- Global trade, logistics, and industry facilitator AD Ports Group has completed its acquisition of the Tbilisi Dry Port, becoming the majority stakeholder with a 60 per cent ownership stake.
- This strategic move enhances the group’s role in the Middle Trade Corridor, a vital connection between Asia and Europe.
AD Ports Group has announced the completion of the acquisition process of the Tbilisi Dry Port, becoming a majority owner with a 60 percent stake. Tbilisi Dry Port, located in Georgia, is a state-of-the-art, rail-linked and custom-bonded intermodal logistics hub that is set to become operational in October 2024.
This acquisition strengthens AD Ports Group’s role in connecting Asia and Europe via the Middle Corridor trade route. Moreover, it bolsters the group’s position in linking manufacturing centers in Western Asia to the consumer markets of Eastern Europe, by efficiently leveraging a network of sea and dry ports across Kazakhstan, Azerbaijan, Armenia, Georgia and Türkiye.
“The agreement highlights AD Ports Group’s unwavering commitment towards strengthening global supply chains, and we recognize the growing influence of the Middle Corridor on global trade,” stated Abdulaziz Zayed AlShamsi, regional CEO, AD Ports Group.
Greater trade connection
The new Tbilisi Dry Port falls between the Caspian Sea and Black Sea, at the heart of the Middle Corridor. It integrates multiple facilities including a container freight station, warehouses, and a car storage park.
Moreover, it serves as a crucial point of entry, exit and regional transit, accommodating manufacturers, shippers and consignees moving containers, vehicles and various goods for distribution and storage.
The project also has direct westward railway links to Türkiye and the Georgian ports of Poti and Batumi. Therefore, it also significantly contributes to connecting European Black Sea ports in Bulgaria and Romania.
The port “enhances connectivity between Western Asia and Eastern Europe, and positions AD Ports Group at the forefront of global trade”, added AlShamsi.
Capacity to reach 286,000 TEUs
The project will be completed in three phases. By the end of the initial phase, the Tbilisi Dry Port’s handling capacity will likely reach 96,500 TEUs, with 10,000 sqm of warehouse and a car storage yard.
Upon the completion of phase three, the project will have a handling capacity of 286,000 TEUs, 100,000 sqm of warehouse, and a significantly larger car storage yard. Further land plots are already available for the development and expansion of the port.
The Middle Corridor is the shortest trade route between Asia and Europe, covering approximately 7,000 km and requiring a journey of 10 to 15 days. The existing Northern Corridor covers about 10,000 km overland, requiring 15 to 20 days. Meanwhile, the Southern Ocean Route spans approximately 20,000 km, requiring a sea voyage of 45-60 days.
Therefore, the Middle Corridor, a strategic expansion for AD Ports Group, will serve considerable growth in container volumes, which has the potential to reach 1.9 million TEUs by 2040.
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Source: AD Ports Group
