Perm region to build logistics center for storing agriculture products from Azerbaijan

By Azernews

By Ayya Lmahamad

It is planned to build a logistics center for storing agricultural products from Azerbaijan in Russia's Perm region, Azernews reports.

The building of a logistics center will make it possible to supply agricultural products not only to the residents of the Perm region but also to neighboring regions.

“Currently, fruit and vegetable products are delivered to Perm region by transit via other regions, which makes them more expensive. Direct deliveries will help save on transportation costs and reduce prices for the end consumers,” Perm region’s governor Dmitry Makhonin said.

He made the remarks during the meeting with Azerbaijan’s Deputy Agriculture Minister Elchin Zeynalov.

Makhonin added that it is planned to increase the volume of deliveries of livestock products, such as milk, products of its processing, cattle meat, as well as confectionery products to Azerbaijan.

In turn, Elchin Zeynalov underlined that it is important to consider all conditions for farmers supplying products for export, stressing that in particular, it is necessary to determine supply routes, their distance, transportation, and storage costs, since vegetables, fruits, milk, meat are perishable products and businessmen should not bear losses.

The parties emphasized that one of the options for organizing trade turnover is container transportation, including within the Agroexpress projects, which will allow not only to establish mutual supplies under simplified customs and phytosanitary procedures, but also organize the transit of goods through both countries.

Moreover, they noted the necessity to provide entrepreneurs with tools for organizing foreign deliveries.

As a result of the meeting, it was proposed to organize a working group on export and import, which should work on the conditions of mutual supplies, customs payments, taxes, transportation costs, and other areas of cooperation.

To recall, Agroexpress is a specialized service intended for the delivery of goods using high-speed trains between the two countries. It is being implemented by Alliance Logistics LLC and a subsidiary of Russian Railways CJSC - RZD Logistics JSC through the support of the Azerbaijani-Russian Business Council, Russian Export Center JSC, Eximbank of Russia, Azerbaijan Railways CJSC, Russian Railways JSC.

Azerbaijan’s participation in the project was announced by the country’s Deputy Prime Minister Shahin Mustafayev on December 16 last year, at the conference on "the current state and prospects of the Russian-Azerbaijani economic relations in the context of integration processes".

This project not only reduces the delivery time of goods and transportation costs thanks to the efficiently-built export-import logistics but also contributes to the development of business.