Authorities at the Port of Baku have recently signed a Memorandum of Understanding, in order to bring in more business into Azerbaijan.
Located at the line between Asia and South-Eastern Europe, the country of Azerbaijan will be able to benefit from increased business, thanks to recent negotiations at the capital city of Baku’s International Port. Authorities at the “Baku International Sea Trade Port” CJSC (Port of Baku) have signed a Memorandum of Understanding with the Islamic Corporation for the Development of the Private Sector (ICD). By doing so, the country will have access to new deals, by a wide group of investors, inside the newly-established Alat Free Trade Zone (FTZ). The document was signed between the Director-General of the Port of Baku, Dr. Taleh Ziyadov and the CEO & General Manager of ICD, Mr. Khaled Mohammed Al-Aboodi.
The purpose of this memorandum is to study the possibility of involving private sector companies in the Port’s business. The FTZ is an entity being created in order to ‘serve as a logistics hub for global private companies that seek to establish regional headquarters in Eurasia’, according to Dr. Taleh Ziyadov. The reason for choosing Baku’s Port as the place in which to launch this project is the hub’s proximity to important Asian markets, such as Russia, Iran and Turkey.
Prior to the Memorandum, in March 2016, the President of Azerbaijan, Ilham Aliyev, signed a Decree, stating the measures by which to establish the FTZ in and around a new port in the township of Alat. The area is located approximately 70 km south of Baku. In September, the Azerbaijani Government and the Port of Baku were able to sign an agreement with the ‘DP World’ of the United Arab Emirates. ‘DP World’ has been responsible to provide consulting services for setting up the free trade zone.
The Port of Baku is considered the largest and oldest port of the Caspian Sea. It holds a strategic position, linking trade routes between Europe and Asia. The new Port of Baku at Alat will become the largest Free Trade Zone in the region, handling advanced logistics operations.