The Caspian Cluster of SEZs: 10 Years of Investment in the Future

This year, Special Economic Zone Lotus JSC celebrated its 10th anniversary. Alexander Kim, Director General of the Management Company of the Caspian Cluster of SEZs, spoke about the results achieved and the plans for the future.

 FISH FEED, BULK CARRIERS, AND IRANIAN HOUSEHOLD CHEMICALS

 – Mr. Kim, you recently took charge of the company. In your opinion, how are the SEZs of the Astrakhan Region developing?

 – Yes, indeed, I joined the team of SEZ Lotus JSC a year ago. This brought even greater responsibility. Thanks to the united team of the Management Company, as well as the support of the Government of the Astrakhan Region and Governor Igor Babushkin personally, we managed to preserve what had been done under the previous leadership and, I hope, to build upon it. Thus, there are 16 tenants in SEZ Lotus, three plants are already operational, and additional production lines at two enterprises are being prepared for launch. The company Gexa-Lotos produces geosynthetics that are in demand on the markets of Russia and the CIS countries. The Rybniye Korma plant manufactures feed for aquaculture based on a unique formula. Its products can provide a high-quality feed base for aquaculture producers from Kaliningrad to Vladivostok. There is also interest in the products of the plants from the CIS countries. Lotus Shipyard builds various types of vessels, including domestically produced bulk carriers under a Russian project for operation in the Caspian Sea, dredging vessels, and small fleet units as part of the import substitution project. The enterprise’s production schedule is planned several years ahead. At present, the government has set a development course for this sector — together we are developing the International North-South Transport Corridor.
 Several more projects are underway — last year, Igor Babushkin, the Governor of the Astrakhan Region, took part in the groundbreaking ceremonies for new production facilities in SEZ Lotus – a protective coating complex and a flour mill. The latter is already entering the equipment installation stage, and soon the enterprise will produce more than 130 thousand tonnes of flour of various grades and bran annually. The Iranian household chemicals plant Rosa LLC is preparing for launch in 2026 – the equipment installation has already begun at the facility.
 Of course, there have also been changes due to geopolitical and economic reasons – some of our partners have taken a pause or postponed their plans to build production facilities on our territory. The reformatting of the market, the pivot toward the countries of Africa, the Near East, the Middle East, and India that have occurred in recent years give us the opportunity to adjust the development plan for the Caspian Cluster — to select tenants in accordance with new trends and emerging logistics chains. For example, companies with investments from Iran and Turkmenistan are already operating on the territory of SEZ Lotus. The positive experience of international cooperation with these companies is bearing fruit — other foreign companies are showing interest in the Caspian Cluster of SEZs. Negotiations are underway with investors from the Republic of Belarus, Iran, and the United Arab Emirates.
 In 2025, companies working in areas such as ship equipment manufacturing, light industry, gas processing, and food production are considering the possibility of establishing their production facilities in SEZ Lotus.
 
  At the end of last year, Astra LLC became a tenant of the Port Special Economic Zone with a project of a refrigerated logistics terminal of 6 thousand square meters. It will be used for processing and storing vegetables, fruits, and other agricultural products. Currently, site planning for the future terminal is underway.
 The anchor tenant PLC Caspiy LLC continues the construction of a container terminal, while AgroTerminalCaspiy LLC is implementing a project of a modern terminal for grain and vegetable oil. The planned capacity is 900 thousand tonnes of grain and 300 thousand tonnes of oil per year, with simultaneous storage of up to 100 thousand tonnes of grain.
 The construction of berthing facilities by Agro-Export LLC, which will form the basis for the implementation of the national project “The Great Volga Route” in the future – a route that was once well known far beyond the borders of our country, is also being worked out in SEZ Lotus. This will help restore logistics chains that will connect Russian regions located along the Volga River via inland waterways.
 

– How much investment has been made by the tenants of both SEZs? Is there any dynamic in this regard?

– As of today, the investment portfolio of the Caspian Cluster of SEZs amounts to about 57.9 billion rubles, of which approximately 7.7 billion have already been invested, more than 700 jobs have been created, and over 519 million rubles in taxes have been paid into the consolidated budget of the Astrakhan Region. Based on last year’s results, we have maintained the number of active tenants at the level of previous years.
 It is worth noting that the tenant companies not only establish production facilities based on modern technologies on the territory of the Caspian Cluster, but also study the experience of global companies, introducing the best practices. The enterprises create comfortable conditions for their employees – this includes not only decent wages but also transportation to and from the enterprise, as well as staff qualification improvement.
 For example, Rybniye Korma JSC stimulates employee development and enhances competencies of its team through corporate programs – training events are held on the premises of the enterprise. Gexa-Lotos LLC trains employees from scratch – the company understands that a good specialist is one who has grown here, at the production site. In addition, the enterprise holds events aimed at strengthening family values and fostering corporate traditions.
 
  – How are staffing needs addressed at the enterprises?

– Personnel are the foundation of any enterprise. And the more specialized the profession, the more effort it takes to find the right employee. Understanding the staffing needs of our tenants, our Management Company cooperates with leading educational institutions of the Astrakhan Region to enhance the capacity to train highly qualified specialists in the region. For example, the Narimanov branch of the Astrakhan State College of Professional Technologies hosts the Center for the Development of Professional Competencies. Recently, it has started training future specialists for enterprises in Special Economic Zone Lotus: the shipbuilding plant and Gexa-Lotos LLC.
 As for higher education institutions, students of the Astrakhan State University, in addition to receiving specialized training at the university, also complete internships in our company – gain experience in interacting with business representatives. SEZ Lotus JSC employs specialists speaking English, German, Japanese, Chinese, and Farsi.
 Tours of the enterprises are organized for students. All of this helps graduates better understand the specifics of their future profession, choose the most interesting field to work in, and enables us to form a solid talent pool for our tenants.

INFRASTRUCTURE IS THE KEY TO FINDING INVESTORS

 – For new tenants to come, not only ideas and capital are required, but also infrastructure – gas, electricity, water, sewage, and roads. What has already been built in SEZ Lotus, and what are the plans for the near future?

 – All the necessary infrastructure for implementing projects within the SEZ has already been established — 45 facilities have been constructed and commissioned: electricity and water supply systems, wastewater disposal, cable ducts for communication networks, and roads. In 2025, four more facilities are planned: three roads and the Distribution Point No. 4. A temporary vehicle checkpoint will also be opened in the eastern section of SEZ Lotus. The construction is financed by the budget of the Astrakhan Region, allocated to the Management Company under the Russian Federation Government Decree No. 1704 dated October 19, 2020.
 The commissioning of the gas distribution station Lotus is underway, which will enable the construction of facilities for natural gas processing. This has become possible thanks to the gas supply and gasification development program of the Astrakhan Region – a branch pipeline and a gas distribution station with a capacity of 200 thousand m³/hour have been built at the expense of PJSC Gazprom. The station will meet the gas needs of current and future tenants of SEZ Lotus and provide reserve capacity for prospective projects. In the future, the gas turbine power plant with an installed capacity of 70 MW is also planned to be connected to the network fuel infrastructure to supply electricity to the enterprises of the SEZ tenants.
 – How does infrastructure affect the attraction of tenants?

– It’s always easier to set up a business where communication networks are already in place. The special economic zone was originally conceived as a territory offering favorable and convenient conditions for establishing production. The investment appeal of the SEZ is largely determined by the availability of ready-to-use infrastructure. In the past, there were delays in the construction of facilities due to objective reasons. Naturally, this affected investor confidence and the overall attractiveness of the site. However, the companies that trusted us from the beginning are now successfully implementing their projects and planning to expand their production. Including thanks to the newly introduced infrastructure capacities.

   THE KEY LOGISTICS HUB ON THE CASPIAN SEA

– Another milestone in the company’s history was the Port Special Economic Zone, established by presidential order in 2020. How is this SEZ developing today?

– The Port SEZ project is still relatively new – construction began not long ago. It was preceded by extensive design and documentation approval work. As part of the SEZ development, the 8^th and 9^th berths of the Olya Seaport are being equipped. Infrastructure and social facilities (electricity, water supply, wastewater disposal, and gas supply networks, roads, etc.) are being constructed using funds from the federal budget – the Government of the Russian Federation has allocated more than 2.5 billion rubles.

 On the territory of the Port SEZ, temporary grain storage warehouses have already been built, and a road to the berths has been completed. A permanent multilateral marine cargo-passenger checkpoint across the state border of the Russian Federation has been commissioned. Crane tracks, open and covered warehouses for containers and general cargo, utility networks (electricity, water supply), transport infrastructure, and a port administration building are currently under construction. The commissioning of the Port SEZ facilities is planned for 2026.

 – What will the construction of the Port SEZ bring to the region?

– The Astrakhan Region is a unique area that, thanks to its geographic location, serves as a gateway to the Trans-Caspian route of the International North-South Transport Corridor. In recent years, cargo traffic through our ports has increased and continues to grow. Including due to expanding trade relations with friendly countries.

 Expanding port capacities and establishing modern infrastructure will strengthen this effect, create additional investment inflows into the region’s economy, and generate new jobs.

 Tenants of the Port SEZ are already prepared to invest over 30 billion rubles in their projects. So far, more than 750 million rubles have been invested, and around 40 jobs have been created. This is also important for the development of districts in the region – wherever jobs appear, housing and supporting infrastructure follow.

 According to our estimates, the staffing needs of the current tenant enterprises of SEZ Lotus and the companies in the design phase of their production facilities will reach about 1.5 thousand people by 2030. With the development of the Port SEZ, the total workforce demand will be around 2 thousand people.

 – What is your vision for the Caspian Cluster of SEZs in the next 10 years?

– The creation of special economic zones in Russia is a very important tool for the development of our country’s economy. It is encouraging that despite the changing geopolitical landscape, we are finding ways to continue growing. The Astrakhan cluster of SEZs has great potential – the region holds a unique logistics position, has a solid industrial and raw material base, and offers favorable conditions for localizing production facilities. This allows us to build successful partnerships with other countries, including within the framework of the INSTC.

 Thus, companies from the Caspian Basin countries, India, and Pakistan are expressing interest in the region and our SEZs. Among them are our partners from the Islamic Republic of Iran – the Mostazafan Foundation, the largest in the Middle East, and the logistics company Khazar Sea Shipping Lines. They are interested in developing logistics chains between Russia and Iran. With the participation of a Port SEZ tenant and the Mostazafan Foundation, a joint Russian-Iranian company was established in 2023 to organize road cargo transportation between the northern and southern ports of Iran. Previously, this section was a logistics gap within the country and posed certain challenges.

 As you may know, the free trade agreement between the Eurasian Economic Union and the Islamic Republic of Iran has recently come into force. It opens up new opportunities for trade and economic cooperation, including for tenants of the Astrakhan SEZs: virtually all goods produced in Russia will benefit from unique access conditions to the Iranian market.

 Thanks to the construction of the Port Special Economic Zone, we will be able to talk about the development of a new transport route with shipping lines, competitive tariffs, and time savings with regulation at the government level. Together with the Chamber of Commerce and Industry of the Astrakhan Region, we are currently working on the creation of a one-stop system for maritime freight transport along the Trans-Caspian route of the International North-South Transport Corridor. This system is expected to allow for the issuance of all documents required for dispatch, tracking, and receipt of cargo in a single location instead of at multiple places, as is currently the case. This approach will reduce processing costs and tariffs, and will enable state oversight without unnecessary time delays.

 The government is carrying out large-scale work to develop the Trans-Caspian route of the INSTC: this includes dredging the Volga-Caspian Sea Shipping Canal, the construction and repair of new railways and roads. All these efforts will create a unique environment for the growth of the Caspian Cluster of SEZs – tenants are more likely to invest in areas where infrastructure, logistics, and production capabilities are already in place.

 

– Are there any new directions for the development of the Astrakhan SEZs?

– Certainly. By order of the regional government, it is planned to establish an industrial shipbuilding cluster based on Special Economic Zone Lotus. Participants in this project produce import-substituting products in the shipbuilding sector and benefit from incentives under the state program for the development of industrial clusters in Russia. As you know, the national project “Transport Manufacturing” was launched this year. It is aimed, among other things, at increasing the volume of shipbuilding and ship equipment production.

 Our anchor tenant, Lotos Shipyard JSC, has been renowned for its vessels since the 1980s. However, until recently, equipment for these ships was also purchased from abroad. Due to various reasons, import-substituting products of comparable quality are now being used. Within the industrial shipbuilding cluster, such equipment or its components will be manufactured on the territory of SEZ Lotus. For example, RK Inzhiniring LLC is implementing a project to establish a production center for the application of coatings that protect against all types of corrosion. These coatings are especially in demand in shipbuilding, oil and gas, power engineering, and aircraft manufacturing, as they not only offer protective properties but also enhance the technological performance of equipment and components.

 Therefore, through the joint efforts of the SEZs tenants, we will be able to contribute to the development of this project and create a robust production network, from spare parts and equipment to high-quality vessels. These vessels, in turn, will be used on inland waterways as well as along the Trans-Caspian route of the International North-South Transport Corridor.

 There are, in fact, many plans. Thanks to the support of Igor Babushkin, the Governor of the Astrakhan Region, and the regional government, we are increasing the region’s investment potential and developing the International North-South Transport Corridor. In the near future, we will continue to build infrastructure, develop new solutions to attract new tenants, and create the much-needed jobs for the region.