Vision and Strategy
Port of Baku’s vision of a grand hub includes an integrated development model that links the port, airport, logistics centres, petrochemical industry and other strategic transport and projects under the umbrella of a special legal regime.
Azerbaijan’s hub strategy framework is to create an attractive and competitive business climate culture that will bring non-oil investors and developers to Azerbaijan. This is to be achieved within an environment of political and economic stability through a high level of political support for the project, along with the necessary technical and regulatory capacities of the government.
The New Port at Alyat will become the largest ‘industrial/logistics zone’ in the Caspian region, offering comprehensive logistics services to zone residents and international clients, serving as a major regional intermodal distribution hub.
The objective of the port expansion in the locality is to attract more cargo from new regions and to provide their primary import and transit cargo gateway.
For Phase One, the Government of Azerbaijan is financing the project. For future phases, they may be funded through a public-private partnership (PPP) model adopted by the government through turning to the private sector as an alternative or additional source of funding. Utilising the PPP (or BOT) models is a way of developing local port and logistics private sector capabilities through joint ventures with large international firms. This way, diversification can be achieved by making the economy more competitive in terms of facilitating port and logistics zone commercial activities. In addition, this will give a boost to ancillary port services, such as container maintenance, containerised and break-bulk cargo handling, trucking services, empty container storage, freight forwarding, supply chain management, warehousing and distribution services with shippers and consignees.