"APA-Economics" presents an interview with Khudayar Hasanli, head of the Strategic Planning and Development Department of "Baku International Sea Trade Port" regarding the operation, development and possibilities of transport corridors of Baku Port:

"We predict that this year at least 7 mln.

ton load"

- Operational indicators reflect the efficiency and work of any enterprise.

In this sense, Baku International Sea Trade Port is no exception.

What indicators did Baku Port finish last year?

- Baku Port showed growth in various indicators in 2022.

Our total upload index has increased by 13.6%, compared to the indicator of 2021, 5 mln.

6 million from 550 thousand tons.

It has increased to 314 thousand tons.

During the reporting period, 51,514 wheeled vehicles crossed the port side, thus a 30.6% increase was observed.

The range of wheeled vehicles includes passenger vehicles, TIRs (large trucks - ed.), trailers and other equipment.

At the same time, over 16% increase in container handling was observed during the reporting period.

Thus, in 2022, the Port handled 52,276 TEU (20-foot equivalent) containers, which is the highest figure we have ever achieved.

In the summer months, large cargo flows were recorded, which caused delays in the corridor (Middle Transport Corridor - ed.).

Currently, not only the port, but all players of the corridor, infrastructure owners are working in the field of coordination of operations and expansion of infrastructure capabilities.

This year, we have more transshipment opportunities throughout the Middle Corridor.

In addition, if there was a decrease in the number of wagons transported every year, after the Russia-Ukraine conflict, the transportation of both containers and wagons, as well as wheeled vehicles, especially passenger cars, increased in Baku Port.

In particular, we are talking about the import of passenger cars from Europe to Central Asia.

If the import of passenger cars from Central Asia used to go through the territory of Russia, now it is directed towards Azerbaijan, the Middle Corridor, and European and other car brands and vehicles continue to pass through Baku Port.

- What volume of cargo is predicted to be exceeded by the Port for the current year?

- We predict that this year at least 7 mln.

exceeding tons of cargo.

One of our reasons for this is that our fertilizer terminal will start operating in 2023.

We make 1 million per year.

we transfer about tons of fertilizer products, but after the new terminal is commissioned, we will have the opportunity to transfer more fertilizer.

Currently, we only receive Turkmenistan fertilizer in open form, after the terminal is commissioned, we are thinking of attracting products from other Central Asian countries, for example, Kazakh fertilizer.

We are also working in this direction.

At the same time, we have modified and transformed the heavy cargo terminal and our bridge and planned to transfer containerized cargo from this bridge.

After the first quarter of this year, this terminal will have container handling facilities.

After the Russia-Ukraine conflict, there could be a second big wave of container cargo from Kazakhstan and China.

We, as a port, take preventive measures in this regard and create container handling facilities at another terminal so that we can quickly, stably and continuously transfer them to the West or East direction in the next cargo flows.

- When is the fertilizer terminal planned to be commissioned?

- Within the framework of the establishment of the fertilizer terminal, construction works will be completed in the first quarter of the year, and after that, test works will be carried out.

Full cargo acceptance will begin after the second quarter of the year.

- What opportunities does the commissioning of the fertilizer terminal open for Baku Port in terms of cargo handling?

- The annual capacity of the terminal is 2.5 mln.

tons and it is planned to use the potential of this terminal for several years.

Currently, 1 mln.

tons of fertilizer products, with the construction of this terminal, in the short and medium term, 2 mln.

It is predicted that over tons of cargo will be involved.

- We would like to clarify an issue related to the modification of the heavy cargo terminal.

Carrying out these works can increase the port's container handling capacity to what extent?

- The works carried out at the heavy cargo terminal will also create an opportunity for containers to be transshipped.

This will increase the port's container handling capacity by 35,000 TEU.

- The second phase of Baku Port has become relevant now, and the related plans have been announced.

What kind of work is being done in this direction at the moment?

What stage is the process at?

- Within the corridor between China and Europe, in earlier times, more cargo was transported mainly through the territory of Russia.

It was traditionally considered a land transport corridor.

However, after the Russia-Ukraine conflict, part of the transport between China and Europe is transferred to the Middle Corridor passing through Azerbaijan, and the creation of alternative routes has become necessary.

The development of the Middle Corridor is not only in the interest of Azerbaijan, but also in the interest of Europe and China, so that alternatives emerge.

Therefore, all participants of the corridor should be ready for it.

We, as a port, are trying to fulfill our obligations.

As we increase the port's handling potential, we will handle these cargoes, but these cargoes must be transported to the final destination after passing through other countries - Georgia and Turkey.

Therefore, all our potentials should be aligned with each other.

We think that every organization, every institution, every infrastructure owner should focus on this, and we, as Baku Port, will start the second phase of our expansion plan.

Currently, the technical-economic justification of the second phase is being prepared.

After the preparation of this document, within the framework of the second stage, it will be determined which loads will be transferred and in what volume, and more detailed information will be obtained about what will be built.

But initially, we are thinking of expanding our infrastructural capacity to handle more containerized cargo, especially containers from China, for which the increase of container terminals is considered as one of the most important elements.

In the second phase, our container handling capacity will be increased by 400 thousand TEU to 500 thousand TEU.

In addition, there may be other cargo terminals, but this will be clarified in more detail after the feasibility study.

After the second phase, the port's total handling capacity will be 25 mln.

will be delivered to the ton.

This is the stage of preparation for future large cargo flows and transportation between China and Europe.

The port intends to prepare for these flows in advance, so a second phase is planned.

In the second phase, not only terminals and bridges, but also the creation of a multimodal and intermodal terminal that serves the regional development and hub concept is also considered.

It is planned to build a multimodal and intermodal terminal capable of changing the form of transport and transportation, packaging and sorting of cargo and creating the possibility of transportation by various means of transport.

All over the world, large, developed ports have these terminals, and with the help of these terminals, the port can reach its maximum capacity.

Such terminals expand not only the port's cargo attraction capabilities, but the entire corridor.

- How long will it take to implement the second phase?

- It is expected that the preparation of the feasibility study will be completed in the second quarter.

After this document is ready, a decision will be made regarding the construction of the second phase of the port.

After the feasibility study is prepared, a master plan (master plan, engineering and operational work planning document - ed.) will be prepared, which defines the construction design and technical aspects.

In turn, it may take 3-6 months to prepare a master plan.

Then the duration of the construction according to the master plan will be determined and it will be known more precisely in what period it is possible to build.

Construction works may take about three years.

This is an approximate number, but after the master plan, we will be able to determine exactly what period the construction period, that is, the completion of the second phase, will coincide with.

- You first touched on the issues related to the Middle Corridor.

What works are currently being carried out within the framework of the development of the corridor?

What kind of joint measures are taken with partners in this direction?

- All the processes I mentioned earlier, the development directions of the Port, the second stage are focused on the development of the Middle Corridor.

We have two directions - Turkmenistan and Kazakhstan.

Cargo from China mainly enters Azerbaijan via Kazakhstan, and we can receive and transfer cargo and ships in these two directions.

We are open to other ports as well, of course.

However, the main part of our turnover, more than 95%, is made up of the ports of Kazakhstan and Turkmenistan.

For the development of the Middle Corridor, the development of all forms of transportation - ports, terminals, shipping, railways - should be coordinated, focused on the attraction of goods and their delivery to their final destinations (Central Asia-Europe and vice versa).

First, internally we are working on integrating our systems with both shipping and rail.

A coordination and analytical center has been established.

Plans are being prepared for the fast transfer and transportation of loads before they arrive evenly.

Work is carried out in a coordinated manner.

At the same time, we hold frequent meetings within the Trans-Caspian International Transport Route Association.

We have a stable meeting once a quarter.

As the need arises, we also hold quarterly meetings and discussions.

There are discussions about the possibilities of carrying loads, their time and price issues, and the development of potentials.

Azerbaijan, Kazakhstan, Georgia, Turkey, at the same time, Ukraine are also in this Association.

However, Azerbaijan, Kazakhstan and Georgia act as beneficiaries.

We even expect the Romanian and Bulgarian ports and terminals to join here in the future, so that they act as a regulator of unified operational processes within the Association with a unified tariff policy.

At present, cargo passing through Azerbaijan is mainly transferred to Europe from the port of Constanta in Romania, passing through the Black Sea.

In the future, it is planned to add Bulgarian ports and contribute to the development of the corridor.

- What works are currently being done in the field of expanding relations with the Uzbek side in a promising direction?

- As I mentioned earlier, the transformation of the heavy goods terminal, the orientation of the container transfer and the storage of containers are created here.

We are developing port infrastructures that can serve all corridors, all countries, including Uzbekistan.

Cargo from Uzbekistan is mainly transported to us via Turkmenistan.

Within the framework of cooperation with Uzbekistan, we aim to transfer the export and import of Uzbek goods, the country, and all trade cycles with the West through the Middle Corridor through Azerbaijan.

We plan to transport containers and trains through Azerbaijan within the framework of cooperation with Uzbekistan.

Even the storage and transfer of various cargoes here,

- You talked about the importance of freight attraction and development of corridors.

In this context, we would also like to touch on the issue of opening and developing the Zangezur corridor.

What opportunities will the Zangezur corridor provide to Azerbaijan and the region in terms of global logistics?

- Zangezur corridor can be approached in different ways.

It is possible to approach this issue both from the point of view of global and regional logistics, and at the same time from the perspective of expanding Azerbaijan's logistics capabilities.

For example, there is the LPI (Logistics Performance Index) index, which is calculated for countries that do not have access to the world ocean and the open sea, such as Azerbaijan, and the evaluation is carried out on countries that have a bridge.

For example, for us, this assessment is carried out over Georgia (since the country has direct access to the Black Sea - ed.).

So, after the Zangezur corridor, in addition to our access to the Black Sea through Georgia, we will have access to the Mediterranean Sea through Turkey.

That is, when the assessment is carried out on the mentioned index, the assessment will be carried out not only on Georgia, but also on Turkey as a country with access to the open sea.

this is

we will have a great advantage.

We will advance in global logistics performance and gain access to the second largest sea, using Turkey as a bridge country.

From the point of view that the Zangezur corridor will benefit Azerbaijan, we can say that, for example, the trade turnover and transportation between Turkey and the countries of Central Asia (including Afghanistan) with wheeled vehicles is over 120 thousand TIR, and only 20-25% of it It passes through Azerbaijan.

After the Zangezur corridor, we will have the opportunity to attract a large volume of this circulation between Turkey and Central Asia to Azerbaijan.

This is an assessment of the second point.

As I mentioned, it is possible to evaluate the essence of the Zangezur corridor from the point of view of global logistics.

In terms of container circulation between China and Europe, we have two alternative corridors to transfer containers from the East to the West.

The first - through Georgia through the Baku-Tbilisi-Kars railway line, and the second - faster through the Zangezur corridor.

So, we will have several alternatives, several ways to quickly transfer and transport these cargoes in the direction of the West.

At the same time, there are traditional sea routes, especially for sea freight from China.

Cargo from China to Azerbaijan travels a long way (Singapore ports, Indian Ocean, Suez Canal, Mediterranean Sea, Aegean Sea, Bosphorus Strait, Istanbul ports, Black Sea, Poti port).

In this matter, what are the advantages for us of connecting Zangezur corridor with Turkey's Mersin port?

Thus, it becomes possible for ships to cross the Suez Canal, bypass the Mediterranean Sea and reach the port of Mersin directly.

It's a shorter distance, and because it's a shorter distance, the costs are also reduced.

Along with cost reduction, there is an alternative of attracting cargoes not only through the ports of Georgia, but also through the ports of Turkey.

Thirdly, due to the low density of the corridor, cargoes will go faster to both Azerbaijan and Central Asia.

Fourthly,

Georgia's port and terminal costs are more expensive than Turkey's Mersin port and terminals.

There are two important factors in logistics and transportation - time and price.

Zangezur Corridor creates an advantage for us in these two factors, both in global logistics and in regional logistics.

The Zangezur Corridor will allow us to save at least two weeks of shipping time from China by sea, and it will also reduce our costs in terms of costs.

If port and terminal costs in Georgia are up to $470 for one 40-foot container, these costs do not exceed $250 in Mersin port.

in regional logistics as well.

The Zangezur Corridor will allow us to save at least two weeks of shipping time from China by sea, and reduce our costs in terms of costs.

If port and terminal costs in Georgia are up to $470 for one 40-foot container, these costs do not exceed $250 in Mersin port.

in regional logistics as well.

The Zangezur Corridor will allow us to save at least two weeks of shipping time from China by sea, and reduce our costs in terms of costs.

If port and terminal costs in Georgia are up to $470 for one 40-foot container, these costs do not exceed $250 in Mersin port.

Photo: Orkhan Karimov © APA Group