International Logistics Centres for Western NIS and the Caucasus International Logistics Centres for Western NIS and the Caucasus in Armenia, Azerbaijan, Georgia, Moldova, Ukraine Final Report – Annex 5 Feasibility studies for the selected projects Azerbaijan: ILC at the New Baku International Sea Trade Port at Alyat February 2011 This project is funded by A project implemented by the European Union Dornier Consulting GmbH / NTU / Inros Lackner AG 1 International Logistics Centres for Western NIS and the Caucasus TABLE OF CONTENTS 1 EXECUTIVE SUMMARY ................................................................................................................. 7 2 INTRODUCTION AND CURRENT SITUATION ............................................................................... 9 3 IDENTIFICATION OF MAJOR STAKEHOLDERS AND NEEDS.................................................... 10 3.1 STATUS AND LEGAL FRAMEWORK FOR SITE DEVELOPER .............................................................. 10 3.2 LOCAL TRANSPORT AND LOGISTICS MARKET ............................................................................... 10 3.3 OVERVIEW AND DEMANDS OF MAJOR STAKEHOLDERS ................................................................. 12 3.4 TRACECA NETWORK EFFECTS AND SYNERGIES ........................................................................ 13 3.4.1 Introduction ................................................................................................................... 13 3.4.2 Synergy with other ILCs in the European and Caucasian parts of TRACECA ................ 14 3.4.3 Interconnections with EU Countries and the TEN-T ....................................................... 17 3.4.4 Links with the Asian TRACECA Countries ..................................................................... 17 4 FUNCTIONAL DESCRIPTION ...................................................................................................... 18 4.1 FUNCTIONAL DESCRIPTION AND CONCEPT .................................................................................. 18 4.1.1 General Objectives ....................................................................................................... 18 4.1.2 Logistics Trends and Development Vision ..................................................................... 19 4.1.3 Cargo Volumes ............................................................................................................. 20 4.1.4 Planning Guidelines and Potential Synergies ................................................................ 25 4.1.5 Functional Areas and Main Transport Infrastructure ...................................................... 25 4.1.6 Functional Concept and Intermodal Operations ............................................................. 28 4.2 SOCIO-ECONOMIC IMPACT OVERVIEW ........................................................................................ 32 5 MASTER PLAN DESCRIPTION AND PRELIMINARY DESIGN .................................................... 35 5.1 EXTERNAL AND INTERNAL TRANSPORT INFRASTRUCTURE ............................................................. 35 5.1.1 Description of Site Access ............................................................................................ 35 5.1.2 Description of Internal Transport Infrastructure .............................................................. 36 5.2 ACCESS TO UTILITY NETWORKS ................................................................................................. 37 5.2.1 Current Installations and Capacities .............................................................................. 37 5.2.2 Interface Points ............................................................................................................. 37 5.2.3 Upgrade and Development Needs ................................................................................ 38 5.3 OVERVIEW OF ENVISAGED LOGISTICS AND NON-LOGISTICS SERVICES ........................................... 40 5.4 SPECIFICATION AND DIMENSIONING OF THE FUNCTIONAL MODULES ............................................... 43 5.4.1 Specification of Main Functional Modules ...................................................................... 45 5.4.2 Stationary and Mobile Equipment .................................................................................. 52 5.4.3 Information and Communication Systems ..................................................................... 54 5.5 SOIL INVESTIGATION PROGRAMME ............................................................................................. 55 5.5.1 Description of Required Soil Properties ......................................................................... 55 5.5.2 Specification of Soil Investigation Programme ............................................................... 56 5.6 EXPANSION STAGES AND IMPLEMENTATION PLAN ........................................................................ 57 5.7 ESTIMATION OF INVESTMENT NEEDS (CAPEX) ............................................................................. 61 5.8 DESCRIPTION OF MAIN LOGISTICS PROCEDURES AND OPERATIONS ............................................... 63 5.9 ORGANISATIONAL STRUCTURE AND OPERATOR MODEL ................................................................ 67 5.10 IDENTIFICATION AND CALCULATION OF REQUIRED STAFF AND WORKSTATIONS ............................... 68 6 OVERVIEW AND ASSESSMENT OF STAFF KEY QUALIFICATIONS ......................................... 73 6.1 LABOUR MARKET OVERVIEW ..................................................................................................... 73 Final Report Annex 5 – Azerbaijan: ILC at Alyat Page 1 of 110 International Logistics Centres for Western NIS and the Caucasus 6.2 SPECIFICATION AND ASSESSMENT OF REQUIRED KEY QUALIFICATIONS .......................................... 74 6.3 RECOMMENDATIONS FOR SELECTED TRAINEE AND QUALIFICATION PROGRAMMES .......................... 80 7 ENVIRONMENTAL IMPACT ASSESSMENT ................................................................................ 82 7.1 GENERAL OBJECTIVES OF THE ENVIRONMENTAL INVESTIGATIONS ................................................. 82 7.2 DEFINITION OF THE INVESTIGATION AREA .................................................................................... 82 7.3 OVERVIEW AND CONDITIONS OF THE USED DATA BASE ................................................................ 87 7.4 MAIN ASSESSMENT OF ENVIRONMENTAL RISK ............................................................................. 87 7.5 POTENTIAL CONFLICTS WITH ENVIRONMENTAL FACTORS .............................................................. 90 7.6 CONCLUSIONS AND PROSPECTIVE COMPENSATION NEEDS ........................................................... 90 8 BUSINESS PLAN.......................................................................................................................... 91 8.1 GENERAL PROJECT DESCRIPTION .............................................................................................. 91 8.2 TECHNICAL DETAILS ................................................................................................................. 92 8.3 LEGAL AND REGULATORY MATTERS ........................................................................................... 92 8.4 ASSUMPTIONS ......................................................................................................................... 92 8.4.1 Cargo Throughput ......................................................................................................... 92 8.4.2 Revenue to the Operator............................................................................................... 93 8.4.3 Expenditures................................................................................................................. 93 8.4.4 Financing Plan .............................................................................................................. 93 8.4.5 Financial Parameters .................................................................................................... 94 8.5 MARKETING STRATEGY AND PLAN .............................................................................................. 94 8.5.1 Strategic Relevance of the Project ................................................................................ 94 8.5.2 Market Considerations .................................................................................................. 95 8.5.3 Promotion Approach ..................................................................................................... 96 8.5.4 Marketable benefits ...................................................................................................... 97 8.5.5 Development Approach................................................................................................. 98 8.5.6 Summary of Marketing Recommendations .................................................................... 99 8.6 OPERATIONS PLAN ................................................................................................................. 100 8.7 FINANCIAL PERFORMANCE ...................................................................................................... 100 9 COST BENEFIT ANALYSIS ........................................................................................................ 101 9.1 SOCIO-ECONOMIC CONTEXT AND PROJECT OBJECTIVES ...........................................................