Uzbekistan Railways projects $100 million profit by year-end as reforms accelerate

The figures were presented by company chairman Zufar Narzullaev during a briefing with President Shavkat Mirziyoyev on Thursday.

According to the presentation, Uzbekistan Railways ended 2023 with a loss of UZS 2.23 trillion. In 2024, the company posted a profit for the first time in several years – UZS 46.6 billion. In the first nine months of this year, net profit rose to UZS 857.4 billion ($71.6 million).

By year-end, the company expects profits to reach UZS 1.2 trillion, equivalent to nearly $100 million at the current exchange rate.

Transport Minister Ilhom Mahkamov, commenting on the materials presented to the president, said completing the transformation of Uzbekistan Railways and reducing service costs are among the sector’s key near-term priorities.

“This must, of course, be achieved while reducing expenses. Uzbekistan Railways is currently working with several international consultants with extensive experience. We expect a very large volume of net profit in 2025. But this is not enough. The company must lower production costs and reduce service prices, which will have a positive impact on our economy,” he said.

He added that the goal is to cut expenses by at least 20 percent and gradually reduce tariffs depending on service categories.

Looking ahead to 2030, Uzbekistan plans to modernize its industrial infrastructure, renew its train fleet and introduce digital technologies, including artificial intelligence-based management systems.

Uzbekistan Railways ended 2020 with a loss of UZS 352.7 billion, but before that the company had recorded strong profitability – over UZS 850 billion in 2019 and more than UZS 974 billion in 2018.