Georgia to build $2.5 bn Black Sea port on China's Silk Road

PanARMENIAN.Net - A U.S.-Georgian consortium has been awarded a $2.5 billion contract to build and develop a deep-sea port in Anaklia on Georgia's Black Sea coast, as the tiny ex-Soviet republic sets eyes on lucrative cargo transit from Asia to Europe, the Maritime Executive reports.

The Anaklia Development Consortium is a joint venture of Georgia's TBC Holding LLC and Conti International LLC, a U.S.-based developer of infrastructure and capital projects, Georgia's Economy and Sustainable Development Ministry said in a statement on Monday.

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

The consortium, selected in a tender, aims to start the construction of the port by the end of 2016 and finish it in three years. The port will have the capacity to berth 10,000TEU container ships and to process up to 100 million tons of cargo per year upon completion.

"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 neighbors," said Kurt Conti, Conti International's CEO and president, was quoted as saying in the ministry's statement.

The consortium is expected to raise investment from international financial institutions and port operators who will be selected within the next six months, the Economy Ministry said.

Located on the eastern edge of the Black Sea, Anaklia strategically sits on the shortest route from China to Europe. The route has recently become a focal point for $40 billion in Chinese infrastructure investments under the Silk Road Development Fund and already accounts for 26 percent of Chinese foreign trade volume.