Trade & Logistics Centers

Trade & Logistics Centers

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Trade & Logistics Centers
Trade & Logistics Centers
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Infrastructure
Business Model Description

Construct or operate trade and logistics centers connected to key land, rail, and marine trade routes that offer warehousing, cold-storage, transport, and transit customs services from a single-point to ensure proper storage of products including agricultural, pharmaceutical or industrial goods, and timely and safe delivery to markets.

Expected Impact

Spur internal economic activity and take advantage of the country's geographic position in linking local producers and farmers to markets while improving the quality of both imported and exported products through proper handling and storage services.

How is this information gathered?
Updated: 13 Nov, 2023
Azerbaijan
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)

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Sector Sources
  • 1) ADB. 2020.Azerbaijan Moving Toward More Diversified, Resilient, And Inclusive Development. https://www.adb.org/sites/default/files/publication/624476/aze-diversified-resilient-inclusive-development.pdf. 2) OECD. 2019. Sustainable Infrastructure for Low-Carbon Development in Central Asia and the Caucasus : Hotspot Analysis and Needs Assessment. https://www.oecd-ilibrary.org/sites/86850faa-en/index.html?itemId=/content/component/86850faa-en. 3) Republic of Azerbaijan. 2022. Strategy of Socio-Economic Development of the Republic of Azerbaijan between 2022 – 2026. 4) Republic of Azerbaijan. 2016. Strategic Roadmap for National Economy Perspective of the Republic of Azerbaijan. 2016. https://monitoring.az/assets/upload/files/15075d6928310402cd152c96db0d6835.pdf. 5) Republic of Azerbaijan. 2021. Azerbaijan 2030: National Priorities for Socio-Economic Development. https://president.az/en/articles/view/50474. 6) United States of America International Trade Administration. July, 2022. Azerbaijan Country Commercial Guide. https://www.trade.gov/country-commercial-guides/azerbaijan-transportation-and-logistics. 7) World Bank. 2022. Azerbaijan’s water services: Shifting focus from building infrastructure to building institutions. https://blogs.worldbank.org/europeandcentralasia/azerbaijans-water-services-shifting-focus-building-infrastructure-building. 8) Republic of Azerbaijan. December, 2016. Strategic Roadmap for Development of Logistics and Trade in the Republic of Azerbaijan. https://monitoring.az/assets/upload/files/4eae769862be45d63dcd5b50b1d31844.pdf. 9) Azerbaijan Export & Investment Promotion Foundation. 2015. Azerbaijan Agriculture and Food Processing. https://www.mpo.cz/assets/cz/zahranicni-obchod/mezinarodni-obchod-dle-teritorii/zeme-sns-a-dalsi-zeme/2017/1/agriculture_broshure_web.pdf. 10) Republic of Azerbaijan Ministry of Economy. 2019. The State Programme on Socio-Economic Development of the Regions for the period from 2019 to 2023. https://economy.gov.az/storage/files/files/1029/ckaZ7sv78T43pEDXtvRGR3rexllt6N5g86xeTPyJ.pdf. 11) World Bank Group. September, 2020. Regional Connectivity and Development Project Project Information Document. https://ewsdata.rightsindevelopment.org/files/documents/79/WB-P174379.pdf. 12) Asian Development Bank. 2019. Country Gender Assessment Azerbaijan 2019. https://www.adb.org/sites/default/files/institutional-document/546166/azerbaijan-country-gender-assessment-2019.pdf.
IOA Sources
  • 13) Absheron Logistics Center. About the Center. https://absheronport.az/en/page/haqqimizda/merkez-haqqinda. 14) Agropark Shamkir. Logistics and Freight Services. https://shamkiragropark.az/services-one/16. 15) American Chamber of Commerce. April 2022. 25 million manat has been invested in the establishment of a new and modern logistics center in Azerbaijan. https://amcham.az/en/post/690. 16) Azerbaijan Investment Company. Azersun Production and Logistics Center. https://aic.az/en/projects/1181/azersun-production-and-logistics-center. 17) AzerNews. September, 2017. Azerbaijan's Logistics Center in High Demand in Kazakhstan. https://www.azernews.az/business/118671.html. 18) Absheron Logistics Center. July 2022. Independent Auditor's Report to the Shareholders and Management of Asseron Logistika Limited Liability Company. https://absheronport.az/en/page/haqqimizda/merkez-haqqinda. 19) UNDP Stakeholder Consultation with a State Owned Investment Fund Investing in the Non-Oil Sectors of Azerbaijan, March 2023. 20) UNDP Stakeholder Consultation with a Concessional Fund Under the Ministry of Economy of Azerbaijan, March 2023. 21) Musa Gun. 2020. Valuation of Logistics Hubs: A Case Study From Turkey. https://www.igi-global.com/viewtitlesample.aspx?id=238202&ptid=230989&t=valuation+of+logistics+hubs%3a+a+case+study+from+turkey. 22) Asian Development Bank. 2009. Azerbaijan: Trade Facilitation and Logistics Development Strategy Report. https://www.carecprogram.org/uploads/Transport-and-Trade-Logistics-Azerbaijan.pdf. 23) World Bank Group. 2018. Connecting to Compete 2018 Trade Logistics in the Global Economy The Logistics Performance Index and Its Indicators. https://openknowledge.worldbank.org/server/api/core/bitstreams/628a4f9d-7faa-54bf-97b0-f6080c6d46cd/content. 24) European Union. February, 2011. International Logistics Centres for Western NIS and the Caucasus in Armenia, Azerbaijan, Georgia, Moldova, Ukraine. http://www.traceca-org.org/fileadmin/fm-dam/TAREP/63ram/63ram6.2.pdf. 25) Wageningen Economic Research and Delphy. August, 2017. Market and competitiveness analysis of the Azerbaijan agricultural sector: an overview. https://edepot.wur.nl/450210. 26) European Union. 2021. Action Document for EU Resilience Facility for Azerbaijan. https://neighbourhood-enlargement.ec.europa.eu/system/files/2022-01/C_2021_9553_F1_ANNEX_EN_V1_P1_1699229.PDF. 27) World Bank Group. March, 2023. Lifting Barriers to Women Employment Will Benefit Everyone in Azerbaijan. https://www.worldbank.org/en/news/opinion/2023/03/08/lifting-barriers-to-women-employment-will-benefit-everyone-in-azerbaijan. 28) United Nations Department of Economic and Social Affairs. 2021. SDG Indicators Database. https://unstats.un.org/sdgs/dataportal/database. 29) AzStat. National Information Portal on Sustainable Development Goals of the Republic of Azerbaijan. http://sdg.azstat.org:8484/en/home. 30) Tom Van Woensel et al. 2000. Managing the Environmental Externalities of Traffic Logistics: The Issue of Emissions. https://www.researchgate.net/publication/4982998_Managing_the_Environmental_Externalities_of_Traffic_Logistics_The_Issue_of_Emissions. 31) CIS Legislation. June, 2011. Customs Code of the Republic of Azerbaijan. https://cis-legislation.com/document.fwx?rgn=48844. 32) CIS Legislation. June, 2013. Law of the Azerbaijan Republic About Customs Tariff. https://cis-legislation.com/document.fwx?rgn=62826. 33) Trend News Agency. February 2023. The List of Raw Materials and Materials Exempted From Import Value Added Tax Has Been Changed. https://az.trend.az/azerbaijan/politics/3715895.html. 34) Cabinet of the Republic of Azerbaijan. On approval of the "goods nomenclature of foreign economic activity of the Republic of Azerbaijan, rates of import customs duties and rates of export customs duties." https://e-qanun.az/framework/37035. 35) Entrepreneurship Development Fund of the Ministry of Economy. March 2023. Presentation on the Entrepreneurship Development Fund. Available Upon Request. 36) Alat Free Economic Zone. Incentives. https://afez.az/why-afez/incentives. 37) European Bank for Reconstruction and Development. August, 2022. EBRD Finances Logistical Infrastructure in Azerbaijan. https://www.ebrd.com/news/2022/ebrd-finances-logistical-infrastructure-in-azerbaijan.html. 38) State Stastical Committee of the Republic of Azerbaijan. 2022. Transport in Azerbaijan Statistical Yearbook. https://stat.gov.az/menu/6/statistical_yearbooks/?lang=en. 39) Euractiv. January 2021. The Nakhchivan corridor will boost connectivity in the Caucasus. https://www.euractiv.com/section/azerbaijan/opinion/the-nakhchivan-corridor-will-boost-connectivity-in-caucasus/. 40) Economic Zones Development Agency. Logistics. http://economiczones.gov.az/en/ustunlukler/logistik-imkanlar. 41) The State Statistical Committee of the Republic of Azerbaijan. 2023. Average monthly nominal wages and salaries by Statistical Classification of Economic Activities. https://www.stat.gov.az/source/labour/en/004_2-3en.xls. 42) European Bank of Reconstruction and Development. March, 2019. Azerbaijan Diagnostic. https://www.ebrd.com/documents/strategy-and-policy-coordination/azerbaijan-diagnostic.pdf.