Uzbekistan is gradually changing its overall approach to railway modernisation. The country continues to purchase modern locomotives and passenger trains from abroad, while placing increasing emphasis on keeping railcar production, repairs, maintenance and part of the technological expertise within the domestic economy.
This shift became particularly visible after InnoTrans 2026 in Berlin, where a delegation from Uzbekistan Railways held talks with several of the world’s leading railway industry players.
One of the key partners was China’s CRRC Corporation. The parties discussed establishing a locomotive repair and maintenance service centre at Uzbekistan Railways facilities, further equipment supplies, and the launch of modern freight railcar production. Special attention was also given to railcars with gauge-changing capabilities – a solution of particular relevance for international routes crossing railway networks that operate to different standards.
According to Alona Lebedieva, owner of Ukrainian industrial and investment group Aurum Group, what matters most is the shift itself – from a model focused on “buying equipment” to one aimed at “building domestic industrial infrastructure around it.”
“When a government invests significant resources in railways, the issue is not only how many trains or railcars are purchased. What also matters is how much of that investment remains within the domestic economy – through manufacturing, servicing, components, jobs and engineering expertise,” she notes.
Production Is Already Measured in Thousands of Railcars
The talks with CRRC effectively complement a programme that Uzbekistan has been implementing for several years.
Between 2023 and 2025, 1,590 open-top freight railcars were produced at Uzbekistan Railways facilities under a project worth $105 million. The second stage of the programme, valued at $150 million and covering 2025–2026, provides for the production of 954 freight railcars and 70 passenger coaches, as well as the modernisation of railcar manufacturing facilities.
By February 2026, 45 passenger coaches and 340 tank cars had already been produced under this stage. By the end of the year, plans called for an additional 614 freight railcars and 25 passenger coaches to be manufactured.
The next phase is even more ambitious. An additional $100 million has been allocated to expand production, while the fleet is expected to receive another 1,350 freight railcars. Production capacity is planned to increase by 50%, reaching 2,000 freight railcars per year.
In other words, this is no longer about individual procurement orders. Uzbekistan is gradually building a comprehensive domestic manufacturing base for its railway industry.
Servicing Is Becoming Just as Important as Manufacturing
Notably, Uzbekistan is applying a similar model in its cooperation with European manufacturers.
In June, Uzbekistan Railways and Czech company Škoda Transportation agreed on the supply of ten modern electric trains. However, the contract goes beyond the procurement of rolling stock. One of its components is expected to be the establishment of a joint venture in Uzbekistan for train maintenance and servicing.
Lebedieva points out that the servicing component can significantly increase the economic impact of such contracts.
A locomotive or train is purchased once, while its maintenance, diagnostics, repairs and modernisation continue for decades. When this work is carried out domestically, the equipment itself effectively creates long-term demand for engineers, machinery, spare parts and local suppliers.
A similar logic can be seen in Uzbekistan’s talks with Hyundai Rotem. The country continues to expand its high-speed train fleet, and following meetings in Berlin, the parties discussed a new contract for additional electric trains as well as the further development of passenger services.
As a result, international manufacturers are gradually becoming more than suppliers of finished equipment for Uzbekistan. They are also emerging as potential sources of technology, servicing expertise and industrial cooperation.
New Corridors Are Creating a Market for Domestic Railway Engineering
There is another reason behind Uzbekistan’s push for industrial localisation – the country is actively expanding the geography of its railway connections.
Uzbekistan is participating in the construction of the China–Kyrgyzstan–Uzbekistan railway, which is expected to establish a new transport route between China and Central Asia.
At the same time, the southern direction is also being developed. On 30 September, Kazakhstan, Uzbekistan and the United Arab Emirates signed a memorandum on jointly exploring the Kazakhstan–Uzbekistan–Afghanistan–Pakistan railway route, known as CASA. Its strategic significance lies in the potential access it could provide Central Asian countries to Pakistan’s seaports.
Every new transport corridor requires more than infrastructure construction alone. Its operation also depends on locomotives, freight railcars, maintenance facilities, traffic management systems, digital solutions and the continuous renewal of rolling stock.
This is why domestic railway engineering is gradually taking on importance for Uzbekistan that extends far beyond the transport sector itself.
The more components and services that are produced domestically, the broader the impact on adjacent industries – including metallurgy, mechanical engineering, electrical engineering, electronics, and small and medium-sized enterprises capable of joining supply chains.
From Equipment Importer to Participant in the Manufacturing Value Chain
In effect, Uzbekistan is seeking to use the large-scale modernisation of its railway system to address two objectives at once.
The first is to build modern transport infrastructure and increase the capacity of international routes.
The second is to turn growing domestic demand for railway equipment into a driver for the development of its own industrial base.
According to Alona Lebedieva, the degree of localisation will become one of the key indicators in the coming years of how successfully the country is implementing this strategy.
“The next stage will no longer be only about the number of railcars produced. It will be more important to look at what share of components is manufactured domestically, how much servicing and engineering work is carried out by local companies, and how extensive the transfer of technology becomes,” she emphasises.
In this context, the talks with CRRC should be viewed as more than another railway equipment procurement project. They fit into a broader model under which Uzbekistan is seeking to gradually move from importing equipment towards domestic manufacturing, servicing and participation in more sophisticated technological value chains.
If this process continues, large-scale investment in new railway routes will support not only transit and logistics, but also the development of a distinct industrial sector within the country.