20. FEASIBILITY STUDY OF NEW TERMINAL FACILITIES IN THE GEORGIAN PORTS OF POTI AND BATUMI, AND THEIR LINKS TO THE TRANS EUROPEAN NETWORKS

Geographic Focus: Georgia and the hinterland economic centres

Project Budget : EURO 1,500,000

Contractor : HPTI

Implementation timetable : August 97 to August 1998

Background and Objectives. Three corridors of the Trans European Networks (TEN or the "Crete Corridors") have outlets at the Black Sea ports of Odessa, Varna and Constantza. The increasing amount of traffic flows from Europe through these corridors to the Caucasus and beyond are overloading facilities at the ports of Poti and Batumi. There is an urgent need for investment, but firstly a feasibility study is needed that will point out the kind of terminals that should be installed in both ports and which kind of product related general cargo facilities are required. The goals of this project were : (i) to examine existing and potential traffic flows between Poti/Batumi and, in particular the TEN Black Sea port terminals, the Rhine-Main-Danube corridor and the ports on the Russian Black Sea, the Mediterranean and the North Sea; (ii) to provide recommendations for the cargo facilities of both Georgian ports and an overview of the traffic potential and in particular to carry out a feasibility study for a rail ferry service between Odessa and Poti, which could be an extension of the existing service between Varna and Ilyichevsk; (iii) to verify and adapt existing FSU designs for terminal developments and to prepare the documentation for justification of investment and the tender documents for the works eventually to be carried out.

Key Issues and Achievements. It became apparent that there is traffic demand for the reopening of the Ilyichevsk-Poti rail and road Ro-Ro link. Consequently TRACECA made EURO 11.3 million available to carry out the essential work and equipment procurement necessary to re-establish this link with a minimal delay. As there still remains great need to attract more external investment to the ports, the output of the project was phased, to correspond with typical IFI requirements for project development, decision and review milestones, culminating in the preparation of tender documents and assistance with works tender evaluation.

The EBRD are now using the output from this project to consider :

• The feasibility of a new grain terminal at Poti for a cost of USD 15 million, and to be developed and operated in conjunction with EU private sector investors.
• The development of a cotton storage facility in Poti.
• The development of a new container handling facility.

The privatisation concept for the port of Poti, developed in the project, is serving as the basis for discussions between the Georgian government, the port authority and potential investors.

The project prepared a EC National project "Maritime Safety in the Georgian Ports of Poti and Batumi", started in April 1999, which caught the interest of the World Bank and the Dutch Government.
Following the project, a pre-feasibility study for the construction of a European gauge rail ferry ramp in Poti or Batumi, to establish a European gauge rail ferry link with Constanza, Romania, was made in the summer of 1999.