Blow to the reputation of the Middle Corridor

By Tural Heybatov

Let's not focus on the general work of customs right now, although there are indeed issues with cargo transportation and customs clearance. Complaints are coming not only from businesses but also from ordinary citizens who sometimes wait for months for clothing ordered from places like China or America.

In the age of information technology, when you can track a shipment by phone, it's impossible to hide instances where cargo arriving on time at Azerbaijani customs is delayed for an indefinite period. For example, a buyer in Norway received a package from a well-known online store from across the world in five days, while an Azerbaijani customer received the same goods in a month and a half. Most of this time, the cargo remained in limbo at the borders of Azerbaijan.

However, today the discussion is different. When private citizens' orders are delayed, it's unpleasant. But it's far worse when goods sent as part of international transport and logistics projects get stuck at Azerbaijani customs. This is a matter of international economic relations and foreign partners' trust in Azerbaijan.

A very strange situation occurred at the "Silk Road" customs in Baku. It all started back in June. On June 23, four trucks carrying goods transported by Union Logistics for 98 Azerbaijani companies were detained at customs. The trucks travelled from China through the Middle Corridor (the Trans-Caspian International Transport Route, TMTM) via Kyrgyzstan, Uzbekistan, and Turkmenistan. Usually, goods are delivered to Azerbaijani customers within two weeks, but this time something strange happened. According to media reports, after the trucks were held at customs for more than three weeks, in response to numerous complaints and appeals, Union Logistics vehicles were opened without the carrier's knowledge, and the goods were handed over to the buyers by personal order of the capital's customs administration.

It's good that the goods finally reached Azerbaijani companies. However, the business reputation of Union Logistics, a company that has been diligently working in the logistics field for 12 years, has been tarnished. Union Logistics specializes in the delivery of goods from China and Central Asian countries to Baku and back.

The main issue is that a reputational blow was struck against the Middle Corridor. The Middle Corridor is a strategic resource for Azerbaijan. It was created at the initiative of our country, significant funds have been invested in it, and it is associated with great hopes and plans. The Silk Road route was developed by fraternal Turkic countries to facilitate logistics operations and speed up cargo delivery.

Over the past five years, Azerbaijan's trade turnover with Central Asian countries has increased 2.5 times, exceeding $1.3 billion. The trade turnover between Azerbaijan and China by the beginning of this year increased by 43.5 percent and amounted to $3.1 billion. The New Silk Road is working and bringing dividends to all participating countries. Moreover, amid the current geopolitical situation, interest in the Middle Corridor has increased significantly. Over the past two years, the volume of cargo transported along it has more than tripled, doubling in 2022 and then increasing by 65 percent in 2023.
Azerbaijan's significant investments in expanding international transport corridors passing through its territory have not only created a vital artery for trade between Asia and Europe but also allowed for a quick response to global challenges. In 2023, 2.7 million tons of cargo were transported through the Middle Corridor, which is 86 percent more than in 2022. In 2024, this figure is expected to exceed 4.2 million tons.

These numbers indicate that not only Azerbaijan but other project participants are also betting on the Middle Corridor. The parties are jointly working on unifying tariff policies, technical coordination, and providing through services along the route. In October last year, Kazakhstan, Azerbaijan, and Georgia created a joint venture, Middle Corridor Multimodal Ltd., to develop a multimodal service on the Trans-Caspian International Transport Route. A few weeks ago, the state company "China Railways" agreed to cooperate with "Georgian Railways."

In short, the corridor is actively developing and expanding. It would be absurd and strange if Azerbaijan, or rather its customs authorities, turned out to be an obstacle on this route.
Just this April, Rovshan Mehdiyev, head of Union Logistics and chairman of the Caspian Energy Club Kyrgyzstan, at the conclusion of the Bishkek Investment Business Forum, urged Azerbaijani and Kyrgyz companies to facilitate the successful functioning of the TMTM. What emotions will accompany calls for expanded cooperation today when Kyrgyz drivers had to spend almost a month at Baku customs, sleeping in their trucks?

After the situation at the "Silk Road" customs post of the Baku Main Customs Administration became public, the press service of the State Customs Committee of the Republic of Azerbaijan issued a statement. It noted that since the end of June, four vehicles with various mixed Chinese-origin goods belonging to the Kyrgyz Republic had entered the country from the People's Republic of China. The transportation involved the company Union Logistics. Customs declarations were not provided for some of these goods. Customs inspections for product identification are conducted based on such declarations. Despite electronic notifications being sent to entrepreneurs about the appointment of customs control based on submitted customs declarations, they did not apply for an electronic queue to receive goods. On July 12, 2024, customs authorities sent written notifications to these entrepreneurs regarding the receipt of goods.

The SCC claims that Union Logistics advised entrepreneurs not to collect goods but to gather en masse on July 15 in front of the Baku Main Customs Administration. Furthermore, the Kyrgyz Republic's customs service sent photos and videos regarding the damage to a truck at Baku customs. However, an investigation found that the vehicle had entered the country's territory already damaged.

As reported by News.Az from Union Logistics, the incident is now resolved. Let's not make unequivocal conclusions. The carrier may bear some responsibility. It's unclear why product customers delayed customs declarations. However, looking at the broader picture, the country itself, not the logistics company, is accountable to project partners for such situations.
Azerbaijan's reputation as a reliable partner suffers when trucks with Chinese goods and Kyrgyz drivers idle at the border for several weeks. Opinions are emerging about the deliberate sabotage of Chinese goods. This version is unlikely, given the relationship and mutual interests of the two countries, but its appearance in the public space is already a negative. It's important to understand that a transport and logistics hub includes not only physical infrastructure but also the conditions the country provides to its partners.

News.Az