Uzbekistan Railways (Oʻzbekiston Temir Yoʻllari) has taken an important step towards modernizing the country’s critical railway sector and attracting private sector investment in this sector by auctioning its shares in some of its key subsidiaries. This strategic move is considered part of the country’s vision to strengthen its transport infrastructure and support economic development.
Shares in Key Subsidiaries Offered for Sale
The state-owned railway operator will initially invest in two of its key subsidiaries, which play a critical role in the railway sector. 40% of their shares offers to private investors. These companies are:
Oʻzvagontaʻmir: A well-established organization specializing in railcar maintenance, repair and modernization services. It provides a critical service throughout the country with its wide depot network (Andijan, Kungrad, Samarkand, Termez and Khavast).
O'ztemiryo'lqurilishmontage: It is an engineering and construction company focused on metro construction and railway infrastructure projects throughout the country, especially in the capital Tashkent.
In addition to these strategic sales, some assets not directly related to the core business of Uzbekistan Railways will also be disposed of.
Key Motivations Behind the Privatization Move
The comprehensive economic reform program implemented in Uzbekistan under the leadership of President Shavkat Mirziyoyev is also triggering significant transformations in the railway sector. The main aim of these reforms is to encourage private sector participation, attract foreign investment and ultimately make the railway industry more competitive and efficient.
The steps taken in this context serve long-term goals such as accelerating the modernization of the railway infrastructure, improving logistics processes and increasing the quality of passenger transport services. The capital to be obtained through privatization is expected to play an important role in financing new investments in the sector and in the implementation of technological innovations.
Past Privatization Attempts and Future Vision
Privatization efforts in Uzbekistan’s railway sector are not new. In November 2024, logistics giant Cotton Logistics will acquire Uzbekistan Railways’ container shipping subsidiary Uztemiryulkonteyner 35% share for $15 million was a concrete indication of the determination in this direction. Similarly, in April 2025, the Tashkent Rail Car Factory 90% of the shares Its transfer to the Transportation Engineering Center is also considered as part of the restructuring process in the sector.
The strong support of the Ministry of Transport of Uzbekistan for these privatization initiatives reflects the government’s belief that the private sector plays a vital role in the development of national transport networks. It is expected that the reform process will continue in the coming period and similar privatization steps will be taken in other areas related to the railway sector. These strategic moves are an important part of the vision to make Uzbekistan a regional transport and logistics hub.
