AD Ports Group becomes majority owner of Tbilisi Dry Port

With 60% stake acquisition

AD Ports Group has acquired a majority 60% stake in Tbilisi Dry Port in Georgia.

The stake acquisition fortifies AD Ports Group’s strategic position in the Middle trade corridor, enhancing connectivity between Western Asia and Eastern Europe through a comprehensive network spanning Kazakhstan, Azerbaijan, Armenia, Georgia, and Turkey.

The Tbilisi Dry Port, a state-of-the-art, rail-linked intermodal logistics hub, is scheduled to commence operations in October 2024.

Abdulaziz Zayed AlShamsi, Regional CEO of AD Ports Group, said: “The completion of the Tbilisi Dry Port acquisition demonstrates AD Ports Group’s commitment to fortifying global supply chains. The Middle trade corridor’s growing significance in international trade aligns with our strategic vision of advancing economic growth and creating job opportunities.

“This latest investment is a testament to our dedication to improving connectivity between Western Asia and Eastern Europe and positioning ourselves as a leader in global trade.”

Strategic location

The new logistics hub in Tbilisi is strategically situated between the Caspian and Black Seas. It integrates a container freight station, warehouses, and a car storage park. It is poised to become a key entry, exit, and transit point for various goods, including containers and vehicles.

Direct westward rail links to Turkey and Georgian ports Poti and Batumi will extend connectivity to European Black Sea ports in Bulgaria and Romania.

The Tbilisi Dry Port project is being developed in three phases. Upon completion, the first phase is expected to handle 96,500 TEUs, with 10,000 square metres of warehouse space and a car storage yard.

By the end of phase three, the facility will boast a handling capacity of 286,000 TEUs, 100,000 square meters of warehouse space, and an expanded car storage area. Additional land plots have been secured for future development as required.

The Middle trade corridor is recognised as the most efficient trade route between Asia and Europe. It covers approximately 7,000km and requires 10 to 15 days for transit.

In contrast, the northern corridor spans about 10,000km and requires a 15- to 20-day journey, while the Southern Ocean route stretches approximately 20,000km and takes 45 to 60 days by sea.

Container volumes in the Middle trade corridor are anticipated to grow significantly, potentially reaching 1.9 million TEUs by 2040. Featured image: The Tbilisi Dry Port project is being developed in three phases. Credit: AD Ports Group