AD Ports Group acquires majority stake in Tbilisi Dry Port

AD Ports Group has acquired a 60 per cent stake in the Tbilisi Dry Port, a new transportation hub in Georgia. The port, which is currently owned by Inveco and Wilhelmsen, is expected to be operational by Q4 2024.

Located along the Middle Corridor, the Tbilisi Dry Port will be a key logistics hub for manufacturers, shippers, and consignees.

The Middle Corridor is considered the shortest trade route between Asia and Europe, covering approximately 7,000 km. The existing Northern Corridor covers about 10,000 km overland, while the Southern Ocean Route is around 20,000 km.

The Middle Corridor is forecast to enable considerable growth in container volumes, potentially reaching 1.9 million TEUs by 2040.

“This strategic investment strengthens global supply chains and positions AD Ports to capture future trade volumes,” said Captain Mohamed Juma Al Shamisi, AD Ports Group CEO.

It will offer facilities such as a container freight station, warehouses, and a car storage park.

The port offers direct rail links to Turkey, Georgian ports, and ultimately Black Sea ports in Bulgaria and Romania. Additionally, it has eastward connections to Caspian Sea ports via Azerbaijan.

The project is being developed in phases on two land parcels with an additional area for future expansion.

Upon completion, the Tbilisi Dry Port will have a handling capacity of 286,000 TEUs (Twenty-foot Equivalent Units), 100,000 sqm of warehousing space, and a significantly expanded car storage yard.

Noatum Logistics, a subsidiary of AD Ports Group, will operate and manage the facilities, leveraging the expertise of Inveco and Wilhelmsen.

Leveraging the expertise of AD Ports

Jemal Inaishvili, founder of Inveco, Georgia, said: “AD Ports Group’s participation as a significant facilitator of global trade and logistics will play a key role in the development and success of the Tbilisi Dry Port. AD Ports Group’s vast expertise in ports operations and logistics facilities will bring a new level of management to Georgia’s logistics sector.”

In recent news, AD Ports reported that revenue soared 112 per cent year-on-year (YoY) to Dhs11.68bn in 2023.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 23 per cent YoY to Dhs2.67bn, with a strong 22.8 per cent EBITDA margin.