Negotiations between the Government of Georgia and Poti Port Operator APM Terminals for the construction of a new maritime terminal are held for more than two years. The company says it intends to spend more than USD 170 million on the new terminal, though it will first need to sign a contract with an investor that has been delayed for unknown reasons. The concrete results of the negotiations are not known yet, the government is represented in the negotiations by the law firm Hogan Lovells.
Roman Gotsiridze has asked a legitimate question to the Ministry of Economy if preparation works on the agreement with the investor are completed, to which he received the following answer from the Acting Minister of Economy, Otar Danelia:
“The international law firm Hogan Lovells International LLP (hereinafter referred to as Hogan Lovells) has provided legal services to the Ministry of Economy and Sustainable Development of Georgia, which is reflected in the preparation of draft contracts and their involvement in the negotiation process. In addition, Hogan Lovells has been advising the Ministry of Economy and Sustainable Development on key legal issues and negotiation processes throughout the term of the Legal Services Agreement.
We would like to inform you that at this stage the negotiations with JSC Poti Seaport Corporation are still underway and the agreement will be signed after the parties reach a final agreement.
As for your request to provide documentation, we would like to inform you that due to the privacy agreement between the Ministry of Economy and Sustainable Development of Georgia and JSC Poti Seaport Corporation, we are deprived of the opportunity to submit the requested documentation," the Ministry of Economy said in a response.
The APM submitted to the state a project to expand the Poti port more than 2 years ago, for the implementation of which the state needs to transfer a large area of land to a maritime operator. Details of the project were announced by APM itself in January 2020:
"The Poti Seaport Expansion Plan, submitted to the Government of Georgia, includes two stages of construction and development. The first phase includes construction and arrangement of a functional berth with dimensions of 400 m. [Length] - 13.5 m. [Depth]. The berth will be able to accommodate ships with a capacity of up to 9,000 TEU and it will create the capacity to handle bulk cargo and an additional 150,000 TEU. The second stage includes construction of a 300-meter-long container berth, on which 3 modern STS (ship-berth) cranes will be placed. Thanks to this infrastructure, the container capacity of the Poti Seaport will double and exceed 1 million TEU per year," the company said in a statement issued in January 2020.
In 2020, APM earned GEL 195 million in Poti and the company had a net profit of GEL 121 million. APM is one of the most profitable companies in Georgia with this profit.
