Uzbekistan begins construction of $18.3mn terminal in Poti Free Industrial Zone to boost European trade — Daryo News

Uzbekistan begins construction of $18.3mn terminal in Poti Free Industrial Zone to boost European trade

Uzbekistan has officially launched the construction of a large multifunctional terminal within the Poti Free Industrial Zone. This project spans an area of 30 hectares, with a total investment estimated at GEL 50mn ( $18.3mn).

Photo: The project covers 30 hectares and is expected to enhance trade with EuropeSource: Smart Press

The construction will unfold in three stages. The first phase focuses on building a warehouse for frozen products, boasting a capacity of 1,000 tons. The second phase will introduce a closed warehouse for general cargo, covering 5,000 square meters. Finally, the third phase plans for the construction of a warehouse for bulk cargo, along with a terminal dedicated to oversized and container cargo.

This new warehouse terminal is designed to facilitate the export of goods from Uzbekistan to Europe, while also enabling the transshipment of European products to Uzbekistan and other Central Asian nations. 

David Ebralidze, the director of the Poti Free Industrial Zone, highlighted the importance of this collaboration, stating, “We discussed the details at length, and now the project is moving forward. This is a strategically important initiative for both parties.” The negotiations with Uzbek partners took a year to finalize.

Photo: Construction will occur in three phases, starting with a 1,000-ton frozen goods warehouseSource: newsofgeorgia.ge

The project was first announced in July of last year, aligning with Uzbekistan’s cooperation with the Association of Light Industry Enterprises of Uzbekistan (Uztekstilprom). Discussions at that time included the export of cotton, silk, and textile goods from Uzbekistan to the USA, Canada, and Japan.

Since 2022, Uzbekistan has been utilizing a new railway route to supply cargo to Europe. This route involves transporting goods to the Caspian port of Turkmenbashi, followed by transit through Baku, Azerbaijan, and Georgia to the port of Poti, before crossing the Black Sea to Burgas. The total length of this “Middle Corridor” exceeds 4,000 kilometers.

The Poti Free Industrial Zone, established in 2008, offers significant advantages, including a zero tax rate on VAT, profit, dividends, property, and imports. Its strategic location adjacent to Georgia’s largest port enhances its appeal for international trade.

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