Weekly economic review (13.06- 17.06.2011)
Last week, Azerbaijan received the first batch of purple London Taxi TX4s as part of the contract. The contract was signed with the manufacturer for the delivery of 1,000 cars.
A new private company was established called Baku Taxi Company to develop a program launched by the Transport Ministry. In general, 7,000-8,000 cars from different manufacturers are planned for delivery to provide taxis to Baku and various regions of Azerbaijan.
The supply agreement of the Shanghai LTI Company, a joint venture between Manganese Bronze Holdings and Chinese Geely Automobile Holdings Limited, is the largest contract for London's company. The total cost is about $27 million. The Transport Ministry said earlier that it plans to deliver 3,000 new taxis.
Part of London Taxi TX4 cars has already started functioning and will be different with competitiveness, because the use of their services has a fixed rate.
The company has set a tariff for the use of new taxis, which is as follows: a one manat initial minimum charge and 0.7 manat for every subsequent kilometer.
Azerbaijani Transport Ministry intends to limit the number of private taxis on Baku's streets. This process will be realized in the future, and that for this purpose amendments and additions to the legislation will be necessary. About 7,000 taxis have been officially registered in Baku. However, the total amount (along with those who work without a license) is about 15,000.