APM Terminals buys Central Asia gateway

APM Terminals has acquired an 80 percent share in Poti Sea Port on Georgia’s Black Sea coast as part of its investment strategy in high growth markets.


The shares were bought from Ras Al Khaimah Investment Authority (RAKIA) of the United Arab Emirates.


Strategically-located, Poti Sea Port is the largest port in the Republic of Georgia handling liquid and dry bulk, ferries as well as containers.


It has 15 berths, with total berth length of 2,900m and more than 20 quay cranes. The port currently serves as the European gateway for international trade in Georgia, Armenia and Azerbaijan, and is ideally located to become a future hub for Central Asia trade, the Danish port-operating arm of AP Moller-Maersk said in a statement.


Poti Sea Port has experienced high growth over the last decade and the fundamentals for continued solid growth remain, said APM Terminals senior vice-president and head of new terminals, Peder Sondergaard.


“The Black Sea region has a strong potential, with its skilled and industrious labor force and its mineral resources,” he said.



“With fast economic growth, the region’s importers and exporters will require high quality port infrastructure, and so naturally it is a market in which we have great interest. With our track record of world-class port operations and development in all markets, we believe we can add a lot of value to Poti Sea Port to generate more business.”


APM Terminals Poti will operate Poti Sea Port in a joint venture with RAKIA.


Hans-Ole Madsen, APM Terminals’ vice-president for business development stated: “RAKIA has done a great job in Poti over the last three years and we look forward to continuing to develop the port to expand Georgia’s role as a regional logistics hub.”


The company plans investments in upgrading and expanding the port facilities to meet APM Terminals’ world-class performance levels in productivity and safety. “We expect to invest US$100 million over the next five years,” Sondergaard said.


Poti Sea Port is located in Georgia that has a strong record as a business friendly economy, coming in 12th on the World Bank’s 2011 ‘Ease of Doing Business’ global ranking. It is the highest ranked economy in the Black Sea region for ‘ease of doing business'.


The Georgian National Statistical Office indicates the economy expanded by 6.4 percent in 2010.
(Source:http://www.cargonewsasia.com)