AD Ports Group awards deal for two shallow-draft container vessels for Caspian Sea ops

19/09/2025 02:37 AST

AD Ports Group, a global enabler of trade, transport, logistics, and industry, has awarded a contract to Baku Shipyard in Azerbaijan for the construction of two 780 TEUs container vessels that will serve trade routes across the Caspian Sea.

The contract was signed with the public legal entity Azerbaijan Transport and Communication Holding (AZCON), acting on behalf of Baku Shipyard.

These shallow-draft vessels specifically designed for use within the Caspian Sea, will play a pivotal role in enhancing maritime connectivity, boosting trade volumes, and strengthening the trans-Caspian logistics corridor. The newbuilds have been designed to support the growing demand for containerised cargo capacity in the region and to ensure more efficient, reliable, and sustainable transport solutions, AD Ports group said.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: "This step aligns with the vision and directives of our wise leadership in the United Arab Emirates, and reaffirms AD Ports Group's commitment to supporting the growing trade needs of the Caspian region. Partnering with Baku Shipyard ensures that these new vessels will meet the highest international standards of quality and efficiency, enabling us to deliver greater capacity, improved service reliability, and contribute to the long-term growth of supply chains."

The vessels, expected to be delivered in Q4 2027, will be deployed on key routes to optimise connectivity between key trading hubs within the Caspian Sea.

This step follows AD Ports Group and its subsidiaries' recent ventures in the Central Asian region, driven by their strategic priority to increase the efficient transportation of energy resources to global markets, while connecting diverse regions and stimulating economic growth.

In June 2025, the group inaugurated the first phase of Tbilisi Intermodal Hub, Georgia's first modern, bonded container and intermodal terminal, and a key logistics link in the Group's emerging Central Asian transport strategy. The state-of-the-art, rail-linked logistics centre connects the Caspian and Black seas through Georgia, forming a vital part of the Middle Corridor, the shortest trade route between Asia and Europe.

In July 2025, a Comprehensive Economic Partnership Agreement (CEPA) was signed between the United Arab Emirates and Azerbaijan, marking a significant new step toward strengthening the UAE's economic, trade, and investment presence in the Caucasus region, and deepening engagement and partnership with the southern Caspian countries, in line with the UAE's vision to enhance strategic partnerships with high-potential markets.

The UAE is one of the largest foreign investors in Azerbaijan, with total direct investments exceeding $1 billion, a reflection of the strength of the economic ties between the two sides and the impact of these investments in supporting the growth of Azerbaijan's economy.

Azerbaijan is also a key trade and investment partner for the UAE, thanks to its strategic location in the Caucasus at the crossroads of trade between Eastern Europe and Western Asia, a region of growing economic importance.

In 2024, Azerbaijan's economy recorded growth of 4.1%, while its non-oil sector achieved an impressive 6.3% increase, highlighting diversification within its economic base and creating further opportunities for cooperation and partnership with the UAE.

Bilateral non-oil trade between the two countries increased 43% to $2.24 billion in 2024. These figures underscore the growing momentum of economic relations between the two nations and the progress achieved in advancing mutual trade and investment cooperation.

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