Radek Špicar: Azerbaijan may become gateway for Czech companies to enter Central Asia – INTERVIEW

Azerbaijan and the Czech Republic are seeking to give their bilateral economic relations a more practical character, expanding cooperation from trade to industrial partnerships, technological exchange, and joint projects.

Against the backdrop of Azerbaijan's transport infrastructure modernization, the development of the Middle Corridor, and the search for new sources of economic growth, the experience of Czech companies in mechanical engineering, energy, and transport technologies is taking on special significance.

For Czech businesses, Azerbaijan is of interest not only as an independent market but also as a platform for entering regional markets. The realization of this potential largely depends on the ability of companies to find reliable local partners and transition from simple equipment supplies to long-term cooperation.

Radek Špicar, Vice President of the Confederation of Industry and Transport of the Czech Republic, discussed the prospects of the Czech-Azerbaijani business partnership, opportunities for Czech enterprises in transport and infrastructure projects, and economic cooperation priorities in an interview with Report.

- You previously noted that the Czech Republic views Azerbaijan not just as a sales market, but as a strategic hub for Czech business in the region. Which areas - logistics, distribution, or joint production - are of greatest interest to Czech companies?

- The Czech Republic is one of the most industrialized countries in the European Union: industry accounts for more than 30% of our GDP. One of our strongest areas is transport engineering. Successful and competitive companies producing subway cars, buses, trains, and trams operate in the Czech Republic. Their products are supplied to major cities worldwide - from North America and Southeast Asia to Africa and other European countries. Therefore, we see significant potential for the participation of Czech enterprises in modernizing Azerbaijan's public transport.

Another important area is energy. The Czech Republic has deep expertise in building power plants and is actively expanding investments in renewable energy sources. This is one of the promising segments of our exports.

The defense sector also traditionally plays an important role in Czech industry. In the current international climate, its significance is growing. Czech enterprises produce radar systems, training aircraft, fighter jets, ammunition, and other products, which is why the defense industry is also represented in our delegation that arrived in Baku for the Azerbaijan-Czech Business Forum.

Furthermore, we have technologies and solutions that shape a modern transport ecosystem: from traffic management systems and transport telematics to smart and sustainable urban mobility. All of this opens up opportunities for cooperation with Azerbaijan.

At the same time, I genuinely view Azerbaijan as more than just an export market. I am sincerely impressed by the results of the Azerbaijani economy's development in recent years. In my view, the country is consistently implementing a strategy to transition from an oil-driven economy to a more diversified model based on industry, high technologies, and services. Importantly, this is not just about plans-we are seeing the practical results of their implementation.

For Czech companies, this means the opportunity to build a long-term partnership with Azerbaijan: to create joint ventures, train local personnel, transfer technologies, and provide services. Moreover, Azerbaijan can become a regional platform for the further expansion of Czech business presence, including in Central Asia.

- Amid shifting global logistics routes, how actively are Czech transport and logistics companies getting involved in the development of the Trans-Caspian International Transport Route?

- We consider this route to be an extremely important project. Transport infrastructure is of fundamental importance to the economy: it fosters regional development, supports business, and strengthens integration between countries and cities.

Czech companies can offer a wide range of solutions for the development of transport corridors. This includes not only the supply of trains, railway tracks, and wheelsets, but also traffic management systems, as well as solutions in transport security, cybersecurity, and information technology for railway infrastructure.

Our enterprises participate in major projects across various parts of the world, including Africa under the Global Gateway initiative and South America. We would like to expand our presence in the Caspian Sea region as well, participating in projects associated with the development of the Trans-Caspian route.

- The Czech Republic possesses significant expertise in mechanical engineering, railway transport, and infrastructure management. Are Czech companies prepared to participate in modernizing Azerbaijan's railways, port infrastructure - including the Port of Alat - and logistics centers?

- Absolutely. I would say that this is one of the main objectives of the current trade mission. This is already the eighth trade mission to Azerbaijan since 1993, which underscores the consistent nature of our business contacts.

Our Prime Minister also visited Azerbaijan a few months ago. This confirms that we view your country as one of the Czech Republic's most important partners in the region.

Modernizing railway and port infrastructure, along with developing logistics centers, are precisely the directions where we see significant opportunities for Czech companies. We are interested in enabling them to offer their technologies and competencies for the implementation of relevant projects in Azerbaijan.

- What are the main priorities of the Confederation of Industry and Transport of the Czech Republic in working with Azerbaijan over the next two to three years?

- First and foremost, we intend to visit Azerbaijan even more frequently and expand business contacts. Our goal is to assist Czech companies in finding local partners, including through the support of Azerbaijani employer associations. We place great importance on their role in organizing bilateral business meetings and intend to deepen this cooperation.

A key advantage is the active engagement between our countries at the political level. Right now, political dialogue between the Czech Republic and Azerbaijan is intensifying, creating favorable conditions for the growth of business ties. Political and economic cooperation complement each other: strong relations at one level help advance initiatives at the other.

Therefore, our plan is to regularly bring delegations of Czech enterprises to Azerbaijan, carefully selecting companies with cutting-edge technologies and competitive products. Then, working alongside local employer associations, we will facilitate contacts with suitable Azerbaijani partners.

Our goal is not simply to increase the number of business visits, but to create the conditions for concrete projects and long-term cooperation between companies from both countries.