At the Turkmenistan Investment Forum (Awaza, 18-19 Sep 2025), Uladzimir Valetka, Economist at the United Nations Resident Coordinator’s Office in Turkmenistan, emphasized the transformative power of sustainable transport in fostering trade, creating jobs, and driving inclusive economic growth. His speech highlighted Turkmenistan’s strategic role as a regional transit hub and the urgent need for continued investment in modern and efficient transport infrastructure.
Valetka underscored that “transport is everyone’s business,” linking people, the planet, and the economy. Sustainable and resilient transport systems are vital to achieving numerous Sustainable Development Goals (SDGs), including poverty reduction, food security, health, decent work, sustainable cities, and climate action.
“Transport connectivity is the key prerequisite for the sustainability and cost-effectiveness of value chains — essential for economies, just like blood vessels for a human body,” Valetka noted.
Turkmenistan’s Transport Investments: Building Regional Connectivity
Since 2015, Turkmenistan has invested nearly $15 billion in roads, railways, airports, and port infrastructure. A prime example is the Turkmenbashy International Seaport, which opened in 2019 following a $1.5 billion investment. Today, it serves as a gateway for goods moving between Europe and Asia.
The transport sector already plays a significant role in the economy of Turkmenistan:
- 10.3% of GDP, valued at $5 billion in 2023
- 6.4% of formal jobs (58,000 positions in 2022), including 46,000 on large and medium SOEs (8% increase from 2020), 7,100 of SMEs, 4,400 of individual entrepreneurs (14% increase from 2020).
- Rapid employment growth at 109% compared to 2020.
- Associated car repair business is vibrant.
Trade Facilitation: Reducing Costs and Boosting Competitiveness
Financing sustainable transport is vital for enhancing trade facilitation in Turkmenistan and other CA countries, where efficient transportation networks are essential for economic growth and regional integration. According to the Asian Development Bank (ADB), improvements in transport infrastructure can reduce logistics costs by up to 30%, significantly boosting competitiveness.
Valetka pointed out that:
- UNCTAD estimates show that better transport infrastructure can reduce trade costs by up to 15%.
- In Turkmenistan, transport costs account for 10% of total output costs in agriculture and 5% in manufacturing.
- Strengthening connectivity to China, Europe, and neighboring Central Asian states is vital to diversifying Turkmenistan’s economy and expanding export markets.
The SPECA region — comprising Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan — presents significant opportunities. Between 2000 and 2023, the region’s population grew from 83 million to 132 million, while its GDP surged from $46 billion to $525 billion. Yet, connectivity remains uneven.
“The relative connectivity ranges from 53% to 70% of the connectivity achieved by the Netherlands, with Azerbaijan leading at 70% followed by Turkmenistan (68%), while the lowest rates are in Tajikistan (53%) and Kyrgyzstan (54%). These gaps result from uneven development focus, with investment decisions influenced by national interests rather than by comprehensive regional strategies”, Valetka said.
To address these gaps, Valetka stressed the need for digitalization of transport services, including the eTIR and eCMR systems, as outlined in the SPECA Roadmap for Digitalization of Multimodal Data.
Need for improved infrastructure
In Turkmenistan, the challenges lie in improving both road and railway infrastructure to enhance its role as a transit hub between Europe and Asia.
As part of the Lapis Lazuli Corridor and Middle Corridor, Turkmenistan’s infrastructure is vital for connecting CA with Turkey and Europe via Azerbaijan and Georgia. However, the country’s logistics capacity and transportation infrastructure require significant investment to fully capitalize on its strategic location. This is not by chance that in 2024 at the World Governments Summit in Dubai Turkmenistan proposed the creation of the Global Atlas of Sustainable Transport Connectivity.
According to the Foreign Trade Strategy of Turkmenistan for 2021-2030, Turkmenistan’s membership in the World Trade Organization (WTO) and the further development of Turkmenistan’s foreign trade system and logistics infrastructure are envisaged.
Valetka concluded with a strong message: continued investment in sustainable transport is crucial for Turkmenistan. These investments will enhance:
- trade facilitation
- Create new jobs
- public-private partnerships
- private sector development and overall economic growth
“The interconnected benefits of sustainable transport highlight its critical role in shaping a more sustainable and prosperous future for the region,” Valetka concluded. ///nCa, 24 September 2025