Singapore to assist Baku in introducing new technologies in Free Trade Zone Investment
Singapore to assist Baku in introducing new technologies in Free Trade Zone
Baku International Sea Trade Port and Singapore’s SMRT International and Ectivise Solutions signed a memorandum of understanding on technical cooperation on April 25.
The document, which was inked by Taleh Ziyadov, the head of the Baku International Sea Trade Port, Arthur Cheong, Chief Executive Officer of the Ectivise Solutions and Goh Eng Kiat, the Managing Director of the SMRT International, is aimed at enhancing the operational effectiveness of the Baku Port.
The two Singapore-based companies will provide support to Azerbaijan in its efforts to introduce new technologies and innovative solutions in the port and free trade zone operations.
Thus, Singapore will advise Baku in adoption of such technologies as Group Rapid Transit (GRT) System, Integrated Operation Control Centre (OCC), Auto Warehousing Storage and Retrieval System and other security systems.
Thanks to this cooperation the Baku International Sea Trade Port will be the first in the region to introduce driverless transportation – smart cars.
“Today’s MoU will enable the Baku Port to achieve its set goal of becoming an exemplary and the most technologically advanced port in the Caspian region much quicker,” Ziyadov believes. “We value the support of our Singaporean partners in our mission to bring technological solutions that are environmentally friendly and sustainable to users and clients of the Baku Port.”
Azerbaijan is currently building a new state-of-the-art port complex near the Alyat town of Baku that includes a large area dedicated to a Free Trade Zone (FTZ), which envisages the development of a transport and logistics industry, pharmaceutical cluster, common-use oil supply base facilities, and manufacturing, packaging, labeling and consolidation areas. Located at the strategic crossroads of Europe and Asia and near sizeable markets like China, Turkey, Iran and Russia, the new Port of Baku is poised to become the leading trade and logistics hub of Eurasia.
Azerbaijan’s President Ilham Aliyev signed a decree on March 17, on measures to establish a special economic area in the Alat settlement, which will also include the territory of the new Baku International Sea Trade Port. This document on creation of a free trade zone type special economic area in the Alat settlement of Baku’s Garadagh district represents a milestone of Azerbaijan's policy to strengthen the country's position as a regional logistics and transportation hub.
Once established, the Free Trade Zone (FTZ) will bring huge revenues to Azerbaijan's state budget. The profitability of FTZ has many examples in the world; FTZ in Hong Kong or in Dubai turned both cities into a center of attraction for investors from all around the world, and paved the way for inflow of huge funds to the countries.
The establishment of FTZ will also bring a large amount of foreign investment into Azerbaijan, as well as open the country's doors to new investors. As Taleh Ziyadov, Director General of the Baku International Sea Trade Port said earlier this free trade zone will attract up to $1 billion just in the first few years.
This will become possible thanks to the special tax and customs policy, which will be pursued in the territory of the FTZ. The privileges can cover the income tax, VAT, tax of profit and property tax.