Countries of Central Asia are all landlocked and suffer from high transport and transit costs. However, Central Asia plays a vital role in the context of transport and logistics projects across Eurasia. Due to an important geostrategic significance, huge natural resources, high transit and transport potential, Central Asia has a potential of becoming one of the important land bridges between various regions. The main challenges for the development of the subregion today are associated with the need to implement structural reforms. In many respects, Central Asian economies still face numerous challenges related to them being resource-based economies.
The problem of finding a new model of economic growth is relevant to all countries in the subregion. The evidence shows that there is a widening gap in terms of economic development of the countries of the subregion. For example, the difference between the largest and the smallest GDP in the region is now more than 40 times. The share of trade with neighboring countries ranges from 3% to 7% in the export operations of the Central Asian countries. Central Asia is the least internally interconnected region, where countries are fragmented in many ways. This can be traced, among other things, in intraregional transport links: limited railway connections, which range from 3 to 5 routes between countries within the region.
Improving the efficiency of the supply chain and transit, as well as the development of transport sector are the drivers of the competitiveness of economy and integration into the world economy for the countries in Central Asia. They are also putting significant efforts to realize their potential of becoming the transit and logistics hub in the region, a "bridge" between Europe and Asia. The success of this endeavor directly depends on the development of transport and logistics as the main factor of stimulating industrial growth and the development of the competitive economic system. The further integration of the regional transport systems and the development of the multimodal transport and efficient supply chains require an integrated approach to the development of transport services, infrastructure and logistics.
Kazakhstan and Kyrgyzstan play an important role in Central Asia. They have some similarities like landlockiness, sharing border with China, being members of the Eurasian Economic Union (EAEU) and some major differences like sizes of their economies, achievements in terms of using their transit potential and transport operations. Both countries would benefit greatly from building effective collaboration and further developing multimodal transport, eliminating non-physical barriers, and improving transport and transit management.