Georgia awards concession for 100m tonne port

The project will establish a new maritime tunnel between China and Europe, it will cost approximately $2.5bn and aim to help stimulate national and regional economic growth.

Anaklia Development Consortium is a joint venture between TBC Holding LLC, based in Georgia, and Conti International LLC, a US developer of infrastructure and capital projects.

Kurt Conti, CEO and president of Conti International, commented: “We are delighted and honoured to be awarded the contract to undertake the infrastructure development of Anaklia’s Deep Sea Port.”

“We are looking forward to breaking ground and working with the government of Georgia to help forge new paths from Asia to Europe as well as unlocking the economic potential of Georgia’s neighbours and landlocked nations in the Caucasus,” he added.

Anaklia Deep Sea Port will include approximately 400 hectares of land, and the consortium will have exclusive rights to use the land for 49 years.

It will provide deep-sea accessibility for ships up to post-Panamax size and on completion will have the capacity to process up to 100m tonnes of cargo per year.

The government of Georgia, which initiated the project, has committed to invest $100m in ensuring its success.

Construction on the project is scheduled to launch by the end of 2016, subject to completion of environmental reviews.

The European Commission has predicted that a modernization of shipping services at Anaklia will save the EU’s economy up to 10 billion Euros by 2030 and reduce associated port costs by almost 7%.

While the project itself is expected to create as many as 3,400 jobs during the construction stage and 6,400 jobs to operate the Port upon completion.

Mamuka Khazaradze, founder and president of TBC Holding and founder and chairman of TBC Bank JSC, said: “The Anaklia project represents a one-of-a-kind investment in the restoration of the Silk Road that will pay dividends for generations of workers in Asia and Europe.”

He concluded: “The government of Georgia deserves much credit for its foresight in initiating this project and ensuring it receives the support necessary for its completion. Their level of commitment clearly reflects the Port’s tremendous economic importance to the country and the region.”

As part of the agreement, the Anaklia Development Consortium also receives the right to develop a Free Industrial Zone that will support the Port’s operations and trade and be home to local and international entrepreneurship.

It will be administered with a tax-free regime to incentivise shipping companies, manufacturers, businesses and employees to relocate and use the Port.