Caspian Energy Journal Caspian European Club
Thursday, 28 June 2018 12:30

We need an incentive for further successful development, Sabir Aliyev Featured

We need an incentive for further successful development, Sabir Aliyev

Caspian Energy (CE): Mr. Aliyev, how did Murphy start its work in the Azerbaijan market? How developed is the international network of the Company?

Sabir Aliyev, General Director of Murphy Shipping and Commercial Services Azerbaijan LLC:  The international Murphy Shipping Group of Companies started its operations in 1974 in Nigeria in the port of Lagos, where it was established as a small family business providing customs clearance services. The development of the oil and gas sector enabled the Company to develop dynamically and expand its geographical borders, opening offices in such countries as Turkey, the UK, Iraq, the USA, the UAE.

In the early 1990s, after the collapse of the USSR, the Company was the first foreign forwarder to enter the markets of the post-Soviet space, providing the high-level services in the field of international freight forwarding, project management, customs coordination, logistics, construction and management of logistics or customs and logistics complexes, warehousing.

In the Azerbaijani market the group is represented by the independent Azerbaijan company Murphy Shipping and Commercial Services Azerbaijan, which owns the Logistics Center located in the Garadagh district of Baku with the license to provide open-type customs warehousing services. Since 1994, the Company has been successfully developing and strengthening its positions in the Azerbaijan market.

CE: What is the level of the financial and trade turnover of Murphy Shipping and Commercial Services Azerbaijan?

Sabir Aliyev: Since the Company's foundation, its activities have been focused on providing services in the field of oil, gas and petrochemistry. Then the Company diversified its activities, expanded the base of customers representing different sectors of economy such as construction, consumer goods, telecommunications and communication, banks and finance, educational institutions, embassies of different countries and others.

To date, the main activities of the Company are freight forwarding, customs clearance, brokerage services, warehousing and distribution services, etc. We have more than 80 customers representing both large corporations and at the sam time the small and medium business sector.

CE: The sharp fall in oil prices over the past three years has badly affected the financial standing of the Company. Which measures have been taken to minimize the impact of the crisis on the financial performance?

Sabir Aliyev: The economic crises caused by the oil price fluctuations have certainly affected the Company's activities, given the fact that more than 40% of the Company's customers are somehow involved in the oil and gas sector. Reducing costs in the oil and gas sectors has led to the changes in the client portfolio. Nevertheless, the Company continued to develop, initiated new projects both in Azerbaijan and abroad, adapting to the new economic environment.

CE: The new Government has been recently formed in Azerbaijan. What should be the Government's first steps in your opinion? How would they affect the work of the Company?

Sabir Aliyev: It is difficult to foresee future steps of the new Government. However we, like any other medium-sized company, need an incentive for further successful development. I would certainly like to see state tax reforms aimed at boosting the economy and building up potential and economic ties in the region. These initiatives will certainly secure an increase in the volume of transportation and help our Company enter new markets.

CE: Which prospects do you associate with the operation of the Baku-Tbilisi-Kars route? Sabir Aliyev: The Baku-Tbilisi-Kars transport corridor, which connects the railway networks of Azerbaijan, Georgia, Turkey with the neighbouring countries across Asia, Transcaucasia and Europe, will promote, along with other major transportation projects, even greater integration of Azerbaijan into the world transport network, secure a higher level in the field of transportation, thus opening up new opportunities for Azerbaijani entrepreneurs in the field of transit and transshipment of various cargoes and increasing the freight turnover by reducing the travel time for cargo transportation from Asia to the European countries.

Murphy Shipping and Commercial Services Azerbaijan, as the customs agent of the US company Procter & Gamble - the consumer goods manufacturer, has been among the first companies to make the import registration of 12 containers moving from Turkey along the abovesaid route.


Thank you for the interview

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