Baku Port expects growth in freight transportation

Baku Port expects growth in freight transportation

The Baku International Sea Trade Port expects increase in the volume of marine transportation in the years to come. Head of the Port of Baku Taleh Ziyadov said a significant growth is expected in the volumes of freight transportation as compared to figures of 2015, mentioning that drop in the volumes was recorded last year due to global economic crisis.

“As for this year the volumes of transportation are expected to exceed some 4 million tons of freight, growth rates are expected to strengthen next year,” he said. Ziyadov also mentioned that the construction of Port is currently underway in accordance with the schedule. “All operations within the first stage will be completed by late 2017. Ferry terminal was built in 2014. Next in turn, is the completion of construction of Ro-Ro terminal. Container terminal and dry freight terminal will be constructed further. In tote, work is completed by almost 60 percent,” he said.

Ziyadov went on saying that the construction of oil freight terminal is not envisaged within first two stages, mentioning that terminals for different freight may be constructed at a later date.

Baku International Sea Trade Port in Azerbaijan’s Alat settlement is expected to become one of the leading trade and logistics hubs of Eurasia.

The implementation of all 3 phases of construction is projected to increase the capacity up to 7,660 tons on a daily basis.

The first stage of construction of the Port is projected to be completed until late 2017. The completion of the first stage will allow the facility to handle nearly 1,280 tons of goods per day and increase its capacity up to 11.5 million tons of cargo and to 50,000 containers per year. The second stage will provide for the handling of 17 million tons of freight and 150,000 of containers, while the implementation of the final stage is projected to increase the capacity up to 25 million tons of freight and 1 million of containers.

Taleh Ziyadov went on to say that Azerbaijan will soon complete the process on the development of the legal regime for the Free Trade Zone (FTZ), which will be established in the territory of the Port of Baku and its vicinity. He said that the offers on the regime are practically ready and they will be presented for the consideration of the government in the short run.

Work on the development of feasibility study of the project is planned to be completed by late 2016. The issue may be put up for discussion in the upcoming session of the Parliament,” he added.

Special tax and customs policy is expected to be pursued in the territory of the Baku FTZ. The regime will stipulate further development and simplification of a number of procedures, while the privileges can cover the income tax, VAT, tax of profit and property tax.

The European Union earlier launched a project on rendering a technical assistance to the Baku International Sea Trade Port in the creation of FTZ. Dubai Port World – one of the world’s largest port operators is also involved in the creation of the FTZ. The company renders consulting services on the basis of the agreement signed in September 2016.

President Ilham Aliyev signed a decree on March 17, 2016 on the measures to create special economic area of a free trade zone type in the Alat township of Baku’s Garadagh district.