New Pier to be Built at Poti New Sea Port with U.S. Loan

The construction of a new pier for the New Poti Sea Port, located in the Black Sea coastal city of Poti, Georgia, has officially begun. The groundbreaking ceremony held on June 25 was attended by Georgian Dream officials and the Chargé d'Affaires of the United States of America. The ceremony took place just a few hours after the U.S. International Development Finance Corporation (DFC) signed a second $25 million loan agreement with the local Pace Group company to support the project. This new step represents the second phase in the port's development and is expected to significantly increase the region's logistics capacity. Officials emphasized that this project is a concrete indicator of the successful cooperation between the state, the Georgian business community, and American financial institutions.

The aforementioned New Poti Sea Port project allowed for a major transformation in regional trade with the opening of its first phase in 2022. The initial phase of the project was made possible by a $50 million loan support provided in 2020 through OPIC, the U.S. federal government's overseas private investment corporation. DFC, which later replaced OPIC, continued its support by increasing the total loan amount by another $25 million for the completion of the port's second pier. Thanks to these investments, the annual bulk cargo handling capacity of the port, operated by Pace Group, is aimed to increase by an additional one million tons. Thus, while critical infrastructure is strengthened, the trade conducted along the Trans-Caspian corridor is aimed to become much safer and more efficient.

The decision to expand the Poti Port is a result of the growing interest in the route known as the Middle Corridor, which makes Georgia one of the main connection points between East Asia and Europe. The Trans-Caspian Corridor stands out as a strategic transportation network connecting Southeast Asia and China to Europe via Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Turkey, bypassing Russia. Particularly following Russia's comprehensive invasion of Ukraine and the subsequent international isolation of Moscow, this alternative trade route has gained significant global importance. In this context, it is evaluated that the project will also play a strategic role in resolving the uncertainties surrounding the construction of the Anaklia deep sea port and the associated Chinese investments.

Georgian Prime Minister Irakli Kobakhidze, who spoke at the groundbreaking ceremony, stated that the expansion of the port is an important step taken towards making the country a "regional logistics hub." Kobakhidze noted that the project brings together the state, the Georgian business community, and American financial institutions around a common goal, stating that this cooperation, based on trust and shared values, always yields concrete results. Georgia's Minister of Economy, Mariam Kvrivishvili, stated that the Middle Corridor has become one of the world's most dynamically developing transport routes and that there has been a significant increase in the cargo volume passing through Georgia. It was announced that following the completion of the second phase, the port's total processing capacity will reach three million tons annually, thereby creating 50 additional new jobs.

Alan Purcell, the U.S. Chargé d'Affaires who spoke at the ceremony, noted that the project is an indication of the U.S.'s unwavering support for Georgia's role in regional connectivity. Purcell also touched upon the importance of a peace agreement between Armenia and Azerbaijan in strengthening regional connectivity, adding that initiatives like TRIPP would contribute to this goal. DFC Director Kenneth Angel described the New Poti Sea Port as one of the most ambitious infrastructure projects in Georgia, stating that the expansion would enhance logistical capabilities. Ioseb Dolidze, the international president of Pace Group, one of the largest logistics companies in the South Caucasus since 1992, emphasized that the second phase of the project will expand the company's operational boundaries and add much more value to regional trade.