Transport Infrastructure Projects in Georgia

Project

Construction of Anaklia Deep Sea Port

Purpose

The Construction of Anaklia Port shall create favorable conditions for the development of logistics services and industrial zone in the adjacent area. The Construction of new port gives the opportunity for development of value added services and shall result in significant increase in cargo turnover through the territory of Georgia. Most importantly, the project will have a tremendous positive social-economic impact in western part of Georgia, as it will create thousands of new jobs.

Source of Funding

LTD “Anaklia Development Consortium” (TBC Holdings and Conti Group)

Implementation period

Expected timeline  for Phase 1 - 2017-2020

Additional Information

Anaklia Port shall have the following competitive advantages: 1. Strategic location; 2. Capacity to receive Panamax type of vessels; 3. One stop shop solutions; 4. Simple and fast procedures 5. All year round safe navigation.

In 2014 the Government of Georgia announced the Invitation for Expression of Interest  for the construction and development of  Anaklia Deep Sea Port. 12 companies  officially expressed their interest towards the Project.

On February 8, 2016  LTD “Anaklia Development Consortium” (TBC Holdings and Conti Group) was selected as a winner by the Governmental Commission. The Investment Agreement with the investor was signed on October 3, 2016. The construction started in December 2017.

The total cost of the project is 2,5 bln. USD, from which around 586 mln. USD will be invested during the first phase.  The Government of Georgia will significantly contribute to the development of the project by providing 1000 hectares of land for the port and Free Industrial Zone and by constructing railway and road connections to the port (the total cost of the mentioned input amounts to 114 million USD).

The Port shall be constructed in 9 phases and gradually reach the capacity of handling 100 mln tonnes of cargo annually. 

Project

Construction of Baku-Tbilisi -Kars New Railway Connection Line

Purpose

The Baku-Tbilisi-Kars New Railway Line will connect Azerbaijan, Georgia and Turkey creating an effective rail corridor from the Caspian Sea to Europe. Initially, the capacity is supposed to be 1 million passenger and 5 mln. tones of cargo per annum with the perspective to triple in the following years.

Source of funding

Credit allocated by the Azerbaijani side

Implementation Period

2007 - Present

Additional Information

The project envisages the rehabilitation, reconstruction and construction of 180km railway line which consists of Marabda-Akhalkalaki reconstruction/rehabilitation site with operational length of 153km and the Akhalkalaki-Kartsakhi section with new 27km construction site.

Major construction works on the Georgian territory have been already completed. Official opening of Baku-Tbilisi-Kars railway was held on October 30, 2017.

Project

Railway Modernization

Purpose

Main objectives of the project are:

-  Optimization of freight and passenger traffic duration

-      Reduction of operational expenses

-      Improvement of operational safety

-      Increasing capacity

Source of funding

JSC Georgian Railway

Implementation Period

2011-2019

Additional Information

After completion of the project, the thought capacity of the main railway line will increase threefold. On the first stage, the estimated increase of the line capacity will reach up to 48 million tons per year, but after the full completion of the Modernization project, the overall  capacity on the entire railway line will exceed 100 million tons per year.

Project

East-West Highway Improvement Project 

Purpose

The project envisages upgrading of E-60 and E-70 highways 

At most sections the highway will have four lanes with the capacity to serve 50 000 vehicles per day

Source of Funding

State budget, World Bank, ADB, JICA, EIB

Implementation period

2006-2020

Additional Information

After the completion of the East-West highway, Georgia will get the following benefits:

-      Traffic intensity will tangibly increase;

-      Traffic capacity and travel speed will increase and   travel time will reduce respectively;

-       Competitiveness of E-60 and E-70 corridor (passing   through Georgia) will be augmented;

-     Freight transportation through Black Sea Ports   from Europe to Central Asia as well as China   and  backward will considerably increase.

Project

Expansion of Kutaisi International Airport

Purpose

Project aims at increasing the Airport's capacity to serve a growing number of passengers in the coming years.

It includes the expansion of apron and car park as well as the extension of the existing airport terminal.

Source of Funding

State Budget, United Airports of Georgia LLC

Implementation Period

2017-2018

Additional Information

After the completion of the project, the terminal area will increase threefold. Departure and arrival halls, commercial as well as technical and administrative spaces will be expanded for uninterrupted operation of the Airport.

Project

Development of  Logistics Centres in Tbilisi and Kutaisi

Purpose

New logistics centres will promote the development of logistics services in Georgia, including value added services, increase  the country’s transit and logistics potential and will also encourage export. New jobs will be created and the country will receive additional foreign direct investments.

Source of Funding

Private investment, state budget

Implementation period

Stage 1: 2020-2025 (starting of operation in 2022)

Additional Information

As part of the East-West Highway Corridor Improvement Project financed by the World Bank, the Ministry of Economy and Sustainable Development of Georgia (MoESD) carried out a feasibility study for the creation of logistics centers. Based on the feasibility study the best two locations were identified in Eastern (Kumisi) and Western (Kutaisi) parts of Georgia. Moreover, market analysis and forecasts, preliminary design, environment and social impact assessment and business model have been prepared for each LC.

The preliminary CAPEX of Tbilisi Logistics Centre is 95,5 mln USD (from which 15.1 mln USD will be allocated for the construction of railway container terminal) and preliminary CAPEX of the Kutaisi Logistics Centre is 72,5 mln. USD.

In November 2017, the MOESD announced the Expression of Interest to select an investor for the development of each logistics center. The selection process is currently underway.