Azerbaijan expands transit opportunities
By Nigar Orujova
Azerbaijan, aiming to turn into a transportation hub of the region, may soon introduce new opportunities in this sphere.
The country may, if necessary re-reduce the transportation costs, Deputy Minister of Economy and Industry Sahil Babayev told reporters on December 10.
The country already decreased the transportation price by a nearly 40 percent in the transit cost of cargo transportations by large trucks to the Aktau and Turkmenbashi ports, as well as reduced tariffs by 20 percent in order to improve the attractiveness of maritime transportation of cars traveling from Turkey to Kazakhstan.
“Prices for transportation are regulated by the market itself. Azerbaijan is trying to create the most favorable conditions for transit and transportation. Studies show that our rates are competitive,” he said, adding that necessary measures can be taken if required.
“This is a complex issue. It is necessary to take into account both the costs of companies participating in transit and alternative routes, etc. Of course, price is important, but it is not the main thing, constancy is more important so that companies can plan their activities,” he said.
The Economy and Industry Ministry expects proposals from business to reduce the cost of transportation of goods, Babayev said at the second meeting of the Exporters Club in Baku.
Babayev noted the importance of cooperation in this direction with the State Caspian Shipping Company.
“The issue of certification is one of the problems faced by exporters. I think we can make some changes in relation to certification,” he said.
Azerbaijan to build logistics center in Russia
Babayev went on to add that Azerbaijan is in talks to build a logistics center in Russia.
“Placing logistics centers depends on the target market and its potential,” he said, refusing to specify the location of the logistics center, and its direction.
The official added that Russia is Azerbaijan’s main export market for agricultural and industrial products.
The need to increase food imports from a number of countries, including the CIS and Azerbaijan in particular, has appeared in Russia after the introduction of restrictions on imports of these products from the U.S., EU, Canada, Australia and Norway.
Similar measures have been taken by Russia in response to Western sanctions caused by the deterioration of relations connected with the situation in Ukraine.
The deterioration of Russian-Turkish relations can also lead to increased demand for Azerbaijani products in Russia.
The trade turnover between Azerbaijan and Russia in January-October 2015 amounted to $1.53 billion, of which $322.22 million fell on export to Russia, according to the State Customs Committee.
Babayev further said that more companies are interested in the logistics center opened in Kazakh Aktau.
“This year we will be able to achieve great progress in this sphere,” he said, adding that “we are also considering the establishment of logistics centers in other countries as well.”
The logistics center in Aktau will provide storage and sale of agricultural and other food products. It was constructed based on agreement signed between Azersun Holding, Azerbaijan Fund Export and Investment Promotion and Special Economic Zone Seaport Aktau in August 2013. The cost of the project was $20 million.