Caspian Energy (CE): Mr. Abasov, let us congratulate you on your company’s winning the nomination ‘Transportation Company of the Year’ within the framework of Caspian Business Award international premium. What do you think is the main distinguishing feature of ASE Express company engaged in cargo transportation?
Rashad Abasov, General Director of ASE Express Azerbaijan: I would like to express our gratitude to Caspian European Club (Caspian Business Club) and Caspian Energy International Media Group. Today, the activity of the club helps local businessmen in various spheres to promote their services or goods on the market. I think the polls among the companies operating both within the republic and abroad which were the basis for ASE Express’s awarding prove that we have succeeded in our segment.
Cargo transportation is the main direction in our activity. We transport cargoes by air, sea, railway and motor transport worldwide using a broad network of our representative offices, as well as the offices of our partners. Being a branch of Turkish company ASE, we at the same time represent the interests of Japanese OCS and American DSV as we have signed the respective agreements. Today we run nearly 300 offices worldwide and the geography of our services covers almost all parts of the world. With such coverage, our main task is to provide a high-level service in all of our representative offices.
Our company also represents Turkish Airlines in Azerbaijan. We allocate places for cargo aboard all airplanes of this aviation company.
We also realize our potential in transportation of project cargoes, oil facilities, oil transportation, dry cargo, as well as in container transportation, railway, express, group transportation by land transport and so on. We have been operating on the market since 1994 and throughout that period we have created a good ground and mechanisms for cooperation, settling on the leading positions in most segments.
CE: Azerbaijan’s geography has determined its role as a transit hub. Do you think the efforts taken nowadays to achieve this goal are sufficient?
Rashad Abasov: I think the country’s government has conducted and continues to implement a huge work in this direction. As an example, I can mention the completing construction of a seaport in Alat, which will open up great opportunities for the country in terms of transit cargo transportation. Formation of the Baku-Tbilisi-Kars railway communication and the North-South corridor also seems promising for business. Existing opportunities allow transporting cargo from China to Europe not for 30-35 days but twice as fast and this is very good advantage for business.
CE: Is it necessary to overhaul the system of preparing shipping documentation and cargo execution?
Rashad Abasov: Due to the approved laws, the entire cargo execution procedure has been dramatically simplified. I can say that there is no redtape observed in this direction. In addition, the entire process is promoted through the whole way from China to Europe. For example, the pilot launch of the container organized by JSC Azerbaijan Railway Company was delivered in time, without any delay on the road. With the growth in cargo transportation, the number of ferry boats to sail via Caspian Sea will also be increased.
CE: Country’s economy is experiencing hard times. How did the new economic situation influence logistics?
Rashad Abasov: These difficulties also affected the companies, operating in cargo transportation. The matter is that the manat devaluation also influenced people’s purchasing capacity. Volumes of sales have dropped, reducing the need for imported goods, thus the demand for the service of logistics companies has declined as well.
We understand that this is a natural process and most important here is not to give up. It is necessary to try to expand our activity, covering new areas and producing new services.
In addition, the present currency rate gives a certain stimulating effect for organization of domestic export-oriented production. We need to produce more goods to form part of Azerbaijan’s export potential.
CE: What is currently dominating in the sphere of domestic cargo transportations: import or export?
Rashad Abasov: At present, Azerbaijan is a country where the share of import exceeds export. We mainly export oil and gas and, to the lesser extent, agricultural production. I would like to note that industrial zones are currently being actively created in Azerbaijan. Their formation started years earlier, as part of the economic diversification process. Azerbaijan’s export positions are expected to boost dramatically in the next few years.
CE: How does ASE Express plan to preserve its leading positions within the market in the current economic conditions?
Rashad Abasov: We are assimilating new market segments. For example, in the nearest future we will start to provide the customs warehousing services. Cargo execution process may linger if the shipping documentation is not in order. It would be more suitable to warehouse cargo till completion of the execution process. This is one direction.
Online-shopping has become another new segment of our company, and we offer our services in the sphere of online sales. In addition, in anticipation of a dramatic actualization of railway transport, we are already working intensely in this direction. Furthermore, considering our partner agreements with various companies, we invest in alternative businesses to offer new services. This will, undoubtedly, influence the company’s development and consequently further strengthen our market positions.
