Why is this important
Škoda Group is one of the oldest and largest producers of railway transport in Europe (trams, electric trains, locomotives). Local assembly will reduce the cost of rolling stock for Uzbekistan, create jobs, and transfer technologies. EC and EIB support guarantees funding and compliance with European standards. The Škoda Academy will train personnel for servicing modern vehicles.
What happened
- Škoda Group will create a joint venture for the local assembly of railway transport in Uzbekistan;
- The project will be supported by the European Commission and the European Investment Bank;
- The joint venture will engage in assembly, maintenance, repair, and training through the Škoda Academy;
- General Director Petr Novotny presented the plan at a round table with Mirziyoyev in Brussels;
- Transport Minister Ilkhom Mahkamov discussed the details of cooperation.
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Local assembly:
Production of railway vehicles in Uzbekistan: trams, electric trains, locomotives, passenger cars. Will reduce the cost of rolling stock and create jobs.
Maintenance and repair:
Service centers for Škoda vehicles throughout their life cycle (30-40 years). This is critical for maintaining reliability and safety.
Škoda Academy:
Training center for training local engineers, technicians, and machinists. Training in European Operation and Maintenance Standards.
EC and EIB Support
European Commission: included the project in the Global Gateway strategy — a European alternative to China’s Belt and Road Initiative. The goal is to invest in the infrastructure of developing countries in accordance with European standards of sustainability, ecology, and human rights.
The European Investment Bank (EIB): will provide concessional loans or guarantees to finance the joint venture. The EIB is the world’s largest multilateral creditor of infrastructure projects.
General Director’s comment
Petr Novotny: “Each of these three areas represents a concrete step towards the implementation of the new Enhanced Partnership and Cooperation Agreement and the European Global Gateway Strategy. We consider Uzbekistan a country open to new investments from European business partners. It has long been under our observation in terms of strategic ambitions. We are happy to contribute to the development of sustainable transport, education, and technological modernization”.
Context
Škoda Group is a Czech engineering holding company founded in 1859. It produces trams, trolleybuses, electric trains, locomotives, and metro cars. It operates in 100+ countries, including the EU, the USA, and Asia.
Uzbekistan’s railway transport: Uzbekistan is modernizing railways: high-speed Afrosiyob trains (Spanish Talgo), electric trains, and trams. Local assembly will reduce import dependence and purchase costs.
Global Gateway: European strategy for investing €300 billion in developing countries’ infrastructure (transport, energy, digitalization) until 2027. Alternative to China’s Belt and Road Initiative with a focus on sustainability and human rights.
Škoda Academy: Škoda training centers operate in the Czech Republic, India, and Turkey. The programs include training of machine operators, technicians, and engineers according to European standards. This will solve the problem of the shortage of qualified personnel in Uzbekistan.
Local assembly advantages:
- Reduction of transportation costs (no import duties, logistics);
- Creation of jobs (engineers, technicians, workers);
- Transfer of technologies and know-how to local specialists;
- Quick after-sales service and repair.
