By fostering connectivity and collaboration at local and global levels, we are progressing towards our vision to make Azerbaijan a vital link in global supply chain, contributing to sustainable growth, say Kamran Habibov, Chairman and Elmir Poladov, Board of Directors, Freight Forwarding Association, Azerbaijan.
Ritika Arora Bhola
Tell us about the inception of Azerbaijan’s freight forwarding association?
The Azerbaijan International Road Carriers Association (ABADA), a 25-year-old organisation has focused on road freight transportation to and from the country. Over time, as Azerbaijan has integrated into global logistics concepts and processes, the demand for forwarding services has increased and evolved.
Recognising these developments, we observed forwarding as an activity needing distinct regulations and business models compared to those represented by ABADA members. While ABADA has played a vital role in road transport sector, the complexity within the industry called for a framework to address these needs. As the most experienced logistics company operating in Azerbaijan, we decided it was time to take a decisive step toward the advancement of our field. To foster transparency, clarity, and sustainable development within the forwarding sector, we set up a new association in 2021, tailored to meet the specific demands of our industry.
Aim of this association?
Our association is dedicated to positioning Azerbaijan as a key player in the global logistics and forwarding industry, reclaiming its role as a central hub on the Silk Road. Our mission is to leverage Azerbaijan’s unique geographical location as a bridge, maximising its potential as a global transit hub for Eurasia. We aim to create a platform that unite freight forwarders across Azerbaijan, enabling collaboration, addressing industry challenges, and providing solutions through dialogue with relevant governmental and regulatory bodies. By fostering relationships with Azerbaijan’s governmental institutions and private stakeholders, we strive to streamline processes and support the sector’s growth.
Currently, we are actively doing as follows:
- Enhancing Azerbaijan’s integration into worldwide logistics processes, leveraging our country’s infrastructure, including railway systems, ports on the Black Sea and the Caspian Sea. Our international airport, and national air cargo capabilities and collaboration with FIATA
- Working with governmental institutions and regulatory authorities to set up a clear, transparent, and business-friendly environment for forwarding activities, ensuring efficiency and compliance across the sector
- Building partnerships with neighbouring associations and global non-profit organisations such as TITR (Middle Corridor), TRACECA, and FIATA to align with global logistics networks and promote regional and international cooperation
- Facilitating logistics education and professional development by integrating CILT and FIATA into local varsities and offering internships to nurture professionals in the industry
- Supporting development of local logistics firms to
ensure they remain competitive in a rapidly evolving
global landscape
Our goal is to transform Azerbaijan into a logistics hub, ensuring smooth transportation of goods to and from the region. By fostering connectivity, transparency, and collaboration at local and global levels, we are progressing towards our vision of making Azerbaijan a vital link in the global supply chain, contributing to sustainable economic growth and reinforcing its reputation as a reliable partner in global trade.
Tell us about the products being moved to and from Azerbaijan globally?
Azerbaijan’s primary exports include oil, oil-related materials, and chemicals. We import a variety of goods, including electronics, vehicles, factory equipment, raw materials, stone and granite products, pharma, and tea. For instance, pharma and tea are among the goods imported from India, reflecting the diversity of our trade relationships.
Aligned with our aim to position Azerbaijan as a global logistics hub, we focus on facilitating efficient trade for these essential imports and exports. By streamlining forwarding processes and enhancing connectivity, we aim to ensure seamless movement of goods. This supports the development of Azerbaijan’s logistics sector and strengthens its role as a vital link in the global supply chain, contributing to sustainable economic growth and diversification.
How do you look at India as a potential trade destination?
Recently, Azerbaijan has restored its territorial integrity and is focused on the comprehensive reconstruction and development of the liberated territories. This includes investments in infrastructure, construction, and the establishment of fully operational SMART Cities designed to ensure modern, sustainable living standards and economic growth. As part of this transformation, Azerbaijan has created SEZs offering exclusive preferences and privileges, providing an optimal environment for both local and global investors. The SEZs are designed to attract foreign investments by offering regulations, tax incentives, and cutting-edge infrastructure. For example, investors from India have shown interest, recognising the potential for growth and collaboration in sectors ranging from construction and technology to logistics and trade. By fostering such partnerships, Azerbaijan is positioning itself as a hub for innovation and international cooperation.
What are the modes of transport in Azerbaijan for bulk cargo movement?
While rail is a cornerstone of Azerbaijan’s bulk cargo movement, other modes of transport, including air and sea, are significant in facilitating trade and logistics. The air cargo sector is well-developed, with players such as Silk Way West Airlines—a freighter operating a fleet of wide-body aircraft. This airline links Azerbaijan to major cities worldwide, making it an essential link for inbound and outbound cargo. Recent developments, such as introduction of wide-body aircraft by Azerbaijan Airlines for passenger services between Delhi and Baku, creates new opportunities for leveraging capacity on passenger flights. These advancements enable efficient movement of goods, including exports from India to Azerbaijan and beyond.
Azerbaijan’s location along the Caspian Sea and its modern ports, such as the Port of Alat, offers capacity for handling bulk and containerised cargo. The addition of specialised berths for dry and containerised goods enhances this capability, providing a seamless transition for multimodal transport solutions. The air and sea transport systems complement rail network, creating a comprehensive logistics ecosystem. Together, they position Azerbaijan as a key hub for bulk cargo movement across the region, integrating trade routes from East to West and North to South.
What are the cities covered presently
in India?
At present, Delhi is the primary destination connected to Azerbaijan. With growing bilateral relations and increasing trade and tourism between India and Azerbaijan, there is potential for expanding this network to include more cities in the future. Introduction of flights by IndiGo Airlines, including passenger ones and dedicated freighters, has strengthened linkage and facilitated trade and tourism. The frequency of such services highlights the interest of Indian businesses and tourists in Azerbaijan. The movement of tourists from India to Azerbaijan has been rising, supporting the need for enhanced connectivity.
As trade ties between the two nations deepen, cThis would expand opportunities for exports and imports and encourage business collaborations and cultural exchanges. The continued development of this partnership positions Azerbaijan as a key gateway for Indian businesses seeking access to the broader Eurasian region.
Should Azerbaijan and India sign an FTA?
India and Azerbaijan should consider signing an FTA. Given Azerbaijan’s geographical position, FTAs with multiple nations would be a game changer. This aligns with the model seen in Dubai, which transformed into the Middle East’s trade hub by creating a favourable environment for global commerce. Azerbaijan has the infrastructure, resources, and strategic location to replicate and surpass this success in the Eurasian region.
Azerbaijan has six global airports, located to support cargo and passenger operations. This aviation infrastructure places Azerbaijan in an ideal position to serve as a regional hub for global air traffic. With an FTA in place, Azerbaijan could leverage its airports to become a world-class plane refuelling and servicing station, offering competitive rates for airlines operating across Europe, Asia, and the Middle East.
The reduced trade barriers introduced by an FTA would attract foreign investors to utilise Azerbaijan as a central hub for global supply chain operations. This includes developing large-scale international warehouse centres, facilitating storage and distribution for goods destined for Europe, Central Asia, and the Middle East. The enhanced trade environment would bolster Azerbaijan’s role as a transit hub, connecting major trade routes such as the East-West and North-South corridors.
By inking FTAs and fostering a business-friendly ecosystem, Azerbaijan can maximise its geographical and logistical advantages, driving regional integration and becoming a key player in global trade networks.
Baku’s infrastructure for cargo movement is evolving and shows promise, particularly for multimodal transportation. The Azerbaijani government is investing in infra projects aimed at positioning the nation as a regional logistics hub. A key example is development of Alat Port, located 75 km from Baku. Known as the Alat Free Zone, this port is a vital hub for containerised and dry cargo, with more berths under construction.
Azerbaijan is planning a dedicated airport for cargo operations and other air freight infra. This new facility will feature warehouses equipped with the latest technologies, allowing seamless handling and storage of goods. Such developments make Azerbaijan a transit hub, but a full-service logistics centre, capable of supporting multimodal operations that combine road, rail, sea, and air transportation. From Alat Port, goods can be
shipped across the Caspian Sea to Turkmenistan or Aktau in 20 hours of sailing, giving access to Central Asia. Its railway and road network link to the East-West and North-South transport corridors, linking Azerbaijan to Russia, Iran, and into Europe and China.
