BAKU, Azerbaijan, June 4. Ahlers Logistics sees potential to further expand its services along the Trans-Caspian International Transport Route (TITR, or Middle Corridor), Johan Elzes, New Growth Business Unit Director at Ahlers Logistics, told Trend in an exclusive interview.
The importance of the Middle Corridor in Ahlers Logistics' activities
"Ahlers Logistics’ offices have been working in Central Asia for over 25 years, recognizing the importance of routes to and through Kazakhstan. The Middle Corridor, including its Trans-Caspian multimodal route, is crucial for Western companies. It offers a revived path between Europe and Asia, especially with the current traditional routes facing sanctions," he said.
According to Johan Elzes, Ahlers Logistics uses its experience along the entire corridor, not only in Central Asia but also in Georgia and Türkiye, to ensure smooth cargo movement along this corridor.
"This connects our hub in China with Europe and vice versa. Our goal is to provide efficient logistics solutions for businesses to benefit from this route's opportunities, adapting to their changing needs in global trade. With our experience in complex markets and global network, we help our customers navigate global trade complexities and seize Middle Corridor opportunities," he noted.
As he noted, for Ahlers Logistics, compliance stands as a cornerstone of business.
"Although the North-South Transport Corridor is a vital link for trade, it is troubled by sanctions and unexpected events. Our customer base is made up of Western companies looking for new routes to Central Asia and China, bypassing Russia and Iran. Thus, we see significant potential in further expanding our transportation services along the TITR," he said.
According to him, the Middle Corridor not only offers access to booming markets but also facilitates trade routes to the Middle East, North Africa, and the European Mediterranean region.
"Our focus is on leveraging our comprehensive solutions and deep understanding of the region's challenges to offer these end-to-end solutions tailored to the needs of European and American companies. We understand the challenges posed by limited infrastructure capacity and fluctuating transport prices along this route. The TITR is still lacking cooperation among the involved states. This translates into a considerable burden for our customers, who are compelled to navigate the requirements of five distinct countries – encompassing customs procedures, legal compliance, certification protocols, and more – while simultaneously engaging with five different local partners," he said.
Johan Elzes noted that Ahlers Logistics serves as a single point of contact, smoothly managing all the challenges along the route.
"We employ a data-driven approach to navigate these challenges, ensuring transparent pricing structures and real-time updates for our clients. We have a strong procurement team of experts in Türkiye, Georgia, Azerbaijan, and Kazakhstan. Through strategic partnerships, investments, and adherence to European standards and sustainability practices, we aim to even further enhance our presence and capabilities along the Middle Corridor," he said.
Activities in Kazakhstan and in the region
Speaking about activities in Kazakhstan, the unit director pointed out that Ahlers Logistics has been in Kazakhstan for over 25 years, nurturing a rich portfolio of local partners and fostering long-standing relationships in the region.
"We have our procurement experts in the key locations – Almaty, Istanbul, Izmir, Poti, and Baku. They play a crucial role in building up a pool of reliable transport companies, including certified providers for secured transportation of theft-sensitive goods and handling oversized or temperature-sensitive cargo," he said.
According to him, of course, the company sees tough hurdles for carrier companies in Central Asia and the Caucasus.
"These include small fleets, limited routes, and not enough budget to cover risks or invest in things like security, international certification, and IT. Plus, the instability in local markets, like in Türkiye, where companies go bankrupt often due to high competition and inflation. However, leveraging our extensive network, we adeptly navigate these challenges to empower our customers’ expansion within the region. In the end, we are responsible for ensuring reliable service. Our customer portfolio spans various industries like consumer goods, project cargo, electronics, and chemicals, each demanding stringent adherence to specific requirements," Johan Elzes said.
As he noted, Ahlers views Central Asia as a promising investment destination.
Investment project in Kazakhstan
"In line with this vision, we plan to construct an A-class warehouse in Almaty that meets all European standards. By offering end-to-end logistics solutions tailored to the needs of Western companies navigating this strategic route, we aim to solidify our position as a reliable one-party logistics solution provider in the region, pivoting around our expertise combined with our own assets," he said.
According to him, the current portfolio of Ahlers Logistics in Central Asia is quite broad, from tobacco and project cargo to chemicals and heavy machinery.
"Continuous expansion of our customer base in the region is a strategic priority for Ahlers Logistics, as we aim to seize the opportunities emerging along the Middle Corridor. To underscore our dedication, we signed cooperation agreements with Kazakh Invest in March. Additionally, we collaborate closely with local business associations such as the BeNeLux Chamber of Commerce, AWEX, and Flanders Investment and Trade," Johan Elzes noted.