A FRIEND IN NEED IS A FRIEND INDEED

The economic difficulties reigning in the world encourage states and companies to save and optimize costs. Governments revise their economic policy and start intensive reforms.

Due to the sharp drop in oil prices on the world market, Azerbaijan, too, had to start its post-oil economic policy earlier than expected, and the government is currently conducting major reforms.

One of the priorities of Baku within the framework of the post-oil policy is to develop transport corridors passing through Azerbaijan by making maximum use of the country's geographical location and transit opportunities.

Cankat Hurmoglu, head of HED Consultancy, a company that provides consulting services in transport, logistics and road security, believes that Azerbaijan's potential in this area is great. The expert shared with us his vision of the current state of affairs, secrets of reducing transportation costs without damaging the business, ways to ensure safety on the roads and other important tips.

- Mr Hurmoglu, at the beginning we would like to get information about your company.

- We founded HED Consultancy in Germany in 1990. The company is a member of the DVR - the Road Safety Commission, which also involved the German state. After working in this field in Europe for a while, I decided that this commission needs to be introduced in our country too. Therefore, in 1998, we, along with Germany, started to work in Turkey, where we moved the firm itself two years later.

Now we operate offices in Germany, Georgia and Azerbaijan with the centre in Turkey. Among them, Azerbaijan ranks second after Turkey in terms of work. Here we implement mainly orders from multinational companies and their contractors. The experience of HED Consultancy and the certificates we have allow us to ensure the needs of these companies in Azerbaijan. Since 2011, we've been conducting all BP trainings on road safety and accident-free driving, monitoring and controlling their vehicles.

Our main goal is to ensure road safety and accident-free driving. Naturally, this requires the removal of some of the shortcomings by our customers, and we're helping them with that. There are a number of trainings that the drivers of all vehicles must attend - from cars to heavy haulers, pass exams on theory and practice and receive a certificate. For example, in BP you can get behind the wheel only after receiving such a certificate.

Some of our activities in Turkey are also linked to Azerbaijan. They include the services we provide to companies that operate in such a major project as TANAP. In Azerbaijan, we cooperate with 122 companies. However, most of them are BP contractors.

- As I understand, in Azerbaijan you are collaborating mainly with foreign companies. What's the reason? Maybe it's difficult to explain the essence of the services you provide to local businesses?

- This is the biggest problem of our work not only in Azerbaijan, but also worldwide. The biggest challenge is to explain what you're doing to your companion. For example, if you decide to teach the alphabet to a child, of course, he will have the desire for it, because he doesn't know the letters. And we're actually telling experienced people that they don't know how to drive a car and we're going to teach them how to do it. Now imagine that in front of you there is a driver with 30 years of experience. Naturally, he immediately asks, "And what can you teach me?!" Our task is to explain to people that driving a car doesn't mean to control it. Driving schools teach driving. The main thing, for example, is the ability to stop the car in the right place at the right time. Having studied accidents on Azerbaijani roads, you'll notice that people don't know how to behave in emergency situations. There are also problems with traffic regulations.

In this regard, Azerbaijan is a somewhat specific country. Perhaps, the influence of old Soviet culture has an impact here. Almost everyone in Azerbaijan says at the beginning: "We don't need these services." However, after visiting our trainings and hearing what we're talking about, they change their minds. So, you need to implement some kind of transportation. What vehicle is best suited for this, have you selected it correctly or just bought one after looking at the price? When you ask about it, they begin to understand that in fact they need our consultations. Or, for example, we ask companies how much fuel they consume? They reply - so much. After reviewing how the drivers drive, we see that they can accomplish the same job with much lower fuel consumption, even saving up to 20 per cent.

- So, if in the current global crisis, business owners want to sharply reduce transport costs, they can do so without prejudice to their businesses? For example, if travel expenses in a company add up to 1m dollars a year, you can help reduce them by 20 per cent?

- Yes, that's right. In addition, it's not just about transport companies. This includes construction firms too. They have concrete mixers and trucks. It's possible to save up to 20 per cent on supplies, tires and spare parts. So, if you spend 100,000 dollars on transport a year, then after a little training you can spend 20,000 less. And if we're talking about millions, then more money will be saved.

Another problem is that people are living in the old way and aren't willing to learn new technologies. As a result, the load on the vehicle exceeds the optimal norm, and it wears out faster. This also applies to drivers and owners of firms. We advise TANAP even on the vehicles they need to buy, how to use them and what periodic examinations will be carried out.

- That's to say that the global crisis also increased the demand for your services?

- Absolutely. You need to control costs and distribute them properly even in normal times, because competition is very high. However, in times of crisis we must pay more attention to this, as there is high inflation and other factors beyond your control.

- How do you assess the potential of the Azerbaijani market? Are there many companies here that can benefit from the services of a company like yours?

- Yes, in Azerbaijan there are such opportunities. We may even have to increase our capacity. In addition, it's wrong to consider this only in terms of economic benefits. For example, how many buses serve people in the city? If we put things in order in their work, see how everything will become more comfortable and how many lives we'll be able to save.

- By the way, the issue of safety on the roads is painful for us. What do observations tell you as a specialist? What's the biggest problem of our roads?

- The human factor. Yes, the main problem is people themselves. In fact, Azerbaijan isn't so different from Turkey in this regard. But the biggest problem on Azerbaijani roads is the human factor. If we can convince people to follow the rules a little bit, everything will be fine. Naturally, you can't blame everything on people. The government must also take into account the problem of traffic jams and safety while planning roads.

- What should be done to convince people to follow the rules? Increase the penalties and the degree of punishment or strengthen educational work?

- Penalties, of course, work, but for how long. Before writing out a fine, it's necessary to teach a person what he's obliged to do. Only then is it possible to fine him. Therefore, you have to build training on the automobile business so that everyone fully learns it before obtaining a driving licence.

- Do you have a goal to create a driving school in Azerbaijan?

- Yes, we have such a desire, but, of course, not in the present circumstances. If there is support from the state, if the laws, the rules and the system in this area are improved, as in Europe, we can start teaching from scratch before obtaining a driving licence. In the meantime, we intend to establish links with universities and conduct free training for students. We want to explain to them, using our simulators, what seat belts, for example, are for and other safety-related questions.

- As you know, one of the areas that are given prime importance within the framework of Azerbaijan's post-oil policy is the development of international transport corridors passing through the country such as the Silk Road and the North-South and transit through Azerbaijan. How do you - an entrepreneur working in this field - assess the prospects of these corridors and Azerbaijan's role in this?

- Azerbaijan's role, of course, will be great. However, we should be ready for this. Azerbaijan has to become a logistics centre. In terms of customs laws, the entry and exit of vehicles and roads, we must create a system that will turn Azerbaijan into a desirable place for transit carriers. In any case, the decisions that have been made show that Azerbaijan is on the right track.

- As far as we know, you love speed and even participate in Formula 3 competitions. In the middle of this month, Azerbaijan will host Formula 1. What do you think this will give the country, individual citizens and fans of speed?

- Competitions like Formula 1 are popular around the world. Therefore, Azerbaijan will greatly benefit from their conduct. You just have to be careful. Seeing such vehicles here, some car owners may think that they can drive like that too. We must know that those who do it have professional training in high security conditions. These cars aren't like ours and these drivers aren't like us. It's necessary to know and explain this to everyone, and journalists should be involved in this business too.