APM Terminals plans to start construction of a new terminal in Georgia’s Poti in 2022

Poti, Georgia (PortSEurope) April 11, 2022 - APM Terminals plans to start in 2022 construction of a new terminal in the Georgia’s Black Sea port of Poti. APM Terminals is an independent business unit within Danish A.P. Moller-Maersk, focused on terminal operations and with the ability to service third-party carriers, The new terminal is expected to be operational in 2024. The port of Poti submitted an expansion project a few years ago to the government. It received permission to implement the first stage of the expansion in 2020, but still has not secured an agreement with the government. APM Terminals expects a significant increase in cargo flows from Central Asia thanks to the new terminal. After its construction, the port will offer customers maintenance services for larger ships and increase significantly the speed of unloading/loading. Also, the invasion of Ukraine by Russia means that traders are seeking new cargo routes. Cargo cannot move through Russia and Poti could benefit from cargo using the Caspian Sea-Black Sea route. This is the Trans-Caspian International Transport Route (TITR). The Trans-Caspian International Transport Route TITR allows European companies to bypass Russia, which until now sanctions the transit of certain types of goods through the country. A number of Russian entities are under sanctions from the international community following Russia’s annexation of the Crimea in 2014. The sanctions have been massively increased since the February 24 invasion of Ukraine by Russia. Poti is well connected to Bulgaria’s ports of Varna and Burgas as well as to the Romanian port of Constanta. PortSEurope: A new container hub to be created in the Port of Aktau due to sanctions against Russia Port of Poti is the largest logistics centre in Georgia. Its 2021 revenue was 187.5 million lari ($60.6 million), 4% lower than in 2020. Net profit was 83.2 million lari ($26.8 million), 37.8 million lari less than in 2020. 89.9 million lari ($29.4 million) came from bulk cargo, 52.7 million lari (17.3 million) - from maritime services, 22.9 million lari - from leasing, 15.1 million lari - from land services, and about 7 million lari - from other services. The decrease in port revenue was due to the decrease in the number of incoming vessels. The port received 771 ships in 2021, while in 2020 it served 878 ships. The number of containers handled by the port also reduced to 302,082 TEU in 2021, compared to 387,368 TEU in 2020. Despite the decrease in ships and containers, the volume of cargo handled by the port has increased to 1.36 million tonnes, compared to 1.01 million tonnes in 2020. Poti port has 15 berths and 8 of them are leased. Yields from the lease exceeded 22.9 million lari (GEL). “We see a unique opportunity to make Poti a hub for smooth and efficient transportation of both container and non-container cargo to the region,” Iain Rawlinson, Chief Commercial Officer at APM Terminals Poti said in an interview for Forbes Infrastructure in January. He confirmed the company goal to make Poti a hub for freight across the Caucasus and Central Asia. He added: "this ties in with our expansion of APM Terminals Poti, through which we are developing a new deep-water facility at the port, which will give Georgia its first true deep-water port, and therefore improve the efficiency of Poti as a regional hub. Once the expansion is operational, we will be able to handle the largest vessels entering the Black Sea". With the first phase, due for completion in early 2024, APM Terminals Poti will have the ability to handle vessels with 14.5 metres draft. Ultimately, with our deep-water development, Poti has the potential to become the primary gateway for the entire region. APM Terminals is the third largest terminal operator globally. Present in 42 countries with 75 terminals and with 22,000 employees around the world, the company is also embracing technology and new digital solutions. Poti Seaport has a total of 15 berths, of which 8 berths have been transferred to other companies on long-term leases. More PortSEurope news about Georgian ports Copyright (C) PortSEurope. All Rights Reserved. 2022.

APM Terminals plans to start construction of a new terminal in Georgia’s Poti in 2022

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APM Terminals plans to start construction of a new terminal in Georgia’s Poti in 2022

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Kazakh ambassador visits Shahid Rajaee Port, Iran

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Our Expert Analysis

Latest Free Reads

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