SHIFTING GEARS
TBY talks to Alikhan Ali-zade, Director of AZ Logistics, on expanding its service offerings, meeting global quality standards, and linking with the worldwide logistics network.
BIOGRAPHY
Alikhan Ali-zade was born in Baku in 1964. He obtained a degree in Common Law Economics from Donetsk State University (Ukraine). He lived in the UK for many years before beginning his career in the oil and gas industry when he returned to Ukraine to work for Donbas Oil as Office Manager. He ran a company in Baku in that signed its first contract with BP in 2007. During these early years working with BP, he was successful in tendering many contracts and established a solid business relationship with BP that continues to this day with AZ Logistics.What are some unique services that your company provides to oil and gas partners?
We are involved with the transportation of hazardous and non-hazardous goods for the oil and gas industry, including all onshore and offshore drilling. We have one of the largest fleets of ADR vehicles in Azerbaijan. ADR certifications are required for transporting hazardous goods, because in the oil and gas industry these goods can be classified all the way up to Group 8. Therefore, this requires unique trucks that meet ADR requirements. We deal with the waste transportation of onshore and offshore, because there is a lot of waste generated through the pipelines and our vehicles are used to transport this material. Since we are working with clients like BP, we need to meet all of its requirements.
What kind of vehicle fleet is in operation at AZ Logistics?
We have many different types of vehicles. We have a large fleet of ADR-certified road tankers, hook trucks, skip trucks, and all-purpose trucks. We need all of the necessary equipment to deal with the high Western standards. We have a large fleet of vacuum machines, which are involved in tank cleaning operations. As the ships come from offshore projects, they need to be cleaned of their oil marks. We are involved in that cleaning process, and we have mechanical personnel on-site for vehicle recovery and repair services. We have over 110 vehicles in our fleet, which need servicing. Since we have a team that performs this service on our own vehicles and because we have pick-ups and vans with special equipment, we decided to offer this service to third parties as well.
Does receiving international certifications offer a competitive advantage for AZ Logistics over domestic competitors?
Yes, having the best equipment is an advantage. However, the team and the company's system are also important. We were working to the standards of BP and the system was there, but we were not certified. Last year we applied for ISO certification and this year we got it for quality control as well as an OHSAS certification. Our experience working with BP has allowed us to get these certifications, which also offers our company the opportunity to find work outside of the country. Our company is able to offer complete customer satisfaction to ensure customer loyalty while providing high-quality services. We have many years of experience in transporting hazardous and non-hazardous goods. AZ Logistics and Management Services LLC now is ISO certified. We were awarded certificates for ISO 9001 in 2008, ISO 14001 in 2004, and OHSAS 18001 in 2007. We were also awarded the Best Logistics Company of the Year 2015 within Azerbaijan, making us the number-one choice when it comes to logistical needs such as transportation, relocation, multi-modal operations, heavy equipment logistics, and much more.
What kind of international network do you have in place that helps you operate outside of Azerbaijan?
At the moment, we are trying to expand internationally through the transportation of cargo, but not dangerous goods. We have a couple of contracts with companies in Moscow, we have a contract in Istanbul, and we are working toward the European market. We have some contracts from companies in Azerbaijan that are distributing cargo to Italy and Germany. However, this is a new field for us, so we are trying to build up a network. At the moment, everything is going as planned. In 2015, we added refrigerated and wagon trailers to our fleet, which now allow us to transport any type of goods, from food to building and construction materials. It seems that 2016 is going to be a hard year, especially for oil and gas; the price of crude oil is going down and things have slowed down. As a company, we need to diversify and move into different sectors. We are moving into the food industry.
SHIFTING GEARS
TABLE OF CONTENTS
Year In Review
Good Times Ahead
<strong></strong><strong>In a year dominated by the overarching theme of low hydrocarbons prices, Azerbaijan showed resilience and verve in putting in place bold measures both to counter the slump in energy prices and put its economy on a surer footing.</strong>
read articleReview: Diplomacy
Operation Outreach
In 2015, Azerbaijan's military budget increased by a notable 27%, to $4.8 billion, or 17.9% of the government's total budget for the year. The first Azerbaijan Defence Exhibition (ADEX 2014), drew over 200 companies from 34 countries, including Russia and the US.
read articleInterview
Rufat Mammadov, President, Azerbaijan Export and Investment Promotion Foundation (AZPROMO)
TBY talks to Rufat Mammadov, President of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), on large-scale events and their ability to attract FDI and the potential Iran may hold.
read articleReview: Banking
More Interest
In a sector faced with relatively flat growth for 2015-16, new opportunities are still there aplenty, led by the nascent Islamic banking sector, e-banking, and microfinance initiatives. Together, these areas should make banking more diversified and less reliant on a buoyant energy sector for its capital inlay.
read articleReview: Capital Markets
Taking Stock
As Azerbaijan grapples with the knock-on effects of low hydrocarbon prices, the Baku Stock Exchange (BSE) finds itself at the center of the country's efforts to stave off a budget deficit this year. In January, the government announced plans to sell $500 million worth of bonds on the BSE.
read articleReview: Industry & Mining
In The Bag
Industry in Azerbaijan is long established, diversified, and, in many areas, fast growing. Together, these qualities make the sector well placed to see through the global slump in commodity prices, while at home, the manufacturing industry continues to find ways to use its hydrocarbons expertise in other fields, including high technologies and research.
read articleInterview
Khanlar Fatiyev, , Chairman of the Supervisory Board, Ganja Automobile Plant Production Association
TBY talks to Khanlar Fatiyev, Chairman of the Supervisory Board of the Ganja Automobile Plant Production Association, on the role of the plant in driving growth in the non-oil sector.
read articleReview: Transport
The New Node
With major new railways linking the region, the opening of the new Baku International Sea Trade Port Complex, the completion of a massive program of road building and upgrading, investment in state-of-the-art fleets ranging from Boeing 787s to rail locomotives, Azerbaijan can rightly claim the title as the Caucasus' transportation hub.
read articleReview: Agriculture
Lots More
Farms across the country are pursuing a policy of increased yields for year-round fruit and in the wheat harvest to stave off an over-reliance on imports. With carefully targeted increases in exports, better routes to port and to market, and greater sophistication of agricultural facilities, farming could soon be the morning star of Azerbaijan's diversified economy.
read articleReview: Health
Under One Umbrella
Life expectancy at birth (2015) is 75 years for women and 70 for men. The median age is 30. For both sexes, longevity increased by six years between 2000 and 2012. Azerbaijan is a relatively youthful country—an important factor in healthcare—with 22% of its populace aged under 15 and just 9% aged over 60.
read articleReview: Education
Baku to School
Azerbaijan's culture has always harbored a deep respect for educational values. This is embodied in the country's Azerbaijan 2020 mission statement, which seeks to raise standards across the sector and introduce ICT as a standard part of the learning experience at all levels.
read articleInterview
Elkhan Mammadov,, Secretary General, Association of Football Federations of Azerbaijan (AFFA)
TBY talks to Elkhan Mammadov, Secretary General of the Association of Football Federations of Azerbaijan (AFFA), on the experience Azerbaijan is gaining in hosting international events.
read article