Azerbaijan and the UAE plan to construct two cargo ships for maritime trade in the Caspian Sea.
In a significant move to boost maritime connectivity and trade in the Caspian Sea, AD Ports Group, a leading UAE-based port operator, has signed a contract with Baku Shipyard in Azerbaijan to build two 780-TEU shallow-draft container vessels. The vessels, upon delivery in the fourth quarter of 2027, are expected to improve service reliability, deliver greater capacity, and meet the highest international standards. They will operate on key routes to strengthen the trans-Caspian logistics corridor, providing a much-needed boost to the region's supply chains. The formalization of the connection between Baku Shipyard and AD Ports Group was not explicitly mentioned in the search results, but it's worth noting that Baku Shipyard LLC was founded in 2011 as a joint venture by SOCAR (65%), Azerbaijan Investment Company (25%), and Keppel Offshore Marine (10%). The UAE's investments in Azerbaijan have been growing steadily, with the UAE being among Azerbaijan's largest foreign investors, boasting more than US$1 billion in direct investments. This expansion underscores the growing momentum of economic ties between the two countries. The vessels' operation is expected to contribute to the long-term growth of supply chains, particularly with the Tbilisi Intermodal Hub, located in Georgia, coming into play. AD Ports Group recently expanded in Central Asia, including the launch of the first phase of the Tbilisi Intermodal Hub in June 2025. Bilateral non-oil trade between the UAE and Azerbaijan rose by 43 percent in 2024 to US$2.24 billion. This growth is a testament to the strong economic relationship between the two nations. The signing of the Comprehensive Economic Partnership Agreement between the UAE and Azerbaijan in July further solidifies this relationship. The agreement, formalized at a ceremony attended by Azerbaijani President Ilham Aliyev and UAE President Sheikh Mohamed bin Zayed Al Nahyan, is a recent development that promises to foster even closer economic ties between the two countries. In conclusion, the construction of these new container vessels and the expansion of the Tbilisi Intermodal Hub are significant steps in strengthening the economic ties between the UAE and Azerbaijan. These initiatives are expected to improve service reliability, boost maritime connectivity, and contribute to the long-term growth of supply chains in the region.
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