Alat FTZ to start operate this year

By Azernews

By Sara Israfilbayova

Azerbaijan’s free trade zone (FTZ) in Alat will start to operate in 2017, said Taleh Ziyadov, the Director General of the Baku International Sea Trade Port CJSC.

Ziyadov announced about this while addressing the second meeting of sister ports within the Cooperation Council of Turkic Speaking States (Turkic Council) in Baku.

He noted that Azerbaijan’s concept regarding the development of the Silk Road contributes to the strengthening of competitiveness and the creation of additional value of goods.

“For example, if a cargo container is sent to Europe, our concept is to process the cargo in the FTZ in Alat, create additional value and export further. In short, the Azerbaijani concept of the Silk Road is more innovative and aims to create added value in the non-oil sector. As for the FTZ, it will work this year,” said the director general.

President Ilham Aliyev signed a decree on March 17, 2016, on measures to create a free trade zone type special economic area covering the territory of the Baku International Sea Trade Port in the Alat township of Baku’s Garadagh District.

The free trade zone is expected to bring up to $1 billion just in the first few years. Special tax and customs policy, which will be pursued in the territory of the free trade zone will also stipulate further development and simplification of a number of procedures.

Moreover, seeking to become the largest logistics zone in the Caspian region, the FTZ will offer comprehensive logistics services to its residents and international clients, serv­ing as a major regional intermodal distribution hub. Taking into account that many manufacturers now prefer to put the final touches onto their products at the distribution centres, such as FTZ’s nearby consumer markets, the provision of value added logistics services at the FTZ becomes an even more compelling prospect. This would not only generate signifi­cant non-oil trade for Baku Port at Alat and Azerbaijan in whole, but would establish it as a regional logistics leader with all three main services of import/export, transit shipment and logistics.