Comparing Project Promotion Procedures Between KOICA and EDCF···········212 Contents l List of Figures Chapter 1 [Figure 1-1] Connectivity with Trade Routes and Hubs························································031 [Figure 1-2] Trade Routes between Europe, Asia, and Potential Markets···························032 [Figure 1-3] Layout of the New Port of Baku········································································033 [Figure 1-4] Alat Free Economic Zone Value Proposition·····················································034 [Figure 1-5] Layout of New Port of Baku···············································································037 [Figure 1-6] View of Each Terminal························································································037 [Figure 1-7] Mobile Harbor Crane·························································································038 [Figure 1-8] Organization Chart·····························································································041 [Figure 1-9] Countries Near the Caspian Sea········································································045 [Figure 1-10] Cargo Handling Trends of Baku Ports·······························································049 [Figure 1-11] Cargo Handling Trends by Transportation Mode·············································050 [Figure 1-12] Sending Rate in 2019·························································································051 [Figure 1-13] Receiving Rate in 2019·······················································································053 [Figure 1-14] Origin-Destination Trading in 2019 (from USA to Other Countries)···············054 [Figure 1-15] Origin-Destination Trading in 2019 (from Georgia to Other Countries)·········055 [Figure 1-16] Origin-Destination Trading in 2019 (from Azerbaijan to Other Countries)··········056 [Figure 1-17] Origin-Destination Trading in 2019 (from Turkey to Other Countries)···········057 [Figure 1-18] Origin-Destination Trading in 2019 (from Turkmenistan to Other Countries) ����������058 [Figure 1-19] Origin-Destination Trading in 2019 (from Kazakhstan to Other Countries) ���������059 [Figure 1-20] Origin-Destination Trading in 2019 (from Tajikistan to Other Countries)·········060 [Figure 1-21] Origin-Destination Trading in 2019 (from Uzbekistan to Other Countries)··········061 [Figure 1-22] Wagon Capturing Process·················································································068 [Figure 1-23] General Cargo Discharging Process (Process-based)······································069 [Figure 1-24] Container Discharging Operation·····································································070 [Figure 1-25] General Cargo Discharging Process (Entity-based)·········································071 [Figure 1-26] General Cargo Loading Process (Process-based)·············································072 [Figure 1-27] General Cargo Loading Process (Entity-based)················································073 [Figure 1-28] Discharging Operation in the Ro-Ro Terminal (Example)································074 [Figure 1-29] Discharging Process in RoRo Terminals in the PoB (Process-basd)················075 [Figure 1-30] Bill of Lading and the Discharge Manifest························································075 [Figure 1-31] Discharging Process in the RoRo Terminals in the PoB (Entity-based)···········076 [Figure 1-32] Loading Process in RoRo Terminals in the PoB (Process-based)·····················076 Contents l List of Figures
[Figure 1-33] Loading Manifest and the Loading List····························································077 [Figure 1-34] Loading Process in RoRo Terminals in the PoB (Entity-based)························077 [Figure 1-35] Discharging Process in the Ferry Terminals in the PoB (Process-based)········078 [Figure 1-36] Discharging Process in the Ferry Terminals in the PoB (Entity-based)···········079 [Figure 1-37] Wagon Invoice Example····················································································079 [Figure 1-38] Loading Process in the Ferry Terminals in the PoB (Process-based)··············080 [Figure 1-39] Loading Process in the Ferry Terminals in the PoB (Entity-based)··················081 [Figure 1-40] Changes of Container Cargo Volume in the Busan Port··································085 [Figure 1-41] Development Goals of BPA-NET········································································086 [Figure 1-42] BPA-NET System Configuration·········································································088
Chapter 2 [Figure 2-1] Process Review and Comparison Flow······························································100 [Figure 2-2] Portal Crane········································································································115 [Figure 2-3] Photo of Our Bulk Salt Operation······································································119 [Figure 2-4] A Full Terminal Operating System·····································································126 [Figure 2-5] Current Terminal Operating System of Port of Baku·······································128 [Figure 2-6] Port of Busan Infrastructure and Network·······················································130 [Figure 2-7] Ship Loading/Unloading Operation··································································132 [Figure 2-8] Standard Systems in Korea················································································134 [Figure 2-9] Port Equipment··································································································135 [Figure 2-10] Operation Flow and the Improvement Priority of the Port of Baku················136 [Figure 2-11] A Full Terminal Operating System·····································································139
Chapter 3 [Figure 3-1] Korean TOS System Structure············································································188 [Figure 3-2] Diagram of Korean TOS Function······································································188 [Figure 3-3] Workflow of Korean TOS Function····································································189 [Figure 3-4] Korean TOS Key Function—Cross-Browser·······················································189 [Figure 3-5] Korean TOS Key Function—Multi-language·····················································190 [Figure 3-6] Korean TOS Key Function—GUI········································································190 [Figure 3-7] Korean TOS Key Function—Resource Plan·······················································191 [Figure 3-8] Korean TOS Key Function—Warehouse / Yard plan·········································191 [Figure 3-9] Korean TOS Key Function—Holds Placed by Customs / Agent························192 [Figure 3-10] Korean TOS Key Function—Vessel Monitoring················································192 [Figure 3-11] Korean TOS Key Function—Terminal Monitoring············································193 [Figure 3-12] Korean TOS Key Function—Billing advice·························································193 [Figure 3-13] Korean TOS Key Function—Collecting Output Data········································194 [Figure 3-14] Korean TOS Key Function—HHT········································································194 [Figure 3-15] Korean TOS Key Function—Weighbridge·························································195 [Figure 3-16] Figure of PCS······································································································196 [Figure 3-17] VCS System Specification···················································································197 [Figure 3-18] MSS System Specification··················································································198 [Figure 3-19] CMS System Specification··················································································199 [Figure 3-20] BPA-NET Diagram·······························································································201 [Figure 3-21] Service Diagram of BPA-NET··············································································202 [Figure 3-22] Workflow of BPA-NET·························································································202 [Figure 3-23] Structure of To-Be system for the Port of Baku················································205 [Figure 3-24] The Three-stage Implementation Strategy for Automating the Port of Baku·····206 [Figure 3-25] The Three-stage Roadmap for Automating the Port of Baku··························206 [Figure 3-26] Outline of the EDCF····························································································212 2019/20 KSP with Azerbaijan
Gahyun Kim (Korea Maritime Institute) 2019/2020 KSP with Azerbaijan
Gahyun Kim (Korea Maritime Institute)
1. Background of the project
In December 2016, Azerbaijan adopted and is still pushing the “Strategic roadmap for the development of trade and logistics” as a national strategy to move the country away from its high dependence on the oil industry and grow into a logistics hub in the Eurasia region. 015
To develop the Baku New Port, which began development in 2011 and has been operating 2019/2020 KSP with Azerbaijan since 2019, as a logistics hub in the Eurasia region, Azerbaijan is striving to activate the port by improving operational efficiency through the informatization of port, improvement of the fare collection system, and development of a railroad-port-ships-combined transportation system.
However, in October 2017, the Baku Port Authority of Azerbaijan submitted a demand survey for the 2019/20 Knowledge Sharing Program (KSP) through an official diplomatic channel for a feasibility study on modernizing Baku Port’s operations to solve the usability problems caused by the lack of experience in modernized port operations and information infrastructure.
The Korea Development Institute (KDI), which was entrusted with the KSP project from the Ministry of Economy and Finance, conducted a prior consultation with the Baku Port Authority in May 2019 to discuss the topics in detail. In December 2019, KDI selected the Korea Maritime Institute (KMI) consortium as the project executing agency through the announcement and evaluation of the re-consignment project selection and KMI proceeded with this project. Project planning planning Project This project is planned to effectively carry out tasks by establishing a cooperative establishing a cooperative This project is planned to effectively carry out tasks by 2.3. Project execution overview execution 2.3. Project 2.2. Project planning planning 2.2. Project three topics. First, the current status of the Baku This project is largely composed of 2.1. Project purpose purpose 2.1. Project of the Baku of the operations project is to review the modernization The purpose of the thisSpecifically, project aims to discover and select the area requiring port automation
network between the following groups: (1) the Azerbaijan Government, its partner country, partner country, network between the following groups: (1) the Azerbaijan Government, its execution agency and KDI; (2) the project management agency and KMI; and (3) the project New port operation was surveyed, analyzed, and used as data to diagnose the level of and used as data to diagnose the level of was surveyed, analyzed, New port operation automation port the while developing experience Korea’s on Second, based modernization. in the Baku New Port should be promoted was system, the area where port automation promoting the automation of the Baku New Port is selected. Last, a policy direction for particular, as detailed policy directions for In suggested through establishing strategies. the Baku New Port, it proposes priority areas related promoting the automation project of automation promotion plans, and strategies, to port automation, phased development was Workshop a financial support plan. In addition to these studies, an Expert Training policy Korea.staffplanned Itby infor was a the replaced webinar Azerbaijani government’s Industrial Revolution, smart ports, and Its topics included the Fourth due to COVID-19. demonstrations of the port management system developed in Korea—reflecting the interest of partner countries in informatization. New Port in Azerbaijan, to share Korea’s experience and knowledge on port operations, and knowledge on port operations, experience to share Korea’s New Port in Azerbaijan, to improve port infrastructure (IT) and Information Technology information systems, to provide advice on related policies. efficiency and operational (informatization), present phased strategies and predict the required time and cost based analyzing by in Korea (TOS) System Operation on the experience of establishing a Terminal the current status and level of automation in the Baku Port. the Accordingly, final report of automating the Baku Port. Moreover, the purpose is to this project can serve as a guide for and expand economic emerging markets companies to enter gain momentum for Korean on the project result. finding out the following project based by cooperation 2. 016 Feasibility Study on Automation of Business Processes in the Port of Baku and the Total Soft Bank (TSB).
The project was scheduled to be carried out for eight months after its launch, but due to the cancellation of the mission in Azerbaijan and the difficulty in communicating with local officials due to COVID-19, the planned schedules were delayed. Accordingly, it will take 10 months (extended by two months) to complete the project.
In the initiation phase, the policy demand and the scope of tasks were determined through a kick-off meeting and factual survey, and necessary data were obtained through discussions with the Baku Port Authority. In the phase for the policy advisory, we sought to improve the performance of the policy advisory by consulting with domestic and foreign experts and utilizing local networks.
At the phase of capacity building and networking, Korea’s experience in the Fourth Industrial Revolution, smart ports, and Korea’s port management system were introduced to those working on the Azerbaijan port-related policy via a webinar. It aimed to strengthen the capabilities of the partner country, provide opportunities for domestic private companies to 017 advance in the overseas market, and to establish a network between Korea and Azerbaijan 2019/2020 KSP with Azerbaijan in the port sector.
Finally, at the project completion phase, the Azerbaijan Government and the Baku Port Authority, which are the project partners, evaluated and reviewed the report pursuant to the deliberative process so that a high-quality and reliable report could be presented.
Sub-topics Researchers Local Consultants
Chan-ho Kim, Ga-hyun Kim, Sung-a Kim, Kuhdayar Hasanli (Head of Strategy Review of the Port of Baku Sung-ki Kim, Jungyong Seo, Sanghee-Choi, and Development Department, Baku Seo-yoen Oh. (Korea Maritime Institute) Port Authority)
Seung-ho Jung (SM Line Gyeong-In Port Automation and Feasibility Hidayat Hamidov (Executive Terminal) Analysis for Port of Baku Director, CAT Azerbaijan LLC) Sang-yeol Kim (Pusan National University)
Establishment of Automation Tural Aliyev Junghwan Choi (TSB) Strategy of Port of Baku (Policy Advisor, Baku Port Authority)
• Senior Advisor: : Manhee Han (Former Vice Minister for Ministry of Land, Infrastructure and Transport) • Project Manager: Sanghoon AHN, Executive Director, Center for International Development (CID), KDI • Principal Investigator: : Chanho Kim (Director of Port & Logistics Research Davison, Korea Maritime Institute) Main activities Main 3.2. Kickoff Seminar and Factual Survey (December 14–19, 2019) Survey 3.2. Kickoff Seminar and Factual The official kickoff seminar, the identification of the specific demands for the research directions and topics, methods, the explained and discussed seminar The kickoff for software construction a strategy research team suggested the Korean Accordingly, 3.1. Kickoff Meeting (December 6, 2019) (December 6, Meeting 3.1. Kickoff To introduce the 2019/20 Azerbaijan KSP project, research content, plans, etc., a kickoff KDI described the KSP roles of each research team were introduced. At the meeting, the
topic, the factual survey through interviews with related organizations, and recruitment with related organizations, and recruitment topic, the factual survey through interviews topic were conducted. interviews of local experts by local policy demands could be whereby of research with local officials in Azerbaijan, identified and concreted. Moreover, it was confirmed that the PCS (Port Community System) revealed at the time of the prior consultation that took construction project, which was not place in May 2019, was in progress and is currently being tested. Furthermore, officialsof the informatization is currently being made said that about 50% of the Baku Port Authority they However, project. this through 90% to level the increase to plans it and PCS, through added that it is difficult to collect data from related agencies railroad (ships, offices, customs, the etc.) port through automation the capability current is PCS. insufficient,Consequently, so it is necessary to consult about appropriate software applications. including the cost and time required to build an information system for port automation the after Korea Busan, in system information operation port the of case the on based that the system at Baku New Port. It was explained diagnosis of the existing operation research would be conducted with the aim of inviting officers (such as those from the Baku New Port) to share Korea’s experience in efficient port operations. Moreover, we discussed meeting was held under the presidency of KDI with the attendance of senior advisor Man- advisor senior of attendance the with KDI of presidency the under held was meeting participants. hee Han and project major each for details task and plan promotion project the explained KMI Moreover, project. detailed the on provided were consultations Also, formulation. budget the and stage project and on the specific survey seminar held in mid-December schedule related to the kickoff main the list of data for collection during the survey, content. Discussions also focused on the local institutions, etc. contents to be discussed when visiting 3. 018 Feasibility Study on Automation of Business Processes in the Port of Baku mutually necessary matters and plans for future research through a question and answer session.
While visiting the Baku New Port following the kick-off seminar, the current Baku Port’s operation status, equipment, and manpower were discussed, related data were collected, and problems and requests were surveyed at the site. Three local experts were also hired through recruitment interviews to secure the reliability of this project-related data and research content, and the role of each local expert is as follows.
Role of Local Consultant Local Consultant
Collecting basic data on the Baku Port, communication Kuhdayar Hasanli (Head of Strategy and Development between Azerbaijan and Korea Department, Baku Port Authority) Establish promotion strategy, investment attraction, and Tural Aliyev (Policy Advisor, Baku Port Authority) financial security plan Collecting and sharing data about the logistics processes Hidayat Hamidov (Executive Director, CAT Azerbaijan of the Caspian coastal countries and the Baku New Port LLC) and the logistics information on neighboring countries
019 3.3. Evaluation Meeting for Project Plan (January 9, 2020) 2019/2020 KSP with Azerbaijan
The evaluation meeting for the project plan was held with the presence of the senior advisor (Han Man-hee), four advisory evaluation committee members for each subject, researchers, and KDI officials to evaluate the project plan by topic. At the evaluation meeting, discussions focused on the content and scope of research for each subject and the direction and appropriateness of the research. Looking at the content of the discussion by topic, during Topic 1, according to the opinion of the evaluation advisory committee, the level of informatization of ports in countries near the Caspian Sea should be compared and analyzed within the scope of the study. It is also necessary to conduct surveys on what needs to be standardized to establish a cooperation system with neighboring ports, identify a shipping company using the Baku Port, and check the ability to connect to the information system for each ship.
Specifically, the research team is expected to have much difficulty in determining the level of informatization of the ports in countries near the Caspian Sea, and it is suggested that local experts should only include the content they can confirm. Regarding Topic 2, the advisory committee evaluated that it was necessary to clearly distinguish between the clear purpose of the PCS and the level of automation (connectivity, degree of delay, service, etc.). Therefore, the research team responded that the port automation required by the Baku Port Authority does not mean the automation of equipment but requires the automation Unsu Kim (Topic 3) Unsu Kim (Topic Eonkyung Lee (Topic 2) Eonkyung Lee (Topic Donggeun Ryu (Topic 3) (Topic Donggeun Ryu Hwayoung Kim (Topic 1) Kim (Topic Hwayoung Evaluation Advisory Committee Evaluation Advisory Professor, Korea Maritime University Maritime Professor, Korea Korea Maritime Institute, Director of Smart Port Research Division Maritime Institute, Korea Director of Transportation Logistics Research Division, Incheon Research Institute Director of Transportation Professor of Department of Maritime Transportation, Mokpo National Maritime University Professor of Department of Maritime Transportation, 3 1 2 3 3.4. Seminar and Factual Survey (February 8–16, 2020) 3.4. Seminar and Factual Survey Seminars and factual surveys were conducted for site investigation and identification of there were discussions about the level of Authority, In the workshop with the Baku Port includes Authority Port the Baku by solution proposed the informatization particular, In Namely, we suggested a phased strategy for the Baku Port Authority to resolve the the resolve to Authority Port Baku the for strategy phased a suggested we Namely, Sub-topics local demand regarding this project. solutions required in the future among the content of the future development plan of the included a smart sensor, the Baku Port Authority Solutions proposed by Baku Port Authority. smart cargo handling, a transport vehicle, equipment management and control, etc. The current PCS was also discussed. Fourth the from technology the using system information operation port a establishing in differences Industrial Revolution, such as artificial intelligence, so there were many The the Baku Port Authority. the level of the informatization system currently owned by the research team (TSB) helped the Baku Port Authority by TOS of the Korean demonstration The Azerbaijani Customs is operating its own system, like the Railway Authority, and discussed the possibility of linking the PCS system of the Baku New Port. Regarding the advance cargo reporting system, it is mandatory for both railroads and ships to report at least one hour in advance. However, although railroads provide notifications one hour in advance of their arrival, ships—despite the duty to report at least one hour in advance— share cargo information with customs immediately after arrival. Therefore, it emphasized that the success of the PCS depends on the cooperation of shipping companies. There is currently no specific discussion regarding information exchange and observation with the Caspian coastal countries.
For the field survey of the Alat New Port, we visited the ferry, Ro-Ro, and the general cargo terminals. First, in the railroad-port shunting yard, cargo and wagon arrival 021 information (weight, number of wagons, etc.) using the railroad are confirmed through 2019/2020 KSP with Azerbaijan CCTV, but the cargo weight information was manually entered into the information window and entered into the Port Authority’s PCS system. At the ferry wharf, the ship and cargo information from the shipping company was not automatically transferred through the pre-arrival notification process. Instead, written data was received from the captain after the arrival and was handed over to the Port Authority after the customs inspection. Consequently, it was found that the unloading work started after the arrival report was made (about 30 minutes to one hour before arrival). At the Ro-Ro and general cargo docks, the current unloading process could be confirmed. Normally, it took one to two days for the ferry pier, 10 to 11 hours for the Ro-Ro pier, and two hours for the general pier to unload cargo at the port. Subsequent interviews with the person in charge of informatization were conducted to compare the functions of the existing PCS operating system and the functions that should be provided in the future. After the field survey and the meeting with related organizations, the mission was ended by reviewing the results of the survey with the Baku Port Authority and determining matters for future discussion and the next plans.
3.5. Interim Reporting and Evaluation Meeting (June 11, 2020)
Due to the unexpected COVID-19 pandemic, the interim reporting and evaluation meeting was replaced with a written report (June 4, 2020). As local officials were unable to enter Korea, the interim reporting was also replaced with a video conference. Discussions 3.6. Training workshop for policy staff (October 6, 2020) workshop for policy staff 3.6. Training who workshop was scheduled to be conducted for Azerbaijani officials The training In the interim reporting, the analysis based on the fact-finding survey and data data and survey fact-finding the on based analysis the reporting, interim the In intensively Baku Port Authority of the current situation, the Based on the understating based on was presented 2, the level of automation introduction In the detailed Topic would visit Korea during a period when it was possible to move between Korea and and between Korea move possible to it was when during a period Korea visit would with a partner country were conducted to postpone the training session for the policy staff. session for the training conducted to postpone country were with a partner were future results and the predicted New Port was explained related to the Baku collection about Azerbaijan in officials local of opinions the to listened we Moreover, introduced. Topic detailed the First, plan. response the reviewed and presentation the of content the 1 explained the Baku Port operation status (facilities, equipment, rates, etc.), volume and cargo, process by terminal, information exchange productivity by terminal point analysis, information exchange between stakeholders. and agreements on solution, etc.), which is necessary construction (appropriate software, reviewed the system the emphasized Authority Port the Baku particular, In budget. the and automation for is fully explained in which Port Authority, establishment part of the Baku future strategy that a clear and unified definition and matching 3. It was determined 2 and Topic Topic the Baku Port development” previously delivered by work between the part of the “Future content covered in this study is necessary. to the research team and the related Authority emphasized the link between the future and final report The final report preparation contents covered in this study. and the development of the Baku Port Authority the analysis of the current status of the Baku Port, such as the equipment, data exchange, it was emphasized that costs. Accordingly, process, information system, and labor operation and preceded, be must interchange) data electronic (e.g., services online of introduction the then, the operation procedure and equipment introduction must be considered. However, during the first and second missions in Azerbaijan, the Baku PortAuthority did not provide services and the status of promotion. Therefore, it information on the introduction of online the Baku by was decided that detailed information on the introduction of the online services Port Officewould be reflected thein final report. In detailedthe Topic 3, roadmapthe for In particular, terminal automation at the Baku Port was prepared over a total of three times. but Port, Baku the of plan future and priority the on focusing prepared, was roadmap a the Baku Port Authority pointed out that it was not sufficientlyvetted and thus agreedto conduct local review and feedback. 022 Feasibility Study on Automation of Business Processes in the Port of Baku Azerbaijan, examining the spread of COVID-19. The originally planned training program included visiting the Busan Port Authority, Busan New Port, and the TSB to introduce the current status of port operations in Korea. TSB is in charge of Topic 2 and Topic 3 of this project; as a specialized company in the software solutions (S/W) for port logistics, it has the second-largest market share in the TOS and the largest market share in the solution service for shipping companies. The training workshop was planned to explain the port operation system that can be introduced in the Baku New Port in Azerbaijan.
In particular, when visiting the TSB, a business briefing session was planned to be held to establish domestic and local networks and continuously promote tasks for carrying out continuous tasks associated with a follow-up project. Through this, a Private-Public Partnership (PPP) between the two countries would be established for promoting the following project. However, since last August, as the number of confirmed cases of COVID-19 in Korea has increased rapidly and local officials in Azerbaijan have become unable to enter Korea, the training workshop for policy staff have been replaced by webinars. Its topics included the Fourth Industrial Revolution, smart ports, and demonstrations of the port management system developed in Korea—reflecting the demand of the partner country. 023 2019/2020 KSP with Azerbaijan
3.7. Final Reporting Workshop and High–level Policy Dialogue (October 7, 2020)
The content of the research by subject to be presented at the final reporting workshop was finally confirmed through an anonymous review. The final reporting workshop and high-level policy dialogue were also replaced by video conferences due to COVID-19. The final report is modified and revised according to the review by anonymous reviewers of the draft version written in July 2020. At the final reporting session, the opinions on the final report shared with the partner countries will be heard beforehand, and the plans for continuous cooperation between the two countries will be discussed through a high-level policy dialogue via video conference.
3.8. Wrap-up Meeting (October 2020)
The warp up meeting was planned to review the final report reflecting the result of the final reporting workshop and review opinions. At the meeting, we plan to share opinions on the overall project with the final report and to discuss how to use the project results in the future and publish the report. Executive Summary
Chanho Kim (Korea Maritime Institute) Executive Summary
Chanho Kim (Korea Maritime Institute)
The government of Azerbaijan, a landlocked country bounded by the Caspian Sea, adopted the “Strategic Roadmap for Trade and Logistics Development” (December, 2016) to escape its high dependence on the oil industry and grow into a logistics hub in the Eurasia region. This project was promoted by the government’s application for a knowledge sharing program (KSP) from the Korean government (2018) to solve the problem of the declining usability and convenience of users caused by the lack of experience in the port operations 025 and an inadequate information technology (IT) infrastructure, such as the Terminal Executive Summary Operating System. The purpose of the project is to review the possibility of modernizing port operations and to establish the basis for improving port operational efficiency through various operational information systems and an IT infrastructure. The study was conducted by setting three sub-themes, such as reviewing the level of port automation, the possibility of implementation, and establishing a port automation strategy.
In Chapter 1, as the first step in establishing the automation strategy for Baku Port, we conducted a survey that included the current status of the port facilities and equipment in the Baku Port, cargo handling performance and origin-destination analysis, and cargo handling process and productivity analysis. Through the fact-finding survey, the overall cargo handling process was confirmed, including subjects and information delivery types of which the Baku Port Authority was unaware.
As a result of the analysis, several sub-processes of the general cargo terminal, ro- ro terminal, and ferry terminal can be digitized and automated through Electronic Data Exchange and information-sharing platform, but the manual work and data/information exchange format increases working time, which negatively affects port productivity. An overall system re-engineering was necessary.
Based on the analysis results, we proposed digitalizing the platform of the current In Chapter 2, the equipment and operation process, information exchange process, and for the Baku Port, based on Korea’s strategy In Chapter 3, to establish a port automation collects cargo weight information through the Third, the current Baku Port automatically system. This enables real-time data and information sharing, eliminating bottlenecks in in eliminating bottlenecks sharing, data and information enables real-time system. This and improving or cargo, resources and visibility of increasing traceability specific tasks, the quality of decision-making related to resource operation. This will play a key role in connects multiple ports as well as network because it systematically improving the logistics of a specific port. stakeholders the Baku Port and the Busan were compared and analyzed between information system the possibility of promoting the port the level of port automation and New Port to analyze on an efficient change and effect Baku Port; this examination focused automation in the Data Interchange) and the introduction of an EDI (Electronic through analysis in operation a partial system. It was proposed to establish a specific mid- to long-term marketing plan stage and introduction. internally to set the direction for the automation we reviewed the system (TOS), terminal operation experience in establishing an automated improvement field and the three-step strategy of the Baku Port. There are threekey areas of the data on all cargo handling can be computerized to improvement for the Baku Port. First, Second, after the operation. for major decision-making in the terminal secure the data asked there so site, the at inspected and checked, received, is information cargo the arrives, ship the at arrives cargo or ship the before objection, improve To handling. cargo in delay a is information about the arrival of the ship or receives port, the Port of Baku (PoB) Authority cargo rail and the cargo itself so that the terminal personnel and equipment are prepared in quickly. advance and the cargo can be processed but the part that is combined with wagons and trucks, by weighbridge for cargo transported in cargo handling. Therefore, causing a delay the cargo number (wagon id) is done manually, weighbridge is established. a 100% computerization of cargo information processed by goal the achieve to proposed was strategy three-step a improvements, above the on Based of port automation in Baku Port. In the first stage, a terminal operatingsystem (TOS) with stage, the functions second the in and network, the integrate to introduced is basic functions are reinforced. Moreover, after supplementing the (TOS) System Operating of the Terminal automation equipment in step 3, we proposed rebuilding the business process accordingly. 026 Feasibility Study on Automation of Business Processes in the Port of Baku
01 CHAPTER
Review of the Port of Baku
Chan-ho Kim, Ga-hyun Kim, Sung-a Kim, Sung-ki Kim, Jungyong Seo, Sanghee-Choi, Seo-yoen Oh (Korea Maritime Institute) Kuhdayar Hasanli (Port of Baku)
1. Introduction 2. Status of Partner Country 3. Experience of Korea 4. Conclusion and Implication
Keywords Port of Baku, Cargo Handling Process, Port Modernization, Port Operation, Process In- formatization Review of the Port of Baku
Chan-ho Kim, Ga-hyun Kim, Sung-a Kim, Sung-ki Kim, Jungyong Seo, Sanghee-Choi, Seo-yoen Oh (Korea Maritime Institute) Kuhdayar Hasanli (Port of Baku)
Summary
Azerbaijan, which is located in the Middle East and the Commonwealth of Independent States (CIS) region, established and promoted the “National Economy and Macroeconomic Development Strategy Roadmap” in 2016 to move away from its high economic dependence on the oil industry. Specifically, the Government had started constructing the New Port of 029
Baku, a main facility that is intended to become a logistics hub, and the New Port (Alat New CHAPTER Port) was opened in early 2019. The development of the New Port of Baku consisted of two 01
phases. The first phase included the construction of two ferry berths, two Ro-Ro berths, Review of the Port Baku seven general cargo berths, and one service berth. Although the schedule for the second phase development is not decided yet, five additional container berths capable of handling 10 million tons will be constructed during the second phase.
Despite the construction and operation of the new port, the limited previous experience of the port operations and the lack of IT infrastructure have caused usability problems. Although the cargo volume increased in 2019 (4.06 million tons) compared to 2015 (3.30 million tons), the steady growth has undercut and appeared in an irregular pattern each year. Therefore, the Port of Baku (PoB) Authority seeks solutions to these kinds of problems through the KSP and expects to increase the total cargo volume, including transshipment cargo volume through informatization.
For example, regarding the process of general cargo vessel discharging operations in the PoB, the operations indeed are prepared before a cargo vessel arrives. First, the sales and marketing department in the port (SMD) emails the information on the coming vessel to several teams and departments, including the Operations Department and the Marine Services Department. An agent in the PoB signs and sends a permission letter for the planned discharging operations to the customs headquarters. Then, the SMD drafts a letter When the vessel berths, a port agent commissions a team for customs, border, and team for customs, border, and a port agent commissions a When the vessel berths, seal each wagon with cargo. An agent the customs and sender During the operations, flow includes limited information on loading andIn terms of a logistics process, the cargo provided Nevertheless, valuable data and information are available from the documents To reduce theinefficiency, PoB launched its own port operation program, called PCS, in to be sent to an agent of the Azerbaijan Railways to request wagons for serving the vessel. A at Alat as the wagons arrive are performed inspections and commercial series of mechanical the port. wagons move to and the empty station, railway the following from the vessel: bill of the vessel. The agent also receives sanitary services to The agent passes the copies of the cargo plan, and invoice documents. lading (BL), manifest, firstthree documents to a warehouse officer,and customsa officer receives necessary the all the information in their system vessel. The customs officer seals documents from the on a document basis, especially assigning a barcode to each BL. The customs headquarters port starts discharging operations the created barcodes, and then, the electronically approve for the vessel. at the Alat Railway station periodically dispatches wagons to the shunting yard on request. that Act the following three documents: the General Moreover, a warehouse assistant issues loading of list a and shift, end of each the at invoice sturman a cargo, discharged indicates sends to the wagons. A port-assigned broker performed directly from the vessel operations each invoices for railway which prepare list document to the railways, the loading operation bills to the railway takes the broker are completed, wagon. After all discharging operations Customs Head Office in Baku for declaration. The customs declare and approve the transit and close their management system. PoB, and therefore, it is challenging cargo terminals in the in general discharging operations for no dictionary has a description for instance, to identify the processes thoroughly; “sturman”. Also, there is no processing time required for the study in identifying the main in the PoB. of the current terminal operations drawbacks including an overview of the cargo-handling processes in the different the authority, by the discharging working with the PoB. Notably, terminals and the various stakeholders cargo terminals are especially well explained. Besides, the PoB in the general operations In study. the by improved and automated be can that work the and processes such marks from targets as improvement be chosen would processes operation potential words, other the marks. 030 Feasibility Study on Automation of Business Processes in the Port of Baku November 2019, and the program is now being tested. In addition to establishing an internal operating system of PoB for informatization, it is essential to integrate the existing systems that involve the stakeholders in Azerbaijan and the CIS region. The PoB works with many stakeholders, such as the Azerbaijan Railways (ADY), the customs offices, and nearby ports (Turkmenbashi and Aktau), and such works require data exchange during cargo transit operation. The PoB is now negotiating with the Customs and ADY for data interchange
1. Introduction
Azerbaijan, located in the Middle East and the CIS region, established and promoted the “National Economy and Macroeconomic Development Strategy Roadmap” in 2016 to reorient its economy away from its dependence on the oil industry. Under the strategy roadmap, the logistics industry was selected as an alternative industry to promote the national economy. The reason for choosing the logistics industry as a key industry lies in the geographical location of Azerbaijan. 031
[Figure 1-1] Connectivity with Trade Routes and Hubs CHAPTER 01 Review of the Port Baku
Source: Port of Baku, 2020.
Geographically, Azerbaijan is located on the right side of the Caspian Sea and bounded by Georgia, Armenia, Iran, and Turkey. Especially, bordering Turkey, Azerbaijan is a kind of land bridge between Asia and Europe. Also, Azerbaijan is a member of the Transport - - (3) transportation (3) transportation 1 2 ound the Port of Baku, and its possible extension is based on the population, which is over 130 130 is based on the population, which is over ound the Port of Baku, and its possible extension Port of Baku, 2020. Therefore, to ignite the plan, the Azerbaijan government has invested in logistics government has invested in logistics Therefore, to ignite the plan, the Azerbaijan Based on the understanding of geographical strength, Azerbaijan believes that there believes that there Azerbaijan strength, geographical of understanding the on Based million people who live within 1,000 km in the 10 countries. counting for more than 2% of the goods traded between the EU and China, has quadrupled since 2007. The value of goods trans than 2% of the goods traded counting for more was 200,000 China to Europe from rail $ 22.9bln in 2016 to $ 76.5bln in 2020. The number of TEU by from increased rail ported by in 2018. per year was 6,000 trains TEUs in 2017, and the number of trains T Huge B2C market was formed ar
facilities, such as railways, roads, and ports. Given Azerbaijan’s favorable geographical geographical favorable roads, and ports. Given Azerbaijan’s facilities, such as railways, to used corridors transport international main the region, Caucasus the in location priority the Among routes. North-South and East-West the are potential transit strengthen AH-5, and M-2 onprojects for Azerbaijan, the following are exceptionally important: (1) E-60, Network; (2) the state border with the Transport route of the Trans-European the TRACECA (60,002), AH-8 Republic of Baku-Alat-Gazakh-Georgia; and (3) E-119 on the North-South route of Completion Federation. Baku-Russian the with roads state border on the and M-1 (5.81), as a whole is also an important issue. In the near future, these highways the work to upgrade to complete the construction of the remaining sections of these measures will be taken 1 betweentheEUandChina,ac transportation volumeofrail thepast10years.Trade 87%over by ingoodshasincreased rade 2 Source: Source: [Figure 1-2] Trade Routes between Europe, Asia, and Potential Markets Asia, and Potential Routes between Europe, 1-2] Trade [Figure Corridor Europe-Caucasus-Asia (TRACECA) Initiative, involving the European Union and and Union European the involving Initiative, (TRACECA) Europe-Caucasus-Asia Corridor Asian regions. Central Caucasian, and Eastern European, countries of the 12 member One Road Initiative One Belt and China’s in the main route for Azerbaijan is Furthermore, Europe- of expansion the (1) logistics: potential of terms in demands market many are trade; (2) future increases in the EU-China routes; Asia overland trade time and cost competitiveness of railways against shipping for medium-value goods (e.g., goods (e.g., medium-value shipping for against competitiveness of railways cost and time potential. car parts); and (4) its own market electronic devices and 032 Feasibility Study on Automation of Business Processes in the Port of Baku routes in accordance with world standards, including M-1 (60 km, Russian border-Gandob) and M-2 (130 km, Ganja-Georgian border).
Specifically, the government had started construction on the New Baku Port as a key logistics hub in the CIS region to replace the old port near downtown in 2016. As a result of the construction, the new port was finally opened in early 2019.
The development of the New Port of Baku consisted of two phases. The first phase of development, opened in the early of 2019, included two ferry berths, two Ro-Ro berths, seven general cargo berths, and one service berth. With these facilities, the total handling capacity reached 15 million tons, including 100,000 TEUs. The total development cost was 1 billion dollars, which was invested by the central government of Azerbaijan.
The time schedule for the second phase of development is still pending, but five additional container berths capable of handling 10 million tons will be constructed. When the second phase of the development is finished, the New Port of Baku will bring the total handling capacity to 25 million tons, including 500,000 TEUs with 17 berths. 033 CHAPTER [Figure 1-3] Layout of the New Port of Baku
The 1st Phase The 2nd Phase 01 Review of the Port Baku
Source: Port of Baku, 2020.
Moreover, the Port of Baku (PoB) Authority is planning to develop a free economic zone (“Alat Free Economic Zone (FEZ)”) in the Alat area. To promote it, the Port of Baku Authority will provide four incentive schemes, such as tax exemptions, customs duties exemptions, a one-stop-shop, and the establishment of a separate arbitration center. and center All civil disputes commercial Separate arbitration Separate Visas Taxes Labor Customs Company registration concerning ------most questions One stop shop for Economic efficiency Favoravle geograghy Favoravle Alat Free Trade Zone Trade Alat Free the zone the zone Import to Export from ------Customs duties Exemptions from (130M inhabitants in a radius of 1000Km from Baku) (130M inhabitants in a radius One of the cheapest and most efficient labor in the region One of the cheapest and most efficient labor in Logistics hub on a cross-road of China - Europe and North - South flows Logistics hub on a cross-road of China - Europe The most competitive economy of the region (Global competitiveness Index) The most competitive economy Existing countries near Azerbaijan are big economies with large import flows Existing countries near Azerbaijan are big economies VAT taxes income Dividend payments Employee Corporate net income ------Exemptions from
Port of Baku, 2020.
Fundamentals Zone incentives Zone of experience previous limited port, new the of operation and construction the Despite mentioned above, the aims of this study are as follows: (1) review Under the background the port operations and a lack of IT infrastructure, such as operational information systems, as operational such and a lack of IT infrastructure, the port operations example, the cargo passing from Georgia to Azerbaijan via caused usability problems. For truck or train takes about 30 minutes for customs clearance, but in the case of the port, it due to the absence of an information system. Therefore, the PoB about two hours takes Authority applied for the KSP program in 2018 to find solutions to these sorts of problems from 50% to 90%. and to increase its automation rate analyze Port of Baku; (2) system level and automation possibilities of the operating the suggest a port the port necessity and possibility of a port in Baku; and (3) establish and for the port of Baku. automation strategy Source: Source: [Figure 1-4] Alat Free Economic Zone Value Proposition Value Economic Zone Alat Free 1-4] [Figure 034 Feasibility Study on Automation of Business Processes in the Port of Baku 2. Status of Partner Country
2.1. Azerbaijan Policy: Overview and Highlights
Azerbaijan is an oil-rich country, and its economy has been highly dependent on oil. The oil and gas industry accounted for approximately 90% of exports and 65% of the Gross Domestic Product (GDP). Although the country’s annual growth rate stood at 16.4% on average by 2014, it faced an economic crisis by recording a 3.8% decline in the GDP since 2016 due to a reduced trade surplus, an aggravated financial state, a worsening exchange rate, and a decrease in the amount of oil and gas exports as the world entered into the low oil price era in 2015. Furthermore, the country was largely importing industrial goods due to its fragile manufacturing base.
To overcome such vulnerabilities, Azerbaijan pursued a downstream strategy to the existing oil industry and implemented policies to develop various industrial sectors, including agriculture, logistics, and ICT. As for the manufacturing sector, the country has been focusing on nurturing the petrochemical sector and agriculture, which can be 035 developed and grown in a relatively short period by utilizing the country’s existing resources CHAPTER and the medical industry’s (pharmaceuticals) high dependence on imports. 01 Review of the Port Baku The country has implemented a series of projects to modernize its refinery plants and build new petrochemical factories to downstream the petrochemical industry, with the aim of constructing oil refineries available to produce diesel and gasoline that comply with Euro 5 (Euro emissions standard) by 2021. As for the agriculture sector, the country is raising funds by utilizing its abundant agricultural resources and promoting non-tariff measures on farming facilities and equipment. Also, it is developing large greenhouses to modernize the industry and increase the crop production, and it is implementing projects to construct the Agro Park, agricultural complex (ABAD). Considering that it is entirely dependent on the import of drugs, the country is fostering the medical industry (pharmaceuticals) and making efforts to attract investments from companies in Russia and the United Arab Emirates (UAE). To build the transport infrastructure, it is constructing railways—such as the Baku-Tbilisi- Kars (BTK) railway (completed in October 2017) and the International North-South Transport Corridor (INSTC, the rail route that stretches to Iran-Azerbaijan-Southern Russia)—to establish itself as a transport hub connecting China, Central Asia, and Europe.
According to the statistical office in the country of residence, Azerbaijan recorded a trade surplus in 2018 with USD 31.75 billion or an increase of 41% compared to the previous year. As of 2018, Russia and Turkey were the largest exporters, accounting for 30% of the - Capacity 6.2 million tons 1.8 million tons 7.0 million tons 15.0 million tons, including 100,000 TEU 2 2 1 7 Number of Berths Berth Ferry berth Ferry Ro-Ro berth Service berth Port Facility General cargo berth General Port of Baku, 2020.
The Port of Baku (PoB) Authority has two ferry berths (capering 6.2 million tons), two Ro- has two ferry The Port of Baku (PoB) Authority 2.2. Status Port Logistics in Azerbaijan 2.2. Status Port Logistics in Equipment, and Workforce 2.2.1. Port facility, • Regarding the foreign policy, it sticks to the pro-Western stance, while pursuing pursuing while stance, pro-Western the to sticks it policy, foreign the Regarding Total throughput capacity Total Ro berths (capering 1.8 million tons), seven general cargo berths (capering 7.0 million tons), seven general Ro berths (capering 1.8 million tons), capacity of 15.0 million tons. The facilities of PoB and one service berth with a total handling 1-1. are described in detail in Table Source: Source:
Facilities 1-1> Source: Port of Baku, 2020.
037 [Figure 1-6] View of Each Terminal CHAPTER
General Cargo Terminal 01 Review of the Port Baku
Ferry Terminal Ro-Ro Terminal
Source: Port of Baku, 2020. - - 8 8 8 8 8 8 8 8 8 8 (m) Min radius Min radius 32 32 26 18 32 32 32 32 20 35 32 19 Max radius (m) Max radius 150 t hook opertion 54 m 29.3 m 23.2 m 4 ropes / 1 drum to 101.0 m/min to 1.6 rpm 809 kW 30 40 50 80 20 40 16 20 32 32 150 74.3 SWL (ton) SWL Lifting capacity Maximum radius Cab height Boom pivot height Hoist configuration Hoisting speed Slowing speed Installed power MAIN TECHNICAL PARAMETERS Regime Grab mode Grab Grab mode Grab Grab mode Grab Hook mode Hook mode Hook mode Hook mode Hook mode Heavy mode 80 40 32 32 150 SWL SWL (ton) 2 2 2 2 1 No of cranes Equipment Port of Baku, 2020. Port of Baku, 2020. Crane cranes Status
• tons to 150 tons. from 32 capacity ranges and its handling nine cranes, PoB possesses Modernized Mobile Harbor New Ardelt crane New Ardelt crane New Ardelt crane Source: Source: Source: Source: 1-7] Mobile Harbor Crane [Figure
Cranes Other Cargo Handling Equipment Operating Specifications or Date of Name Qty Unit Brand weight models prod. /per unitForklift 3 set HC CPCD200 - W36 2017 33,500kg
Forklift 3 set HC CPCD100 - RG17 2017 13,000kg
Goose Neck Tractor 3 set HOWO zz425s 3247d1 2017 25,000kg
Trailer 3 set HOWO TAZ9400TDP 2017 40,000kg
Forklift 2 set HC CPCD40 - RG24 2017 6,300kg
Forklift 4 set HC CPCD25N - RG2 2017 4,130kg
Forklift 4 set HC CPCD15N - RG26 2017 3,020kg 039
Skid Loader 4 set XCMG XT760 2017 3,670kg CHAPTER
Skid Loader 1 set XCMG XT760 2017 3,700kg 01 Review of the Port Baku Nylon Sling 4 line YEWEI YW - BP - 001 2017 /
Reach Stacker for 2 set HC RS45-31 ch - W45 2017 72,200kg Freight Container
Weight: 220T All-terrain Crane 1 set XCMG 2017 71,870kg Lifting height: 94.7m
Source: Port of Baku, 2020.
• Workforce
The PoB employed a total of 787, 651 people and outsourced 136 employees. Among them, 593 employees work on the operational side, such as in docker, driver, controller, stevedore, and maintenance positions. The detailed personnel status of the PoB is shown in the following table. There are four brigades, eight hours of work, and a monthly salary fixed amount at the rate of 450 AZN (265 USD). The salary depends on the type of cargo volume (they are paid an additional salary for handling each ton) and an average monthly docker salary varies between 800–900 AZN (470–530 USD). 787 1 8 7 0 0 2 6 8 4 3 9 0 7 0 0 0 0 0 0 0 0 0 8 1 9 99 11 14 30 58 22 96 57 61 593 194 162 104 Sum 136 0 1 9 8 57 61 136 Partner 0 1 8 7 0 0 2 6 4 3 9 0 7 0 0 0 0 0 0 0 0 8 99 11 14 30 58 22 96 457 651 194 162 104 In-house Position personnel Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Administrative and labor Administrative Sum Sum General Manager, Directors Manager, General Total Sum Total IT HR CEO Cash Tally Sales Labor Team Billing Driver Health Docker Admin. Facility Planner Security On-dock Customs Statistics Planning Secretary Stevedore Chauffeur Controller Executives Underman Accounting Firefighting Receptionist Gate Control Maintenance Procurement Field Support Control Center Gate Inspection Legal Insurance Dangerous goods Advisor (Forman) Advisor Operational Plan & Operational Port of Baku, 2020. Personnel Personnel Managerial Operational Operational Source: Source:
Workforce Status 1-4> Workforce [Figure 1-8] Organization Chart
Director General - 1 Deputy to Director General - 1
Advisor to director general - 3 Assistant to Director General - 1
International Internal audit cooperation and Marine Services Deputy to Director Deputy to Director Deputy to Director Senior advisor to department - 2 Public relations department - 3 General - 1 General - 1 General - 1 director general - 1 division - 9
Sales and Human Security Confidentiality Fleet Dispatching Financial It Legal Secretary - 7 marketing Resources department - 5 division- 1 service- 89 service- 22 department - 23 department- 7 division- 3 department - 8 department- 8
Ship Strategic Quality Archive - 2 Agent Operations Training HES Guide movement planning and control service - 5 department - 1 center- 3 department- 19 service- 0 control development division- 2 service- 4 department-5
Internal Operations Procurement Patrol and Marine Ferry control planning division- 3 surveillance station terminal - 9 division- 4 services- 9 area- 14 division - 4
Supply and repair- Alat Head Ro-Ro General cargo 041 construction service
area- 54 office - 8 terminal - 3 terminal - 4 CHAPTER department-7
Technical Shipping Shipping Transport area- 26 Garadag Dubandi service area - 21 area- 4 area- 4 operations operations 01 area - 13 area - 11 Review of the Port Baku Supply Electricity and Operation warehouse -5 energy area -20 support area - 19 Administrative Rigging area-36 area -10 Portal crane group of Railway group of operation operation support area - 25 support area - 15 Engineering area -6
Source: Port of Baku, 2020.
2.2.2. Port Tariff
• Cargo Handling Tariff
A cargo handling tariff is divided by the cargo type and handling status, as shown in the following tables. For general cargo, the average tariff is $4.2 per ton for cross-docking and $5.9 per ton for complete operation. 45 25 60 45 65 50 Vehicle 4.2 5.6 5.9 7.0 4.2 5.6 4.9 5.3 4.5 12.0 Warehouse- Complete operation Semi operation 45 25 60 45 65 50 Vehicle- warehouse Handling charge (rate per ton in USD) per (rate 8.6 3.0 4.0 4.2 5.0 3.0 4.0 3.5 3.8 3.2 Handling charge Cross-Docking 90 50 90 120 130 100 (rate per unit in USD dollar) per unit in USD (rate Complete operation 70 30 60 70 100 110 Cross-Docking Other Average Scrap metal Scrap Commodity Rubber goods Palletized cargo / Big bags Loose metallurgical products Cargo in bags, cases, and boxes Cargo in bags, cases, and Cargo in bundles, bales, rolls, barrels. Cargo in bundles, bales, Commodity Metallurgical products in bundles and rolls Metallurgical products in Metal structures, machinery, and equipment Metal structures, machinery, 20’ DC full container 40’ DC full container 45’ DC full container Port of Baku, 2020. Port of Baku, 2020. 20’ DC empty container 40’ DC empty container 45’ DC empty container For containers, semi-operation is added, unlike other cargo. The tariff for a 20’ full full 20’ a for tariff The cargo. other unlike added, is semi-operation containers, For container is $70 for cross-docking, $90 for the complete operation, and $45 for the semi- If the type operation. of container is a 20’ empty container, the tariff is $30 for cross-docking, semi operation. and $25 for the $50 for the complete operation, Source: Source: liquid bulk cargo, loading, and discharging tariff is $ 0.80 per ton. For
Containers General Cargo 1-5> General A storage Tariff is varied depending on the type of cargo (import, export, and transshipment). A seven-day free storage period is offered for all kinds of imported and exported cargo, and a 15-day free storage period is available for all kinds of transit cargo.
For an import and export 20’ container, the tariff is free for up to seven days, $2 (per container per day) for 8–30 days, $2.5 for 31–60 days, and $4 for over 60 days. Moreover, for a transit 20’ container, the tariff is free for up to 15 days, $2 (per container per day) for 16–30 days, $2.5 for 31–60 days, and $4 for over 60 days.
Storage Tariffs for Container (Unit: USD)Import/export Transit
Free per per per Free per per per storage container container container storage container container container period per day per day per day period per day per day per day Container
Over 60 Over 60 7 days 8–30 days 31–60 days 15 days 16–30 days 31–60 days 043
days days CHAPTER
20’ DC 0 2 2.5 4 0 $ 2 2.5 4 01
40’ DC 0 4 4.5 7 0 $ 4 4.5 7 Review of the Port Baku
Over 40’ DC 0 5 5.5 9 0 $ 5 5.5 9
Source: Port of Baku, 2020.
• Port Dues
Port dues include arriving registration, sailing registration, canal dues, tonnage dues, anchorage dues, environment dues, pilotage, wharfage dues, tugboat dues, agent, and transport services, ship shift, water Supply, etc. The detailed port dues are shown in the following table. $3 $8 $10 $43 $86 $10 $30 $350 $250 $600 $530 $500 $450 $450 $450 $300 $300 $450 $650 $550 $500 $400 $174 $150 $250 $348 $513 $868 $0,0888 $0.1036 $0.1480 $0.0370 $0.3996 $0.0015 $0.0296 $0.0148 carrier Foreign flag Foreign ------$6 $20 $29 $58 $12 $150 $350 $175 $250 $250 $220 $220 $220 $175 $300 $115 $230 $460 ₼ 2,57 $0,0341 $0.1165 $0.0411 $0.0447 $0.0270 $0.0018 $0.0411 $0.0100 carrier National flag National flag CBM CBM CBM CBM CBM CBM CBM CBM per ton per ton per hour per hour per hour per hour per hour per hour per hour per hour per hour per hour per hour Unit measure Sailing registration Arriving registration Pilotage Ship shift Port dues Canal dues Tugboat dues Water Supply Water Tonnage dues Tonnage Providing fuel Alat // Tugboat Up to 1,000 m3 Pilot // Pilotage Wharfage dues Anchorage dues Anchorage Kür // Ecological Kür Şəfəq // Ecological Günəşli // Tugboat Silkway // Tugboat Silkway Environment dues Limançı // Tugboat 20,001 m3 and more Mooring, unmooring MNSM-73 // Ecological Sabir Babayev // Tugboat Sabir Babayev Nüsrət Şirinov // Tugboat Elxan Kazımov // Tugboat From 1,001 m3 to 5,000 m3 From 1,001 m3 to 3,000 m3 The use of floating vehicles From 3,001 m3 to 10,000 m3 From 5,001 m3 to 10,000 m3 Up to 1,000 cubic meter(m3) from 60,001 m3 to 80,000 m3 From 10,001 m3 to 20,000 m3 From 10,001 m3 to 20,000 m3 From 20,001 m3 to 40,000 m3 From 40,001 m3 to 60,000 m3 Agent and Transport services and Transport Agent Port of Baku, 2020. Additional transport service for one hour transport Additional Source: Source:
Port Dues Countries near the Caspian Sea include Azerbaijan, Russia, Kazakhstan, Turkmenistan, and Iran. The main ports in Russia are Astrakhan, Makhackhala, and Olya. In Kazakhstan, Aktau and Kuryk are the main ports. The main ports of Iran are Anzali, Amirabad, Nowshahr, Neka and Astara, and Turkmenistan’s main ports are Turkmenistan. Turkmebashy), the port of Alaja.
[Figure 1-9] Countries near the Caspian Sea
045 CHAPTER 01 Review of the Port Baku
Source: https://www.pinterest.co.kr/pin/426012445994020096/.
• Throughput
In 2019, Azerbaijan handled the largest volume of cargo with 8.3 million tons, followed by Russia (7.2 million tons), Iran (6 million tons), Kazakhstan (5.1 million tons), and Turkmenistan (3.7 million tons).
As for the single ports, the Port of Makhackhala (Russia) handled the largest volume of cargo (4.6 million tons), followed by the Port of Sangachal (4.2 million tons), and the Port of Baku (4 million tons) in Azerbaijan. - - - 0.7% 1.6% 7.3% 4.5% 5.8% 5.7% 9.6% 9.1% -9.3% -3.6% -0.8% -0.3% -0.3% -2.1% 14.6% CAGR -16.8% - n/a n/a 2019 531.6 769.6 155.2 7,203.0 3,708.2 3,833.7 4,057.2 4,247.7 8,304.9 2,006.1 4,665.3 5,195.0 1,034.2 4,117.1 1,361.2 6,076.1 30,487.1 (unit: brutto thousand ton) (unit: brutto thousand - n/a n/a 2018 421.2 580.1 192.5 4,534.0 6,386.0 3,553.1 3,787.8 6,116.0 9,903.8 1,641.7 2,471.1 5,165.0 1,494.5 3,625.5 1,611.9 5,892.6 31,881.4 - n/a n/a 2017 271.4 614.0 175.1 3,947.6 6,576.0 3,033.0 4,398.1 3,946.4 8,344.5 2,287.9 1,388.3 4,496.8 2,203.1 2,885.6 1,463.8 5,877.8 29,242.7 - n/a n/a 69.8 2016 197.6 743.4 179.3 6,039.5 6,801.5 3,597.4 4,523.0 1,284.3 5,807.3 2,590.4 3,251.5 3,597.4 3,081.6 2,345.8 6,419.8 28,665.5 - n/a n/a 2015 112.8 308.0 795.9 169.0 7,018.0 7,423.4 3,599.2 3,059.0 3,567.0 2,970.0 3,740.0 6,626.0 3,599.2 2,157.1 2,903.0 6,137.8 30,804.4 PoB Olya Zykh Neka Kurik Ports Aktau Kenar Anzali Astara Sub total Sub total Sub total Sub total Hovshan Amirabad Astrakhan Nowshahr Sanghachal Makhackhala Turkmebashy, Turkmebashy, Alaja, Ekerem, Alaja, Ekerem, Total Iran Russia Operation Status Operation Port of Baku, 2020. Country
Azerbaijan Kazakhstan • country) near the Caspian Sea is shown in status of the ports (listed by The operational capacity annual the and (6,048m), 35 at berths of number highest the has Azerbaijan Turkmenistan Table <1-10> below. <1-10> below. Table highest the has PoB the port, single a of terms In tons. 54.7 million with highest the also is and Iran. capacity (25 million tons), which is higher than that of Turkmenistan, Kazakhstan,
Throughput of Ports Near the Caspian Sea (2015–2019) of Ports Near the 1-9> Throughput Operational Status of Ports Near the Caspian Sea Total Capacity Number of Length Capacity Country Ports Terminal (million ton Berth (m) (million ton per year) per year)1.8 Ro-Ro (Autovehicles) 2 406 (60,000 Autovechiles)
PoB Ferry 25 (Railcars and 2 309 6.2 autovehicles) General Cargo 7 Azerbaijan (Dry Cargo and 7 1,361 (100,000 TEU) Container) Oil 2 500 10 (Liquid cargo) Oil Sanghachal 6 1,168 20 20 (Liquid cargo) General Cargo 047 Zykh (Dry Cargo and 7 1,179 1.15 1.15 CHAPTER Container) General Cargo
Hovshan (Dry Cargo and 9 1,125 8.6 8.6 01
Container) Review of the Port Baku
General Cargo 4 625 4
Bulk Cargo Terminal 3 440 3
Container terminal 3 480 400,000 TEU
Polypropylen 3 - 0.12 terminal
17 300,000 passengers per Turkmenistan Turkmenbashy year; Ferry and Passenger 2 256 terminal 75,000 vechicles per year
Alaja n/a n/a n/a n/a
Ekerem n/a n/a n/a n/a
Kenar n/a n/a n/a n/a 2 6 7 12 0.2 7.5 1.5 1.5 3.5 n/a n/a Total Total Capacity per year) (million ton (million ton 2 6 12 0.2 1.5 1.5 3.5 n/a n/a n/a n/a n/a n/a n/a n/a n/a Capacity per year) (million ton (million ton n/a n/a n/a n/a n/a n/a n/a 150 466 188 180 300 180 200 183 (m) 1,875 1,332 Length 1 6 3 1 4 2 1 1 1 1 1 1 3 9 1 11 n/a Berth Number of Number of Oil Oil Ferry Grain Bautino Oil dock wood, etc. Terminal Ro-Ro dock (Liquid cargo) Multi-purpose Multi-purpose General Cargo General Ferry complex Ferry Grain terminal Grain Ferry (Railcars) Ferry Iron, Container, Dry bulk terminal Multi-purpose (Oil) Ro-Ro (Automobiles) Kurik Ports Aktau Anzali Astara Amirabad Nowshahr General Cargo Handling Statistics Cargo General Iran Port of Baku, 2020.
Country 2.2.4. Cargo Handling Statistics 2.2.4. Cargo • in 2014 to 3.30 The total volume of the Baku Ports dropped from nearly 5.9 million tons Kazakhstan million tons in 2015, and then, increased to about 4.06 million tons in 2019. Despite the 2019. Despite the million tons in 2015, and then, increased to about 4.06 million tons in undercut and increased volume in 2019 compared to 2015, the steady growth has been 200,000 tons in appeared in an irregular pattern each year. Exports increased from about 2014 to 311,000 tons in 2019, and imports fell significantly from 1.16 million tons to 290,000 in tons million 3.45 to 2014 in tons million 4.45 from decreased also transit Moreover, tons. volume, making up 84.7% of the total on a accounted for most of the trading 2019. Transit six-year average. Source: Source:
Continued Cargo Handling Statistics of the Baku Ports (unit: brutto thousand ton) Indicator 2014 2015 2016 2017 2018 2019
Total 5,895 3,059 4,523 4,398 3,788 4,057
export 199 198 368 344 325 311
import 1,158 231 232 284 259 293
transit 4,538 2,631 3,924 3,770 3,203 3,453
Source: Rewritten by researchers using data from the Port of Baku.
[Figure 1-10] Cargo Handling Trends of Baku Ports (unit: brutto thousand ton)
7,000
6,000
5,000
4,000
3,000 049 CHAPTER 2,000
1,000 01 Review of the Port Baku
- 2014 2015 2016 2017 2018 2019 export import transit Total cargo handilng
The total volume was divided into five types (break bulk and dry cargo, liquid cargo, railcars, automobiles, and container). The main items in the railcars and dry cargo were agricultural products, such as fertilizer, grains, vegetables, and beverages. Agricultural products produced in Georgia are mainly transported by railcars. The ratio of cargo types in 2019 was 81.1 percent for fertilizer materials and 18.9 percent for the rest. As of 2019, railcars accounted for the largest portion (60%), followed by automobiles (22%), liquid cargo (8%), break bulk and dry cargo (6%), and containers (4%). Railcars, however, fell sharply in 2015 and then, declined again after rising to 2017. Automobiles had a small share until 2018, but due to the sharp rise of its shares in 2009, automobiles took second place for cargo handling. Liquid Cargo accounted for a high share in 2016 but has since been declining. Break bulk and dry cargo had a high share in 2014 but continued to fall with a sharp drop- off in 2015, followed by an uptick in 2019. Containers, like automobiles, had a small portion until 2018 but increased in volume in 2019. In summary, railcars are seeing a steady and significant increase in volume, whereas liquid and break bulk and dry cargo are decreasing, and automobiles and containers are increasing in volume. 331 885 161 254 2019 2,428 2019 Railcars - 56 87 494 (unit: brutto thousand ton) (unit: brutto thousand ton) (unit: brutto thousand 2018 2,609 2018 44 31 531 131 2017 2,980 2017 63 44 170 2016 1,576 2,126 Liquid cargo (oil terminal) Containers 2016 37 26 840 211 2015 1,791 2015 6 25 2014 1,104 3,636 1,112 Break-bulk & Dry cargo Autovehicles 2014 Railcars Dry cargo Indicator Containers Origin-Destination Statistics Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten - Automobiles Liquid cargo Break-bulk & (oil terminal)
• Looking at the country rankings of the volume of goods leaving the PoB, the largest of the volume of goods leaving the PoB, the largest Looking at the country rankings 4,000 3,000 2,000 1,000 volume of trading to neighboring Turkmenistan and Kazakhstan is shown in
, 1-13>, to neighboring Turkmenistan and Kazakhstan is shown in Cargo Handling Statistics by Transportation Mode Transportation Statistics by Handling 1-12> Cargo Top 20 Cargo Sending Countries (unit: brutto thousand ton)Country 2014 2015 2016 2017 2018 2019 CAGR
Turkmenistan 937 1,009 1,886 946 934 1,017 1.7% Kazakhstan 1,518 144 268 1,210 836 453 -21.5% USA 286 157 252 428 409 452 9.6% Turkey 128 219 398 365 253 447 28.4% Azerbaijan 199 199 371 316 328 311 9.3% Ukraine 180 63 303 445 343 383 16.3% Georgia 423 215 221 137 217 298 -6.8% Iran 1,003 179 137 3 18 11 -59.4% Tajikistan 271 304 225 41 85 52 -28.1% Uzbekistan 271 184 140 102 29 44 -30.5% UAE 38 24 49 103 75 93 19.6% Bulgaria 158 168 50 0 0 2 -58.3% Venezuela 285 69 -100.0% China 29 15 14 17 71 146 38.2% Russia 61 44 30 69 24 23 -17.7% Afghanistan 6 2 25 50 73 69 63.0% Brazil 39 5 18 35 1 4 -36.6% 051
Italy 22 19 9 5 10 34 9.1% CHAPTER Korea 1 14 33 3 16 9 55.2%
Japan 0 24 26 4 3 NA 01
Others 42 27 69 95 61 205 37.3% Review of the Port Baku Total 5,895 3,059 4,523 4,398 3,788 4,057 -7.2%
Source: Rewritten by researchers using data from the Port of Baku.
[Figure 1-12] Sending Rate in 2019 (unit: %)
Source: Rewritten by researchers using data from the Port of Baku. NA NA NA NA NA 7.4% 8.0% 5.3% -1.6% -7.2% 25.4% 20.6% 61.9% 69.0% 51.2% 22.5% CAGR -66.5% -50.0% -28.2% -24.1% -21.5% -15.0% 1 9 1 1 0 25 24 71 55 62 15 43 110 174 218 385 292 835 685 330 722 2019 4,057 (unit: brutto thousand ton) 4 7 0 60 11 45 15 47 21 91 59 53 255 364 262 418 727 494 856 2018 3,788 4 2 1 3 33 34 58 72 14 21 234 263 281 616 912 448 2017 4,398 1,402 - 9 8 0 5 54 23 40 55 21 256 294 232 596 787 566 2016 4,523 1,576 2 6 7 5 0 97 12 73 161 168 231 610 312 839 535 2015 3,059 3 2 10 22 77 13 28 23 169 290 270 570 529 2014 1,157 5,895 1,104 1,630 Iran UAE Italy Total Ispan Russia Others Turkey Sweden Georgia Ukraine Scotland Country Tajikistan Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Nederland Azerbaijan Uzbekistan Kyrgyzstan Bangladesh Kazakhstan Afghanistan Turkmenistan
shows the country ranking of the volume of cargo received at Baku’s ports. at Baku’s of cargo received of the volume country ranking 1-14> shows the Top 20 Cargo Receiving Countries Receiving 20 Cargo 1-14> Top Source: Rewritten by researchers using data from the Port of Baku.
Because Azerbaijan is a land-locked country, the international logistics route consisted of two routes (West-East and East-West). The West-East Route mainly comes from the United States, Georgia, and Turkey as described in tables below. First,
shows the flow of cargo moving from the United States to other countries through Azerbaijan, which has 053 increased by 9.6% per year since 2014. Most of the volumes in 2019 go to Afghanistan (44.0%), CHAPTER Kazakhstan (36.9%), and Turkmenistan (16.9%). 01 Review of the Port Baku Origin-Destination Trading Volume (from USA to Other Countries) (unit: brutto thousand ton)O-D countries 2014 2015 2016 2017 2018 2019 CAGR
Total 285.6 152.8 251.8 428.2 409.2 451.6 9.6%
Afghanistan 191.3 79.6 82.5 137.5 188.4 191.2 -0.01%
Kazakhstan 1.2 127.5 242.9 171.1 188.0 NA
Turkmenistan 88.9 69.9 36.8 41.3 36.7 60.4 -7.4%
Tajikistan 4.3 3.2 7.9 1.6 NA
Kirghizstan 4.2 3.1 0.8 0.0 3.8 8.9 16.2%
Uzbekistan 0.2 1.1 1.4 0.1 NA
Other 2.1 1.4 NA
Source: Rewritten by researchers using data from the Port of Baku. (unit: %) NA 2.2% -6.8% 33.4% 39.0% 52.6% CAGR -16.0% 5.5 0.4 5.8 32.7 2019 297.2 126.2 126.5 (unit: brutto thousand ton) 4.9 0.1 8.5 84.8 11.2 2018 216.4 106.9 2.6 0.7 2.4 51.8 64.6 14.5 2017 136.5 0.7 0.0 3.6 94.1 13.1 2016 220.5 109.0 4.0 0.5 51.5 2015 210.7 154.6 6.3 0.7 1.3 2014 423.5 301.6 113.6 Total Other Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Tajikistan Uzbekistan Kyrgyzstan Kazakhstan Secondly, the trading volume from Georgia to other countries through Azerbaijan is is Azerbaijan through countries Georgia to other from volume trading the Secondly, Turkmenistan O-D countries shown in
, which has decreased by 6.8% annually since 2014. Most of the since 2014. Most of the 6.8% annually 1-16>, which has decreased by shown in Origin-Destination Trading Volume (from Georgia to Other Countries) Georgia (from Volume 1-16> Origin-Destination Trading Source: Rewritten by researchers using data from the Port of Baku.
shows the trading volume of the goods produced in Azerbaijan and shipped 055 to other countries through Baku, which has been increasing by 9.3% each year since CHAPTER 2014. Most of the volumes in 2019 go to Afghanistan (45.6%), Turkmenistan (28.6%), and Kazakhstan (14.4%). Also, the transit volume from Azerbaijan to Tajikistan and Uzbekistan is 01 Review of the Port Baku annually increasing by 57.8% and 25.6%, respectively.
Origin-Destination Trading Volume (from Azerbaijan to Other Countries) (unit: brutto thousand ton)O-D countries 2014 2015 2016 2017 2018 2019 CAGR
Total 199.2 197.7 370.6 316.4 327.9 311.1 9.3%
Afghanistan 52.3 82.6 208.0 116.8 163.6 161.8 25.3%
Turkmenistan 65.4 77.0 101.3 117.1 59.0 72.5 2.1%
Kazakhstan 13.5 34.3 39.4 59.7 70.9 30.7 17.9%
Kyrgyzstan 59.6 0.2 0.3 4.0 2.0 -49.3%
Tajikistan 1.3 1.5 15.1 4.9 16.1 12.7 57.8%
Uzbekistan 5.9 2.3 3.1 3.1 6.4 18.5 25.7%
Other 1.0 - 3.5 14.5 7.8 12.9 66.8%
Source: Rewritten by researchers using data from the Port of Baku. (unit: %) 91.9% 69.0% 14.3% 41.6% 33.8% CAGR -13.7% 114.4% 5.2 5.3 12.4 59.8 18.1 2019 345.8 446.7 (unit: brutto thousand ton) 8.4 3.7 5.2 72.2 29.9 2018 132.8 252.1 4.6 5.8 10.7 14.6 2017 136.8 192.4 364.9 1.1 0.6 5.3 15.4 2016 260.5 114.6 397.6 - 0.2 3.3 35.9 2015 175.8 215.2 0.9 0.2 0.4 30.7 11.1 60.8 2014 104.0 Total Other Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Tajikistan Uzbekistan Kyrgyzstan Kazakhstan The transit volume from Turkey to other countries through Azerbaijan is shown in is shown in to other countries through Azerbaijan volume from Turkey The transit Turkmenistan O-D countries
, which has been increasing by 33.8% per year since 2014. Most of the volumes 33.8% per year 1-18>, which has been increasing by Origin-Destination Trading Volume (from Turkey to Other Countries) Turkey (from Volume 1-18> Origin-Destination Trading Source: Rewritten by researchers using data from the Port of Baku.
A summary of the trading volume on the West-East Route shows that Afghanistan, Turkmenistan, and Kazakhstan are the main destinations. However, the volume of this route slightly increased in 2019 compared to 2014 (CAGR 5.1%), with substantial fluctuations every year. 057 CHAPTER
On the East-West Route, the transit volume from Turkmenistan to other West countries via Azerbaijan has been increasing 1.7% per year since 2014. There is a large volume going 01 Review of the Port Baku to Europe (66.6%), followed by Georgia (15.7%), and Turkey (8.4%). Europe has been trending downward (CAGR -17.5%), whereas Georgia and Turkey have been on upward trends (CAGR 59.0%, 114.1%).
Origin-Destination Trading Volume (from Turkmenistan to Other Countries) (unit: brutto thousand ton)O-D countries 2014 2015 2016 2017 2018 2019 CAGR
Total 933 985 1,851 922 934 1,015 1.7%
Europe 858 788 1,532 424 494 327 -17.5%
Georgia 28 136 180 224 189 287 59.3%
Turkey 3 45 50 168 159 135 114.1%
Azerbaijan 9 3 24 80 22 64 48.0%
Other 33 14 65 26 71 201 43.5%
Source: Rewritten by researchers using data from the Port of Baku. (unit: %) NA 93.3% CAGR -26.2% -39.8% -21.5% 151.7% 0 54 19 278 101 453 2019 (unit: brutto thousand ton) 95 498 125 119 836 2018 61 16 88 2017 1,045 1,210 0 90 15 37 126 268 2016 3 10 28 103 144 2015 2 1 241 2014 1,274 1,518 Total Turkey Europe Georgia Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Nederland Azerbaijan Most of the trading from Kazakhstan goes to Georgia (75.1%), and the volume of goods Georgia (75.1%), and the volume of goods from Kazakhstan goes to Most of the trading O-D countries coming into Europe (10.0%) and Azerbaijan (7.8%) is also large. Shipments to Azerbaijan are coming into Europe (10.0%) and Azerbaijan Moreover, shipments to Georgia and Europe 151.7%) but declined in 2019. on the rise (CAGR year after year. -26.2%, -39.8%) and fluctuate are declining (CAGR Source: Source:
Origin-Destination Trading Volume (from Kazakhstan to Other Countries) (from Volume 1-20> Origin-Destination Trading Source: Rewritten by researchers using data from the Port of Baku.
The main destinations for transit volume from Tajikistan are Georgia (78.2%) and Turkey (20.1%), but Georgia has declined significantly (CAGR -28.1%). Although CAGR of Turkey is 8.4%, shipments in 2019 fell significantly compared to 2015. 059 CHAPTER
Origin-Destination Trading Volume(from Tajikistan to Other Countries)(unit: brutto thousand ton) 01 Review of the Port Baku O-D countries 2014 2015 2016 2017 2018 2019 CAGR
Total 271 304 225 41 85 52 -28.1%
Georgia 267 198 138 38 80 45 -30.0%
Turkey 2 106 85 0 0 3 8.4%
Azerbaijan 2 1 1 4 3 8.4%
Other - - 0 2 1 2 NA
Source: Rewritten by researchers using data from the Port of Baku. (unit: %) 16.5% CAGR -64.2% -43.3% -36.9% -30.5% -14.8% -100.0% 1 1 1 44 26 15 2019 (unit: brutto thousand ton) 4 0 1 29 15 10 2018 3 4 3 5 85 102 2017 8 0 16 11 140 104 2016 - 4 97 83 184 2015 7 10 58 17 10 169 271 2014 Italy Total Other Turkey Georgia Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Azerbaijan Bangladesh Transit volume from Uzbekistan mainly goes to Georgia (48.2%), Bangladesh (35.2%), to Georgia (48.2%), Bangladesh (35.2%), volume from Uzbekistan mainly goes Transit O-D countries and Azerbaijan (6.7%). By 2015, shipments to Bangladesh were high, but since 2016, the Bangladesh were high, but since 2016, the 2015, shipments to and Azerbaijan (6.7%). By Shipments to Georgia have also declined -64.2%). volume has fallen to almost none (CAGR to decline. in Uzbekistan continues -14.8%), so trading significantly (CAGR Source: Source:
Origin-Destination Trading Volume (from Uzbekistan to Other Countries) (from Volume 1-22> Origin-Destination Trading Source: Rewritten by researchers using data from the Port of Baku.
The volume of cargo from China has risen sharply since 2014 (CAGR 34.4%). Imports to Azerbaijan are high (6.6%). Since 2016, the transit volume to Georgia has increased (CAGR 71.0%). 061 CHAPTER
Origin-Destination Trading Volume (from China to Other Countries) (unit: brutto thousand ton) 01O-D countries 2014 2015 2016 2017 2018 2019 CAGR Review of the Port Baku
Total 29 15 14 16 70 127 34.4%
Azerbaijan 29 14 4 12 27 40 6.6%
Georgia 10 4 42 50 71.0%
Other - 1 0 1 1 38 NA
Source: Rewritten by researchers using data from the Port of Baku.
The volume of cargo from Afghanistan is low but has been increasing since 2014 (CAGR 63.0%). It increased from approximately 0.06 million tons in 2014 to 0.7 million tons in 2019. The volume entering Azerbaijan is the highest (68.1%). The volume to Georgia is increasing steeply. NA NA 63.0% 28.4% 14.9% CAGR -100.0% 6 0 0 69 36 26 2019 (unit: brutto thousand ton) (unit: brutto thousand 0 0 73 56 17 2018 5 0 50 45 2017 8 1 25 17 2016 - 2 0 2 2015 - 6 3 3 2014 USA Total Other Turkey Georgia Terminal Productivity Terminal Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Azerbaijan
• be assessed in different performance areas. Also, Port (or terminal) productivity can Summarizing the trading volume on the East-West Route, Georgia, and Azerbaijan Azerbaijan and Georgia, Route, East-West the on volume trading the Summarizing O-D countries some performance indicators are only suitable for specific terminal types. In this report, terminal types. In this report, specific for suitable only indicators are performance some cargo 2017 to 2019 in three types of terminals: general port productivity was examined from performance various and Customized terminals. ferry and terminals, Ro-Ro terminals, performance changes is and, therefore, tracking indicators per terminal type are utilized possible during and after the study. are the main destinations and Europe. Unlike the West-East route, which showed a slight route, which showed a slight the West-East Unlike are the main destinations and Europe. -15.3%). Volumes (CAGR is falling volume of trading 5.1%), the overall upward trend (CAGR but neither have much volume. from China and Afghanistan have risen, Source: Source:
Origin-Destination Trading Volume (from Afghanistan to Other Countries) to Other Afghanistan (from Volume Trading 1-24> Origin-Destination General Cargo Terminal OperationsYear 2017 2018 2019
General cargo vessel call 69 80 140
From vessel 1,060 1,756 6,785 Container (TEU) To vessel 3,713 4,345 5,539
Total (TEU) 4,773 6,101 12 324
From vessel 39,470 29,794 164,267 Dry cargo (ton) To vessel 12,849 6,672 12,521
Total (ton) 52,319 36,466 176,788
Average productivity of big bags per hour - 18 96
Average productivity of bulk cargo per hour - 74 156
Average productivity of container per hour - 12 12
Max productivity of container per hour - 14 23
Source: Rewritten by researchers using data from the Port of Baku.
063
As shown in
general cargo operations significantly advanced in all CHAPTER performance areas. It is worth mentioning that the number of vessel calls doubled during the period. Also, the port handled more containers and dry cargo each year. Especially, 01 Review of the Port Baku container throughput in 2019 is about three times larger than that in 2017. The average productivity of big bags per hour experienced the largest increase from 2018 to 2019. The terminal processed 18 bags per hour in 2018; however, it handled 96 bags per hour. The terminal improved its operations in bulk handling, whereas container handling operations did not experience any improvement. Ro-Ro Terminal OperationsYear 2017 2018 2019
Average vessel stay time, number of vessel visits 20.2 / 151 19.8 / 146 15.5 / 166
Total number of passengers 20,422 36,067 23,033
Total number of trucks 19,358 15,782 17,704
Total vessel stay time (hour) 8,633.6 6,341.3 3,623.7
Total net operation time (hour) 2,194 2,300 1,632
Total trucks / vessel stay 2.2 2.5 4.9
Total passengers / vessel stay 2.4 5.7 6.4
Total trucks / net operation 8.8 6.9 10.8
Source: Rewritten by researchers using data from the Port of Baku. 32 62 1.2 3.6 0.9 2019 14,819 44,211 10,528 13.3 / 494 12,365.04 10.64 / 554 32 62 0.3 3.7 0.7 2018 2,958 8,693 43,038 11,614.7 13.7 / 426 12.7 / 455 32 62 0.4 4.1 0.8 2017 4,019 8,615 46,469 14.4 / 413 11,290.95 11.25 / 475 3 3 Year Total number of trucks Total Total trucks / vessel stay Total Total number of wagons number of Total Total wagons / vessel stay wagons / vessel stay Total Total number of passengers number of Total Total passenger / vessel stay Total Total vessel stay time (hour) vessel stay Total ver net operation time ver net operation Old ferry stay time, number of vessel visit time, number Old ferry stay New ferry stay time, number of vessel visit time, New ferry stay Average net wagon handling per hour old ferries Average Average net wagon handling per hour new ferries Average Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Ro-Ro operations also experienced improvements in various performance (Table 1- 26). 1- 26). (Table performance in various experienced improvements also Ro-Ro operations in various performance areas during also experienced improvements operations Ferry Calculated o
First, vessel stay time at the port decreased from 20.2 hours in 2017 to 15.5 hours in 2019 (after in 2017 to 15.5 hours from 20.2 hours at the port decreased time stay First, vessel visits and passengers. with more vessel 25% decrease came the Alat Port). The moving to Therefore, the terminal clearly improved its efficiencyoperational in handling Ro-Ro vessels during the period. The PoB mentioned that it was due to the simplification of documentation that the total trucks per vessel stay to passengers. It is also remarkable and logistic service The authority was improved. meaning that truck utilization around 120%, increased by before vessel completed and declaration is due to the preparation mentioned that this arrivals. An old ferry has a main deck that accommodates up 1-27>. the period, as shown in
Ferry Terminal Operations 1-27> Ferry Terminal shows productivity differences between vessel types and sizes from 2018 to 2019. The average productivity of big bags per hour soared by 433%, and that of bulk cargo per hour rose by 111%. In container handling operations, the average productivity remained constant, whereas the maximum productivity per hour increased by 64%. Productivity Differences Between Vessel Sizes and TypesPerformance Indicator 2018 2019 Percentage Change
Average productivity of big bags per hour 18 96 433%
Average productivity of bulk cargo per hour 74 156 111%
Average productivity of containers per hour 12 12 -
Max productivity of containers per hour 14 23 64%
Source: Rewritten by researchers using data from the Port of Baku.
shows bulk vessel stay information from December 12, 2019 to February 14, 2020. Per vessel stay, the name of the vessel, the actual time of berth (ATB), the actual time of departure (ATD), waiting time for arrivals of wagons (WAW) and for arrivals of wagons 065 as a percentage of the total port stay time (WAWP) are available. The port received 21 bulk CHAPTER vessels, and the WAWP was 26% on average. It is worth mentioning that 16 of them waited for wagons between two hours (WAWP: 1%) to 86 hours (WAWP: 68%). 01 Review of the Port Baku
Bulk Vessel Stay Data (December 12, 2019 to February 14, 2020)Vessel ATB ATD WAW(hour) WAWP(%)
Mikayil Mushfig 12/Dec/19 10:30 15/Dec/19 06:30 4.50 7%
Jafar Jabbarly 18/Dec/19 01:00 19/Dec/19 16:00 0.00 0%
Pola Anfisa 20/Dec/19 16:45 26/Dec/19 15:10 42.00 29%
Mahmud Rehimov 26/Dec/19 14:30 28/Dec/19 06:00 0.00 0%
Mikayil Mushfig 27/Dec/19 16:30 01/Jan/20 23:00 86.00 68%
Jafar Jabbarly 28/Dec/19 16:30 05/Jan/20 13:30 5.00 3%
Pola Anfisa 4/Jan/20 14:40 9/1/20 10:40 11.00 9%
Mahmud Rehimov 8/Jan/20 0:45 11/Jan/20 19:45 28.00 31%
Valeriy Kokov 9/Jan/20 15:10 14/Jan/20 16:00 3.00 2%
Arbat 11/Jan/20 21:50 14/Jan/20 20:30 46.00 65%
Jafar Jabbarly 15/Jan/20 15:45 23/Jan/20 23:20 2.00 1%
Mahmud Rehimov 22/Jan/20 15:10 26/Jan/20 14:40 29.00 30%
Volga Don 211 26/Jan/20 18:30 30/Jan/20 15:40 47.50 51%
Mikayil Mushfig 30/Jan/20 18:00 1/Feb/20 23:30 0.00 0% 3% 0% 0% 24% 54% 11% 20% WAWP(%) 7.00 2.00 0.00 0.00 51.00 54.00 10.50 WAW(hour) ATD 5/Feb/20 19:00 5/Feb/20 22/Jan/20 10:30 17/Jan/20 15:50 16/Feb/20 19:00 16/Feb/20 15/Feb/20 17:20 15/Feb/20 14/Feb/20 23:15 14/Feb/20 11/Feb/20 16:00 11/Feb/20 ATB : Wagons are manually registered by Azerbaijani Railways in in Railways Azerbaijani by are manually registered : Wagons 14/Feb/20 4:15 14/Feb/20 6/Feb/20 10:45 6/Feb/20 2/Feb/20 17:35 2/Feb/20 13/Jan/20 11:45 13/Jan/20 12:30 13/Feb/20 13:00 13/Feb/20 11/Feb/20 23:10 11/Feb/20 Vessel Pola Anfisa Pola Anfisa Valeriy Kokov Valeriy Jafar Jabbarly Turkmenistan Wagon Capturing Process Wagon Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Mikayil Mushfig Mikayil Mikayil Mushfig Mikayil
Wagon capturing in connection with the railway is differently performed in general is differently performed in general capturing in connection with the railway Wagon Step-1 (Announced, ANN) terminals: After wagons arrive at a weighbridge, cargo in general Step 2-1 (Shunting yard) 2.3.1. Cargo Handling Processes Handling Processes 2.3.1. Cargo • 2.3. Informatization Status at the Port of Baku 2.3. Informatization Status The authority highlights the importance of data and information system integration integration system information and data of importance the highlights authority The cargo terminals and ferry terminals in Baku. Each process consists of four steps while while process consists of four steps Each Baku. ferry terminals in cargo terminals and are as follows: sharing the first step. The processes announcements. the project management and information system (PMIS) in the form of rail The announcements include wagon information, like the identification numbers, types and updates automatically system The wagons. of destinations and cargo, loaded dimensions, gate, the (ANN)”. After a wagon arrives at the port’s the state of wagons to “Announced selected is checkbox ATS the If ANN. from (ATS)” Yard Shunting the “At to changed is state upon sending the rail announcement creation, the state is changed to “ATS” during the rail announcement. with different stakeholders through electronic information exchange (EDI).They would like to have a system by which the stakeholders can know the position, numbers of required and real- planning, just-in-time (JIT) operations, wagons for better resource (i.e., wagons) and resources terminal of time waiting the reduce would These making. decision time the handling capacity of the port. wagons. Therefore, this will increase Source: Source:
Continued Step 2-2 (Shunting yard) in ferry terminals: For the wagons headed to the ferry terminal, weighbridge is not required. The rest of the procedure is the same.
Step 3-1 (in port) in general cargo terminals: When the wagons arrive at the wharf, a cargo handling specialist updates their arrival by using a handheld device. The wagon’s status should be changed to “In Port (INP)”. The wagons are loaded/discharged depending on the nature of the operation. The completion of operations is confirmed by the cargo handling specialist using a handheld device. After a wagon’s loading (or discharging) operations, wagons exit the wharf area.
Step 3-2 (in port) in ferry terminals: When the wagons arrive at the ferry terminal, a cargo 067 handling specialist updates their arrival by using a handheld device. At this point, wagons CHAPTER are handled in the RoRo TOS module in the PMIS. The position at the yard is assigned, and the state becomes YRD. Next, the wagons are loaded to the ferry vessels, and their state 01 Review of the Port Baku becomes “Loaded to Vessel (LDV)”.
Step 4-1 (Shunting yard) in general cargo terminals: Cameras confirm the arrivals of loaded/discharged wagons to the shunting yard, and the second weighing takes place. Cameras located at the entrance of the shunting yard confirm the departure of wagons. The state becomes “Departed (DPT)”.
Step 4-2 (Shunting yard) in ferry terminals: The process for the discharge of wagons from the ferry vessels will be declared in the PMIS by a cargo handling specialist on a real- time basis using a handheld device. The departure of the wagons will be confirmed by the cameras located at the shunting yard. wagons handle in RORO TOS second by port by wagons updated required arrival in are loaded. weighing is ferry terminal using HH device Ferry in port (berthing side) in port (berthing or GCT Ferry exit of update updated HH device HH device wagons are GCT by port using by by port using by arrival in GCT
tare weight updated yard camera wagons arrival of camera confirmed in shunting by confirms the departure of shunting yard 2nd set of are wagon when it exits wagons weighed are wagon number wagons weighed wagon number matched from camera
matched from camera Shunting yard gross camera weight arrival in updated confirms the ATS ATS status- Wagon Wagon Wagon confirmed camera Wagon’s exit Wagon’s confirmed by Y ANN ATS ATS N status- Wagon Wagon selected checkbox destination terminal is defined based on announcement destination terminal General Cargo Terminal Operations Operations Terminal Cargo General Port of Baku, 2020.
ANNOUNCED - ANN ANNOUNCED Discharging operations in general cargo terminals in the Port of Baku (PoB) refer to cargo cargo to refer (PoB) Baku of Port the in terminals cargo general in operations Discharging • The process on the system is as described, but the actual processes run ATS differently. Wagon Announced handling equipment unloading various types of cargo, like containers from vessels to the cargo; however, ground, which is called the yard. In most cases, containers represent the are also handled in the terminals. Such unloaded cargo moves out gas and oil, others, like truck and rail. via the gate by is being replaced by “At the Station”. In the case of general cargo, when the wagon arrives cargo, when the wagon arrives the Station”. In the case of general “At is being replaced by manually PMIS operator The INP state. an to changed automatically is it the weighbridge, at confirmsthe departure of the wagons. In the case of the ferry terminal,ATS at stage, the the The Arrival (IAR)”. “In of status the with module TOS RoRo the in declared also are wagons executed, and the statuses of wagons are within PMIS are currently manually operations the process for discharging the Additionally, changed according to the real-time operations. with the status of IAR are discharged from the wagons in PMIS goes as follows: (1) wagons to leave the gate, and assigned; (2) wagons are marked vessel, and the position on the yard is and the to EGO; and (3) wagons are manually departed from the port, is changed the status status changes to DPT. Source: Source: [Figure 1-22] Wagon Capturing Process Wagon 1-22] [Figure 068 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-23] General Cargo Discharging Process (Process-based)
Before vessel arrivals After vessel arrivals
SMD passes information Vessel berthed. Port agent takes During the operations, each filled about expected vessel Commissioning team (Customs, wagons is sealed by customs and by e-mail to relevant bodies Boder, Sanitary) to the vessel sender (Opertations, HSE, Marine Fleet, Stevedoring, etc.)
The agent takes documents Operations periodically coordinate (Bill of Lading, Manifest, Invoice, with Alat Railway station to send Cargo Plan) from vessel filled wagons to shunting yard (b) Letter for permission for discharge is signed by PoB and send to Customs Head Quarters
Commissioning ends Warehouse assistant issued the General Act (indicating discharged cargo), Sturman lnvoice (at the end of each shift) and Operations inform broker “Information about loading directly about the numer of wagons The agent passes a copy of from vessel to wagon” needed for unloading the vessel documents (Bill of Lading, Manifest and Cargo Plan) to warehouse officer and customs officer takes the nexessary documnets from vessel Port assigned broker sends SMD drafts a letter to be ‘Information about loading directly sent to railways from vessel’ document to railway ordering the wagons and railway prepares Railway Invoice according to the Customs officer keys all documents for each wagon 069
information in their system CHAPTER as per document, creating As wagons arrive at barcode for each Bill of Lading Alat Railway station Mechanical and Commercial Discharge operations completed 01 Inspections (a) take place Review of the Port Baku
Customs Head Quarters will electronically approves created Broker takes Railway Bill to After inspections, empty wagons barcode and after approval Port Customs Head Office in Baku for move to Port fot preparation can commence discharging Declaration
Customs declares the cargo, closes the system and Discharge operations commence approves the transit
Source: Rewritten by researchers using data from the Port of Baku.
[Figure 1-23] shows the process of general cargo vessel discharging operations in the PoB. The operations indeed are prepared before a cargo vessel arrives. First, the Sales and Marketing Department in the port (SMD) passes information by e-mail on the coming vessel to several teams and departments, including the Operations Department and the Marine Services Department. An agent in the PoB signs and sends a permission letter for the planned discharging operations to the customs headquarters. The SMD drafts a letter to be sent to an agent in Azerbaijan Railways to request wagons for serving the vessel. A series of mechanical and commercial inspections are performed as the wagons arrive at Alat railway station, and the empty wagons move to the port. Port of Baku, 2020. During the operations, the customs and sender seal each wagon with cargo. An agent the customs and sender seal each wagon with cargo. An agent During the operations, When the vessel berths, a port agent commissions a team for customs, border, and and customs, border, a team for port agent commissions vessel berths, a When the in Alat Railway station periodically dispatches wagons to the shunting yard on request. which Act, General (1) the documents: three the following issues assistant A warehouse and (3) a list of indicates discharged cargo, (2) a sturman invoice at the end of each shift, broker A port-assigned wagons. to vessel from the performed directly loading operations invoices which prepare railway list document to the railways, sends the loading operation bills railway takes are completed, the broker per wagon. After all discharging operations to the Customs Head Office in Baku for declaration. The customs declare and approve the and close their management system. transit sanitary services to the vessel. The agent also receives the following from the vessel: bill of from the vessel: receives the following The agent also to the vessel. sanitary services of the passes the copies documents. The agent plan, and invoice manifest, cargo lading (BL), firstthree documents to a warehouse officer,and customsa officer receives necessary the all the information in their system vessel. The customs officer seals documents from the on a document basis, especially assigning a barcode to each BL. The customs headquarters port starts discharging operations the created barcodes, and then, the electronically approve for the vessel. Source: Source: [Figure 1-24] Container Discharging Operation 1-24] Container Discharging [Figure 070 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-25] General Cargo Discharging Process (Entity-based)
General Discharging(1)
Wagon arrivals / Mechanical and commercial inspections Azerbaijan ❺ Railways Empty wagons to the Part ❻ Customs HQ Electronically approving the barcodes Wagon ordering letter ❹ ❷ Discharging permission letter SMD HSE ❾ Customs Vessel BL, Manifest, Marine Fleet Cargo Plan Officer Coming vessel information ❽ ❶ BL, Manifest, Invoice, Cargo Plan ❿ Keying all information Stevedoring in their system per doc and creating a barcode per BL Customs Operations Agent Border ❼ Organising Number of wagons for discharging in the PoB ❸ a commissioning team Sanitary Broker Warehouse ⑨ SMD: Sales and Marketing Departmnet of the Port of Baku(PoB) BL, Manifest, Invoice, Cargo Plan Officer General Discharging(2)
Customs Officer Issuing the followings: Sealing cargo with wagons Warehouse - the General Act(indicating discharged cargo) Assistant - Sturman Invoice (at the end of each shift) Sender - Info on loading directly to wagons 071 CHAPTER