AFEZ's strategic location provides access to air, road, rail, as well as sea transport making it especially attractive to investors seeking efficient logistics solutions. Proximity to the Baku International Sea Trade Port and the development of a new international airport significantly enhance the business climate for investors in AFEZ.
Alat Bay Industrial Development AFEZCO (AlatBay) was among the first legal entities established in the Alat Free Economic Zone (AFEZ) and duly registered under the AFEZ legislation. AlatBay is a subsidiary of parent holding company - Galanth Group, based in UAE. Based on the license issued by the AFEZ Authority, AlatBay engaged in the provision of value-added logistics services in the AFEZ. AlatBay Logistics Center, which covers an area of 5 hectares, mainly meets the import and export needs of legal entities in the AFEZ by road transportation, and is also involved in transit cargo transportation.
The key aspiration for AlatBay is to become a modern logistics center, bringing industry innovation and advanced technologies and contribute to development of regional connectivity. In order to support company’s strategic expansion, it provided full range of logistics services to AFEZ legal entities and transit shippers, including warehousing, labeling, loading, and unloading, international transportation and expedition.
According to investment plan of the company, the first phase of the project – set-up of 5,200 m² modern logistics center with dry and cold storages to provide above mentioned logistics services – is completed and fully operational from 2024. It is planned to increase storage capacity to 19,000 m² within the scope of second and third development phases by 2027.
AlatBay contributed to the regional economic development in below listed several directions, which are not limited to:
- Enabling time and cost optimizations by increasing the capacity of Trans-Caucasian route, which is shorter than north and south routes by 30%;
- Providing dry, cold/frozen and open area storage services to AFEZ legal entities and transit customers;
- Operating as the first green warehouse in region, with 40-50% saving in energy consumption.
AlatBay also contributed to green environment by reducing electricity consumption and contamination of water sources. The storage facility built by AlatBay followed high technological standards that minimized the environmental impact.
The entire technical design of the premises was conducted based on EDGE Green Methodology, and green certification process was completed with the support of EBRD and international consultants. In light of recent regional developments, Alat's importance as a logistical hub is doubling down as key link on Middle Corridor connecting Central Asia and Caspian with Black Sea and Mediterranean areas. Expected opening of the Zengezur Сorridor and TRIPP route brings new prospects for regional development and prosperity.
AlatBay is linking horizons.
AFEZ is located in vicinity of Baku International Sea Trade Port. Within the first phase the total annual handling capacity of the Port was 15 million tons in 2023, approximately 45% of which was used in the previous year. With the development of the Middle Corridor, the annual handling capacity is expected to increase up to 25 million tons in the second phase.
A new international airport (including cargo, passenger and business aviation services) is being established at the territory of the AFEZ in order to meet the needs of AFEZ legal entities and any other interested parties in cargo transportation. The cargo transportation capacity of the airport will be 500,000 tons annually at the first stage, with further gradual increase reaching up to 1.5 million tons per year. It is expected that the new airport will be operational not later than the first quarter of 2027.