As can be seen from the rating chart the TOP-3 carriers [MSC, MAERSK, COSCO] hold their 2021 positions in Q1 2022 cumulatively providing over 79% of the total container turnover of Georgia.

The rating shows that MSC and MAERSK shipping lines slightly decreased their container turnover volume in Q1 2022 by (-) 0,96 p.p. and (-) 0,66 p.p. respectively. While MSC carrier is the only liner service provider in the port of Batumi, MAERSK remains a major customer of the Poti container terminal. Jointly, 2M Alliance represents almost 63% of Georgia container turnover in Q1 2022.
Notable results were demonstrated by COSCO Shipping carrier which doubled its volume in Q1 2022 gaining (+) 8,06 p.p. and resulting in 16,10% of the total container turnover of Georgia.

On the contrary, ZIM considerably shrunk its activities in the port of Poti to 1,69% [Q1 2022] transporting twice less volume compared with the Q1 2021 period.

At the same time, TURKON shipping line significantly reduced its volume in Q1 2022 stepping down from the 4th place in the Q1 2021 to 11th in 2022 Q1 period representing now less than 1% of container volume in Georgia.

Informall BG: while Georgian domestic container turnover increased by (+) 5,66 p.p. in Q1 2022 vs Q1 2021 the transshipment volume through the container terminals of Batumi and Poti is expected to grow too and here is why.

Projects in pipeline:

2M Alliance jointly with the association of legal entities international association “Trans-Caspian International Transport Route” is considering a launch of an intermodal Trans-Caspian service for Asian cargoes destined to the countries of EU via ports of Georgia followed by feeder service towards Constanta.

As Maersk shared some details about the route on May 16th: “After passing the border of Khorgos between China and Kazakhstan, containers arrive by rail to the station of Aktau where they are loaded on a barge to Baku in Azerbaijan via Caspian Sea. From there containers are railed to APM Terminals Poti, Georgia, where they are being loaded on a feeder vessel to Constanta, Romania. Then the cargo is railed to various destinations across European countries”.

Alternatively, containers may be discharged at the ports of Istanbul [Turkey], Varna and Burgas [Bulgaria], however, it is still to be considered given the circumstances of project development.

Notably, that the same route will be utilized by Deutsche Bahn – DB Cargo Eurasia and Nurminen Logistics who recently announced a launch of the service for their clients.

The revamped route will allow transporting Chinese cargoes not only to the countries of the EU but also to Azerbaijan, Georgia and importantly Ukraine whose seaports are currently cut off from the liner service

Informall BG shares: In the past, major transport stakeholders attempted a similar route, although, with the final port of discharge in Ukraine and further inland deliveries by road and rail. However, the service was considered inefficient due to a combination of factors such as long transit time, shipping costs and not well-established transshipment procedures, resulting in a limited demand among customers. Considering, that the Ukrainian railway network [width of track line] does not match with the EU one, preventing efficient in-land container transshipment further to the countries of the EU, ports of Ukraine are a dead-end for cargoes on this route.

Since the beginning of Russian-Ukrainian war and blockage of Ukrainian seaports, the Black Sea logistics has changed drastically. While Russia is sanctioned, most of overland supply chains connecting Asia and Europe were disrupted.

Informall BG suggests: a revamped Trans-Caspian International Transport Route is designed to partly replace [Russian] Trans-Siberian rail corridor which is already affected by sanctions. Given the uncertainty surrounding sanctions against Russia and Belarus and the risk of shipments getting stuck in either country, freight forwarders are avoiding this route. Although the route is still under development it is estimated that containers from China will reach the Black Sea ports within 40 days [or less] and annual volume is expected at the level of 50,000 twenty-foot equivalent units (TEU).

Another major transport stakeholder Nippon Express (China) announced on May 17th, 2022 a launch of a new intermodal transport service from China to Europe via the Caspian Sea.

In comparison with “Trans-Caspian Corridor” service offered by Maersk group, cargo on this route is transported mainly by rail from China to Aktau, Kazakhstan, from there by ship across the Caspian Sea to Baku, Azerbaijan, and [avoiding Georgia] again by rail from Baku to Istanbul, Turkey, where it is transshipped to EU railways or trucks for delivery to locations throughout Europe.
Informall BG continues: we observe a few bottlenecks which prevent Poti terminals [Georgia] to handle a significant volume of additional container volume such as shallow-water terminals [7-9 meters deep], limited terminal capacity [550,000 TEU annually] and relatively low railway capacity. Some challenges, however, could be overcome via APM [Maersk group] investment which is estimated at over 250 million USD of private capital. Extensive development of the port infrastructure and superstructure was supposed to begin in Q2 2022. “The first stage of the project includes a breakwater of 1,700m and a 400m multipurpose quay with 13.5 m depth able to handle dry bulk cargo and an incremental 150,000 TEUs. This berth will be able accommodate container vessels of up to 9,000 TEU” – report APM Terminals Poti.

As APM Terminals Poti [Maersk group] explores plans for regional transport hub, Georgia has the potential to considerably increase its transshipment volume partly replacing sanctioned ports of Russia on the Black Sea. However, the Maersk unit has not signed yet an official agreement with the government of Georgia. Informall BG: “Given the circumstances of the current Black Sea region crisis and investment risks related to the Russian-Ukrainian war, the construction of a new terminal is likely to be [indefinitely] postponed”.
As the impact of sanctions on the Russian Black Sea ports evolves, ports of Georgia began to gain in bulk shipment volumes too. Informall BG interviewed major transport stakeholders which concluded that Georgia bulk transshipment volume considerably increased between March and May 2022 meaning that the flow of certain categories of bulk cargo such as oil, sugar, construction materials and different products of the metallurgical industry is already shifting from mentioned sanctioned ports of Russia (Novorossiysk) towards Georgia (Poti and Batumi).
Source: Informall BG