PRESS OF UZBEKISTAN
May 27, 2016
NAVOI FIEZ: THE HISTORY OF CREATION, MODERN DEVELOPMENT AND PROSPECTS
Enjoying enviable economic assets, stupendous and varied natural resources, lots of skilled personnel and considerable production capacities, Uzbekistan’s geographical location is very important, since it links up Europe with Asia and thus benefits from its tremendous transit potentialities.
The large-scale reforms implemented across all industries of the national economy and spheres of life help to maintain the political stability and a fast rate of economic growth in the country as well as to gradually raise the living standard of its population. At the same time, the government approves a number of state programs to develop manufacturing, infrastructural facilities and indigenous production. Their successful realization is highly conducive to turning the Republic into an attractive investment destination for foreign investors. A striking endorsement of this fact is the volume of investments from all sources of funding attracted and implemented in 2015. Estimated at US $15.8 billion, the figure is 9.5 per cent above the 2014 indicator. More than 21 per cent of that amount, or over US $3.3 billion, is accounted for by foreign capital.
It is necessary to stress here that for the moment, a big effort is underway to create an auspicious investment climate in the country. Special attention is attached in this context to the performance in Uzbekistan of free economic zones, which operate in a special tax, currency and customs regime and have a great potential for developing successful business. The Navoi Free Industrial Economic Zone is one of the biggest such establishments in the Republic to date. It offers foreign investors a variety of business opportunities and great competitive advantages.
Set up in compliance with the December 2, 2008 Presidential Decree, the Navoi Free Industrial Economic Zone occupies an area of 564 hectares. It is situated near the town of Navoi, at the 100-175 kilometers’ distance from Bukhara and Samarkand, the big towns and industrial centers of Uzbekistan.
A special legal regime is in force on its territory, including tax, currency and customs privileges, a simplified procedure for entry, stay and departure, a simplified procedure for acquiring permission by non-residents to carry out labour activity. Furthermore, lots of privileges on taxes, customs and other obligatory payments are granted to them.
In a move to create a favorable environment for investors to do business, enterprises functioning on the territory of the Navoi Free Industrial Economic Zone are offered different means of transport, ramified engineering communications, effective labour safety systems and comfortable conditions for their personnel.
The Navoi FIEZ is located in immediate proximity to Navoi international airport, the E-40 motor-road and a railway of international significance, all of which make it possible to get the most out of the existing advantages of the Navoi multimodal transport logistics center. In particular, Navoi airport, based in the country’s central part, at a crossroads of the international ground and air transport corridors “North – South” and “East – West”, represents an ideal regional junction, from which to control the international goods traffic.
Under an agreement signed with Korean Air, a Korean air company, the first stage of the Navoi Airport Modernization Project has been finalized. It covered, among other things, the construction of an international intermodal logistics centre and a cargo terminal, capable of handling up to 300 tons of cargo a day. In prospect, with an increase in goods traffic volumes, the terminal’s daily capacity may be brought to 1,000 tons.
The Multimodal Logistics Center is designed to operate as a full-fledged system of distributing the goods traffic throughout the region, using different means of ground transport. The Center can also redistribute the goods traffic by air in the following directions: north – south and west – east.
The exploitation of air corridors with the landing at Navoi international airport ensures a tangible economy of time and transportation costs.
In terms of territory, the Navoi Free Industrial Economic Zone is closer to the railway, which has access to the markets of Central Asian republics, the CIS member states, South-East Asia, Europe, the Near East and the Persian Gulf.
On top of this all, the region’s main railway routes run across the Navoi Free Industrial Economic Zone. All of them have access to the ports of Iran and Turkey in the south and to the ports of the Black Sea and the Baltic Sea in the west and in the north. The shortest railway route from China to Europe also runs across the Navoi FIEZ. Putting into service the Guzar – Baisun – Kumkurgan section of the railroad has created a short transit route to Afghanistan, Pakistan and India.
So, it is safe to say that at the present time the Navoi Free Industrial Economic Zone is rapidly becoming a leading logistically sound and commercially profitable industrial and logistics center of regional and international level, with developed transport communications and unprecedented privileges available.
(Source: «Business partner.uz» newspaper)