Volga-Don Canal is the main competitor of Georgian transport corridor – Company

A new marine terminal with an investment of 93 million USD is being constructed in Poti. The project is implemented by Pace Group, a Georgian company operating in Poti Port. A hearing on the project was held today at the Sector Economy and Economic Policy Committee. Representatives of the company declare, that the first phase of the construction will be completed in September-October 2021.

Pace Group founder Irakli Kervalishvili declared at a committee hearing that Georgia was not a major but an alternative road corridor for dry cargo coming from Central Asia. He noted that the Northern Railway and the Volga-Don Canal were the main corridors.

According to him, the Poti Port is of special importance for the major producers in Central Asia, as it allows them to diversify.

"We make a focus on those producers, who are trying to cross the Black Sea and the Mediterranean. These cargoes mainly come from Turkmenistan, Uzbekistan as well as the southern part of Kazakhstan. Any major manufacturer tries to have an alternative way. For example, we make most of the fertilizer shipments during the winter, which is about 300 thousand tons. Turkmenistan produces up to 1.5 million tons of fertilizers in a year, but does not export more than 600 thousand tons. We started shipping their cargo from 2016 and shipped 20 thousand tons in the first year. We gradually gained their confidence. Georgia is an alternative route for them, because the main route is the Caspian Sea and the Volga-Don Canal, which is very cheap.

However, they make shipments via our corridor, because diversification is important for the manufacturer.

Pace is the most experienced shipping group in Georgia. Coordination of cargo is quite a difficult issue, because it includes the whole chain, including Caspian Sea, Azerbaijan Railway, the Georgian Railway and Poti Port”, - said Irakli Kervalishvili.

The new marine terminal will occupy 27 hectares, its length totals 260 meters with a water depth of 13 meters. This will be the first modern facility in Georgia to handle deep-water vessels of 50,000 tone.

The total project cost is US$ 93 million, of which US$ 50 million will be allocated by OPIC and the remaining US$ 43 million by Pace Group as an equity contribution.

"Today none of the Georgian ports, including Batumi and Poti Ports, do have such a depth. A new marine terminal with a depth of 13 meters will allow us to get 50,000-ton ships. We started construction in October 2019, the pandemic hindered us a bit, but I can tell you that it will be completed in September-October this year," said Irakli Tateishvili, representative of the company.

According to the project, the new terminal will be able to process 6.5 million tons of cargo in a year.