Azerbaijan strengthens maritime industry with new dry cargo ship
By Sabina Alizade
The Azerbaijan Caspian Shipping Company (ASCO) has announced its entry into a new segment of dry cargo transportation with the acquisition of its first Handysize vessel.
President Ilham Aliyev has paid special attention to this event, naming the new vessel Khojaly in memory of the tragic events of February 1992 in the town of Khojaly during the Karabakh conflict. This gesture not only commemorates the past but also symbolizes the country's desire for future development and prosperity through growth in maritime trade.
The vessel Khojaly was acquired as part of the Shipping Strategic Development Program, prepared on the instructions and recommendations of President Ilham Aliyev and adopted by the ASCO Supervisory Board. This program aims not only to expand the national shipping geography beyond the Caspian Sea but also to increase cargo transportation potential in international waters.
The acquisition of the vessel was financed with the participation of the European Bank for Reconstruction and Development (EBRD), with 70% of the funds provided as a loan and the remaining 30% covered by ASCO's internal resources. This reflects the high level of trust international financial institutions place in ASCO and signifies a new level of quality in corporate governance within the company.
The Khojaly vessel boasts impressive features: a cargo capacity of 38,593 tons, a length of 180 meters, a width of 30 meters, a height of 15 meters, and a draft of 10.47 meters. Its maximum speed is 15.7 meters per second, making it an effective means for transporting dry cargoes internationally.
The maiden voyage of the Khojaly vessel commenced from the port of Bukpyeong in South Korea to the Port of Portland in the United States. This journey demonstrates ASCO's ambitious plans to expand its operations beyond the Caspian Sea region and confirms Azerbaijan's commitment to active participation in international trade.
Mehman Mehdiyev, head of the press service of the Azerbaijan Caspian Shipping Company, told News.Az that following the establishment of ASCO, an investment plan for fleet renewal was also approved within the framework of the strategy adopted by the ASCO Supervisory Board. This plan emphasizes the expansion of the national shipping geography beyond the Caspian Sea, increasing cargo transportation potential in international waters, and financing investment activities for acquiring new types of larger vessels for foreign waters.
"The Handysize-type Khojaly dry cargo vessel is a continuation of projects implemented in this sphere. The Khojaly vessel, with its cargo capacity of 38,593 tons, is approximately eight times greater than other dry cargo vessels in our fleet. One of its main advantages is its ability to carry maximum cargo with minimal draft, allowing it to enter many shallow ports easily. The first voyage of the Khojaly vessel, loaded with cargo, from Bukpyeong in South Korea to Portland in the United States, marks the first Azerbaijani-flagged vessel entering American waters," he said.
Regarding the perspectives for ASCO and Azerbaijan with the acquisition and commissioning of the Khojaly vessel, Mehman Mehdiyev noted that this vessel will significantly contribute to increasing cargo transportation potential in waters beyond the Caspian Sea and further develop national shipping.
"The European Bank for Reconstruction and Development (EBRD) cooperated to finance the project. Considering the presence of corporate governance and reporting systems built in accordance with international principles in ASCO, transparency in operations, and a sound financial situation, the EBRD decided to finance the project for acquiring these vessels without state guarantees. Consequently, on February 1, 2024, a tripartite loan agreement was signed between ASCO, the Azerbaijan Investment Holding (AIH), and the EBRD. Thus, 70% of the vessel's acquisition was financed through an EBRD loan, and 30% was covered by ASCO's internal resources," the expert noted.
"The Khojaly vessel will contribute to diversifying ASCO's activities and increasing its potential in the international market. This vessel will help ASCO enter a new segment in dry cargo transportation. As mentioned earlier, the vessel's cargo capacity being eight times more than other dry cargo vessels in our fleet will enhance its overall potential. Considering the acquisition and commissioning of the Khojaly vessel, ASCO is planning new strategies and future plans," he pointed out.
"In accordance with the Strategic Development Program, ASCO continues to focus on expanding its operations and increasing cargo transportation potential, both in the Caspian Sea and beyond. Continuous measures are being implemented in this direction, and these efforts will continue," the expert said.
P.S. The acquisition of the Handysize vessel opens new horizons for ASCO and Azerbaijan as a whole, creating opportunities for diversification and increasing international trade potential. This is also a step forward in achieving strategic goals for the development of maritime shipping and strengthening Azerbaijan's position in the global trade arena.
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