Azernews.Az

By Aynur Jafarova

The construction of the first Azerbaijani logistics center abroad has started in Kazakhstan's Aktau city, Azerbaijan's Economy and Industry Ministry said on June 28.

The ceremony of laying a foundation was attended by the Azerbaijani delegation headed by Economy and Industry Minister Shahin Mustafayev.

Addressing the event, Mustafayev said the implementation of this project will pave the way for the development of the two countries' non-oil sector, the expansion of transit and export opportunities in the region, as well as the development of trade and economic relations between Azerbaijan and Kazakhstan.

The minister noted this center will export Azerbaijan's industrial and agricultural products to Kazakhstan, and vice versa.

Implementing the first stage of the project requires $20 million which will be financed by the National Fund for Entrepreneurship Support under Azerbaijan's Economy and Industry Ministry.

The logistics center in Aktau will become Azerbaijan's first relevant projects abroad and will create new export opportunities for entrepreneurs.

The construction and management of the center will be carried out by Azersun Holding.

The center itself will consist of a dry storage with an area of ​​5,000 square meters, refrigeration-storage complex with the same area and other infrastructures produced in Germany, the Netherlands and Italy.

Business forum held

On June 28, Aktau hosted the Kazakhstan-Azerbaijan business forum which was attended by over 100 entrepreneurs from both sides.

In his remarks, Mustafayev said Kazakhstan invested $5.2 million in Azerbaijan in fixed assets in 2002-2013, while only in the last two years Azerbaijan invested $132.8 million of direct investment in Kazakh economy.

As part of the business forum, Kazakhstan and Azerbaijan signed a Memorandum of Understanding (MoU). The document was signed by Chamber of Entrepreneurs of the Mangistau region and Azerbaijan Export and Investment Promotion Foundation (AZPROMO).

Azerbaijanis and Kazakhs are both Turkic-speaking nations and share close historical, religious, and cultural ties. Both are the littoral states of the Caspian Sea and possess a common maritime border.

About 130,000 ethnic Azerbaijanis live in Kazakhstan.

The trade turnover between the two countries amounted to $371 million in 2013. Some 52 Kazakh companies operate in Azerbaijan, while 723 companies with the Azerbaijani investment are registered in Kazakhstan.