AD Ports Group Engages With Georgian First Vice Prime Minister On Tbilisi Dry Port Development

A high-level team from AD Ports Group, led by Ahmed Ali Al Sayegh, Minister of State, visited Tbilisi. They were received by Levan Davitashvili, Georgia's First Vice Prime Minister and Minister of Economy and Sustainable Development. The visit aimed to showcase the progress on the Tbilisi Dry Port, a new intermodal logistics hub in Georgia.

The Tbilisi Dry Port is set to become operational by January 2025. This rail-connected logistics hub will link manufacturing centres in Western Asia with consumer markets in Eastern Europe. It leverages a network of sea and dry ports across Kazakhstan, Azerbaijan, Armenia, Georgia, and Türkiye.

AD Ports Group has completed acquiring a 60% stake in the Tbilisi Dry Port. This acquisition makes them the majority owner. The Logistics Cluster of AD Ports Group will manage operations at this new hub. The investment highlights the strong ties between the UAE and Georgia.

Ahmed Ali Al Sayegh stated, "We are pleased to witness strengthened ties between both countries, with vast opportunities to enhance cooperation across various sectors of mutual interest." He emphasised that the UAE-Georgia Comprehensive Economic Partnership Agreement (CEPA) aims to boost bilateral trade and support SMEs.

The Middle Corridor is seen as the shortest trade route between Asia and Europe. It spans about 7,000 km and takes 10 to 15 days for transit. In comparison, the Northern Corridor covers 10,000 km overland in 15 to 20 days, while the Southern Ocean Route requires a sea journey of 45-60 days over approximately 20,000 km.

Captain Mohamed Juma Al Shamisi remarked on briefing Levan Davitashvili about the Tbilisi Dry Port's development. "Our investment in Tbilisi Dry Port further complements AD Ports Group’s presence in the Middle Trade Corridor," he said.

Economic Growth Projections

The UAE-Georgia CEPA came into effect on June 2024 after being signed on October 10th, 2023. This agreement is expected to more than triple non-oil trade value between the two nations to US$1.5 billion within five years. It could add US$3.9 billion to UAE’s GDP and US$291 million to Georgia’s GDP by 2031.

The project will be executed in three phases. By phase one’s end, handling capacity should reach 96,500 TEUs with a warehouse area of 10,000 sqm and a car storage yard. Upon completing phase three, capacity will expand to handle 286,000 TEUs with a warehouse space of 100,000 sqm.

Infrastructure and Connectivity

The new logistics hub is strategically located between the Caspian Sea and Black Sea within the Middle Corridor. It integrates facilities like a container freight station and warehouses. The hub serves as an entry point for manufacturers moving containers and goods for distribution.

The project includes direct railway links westward to Türkiye and Georgian ports like Poti and Batumi. It also connects with Azerbaijan's Port of Baku and European Black Sea ports in Bulgaria and Romania.

This development aligns with Abu Dhabi's vision as a global trade leader while supporting partners' growth plans worldwide.

With inputs from WAM