In order to meet logistics needs of AFEZ legal entities, 2 logistics centers will be established in the AFEZ:
Connected to the Baku International Sea Trade Port, main railways and highways leading to borders, AFEZ LOGISTICS CENTER will be equipped with the latest technology, operations management, safety, and security systems to meet all logistics requirements of the enterprises that will operate in the AFEZ.
AFEZ LOGISTICS CENTER will provide services for loading and unloading vehicles, control, and acceptance procedures, and will meet import and export needs of legal entities operating in the free zone.
In addition, AFEZ LOGISTICS CENTER will provide storage services to the businesses operating in the free zone and will be involved in transit cargo transportation.
Construction works on AFEZ LOGISTICS CENTER project, which covers an area of 16 hectares will commence shortly. Part of the construction is expected to be completed in early 2024, and AFEZ LOGISTICS CENTER will start to provide above mentioned services. The remaining part of the construction will be completed by the end of 2024 and starting from that date, the center will be ready to operate at full capacity.
AFEZ LOGISTICS CENTER will encompass:
Total storage capacity of 15,500 pallets in an area of 14,500 m2 including:
There will be a cross-dock area of 10,000 m2, including 3,000m2 area for temperature controlled, and 7,000 m2 area for dry goods, for purposes of intermodal transfer of products.
Warehouse and cross-dock buildings will support the simultaneous loading and unloading of 50 vehicles.
There will be 4,000 meter of railway lines in the facility, three 550-meter-long railway (totaling 1,650 meters) for container loading/unloading operations and 2,000-meter railway located on the side of the warehouse and cross-dock building, for simultaneous loading/unloading of 40 train wagons.
The container area will be capable of handling 100 container movements per hour with 1 RMG (Rail Mounted Gantry Crane) and 3 Container Reach Stackers.
There will be storage capacity of 800 TEU full and 3,400 TEU empty containers at the container yard.
The roofs of the buildings in the AFEZ LOGISTICS CENTER will be equipped with solar panels with a total area of 35,000 m2, which will lead to the generation of 5.1 MW energy in total. Thus, AFEZ LOGISTICS CENTER will contribute to green environment and sustainable economy.
Alat Bay Industrial Development AFEZCO (AlatBay) is 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 will engage in the provision of value-added logistics services and production of packaging materials in the AFEZ.
AlatBay Logistics Center, which will cover an area of 5 hectares, will mainly meet the import and export needs of legal entities in the AFEZ by road transportation, and will be also involved in transit cargo transportation.
The key aspiration for AlatBay is to become a modern logistics center, bringing industry innovation and advanced technologies. In order to support company’s strategic expansion, it will provide full range of logistics services to AFEZ legal entities and transit shippers, including warehousing, packaging, labeling, loading, and unloading, international transportation and expedition.
In addition, AlatBay will engage in the production of a wide range of eco-friendly packaging materials, including Big Bags and pallets.
According to investment plan of the company, the first phase of the project envisages to set-up 5,000 m2 logistics center to provide above mentioned logistics services to AFEZ legal entities. Construction works of AlatBay Logistics Center will commence shortly, and it will start to operate from April 2023. In the second phase, it is planned to expand the logistics center and construct packaging materials production facility and euro pallet manufacturing factory, which will be completed by the end of 2023,and will be ready to operate from the beginning of 2024. In the same year, construction works to expand production and storage premises within the third phase are expected to commence and start to operate at a full capacity in 2025.
AlatBay Logistics Center will encompass three types of storages with the capacity of 5,000 pallets in an area of 12,000 m2, including:
All premises and facilities will be built according to the modern construction standards, using advanced technological solutions and green technology where applicable.
The AlatBay project will impact regional supply chains within Trans-Caucasian and Trans-Caspian routes, both on the East-West and South-North directions, enhance the position of Azerbaijan as a regional logistics hub, contribute to the development of non-oil sector of economy, and add value to the export-oriented activities and businesses.
AlatBay will contribute to the regional economic development in below listed several directions, which are not limited to:
AlatBay will also contribute to green environment by producing eco-friendly packaging materials, reducing electricity consumption and contamination of water sources.
The warehouses to be built by AlatBay are expected to follow high technological standards that minimizes the environmental impact. The environmental impact has two main components: the reduction in the number of trips, and the impact from the switch to a green warehouse. Ammonia refrigerating system will be installed due to its multiple benefits over Freon system, including a much lower environmental impact.
Key system advantages briefly described below:
A heat recovery system and high-standard insulation will also contribute to minimize the environmental impact of the warehouse, as Shell & Plate Heat Exchanger is planned to be installed on the ammonia screw compressor discharge line. A high-standard polyurethane insulation is proposed for the warehouse walls, doors, dock shelters, pipes, and tanks. The overall insulation system proposed for the facility has a superior quality compared to other cold-chain warehouses in the region. Additionally, remote temperature monitoring tools will be deployed, enabling real-time detection of system inefficiencies and control of the cold-chain chambers. With all mentioned features of warehouse, the total electricity consumption reduction is expected to be between 40% and 50%.
In addition, the roofs of the buildings in the AlatBay Logistics Center will be equipped with solar panels, which will lead to the generation of renewable clean energy.
The entire technical design of the premises were conducted based on EDGE Green Methodology, and green certification process has been started with the support of EBRD and international consultants.
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.
Transport by air
Cargo Airport will be 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 implementation of this project has already started. The 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 Cargo Airport will be operational not later than the first quarter of 2026.