Korean Air, the country`s largest air carrier, has been playing a key role in strengthening diplomatic and business ties between Korea and Uzbekistan over the past years. The air carrier has been participating in the project to upgrade Navoi Airport in the central Asian country into a regional logistic hub and build industrial infrastructure in its surrounding area. The cooperation by Korean Air in building a new logistic hub in central Asia was in fact a key factor to help a Korean consortium participate in the development of new gas and oil fields in Uzbekistan, industry officials said.
Korean Air also plans to expand its international air cargo service in Central Asia and Europe, using Navoi as a foothold.
Last year, the company signed a contract to lend two cargo carriers to Uzbekistan Airways for the next five years during an investment promotion event held by the Uzbek government in Seoul. Under the deal, Hanjin, Korean Air`s parent group, also formed a joint venture with Central Asia Trans, a ground transportation company in Uzbekistan, to begin delivery service from Navoi International Airport. Navoi Airport is located in the middle of Uzbekistan, about 430 kilometers southwest of Tashkent, the country`s capital. A cargo terminal capable of handling 100,000 tons of cargo per year will be also built within the airport.
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With the deal, the Korean air carrier aims to expand its business to the central Asian market where it expects a growing demand for flight services. Flight operations via Uzbekistan cut travel time by 1.5 hours and saves fuel by 15 tons than taking routes that pass Dubai, Uzbek Embassy said.
The joint venture between Hanjin and Central Asia Trans also allows the Korean company to set a ground transportation network in Central Asia, the company said. Two years ago, the two airlines struck a preliminary deal to build an international logistics center at Navoi Airport in the Central Asian country and to operate cargo flights on the Incheon-Navoi-Milano route. Korean Air has provided its Uzbek partner with consultation on management and operations of a new logistics center at Navoi Airport in 2008, the air carrier added.
Hanjin Group Chairman Cho Yang-ho said in a previous speech that Navoi industrial zone will become a center of business, finance and logistics of central Asia in the future.
"Uzbekistan has good investment conditions such as its abundant natural resources and manpower as well as its geographical advantage of being a gateway to Europe from Asia," he said.
"The development of Navoi special economic zone will also offer opportunities for Korea to secure footsteps to enter the central Asian market," he added.
Korea is Uzbekistan`s largest Asian investor with $1.19 billion. Two-way trade between the two countries reached $1.38 billion in 2008 with Seoul`s exports and imports standing at $1.12 billion and $260 million, according to the Foreign Ministry.
The development of Navoi Free Industrial Economic Zone started in the late 2008. The industrial zone hopes to produce high-tech goods, processing food and medical products.
(christory@heraldcorp.com)



By Cho Chung-un