Tashkent develops Georgian ports on the Black Sea

Uzbek Prime Minister Abdullah Aripov and his Georgian counterpart Irakli Kobakhidze have agreed to expand their economic partnership. Uzbekistan considers Georgia as a key logistics partner, as evidenced by the construction of a large multifunctional terminal in the port of Poti. In agriculture, Uzbekistan plans to use the experience of Georgian winemakers to enter the global wine market.

Georgian Prime Minister Irakli Kobakhidze began his two-day visit on March 4-5 with a visit to the TEXNOPARK modern innovation complex in Tashkent, which houses 18 production sites with investments exceeding $465 million. Kobakhidze oversaw the production of high-tech products, including household appliances, electronic devices and industrial equipment, the newspaper reported. gazeta.uz .

During the meeting with Speaker of the Legislative Chamber of the Oliy Majlis Nuriddin Ismoilov, Kobakhidze stressed the significant growth potential of bilateral trade, noting the successes of the Georgian economy: “Our economy is showing steady growth – over the past four years, the average rate of economic development has exceeded 9.5%, which is the highest in Europe. We pursue a liberal economic policy characterized by low tax rates and minimal taxes. These factors create favorable conditions for Uzbek investors who want to develop business activities in Georgia,” Kobakhidze stressed. He also highlighted the prospects for cooperation in tourism, art, science, education and sports.

Ismoilov, in turn, praised the interstate relations between the two countries, calling Georgia an example of successful democratic reforms and resilience to internal challenges.

Senate Speaker Tanzila Narbayeva, receiving the Georgian Prime Minister, noted that “the visit of a high-ranking guest to our country provides an excellent opportunity to open a new page in the development of close cooperation established between the two countries.”

Kobakhidze’s talks with Uzbek Prime Minister Abdullah Aripov touched upon the prospects for developing cooperation in transport and logistics, trade and industrial cooperation, with a special focus on using the transit potential of the Georgian ports of Poti and Batumi for Uzbek cargo. According to expert Ibrokhimjon Zhuraboev from Tashkent State University of Oriental Studies, this meeting marks an important stage in strengthening bilateral relations. “Georgia’s strategic importance as a transit hub of the South Caucasus for Uzbekistan is indisputable. The construction of a large multifunctional terminal in Poti opens up new opportunities for Uzbek goods to enter the European market, and Georgia’s free trade agreements with the world’s leading economies make it a priority partner of Uzbekistan in diversifying export routes,” Zhuraboev stressed.

Last year, Uzbekistan began construction of a large multifunctional terminal in the Poti free industrial Zone. The project is being implemented on an area of 30 hectares, and the total cost of investments is estimated at $ 18.3 million. The first stage of construction includes the creation of a warehouse for frozen products with a capacity of 1 thousand tons. The second stage provides for the construction of a closed warehouse for general cargo with an area of 5 thousand square meters. At the third stage, it is planned to build a warehouse for bulk cargo and a terminal for oversized and containerized cargo.

The warehouse terminal will receive goods from Uzbekistan for further export to Europe. Moreover, transshipment of European goods to Uzbekistan and other Central Asian countries is envisaged.

For Uzbekistan, Georgia is a key transit country in the South Caucasus with free trade agreements and a competitive market. The country plays an important strategic role in connecting Uzbekistan with the West, which the parties emphasized during the talks in Tashkent. The development of the transport and logistics partnership, including the use of the Baku–Tbilisi–Kars transport corridor, was also discussed.

“Uzbekistan is striving to increase the volume of cargo transportation to Europe by considering two main routes: through the Caspian Sea, Azerbaijan and Georgia, or through Turkey. Due to the slow development of the Turkish transport infrastructure and problems with rail connections, the route through the Georgian Black Sea ports is becoming a priority,” Grigory Mikhailov, editor–in-chief of the portal, told NG LogiStan.info . He notes Uzbekistan’s interest in developing transport projects with Georgia, but points to the underdevelopment of Georgian ports and the difficulty of delivering goods to them.

Cargoes from Uzbekistan or in transit through Uzbekistan must go through a difficult path: delivery to the ports of Turkmenbashi (Turkmenistan) or Aktau (Kazakhstan), transshipment to a ship, unloading at the Azerbaijani port of Alat, reloading to road or rail transport for delivery to Georgia, and finally another transshipment at the Georgian port for further sea transportation. Such a multi-stage system is effective only with large-scale use of the route and a high level of service.

According to Mikhailov, the key success factor is not only the cost, but also the quality and stability of transportation, ensuring predictable delivery. Despite periodic disruptions in the operation of the route, the development of cooperation with Georgia in the field of transport infrastructure is an appropriate direction for Uzbekistan.

According to Farrukh Khakimov, an expert at the Development Strategy Center, the introduction of an international multimodal route covering the countries of the Asia-Pacific region, China, Kyrgyzstan, Uzbekistan, Turkmenistan, Azerbaijan, Georgia, Turkey and Europe can reduce cargo transportation time from Central Asia by three times. The implementation of this multimodal transport corridor through Uzbekistan and Georgia will not only increase the trade turnover of both countries, but also significantly increase the volume of transit cargo through their territories.

The second, equally important area of cooperation between Uzbekistan and Georgia is agriculture, especially viticulture and winemaking. During the Tashkent talks, the creation of a joint working group for the development of new export-oriented grape varieties was discussed. Uzbekistan, with its rich viticulture traditions, shifted its focus to the production of table and raisin grapes during the Soviet period, and the campaign against alcoholism caused significant damage to the industry. Currently, viticulture is undergoing a renaissance, becoming one of the key branches of agriculture and the basis for the development of winemaking.

Modern Uzbek viticulture uses many imported varieties: Pinot noir (France), Rkatsiteli and Saperavi (Georgia), Hindongny (Karabakh), Bayan shirey (Azerbaijan), and Kuldzhinsky. More than 300 grape varieties are cultivated in the republic today.

The two-year cooperation between the research institutes of Georgia and Uzbekistan in the field of viticulture and winemaking, recorded in the memorandum of understanding, lays the foundation for the further development of the industry in Uzbekistan.