Georgia’s Black Sea ports seek role in new international trade corridors

Tbilisi, Georgia (Ports Europe) February 14, 2019 - The Caucasus country of Georgia has three leading ports alongside its Black Sea coastline, Anaklia, Batumi and Poti, and they are all seeking a role in the region's expanding international trade corridors, driven primarily by China and other Asian countries seeking faster and more controlled access to European markets. Since the start of the 21st century, Chinese companies have acquired stakes in some 15 ports in Europe, that handle more than 10% of shipping containers traffic to and from the Old Continent, according to the Paris-based Organisation for Economic Co-operation and Development (OECD). This shopping spree is part of China’s maritime Silk Road project (part of the Belt and Road initiative also known as One Belt, One Road, or OBOR), which seeks to connect the country to commercial centres in Africa, Asia and Europe. Secondly, the newly revived Lapis Lazuli Corridor has attracted international interest. Georgia wants to be part of the corridor, a transport route connecting Europe and Asia by road, rail and sea thanks to a long-awaited new international trade and transport corridor deal. Lapis Lazuli is an international transit route opened in 2018 linking Afghanistan to Turkey via Turkmenistan, Azerbaijan and Georgia. The name Lapis Lazuli is derived from the historic route that Afghanistan's lapis lazuli semi precious stones and other semi-precious stones were exported along, over 2,000 years ago, to the Caucasus, Russia, the Balkans, Europe, and North Africa along the ancient Silk Road. The initiative will serve to reinforce the Afghan government's Infrastructure and Connectivity Development, Energy, and Private Sector Development National Priority Programs. The Lapis Lazuli corridor is funded by the Asian Development Bank. The project’s budget is estimated at $2 billion. The five countries signed an agreement in November 2018 to develop the corridor which will start from Towrgondi (also known as Turghundi or Torghundi) in western Herat Province of Afghanistan, and continues to the Caspian Sea port of Turkmenbasy in Turkmenistan. After passing the Caspian Sea, the route continues to the Azeri capital Baku, then connects to Georgian capital Tbilisi and the Georgian ports of Poti and Batumi. The corridor will connect to the Turkish cities of Kars and Istanbul. Anaklia Development Consortium consists of a group of specialized firms with diverse backgrounds, that will work with the government of Georgia to construct Anaklia Deep Sea Port with a special economic zone. For the second stage of its construction, Anaklia Deep Sea Port will receive European Union (EU) financing of about €233 million ($266.38 million) as one of the major infrastructure projects in the EU Eastern Partnership countries (EaP). In addition, the EU will also provide €100 million ($114.33 million) for the construction of a new railroad that will connect Anaklia to the railroad network of Georgia. In May 2018, Anaklia Deep Sea Port became an associate member of the Trans-Caspian International Transport Route, called “Middle Corridor”. So far in 2019, both International Container Terminal Services Inc. (ICTSI) and Trammo have announced investments in Batumi port. ICTSI, a global port terminal operator, has inaugurated the newly expanded Batumi International Container Terminal (BICT) to increase annual container handling capacity to 200,000 TEUs, together with increased capacity for general cargo and dry bulk handling. A new container freight station has been added to the facility. In January 2019, U.S. corporation Trammo, an international merchandising and trading company, announced plans to invest $20 million (€17.49 million) in the construction of a new terminal for mineral fertilizers in the port of Batumi. APM Terminals has plans for the port of Poti, Georgia’s largest, handling liquids, dry bulk, passenger ferries and 80% of Georgia’s container traffic. In January 2018, APM Terminals Poti and Poti New Terminals Consortium submitted a conceptual design for a first stage construction permit for the expansion of the Poti Sea Port, Georgia. Should these investments materialise, Georgia could develop as a key hub for transiting goods between Asia and Europe, which would also support its wider efforts to build up relations with the EU. APM Terminals, Part of A.P.Moller-Maersk, operates one of the world’s most comprehensive port and integrated inland service networks in 58 countries. Copyright (C) Ports Europe. All Rights Reserved. 2019.

Georgia’s Black Sea ports seek role in new international trade corridors

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Georgia’s Black Sea ports seek role in new international trade corridors

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