Situation in Georgia Prompts Rise in Car Prices in Baku

Business Materials 27 August 2008 12:29 (UTC +04:00)
Situation in  Georgia Prompts Rise in Car Prices in   Baku

Azerbaijan, Baku, 27 August / TrenCapital, corr U. Ismayilova/ The frequent failures in the operations of the port of Poti of Black Sea through which automobiles are imported to Georgia and Azerbaijan for sale, have led to the rise in prices by 5% in the secondary car market of Baku, Nusrat Ibrahimov, director general of MBA Group Consulting Company said.

"I think, the prices will drop very little after the port operates normally and cars are imported as before," Ibrahimov said.

Cars are imported to Azerbaijan mainly from Georgia, Russia and Iran.

According to Ibrahimov, the drop in the supply of cars in the market has caused a price rise of 8% in the cars imported from Iran. There is price rise of about 3% in the cars produced in Russia, Ibrahimov said.

The minimal cost of a car in Baku comprises $1,000 and maximum $205,000.

Port of Poti deals with trans-shipment of oil products dispatched through railway from Azerbaijan and through transit from Central Asia and delivery and shipment of container cargos.

In mid-August, a railway bridge was exploded in Kaspi town of Georgia which led to the stop in the delivery of oil products and jam of trains on the railway. The presence of Russian troops in Poti caused failures in the operations of Poti port and affected dispatch of container cargos.

The correspondent can be contacted at: [email protected]