Many ships come to the Poti Sea Port, on the Black Sea coast of Georgia, and will go to Turkey or Romania to reach the EU.
Since 2022, the need to streamline trade through the “Middle Corridor” has become evident.
Meanwhile, as Atlantic Council reports, volumes on the Northern Corridor fell by half in 2023, while volumes on the Middle Corridor increased by 89 per cent.
Another reason to develop the Middle Corridor is a recurrent disruption to maritime traffic through the Red Sea as a result of attacks by Houthi militants in Yemen.
Another major infrastructure development is the new Tbilisi Dry Port opened in June. AD Ports Group, based in Abu Dhabi, owns it.
According to Levan Berdzenishvili, commercial manager at Tbilisi Dry Port, this hub allows to load cargo to and from trains at Tbilisi.
Finally, additional rail spurs and warehousing facilities will be connected next year.
Not only cargo, but also oil and gas run via the Middle Corridor through Georgia, from Azerbaijan to export terminals in Turkey.
Also, Georgia has become an important link in the Green Energy Corridor, an underwater transmission line linking Georgia to Romania.
Nevertheless, the main challenge is the complexity of the Middle Corridor’s route. It needs to load cargoes heading from China along the corridor to ships to cross the Caspian Sea, then to load them back on to trains or trucks in Baku to cross the Caucasus, and then to transfer to ships again at the Black Sea coast.
Demand for the Middle Corridor could be undermined by factors beyond Georgia’s control, including rail and port delays in Central Asia, or a lack of shipping capacity on the Caspian.
However, the role of Georgia is to ensure the functioning of the Middle Corridor.
Another important thing is a peace deal between Azerbaijan and Armenia, including a pledge to develop trade and infrastructure along the so-called ‘Trump Route for International Peace and Prosperity’.
Yet, delays in approving an expansion plan that would see it invest at least $200mn in a new quay are frustrating for APM.
The reason is the priority of a new deepwater port further north at Anaklia.
Alkis Drakinos, regional director for Caucasus at the European Bank for Reconstruction and Development, says that private sector partners have expressed underwhelming levels of demand to the EBRD. Nevertheless, financing bankable Middle Corridor projects will be considered.
Also, Drakinos warns that the government is not doing enough to encourage investment in Middle Corridor infrastructure.
NH Logistics GEO has been offering IOR Importer of Record and EOR Exporter of Record services since 2001 and is a market leader in Georgia and Eurasia, supporting many clients with their import/export shipments.
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