Posted on October 21, 2024
Abu Dhabi, UAE/ Tbilisi, Georgia – A senior delegation from AD Ports Group (ADX: ADPORTS), a leading facilitator of global trade, logistics, and industry, headed by H.E Ahmed bin Ali Al Sayegh, Minister of State, today were welcomed by the H.E Levan Davitashvili, First Vice Prime Minister, Minister of Economy and Sustainable Development of Georgia in Tbilisi, to present progress achieved in the development of Tbilisi Dry Port, a new custom-bonded and rail-connected intermodal logistics hub in Georgia.
The state-of-the-art, rail-linked and custom bonded intermodal logistics hub – on track for operations in January 2025, links manufacturing centres in Western Asia to consumer markets in Eastern Europe, via the Middle Trade Corridor by leveraging a network of sea and dry ports across Kazakhstan, Azerbaijan, Armenia, Georgia and Türkiye.
AD Ports Group has recently announced the completion of the acquisition process of the Tbilisi Dry Port, which sees the Group become the majority owner with a 60% stake. The new logistics hub will be operated by AD Ports Group’s Logistics Cluster.
His Excellency Ahmed bin Ali Al Sayegh, Minister of State, Ministry of Foreign Affairs, Government of the UAE, said: “ We are pleased to witness strengthened ties between both countries, with vast opportunities to enhance cooperation across various sectors of mutual interest, empowered by the UAE’s Comprehensive Economic Partnership Agreement (CEPA) with Georgia, both nations have a mutual commitment towards strengthening bilateral trade, in addition to empowering SMEs, and enhancing global supply chains, in line with the vision and guidance of our wise leadership.”
H.E Al Sayegh added: “The UAE-Georgia CEPA is expected to more than triple the total value of non-oil trade between the two countries to US$1.5 billion within five years, AD Ports Group’s investment in Tbilisi Dry Port underscores the strong relations between the two nations, in addition to joint efforts aimed towards enhancing trade, facilitating market access and supporting UAE and Georgian businesses, while fostering further growth and prosperity for both nations.”
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said: “We are pleased to brief H.E Levan Davitashvili, First Vice Prime Minister, Minister of Economy and Sustainable Development of Georgia on the progress achieved in the development of Tbilisi Dry Port, a key logistics hub within the Middle Trade Corridor, strengthening connectivity between Western Asia and Eastern Europe. Our investment in Tbilisi Dry Port further complements AD Ports Group’s presence in the Middle Trade Corridor, regarded as the shortest trade route between Asia – Europe, and expected to experience considerable growth in container volumes, with the potential to reach 1.9 million Twenty Foot Equivalent Units (TEUs) by 2040.”
Al Shamisi added: “Tbilisi Dry Port is on-track for operation by January 2025, we remain committed towards facilitating trade and enhancing connectivity amongst global markets, while contributing towards our partners development plans, and cementing Abu Dhabi’s leading position as a global trade and logistics hub, in line with the vision of our wise leadership.”
The new hub is strategically positioned between the Caspian Sea and Black Sea, at the heart of the Middle Corridor, and integrates multiple facilities including a container freight station, warehouses and a car storage park. Serving as a crucial point of entry, exit, and regional transit, it accommodates manufactures, shippers and consignees moving containers, vehicles and various goods for distribution and storage. The project has direct westward railway links to Türkiye and Georgian ports of Poti and Batumi, in addition to the Port of Baku in Azerbaijan, further connecting European Black Sea ports in Bulgaria and Romania.
In June 2024, the UAE-Georgia Comprehensive Economic Partnership Agreement (CEPA) signed on 10th October 2023, has officially entered into force, paving the way for stronger collaboration to expand trade opportunities, empower SMEs and consolidate global supply chains.
The UAE-Georgia CEPA is expected to more than triple the total value of non-oil trade between the two countries to $1.5 billion within five years, while adding $3.9 billion to the UAE’s GDP and $291 million to Georgia’s GDP by 2031, the UAE is already Georgia’s leading trading partner in the Arab world, accounting for over 63 per cent of its total trade with the region.
The project will be completed in three phases. By the end of the initial phase, the handling capacity is expected to reach 96,500 TEUs, with 10,000 sqm of warehouse and a car storage yard. Upon the completion of phase three, the project will have a handling capacity of 286,000 TEU, 100,000 sqm of warehouse and a significantly expanded car storage yard. Further land plots have already been secured and can be developed as and when needed.
The Middle Corridor is regarded as the shortest trade route between Asia and Europe, covering approximately 7,000 km and requiring a journey of 10 to 15 days. The existing Northern Corridor covers about 10,000 km overland, requiring 15 to 20 days, while the Southern Ocean Route spans approximately 20,000 km, requiring a sea voyage of 45-60 days. The Middle Corridor is expected to serve considerable growth in container volumes, which has the potential to reach 1.9 million TEUs by 2040.
