Anaklia and New Port of Baku in Alat intend to establish close cooperation - INTERVIEW
CEO of the Anaklia Development Consortium Levan Akhvlediani’s interview to APA-Economics:
- Mr. Akhvlediani, as we heard, the consortium in charge of development of the Anaklia Port is building a deep water port. It should be the first deep Port in Georgia. Why it’s important to have deep water port in the Georgian Black Sea?
- Georgia has a general vision to restore its transport infrastructure and to try to elevate competitive advantage of its transit function. Without modern transport infrastructure this is not possible. Hence, the government of Georgia decided to implement unprecedented investments in its infrastructure. One of the key elements in the value chain is a port; as you may know current Georgian ports have limited capacity and efficiency as they are not designed to meet modern logistics requirements. Therefore, a modern deep sea port is vital in implementing the above vision. In terms of commerciality - the ability to accept large vessels creates economies of scale which in turn yields cost saving. We have calculated that the ability to accept direct calls (mother vessels) has the potential to save up to 160 USD per TEU, which is approximately 30% of current freight costs from far east to Georgia. This saving, efficient operations (with uptimes of over 95% of the year) and other advantages which the Anaklia port will bring, will benefit Georgia’s economy and overall play a vital role in making the CTC corridor more competitive.
- Can the mentioned Port speed up the shift toward containerization of cargo transshipment over our region and if yes, why it’s important?
- The general trend in the world is containerization. We see more and more goods shipped via containers. Therefore, we believe that a modern container terminal will speed up the process of containerization in our region as well. It is inevitable since commercially it will be more advantageous and faster to ship goods with containers.
- Along with the Port, your consortium also develops FEZ in Anaklia. How this FEZ will be different from other FEZs operating in Georgia and where the potential market for goods/products from Anaklia FEZ?
- Special status of Anaklia is outlined in the constitution, which allows for special regulatory environment and tax system (e.g. British common law, International Arbitration, IP laws etc.) Anaklia SEZ and the newly developed, resilience city, can easily implement investment driven laws and legislative initiatives, that would boost economic growth in Anaklia.
As Georgia stands out with ratings in doing business and low total tax rates it encourages investors to nurture their businesses in Anaklia. Special Economic Zone connected to the Anaklia Port will offer more such opportunities. It will feature zero percent taxes on import-export, VAT, profit, property and dividends. The Special Economic Zone will attract both foreign direct investment and domestic investment, create industrial clusters around the port, attract new industries, promote increased economic integration, and create jobs.
The combination of the Port and Industrial clusters around it can help attract foreign direct investment (FDI) into the region and help the Port to gain regional prominence. As the clusters mature, this will lead to allied industries locating next to this area and the zone will transform into a port based industrial hub. This will also lead to job creation and enhancement of local skills.
The overall concept of Special Economic Zone will enhance different industries such as: logistic, light manufacturing, service, tourism, assembling etc. Dedicated zone for training and development of human resources will help address regional workforce skills development objectives.
- The expert community of the region rely much on “One Belt, One Road” initiative of China. What’s your expectation for implementation of the initiative and what percentage of overall cargo transshipment you want to attract to our region?
- Like everyone in the region we are closing monitoring the ongoing events related to One Belt One Road. We believe that for high value goods the silk road offers an attractive alternative to the maritime route. It is very difficult to predict the volume of cargoes that will pass through our corridor. However, to put it into perspective if 1% of trade between China and Europe comes through this route that can amount to approximately 400,000 TEUS.
- 5. Is there any plan for the cooperation with New Port of Baku and FTZ established around it?
- Yes, we would like to explore close cooperation with New Port of Baku in Alat, in order to develop the most efficient door-to-door product for different cargo customers. The goal would be to promote trade within the region and help attract as much volume as possible to our joint CTC corridor. It is vital that we address all the pending bottlenecks along our corridor and work together towards making the CTC as competitive as possible. In regards to the SEZ, we are happy to commence talks and look at potential synergies between our two zones.
- Azerbaijani oil and gas are exported to world markets via Batumi and Supsa ports. What will be the preference of the transportation of it through the Anaklia Port?
- The biggest advantage Anaklia will have is its deep draft of 16 meters which will allow vessels of upto 80,000 DWT to call on Anaklia. We believe that larger vessels and efficient operations can create economies of scale which will yield further cost savings for cargo owners and trader. Although our main focus in early phases will be containers and dry bulk cargoes, we are happy to discuss potential benefits of Anaklia for liquid bulk cargo and see if there is interest to push the development of liquid terminals forward.
Baku-Khirdalan-Sumgait and Baku-Pirshagi-Sumgait electric suspend operation over weekend
Adobe, Mastercard, Visa warning owners of online store running Magento 1.x of updating their installs
AZAL: Price of a ticket for economy class on Istanbul-Baku route - AZN 374, for students - 30% discount
AZN 455 thousand allocated for improvement of supply of irrigation water to the sowing areas in Azerbaijan's Bilesuvar
Landslide reportedly buries 9 people in China's Central Hubei province
Australia looking to restrict return of citizens amid coronavirus outbreak
New Deputy appointed to Azerbaijan's Minister of Defense Industry
Chief epidemiologist of Azerbaijan resigns - EXCLUSIVE
Coronavirus cases in occupied territories of Azerbaijan reach 141
Bulgaria reports record high growth in daily COVID-19 cases
SOCAR Polymer to increase raw material production by more than 3 times
Validity period of 5 replacements rule in football extended
Death toll from Ethiopia ethnic violence rises to 239
AZN 8.5 allocated for renovation works in Absheron main canal - ORDER
Kyrgyzstan reports 345 new cases of coronavirus, 8,486 in total
Russia's coronavirus cases exceed 700.000
Georgia opens its borders with 5 countries
Armenia deputy defense minister tests positive for coronavirus
Turkish foreign minister to embark on UK visit
Armenia reports 535 coronavirus cases in 24 hours and 18 new deaths
Russia put Azerbaijani accused of committing murder on international wanted list
Coronavirus cases in Ukraine exceed 50.000
Serbs storm parliament after virus lockdown announced
EIA increases its forecast on average price of Brent oil
Guterres supports initiative of Azerbaijani President on holding UN GA special session dedicated to COVID-19
Price of Azeri Light oil increases
President: "Azerbaijan allocated humanitarian and financial aid to over 30 countries in order to fight against pandemic"
Georgia’s coronavirus cases reach 963
Azerbaijan Defense Minister visits foremost military units - VIDEO - PHOTO
Telephone conversation held between Azerbaijani President Ilham Aliyev and UN Secretary-General Antonio Guterres
Mexico posts 6,258 new coronavirus cases, 895 more deaths
MoD: Armenia violated ceasefire 78 times throughout the day
EIA changes its forecast on oil production of Azerbaijan
Oil prices continue to decrease
Death toll rises to 56 as rain damage widens in southwest Japan
28 more coronavirus patients die in Moscow in past day
5.1 magnitude earthquake strikes off coast of Alaska
Roscosmos Chief's Adviser Safronov placed in custody for two months over treason charges
Oil dips as U.S. inventory build stokes supply fears
NLC India boiler blast death toll rises to 13
UK would leave the EU on Australia terms if no deal reached, Johnson tells Merkel
U.S. will restrict visas for some Chinese officials over Tibet: Pompeo
Children infected with COVID-19 may suffer severe neurological damage
Turkey reports 1,053 new cases over the past day
Russia, China veto U.N. approval of aid deliveries to Syria from Turkey
Israel's Public Health Chief resigns amid surge in new COVID-19 cases
COVID-19 pandemic accelerating, says WHO chief
Vehicle bombing kills 6 civilians in northeast Syria
Trump administration formally pulls US out of WHO
AZAL to increase the number of flights operated between Baku and Istanbul to 4 times per week
Turkish parliament reelects Mustafa Sentop as speaker
AZAL opens sale for special Baku-London-Baku flights
Two killed in train collision in Czech Republic
Dubai hotels ready to welcome foreign visitors as emirate reopens
Ukrainian Security Service detains members of thief in law Lotu Guli's group in Odessa - VIDEO
AZAL to perform another special flight to Istanbul this week
Azerbaijan's SSS releases information on operation at MFA, 3 persons arrested- VIDEO
Footage of moment of killing of criminal in Baku disseminated - VIDEO
Azerbaijani MP suggests to establish shelters for beggars
Azerbaijan commemorates Khojaly genocide - PHOTOSESSION
14 years pass since establishment of the Ministry of Emergency Situations: They always come to your aid in any difficult moments - PHOTOSESSION - VIDEO
First Vice-President Mehriban Aliyeva attended opening ceremony of rebuilt Azerbaijan pavilion at Exhibition of Achievements of National Economy in Moscow - UPDATED
Open Doors Day and the military oath-taking ceremony were held on the occasion of the State Flag Day
Baku police raids at Fairmont Hotel against special quarantine regime violators- VIDEO - UPDATED
Planet parade to be on July 4
Azerbaijan’s MIA: Police posts on streets and avenues of Baku to be abolished from tomorrow
AZAL opens sale for special Baku-London-Baku flights