AD Ports Group Becomes Majority Owner Of Tbilisi Dry Port, Strengthening Asia-Europe Trade Links

AD Ports Group (ADX: ADPORTS) has finalised the acquisition of the Tbilisi Dry Port, securing a 60% ownership stake. This advanced intermodal logistics hub in Georgia, linked by rail and custom bonded, is set to commence operations in October 2024. The facility will enhance connections between Asia and Europe through the Middle Trade Corridor, linking manufacturing hubs in Western Asia to consumer markets in Eastern Europe.

The new logistics hub is strategically located between the Caspian Sea and Black Sea, central to the Middle Corridor. It integrates various facilities such as a container freight station, warehouses, and a car storage park. This hub serves as a vital entry and exit point for regional transit, accommodating manufacturers, shippers, and consignees moving containers, vehicles, and other goods for distribution and storage.

The project will be executed in three phases. The first phase aims to handle 96,500 TEUs with 10,000 sqm of warehouse space and a car storage yard. By the end of phase three, the handling capacity is projected to reach 286,000 TEUs with 100,000 sqm of warehouse space and an expanded car storage yard. Additional land plots have been secured for future development as needed.

The Middle Corridor is considered the shortest trade route between Asia and Europe. Spanning around 7,000 km, it requires a journey of 10 to 15 days. In contrast, the Northern Corridor covers about 10,000 km overland taking 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 handle significant growth in container volumes potentially reaching 1.9 million TEUs by 2040.

Abdulaziz Zayed AlShamsi, Regional CEO of AD Ports Group stated: "We are delighted with the completion of the Tbilisi Dry Port acquisition. The agreement highlights AD Ports Group’s unwavering commitment towards strengthening global supply chains, and we recognise the growing influence of the Middle Corridor on global trade. We are fully focused on successfully operating this important logistics hub which enhances connectivity between Western Asia and Eastern Europe."

Enhanced Connectivity

This project further solidifies AD Ports Group's role in global trade by efficiently leveraging a network of sea and dry ports across Kazakhstan, Azerbaijan, Armenia, Georgia and Türkiye. The new hub has direct westward railway links to Türkiye and Georgian ports of Poti and Batumi. These links extend further to European Black Sea ports in Bulgaria and Romania.

AlShamsi added: "This is the latest in a number of strategic international investments by AD Ports Group in line with our wise leadership’s vision to advance economic growth, job creation and mutual benefit."

The completion of this acquisition marks another milestone for AD Ports Group as they continue their strategic international investments aimed at boosting economic growth and job creation.

With inputs from WAM