industrial policy tool, not just a transport upgrade. - New rail corridors are expected to increase demand for locomotives, wagons, maintenance and digital systems, which makes local capacity more valuable.

What happened: - Uzbekistan's rail operator, Uzkbekiston Temir Yollari, held talks with several major global rail companies at InnoTrans 2026 in Berlin. - The delegation discussed deeper industrial cooperation with CRRC Corporation, including a service center for locomotive repair and maintenance, continued equipment deliveries and local production of modern freight wagons. - The talks also covered wagons with gauge-changing capability for international routes that cross different rail standards. - In June, Uzkbekiston Temir Yollari and Škoda Transportation agreed to supply 10 modern electric trains and to create a joint venture in Uzbekistan for train maintenance. - Talks with Hyundai Rotem also included a potential new contract for additional electric trains and further passenger-service development.

The details: - In 2023-2025, Uzkbekiston Temir Yollari produced 1,590 gondola cars under a $105 million project. - A second-stage program worth $150 million covers 2025-2026 and calls for 954 freight wagons and 70 passenger wagons, plus modernization of wagon-building plants. - By February 2026, that second stage had already delivered 45 passenger wagons and 340 tank cars. - By year-end, Uzbekistan planned to add 614 freight wagons and 25 passenger wagons. - An additional $100 million has been set aside to expand production further. - The railway fleet is expected to gain 1,350 more freight wagons. - Plant capacity is planned to rise by 50% to 2,000 freight wagons a year. - Uzbekistan is also building the China-Kyrgyzstan-Uzbekistan railway, a new route aimed at linking China with Central Asia. - On Sept. 30, Kazakhstan, Uzbekistan and the United Arab Emirates signed a memorandum to jointly study the Kazakhstan-Uzbekistan-Afghanistan-Pakistan rail route, known as CASA. - The CASA corridor could give Central Asian countries potential access to Pakistani seaports.

Between the lines: - Alena Lebedeva, owner of the Ukrainian industrial and investment group Aurum Group, said the real shift is from buying equipment to building industrial infrastructure around it. - Lebedeva said the economic benefit depends on how much of the investment stays in the economy through manufacturing, service, components, jobs and engineering skills. - She said rail equipment creates decades of follow-on demand for diagnostics, repair, modernization and spare parts when those functions are done locally. - The pattern suggests foreign railmakers are becoming not only suppliers, but also potential technology partners and service providers for Uzbekistan. - The localization drive could ripple into metallurgy, machinery, electrical engineering, electronics and small and midsize suppliers. - Lebedeva said the next test will be the share of components made in-country, the amount of service work performed locally and the depth of technology transfer.

What's next: - Uzbekistan is expected to keep expanding rail links while pushing for more local production and maintenance capacity. - Future deals will likely be judged not just by how many trains are purchased, but by how much manufacturing and servicing stays in Uzbekistan. - If the model holds, rail investment could support both transit growth and a new domestic industrial segment.