Key Findings
CPMM road and rail transport data for Turkmenistan in 2022 showed the following year-on-year changes from 2021:
- Road border crossing took an average of 10.1 hours in 2022, up from 6.9 hours.
- Only limited border-crossing cost data was available. The Turkmenistan carrier responsible for transporting cargo beyond the border does not participate in the CPMM reporting.
- SWOD was about the same, but SWD rose to 26.4 km/h from 21.9 km/h.
- The rail border-crossing time was unchanged at 3.7 hours.
- Rail crossing cost was steady at $81.
- Total rail transport costs dropped from $1,349 to $1,308.
- Rail SWOD rose slightly to 29.3 km/h from 29.0 km/h. At 13.9 km/h, SWD was unchanged.
Table 3.17: Trade Facilitation Indicators for Turkmenistan, 2020–2022
| Road Transport | Rail Transport | ||||||||
| 2020 | 2021 | 2022 | 2020 | 2021 | 2022 | ||||
| TFI1 | Time taken to clear a border-crossing point (hour) | 7.3 | 6.9 | 10.1 | 5.7 | 3.7 | 3.7 | ||
| Outbound | 8.9 | 3.6 | 34.6 | 3.6 | – | – | |||
| Inbound | 6.9 | 7.1 | 5.0 | 5.9 | 3.7 | 3.7 | |||
| TFI2 | Cost incurred at border-crossing clearance ($) | 229 | – | 62 | 87 | 81 | 81 | ||
| Outbound | 65 | – | 52 | 108 | – | – | |||
| Inbound | 311 | – | 70 | 86 | 81 | 81 | |||
| TFI3 | Cost incurred to travel a corridor section ($, per 500km, per 20-ton cargo) | 1,029 | 564 | 604 | 1,319 | 1,349 | 1,308 | ||
| TFI4 | Speed to travel on CAREC Corridors (km/h) | 19.0 | 21.9 | 26.4 | 13.7 | 14.0 | 13.9 | ||
| SWOD | Speed without Delay (km/h) | 53.8 | 53.9 | 53.5 | 28.2 | 29.0 | 29.3 | ||
km = kilometer, km/h = kilometers per hour, SWOD = speed without delay, TFI = trade facilitation indicator.
Source: Asian Development Bank.
Table 3.18: Border-Crossing Performance in Turkmenistan, 2020–2022
| BCP, Corridor and Direction of Trade | Duration, hours | Cost, $ | ||||||||
| 2020 | 2021 | 2022 | 2020 | 2021 | 2022 | |||||
| Road Transport | ||||||||||
| Sarahs | (3) | Outbound | 7.3 | 6.2 | – | 60 | – | – | ||
| Inbound | – | – | – | – | – | – | ||||
| Farap | (2, 3) | Outbound | 9.4 | 7.4 | 26.7 | 67 | – | 50 | ||
| Inbound | 10.9 | 9.4 | 6.5 | 311 | – | 70 | ||||
| Serkhet Abad | (2, 6) | Outbound | – | – | – | – | – | – | ||
| Inbound | 0.9 | 0.7 | 0.7 | – | – | – | ||||
| Rail Transport | ||||||||||
| Farap | (2, 3) | Outbound | – | – | – | – | – | – | ||
| Inbound | 21.4 | – | – | 120 | – | – | ||||
| Serkhet Abad | (2, 6) | Outbound | – | – | – | – | – | – | ||
| Inbound | 3.7 | 3.7 | 3.7 | 82 | 81 | 81 | ||||
BCP = border-crossing point.
Source: Asian Development Bank.
Trends and Developments
Turkmenistan has yet to make full use of its natural potential as an important transit country. It shares borders with Afghanistan, Kazakhstan, Uzbekistan, and Iran. Tajikistan and the Kyrgyz Republic are nearby, and Azerbaijan lies just across the Caspian Sea. It provides a direct route between Central Asia and Iran’s Bandar Abbas Port. Turkmenistan also boasts the new Turkmenbashy International Sea Port on the Caspian. Constructed in 2018 at a cost of $1.5 billion, Turkmenbashy can accommodate passenger, general cargo, bulk, Ro-Ro (roll-on/roll-off), and container vessels and is connected by newly built infrastructure that includes a rail line and an expressway. Yet the port remains underutilized. Its throughput capacity is 25 million tons, is not fully utilized as it handled less than a million tons of transit cargo.[1]
Although the shift in trans-Eurasian shipments from the Northern Route to the Middle Corridor after the Russian invasion of Ukraine created massive congestion at Kazakhstan’s Caspian ports, Turkmenbashy did not fulfil its potential role as a relief valve. This was due to the difficulty truck drivers faced in obtaining visas and to the intermittent closures[2] of Turkmenistan’s border to rail and truck traffic.
Three factors contributed to slower road crossings at Turkmenistan’s borders in 2022:
- Turkmenistan continued to bar Uzbekistan’s trucks from entering its territory. These vehicles were required to leave their cargo trailers in a neutral zone at the border for Turkmenistan carriers to pick up and deliver. Swaps took considerable time and effort. Waits could be long if Turkmenistan’s trucks were late in arriving or coordination between the two countries’ carriers was less than ideal. Equipment checks were required before the tasks of unhitching and hitching could proceed.
- Truck crossings were also slowed by Uzbekistan’s reconstruction of its Alat BCP. Table 6.20 reflects the impact of this work on Turkmenistan’s adjoining Farap BCP, where outbound crossing time soared to 26.7 hours from 7.4 hours in 2021. The Alat reconstruction should reduce border crossing time considerably when it is completed in 2023.
- An increase in road transit traffic through the country, notably by Türkiye’s carriers, also slowed crossings.
Border crossing issues appear to have an effect on trade between Turkmenistan and its Uzbekistan neighbor. Uzbekistan reports that its trade with Turkmenistan grew by only 2.7% in 2022, far below the 18.6% it recorded with all its trading partners during this recovery year. Uzbekistan’s trade with Turkmenistan in 2022 was valued at only $926.3 million, a tiny fraction of its more than $50.0 billion in overall foreign trade.[3]
[1] Source: NEBIT-GAZ, 19 July 2022 www.oilgas.gov.tm/en/posts/news/5105/the-seaport-of-turkmenbashi-in-2021-increased-the-volume-of-cargo-transportation-by-28. Nonetheless, transit cargo is increasing rapidly from a small base. During 2022, the amount of transit cargo through the port increased by a factor of 2.5, compared to the same period in 2021.
[2] CPMM partners in Uzbekistan frequently mention the difficulty of running trucks across Turkmenistan. Tajikistan’s carriers and shippers complain that Turkmenistan imposes sudden unexplained embargos on rail traffic.
[3] Uzbekistan’s main trading partners are the PRC, (more than $8.90 billion), Kazakhstan (nearly $4.60 billion), Türkiye (more than $3.20 billion), the Republic of Korea (more than $2.30 billion), and the Kyrgyz Republic ($1.26 billion).
Recommendations
Relax the transit regime for foreign trucks. CPMM partner associations and truck operators in other CAREC member countries regularly name Turkmenistan the most difficult country to travel through. Driver visas are valid for only short periods and getting them takes a long time. Turkmenistan should consider issuing long-term visas to pre-screened drivers employed by responsible, trustworthy road carriers.
End pandemic-era foreign truck ban. As this report was being written, all CAREC countries had eliminated such pandemic-induced border restrictions like barring the entry of foreign trucks. This included the PRC, which imposed the longest and most stringent border-crossing regime. It seems time for Turkmenistan to follow suit and permit foreign trucks to enter the country to deliver goods or transit through its territory.
Enhance logistics capacity development. ADB has provided logistics training to Turkmenistan government officials and the staff of the Turkmen Association of International Road Carriers (THADA). This training indicated both a strong desire to learn more and a wide knowledge gap. The government should consider partnering with multilateral organizations to develop logistics capacity development, as well as invite universities with strong logistics management programs to set up branches in the country.
Participate in CPMM.Turkmenistan can benefit substantially by taking part in the CPMM program, and we hope the government will encourage THADA to begin participating. Movement data captured and aggregated can be shared with the government to improve the country’s transport and logistics efficiency.