International Logistics Centres
for Western NIS and the Caucasus
Georgia:
Areas in the vicinity of Tbilisi airport
Ministry of Economy and Sustainable Development of Georgia
Transport Policy Department
20.05.2011
Georgia, Tbilisi
International Logistics Centre (ILC)
in Georgia
For the implementation of the project
Tbilisi Aircraft Manufacturing (TAM) site + Veli Terminal were
proposed near Tbilisi City
Tbilisi City Advantages:
 Major logistic hub in the region
 Important node on TRACECA
 Strategic location between Black and Caspian sea ports
(Kulevi, Poti, Supsa, Batumi and Baku)
 Main industrial and commercial centre in the state and region
ILC Advantages
 The establishment of an international logistics centre integrated into an international
network along the TRACECA corridor enables the further strengthening of the
regional logistics sector and intermodal transport.
 Located in the eastern outskirts of Tbilisi metropolitan area, the ILC will gain
adequate access to the existing railway line and to the major road network, including
the road links to the Black Sea ports and Turkey, Azerbaijan and Armenia.
 The future ILC at TAM-Logistics City Tbilisi (LCT)/Veli Terminal, with its logistics
facilities and services, will mainly support the local industrial, agricultural and
aviation sector as well as further options for cross-border intermodal transport.
 In addition it will form a basis and nucleus for more efficient and competitive cargo
export and regional cargo import distribution in Tbilisi catchment area
Logistics Trends and Impacts
Trends
Impacts
Intercontinental trade
Increasing product complexity
Need for cooperation and integration
Consistent trend towards direct sale
• Enhancement and
expansion of transport
infrastructure
• Development of regional
industrial and logistics
nucleus
• Focus on supra-regional
markets
• New production
structures and supply
chains
• Foreign investment and
cooperative structures
• Qualifications
requirements
• Shortened market supply
times
• Global
•
•
•
•
• European
• TRACECA corridor strengthening and
networking
• Liberalization of competition
• Promotion of intermodality
• Regional
•
•
•
•
Strengthening of the local economy
Creating of new business opportunities
Enterprise mobility
Development of training capabilities
Logistics Potential
• Demand for modern and
efficient logistics solutions
and facilities
• Implementation of new
delivery chains for import
and export trade incl.
distribution
• Demand of logistics
services for distribution of
local agricultural products
• Supply chain management
of intermodal border
crossing freight transport
• Increased demand for
qualified logistics staff
TAM-Logistics City Tbilisi (LCT)/ Veli
Terminal Land Plot
 Very good conditions and development potential for the future
establishment of an International Logistics Centre (ILC);
 TAM-LCT has a direct connection to the road Tbilisi-Rustavi (the
largest industrial city in the Tbilisi region);
 In addition, the TAM land plot and the envisaged cooperation with
Veli Railway Container Terminal offer an option for the ILC to
provide trimodal transport access, as well as potential benefits from
synergy effects;
 There are about 63 ha of land available for the development of an
ILC;
 additional expansion areas available for further logistics operations;
Functional Areas
Following three main functional areas for logistics centre
have been defined:
 Logistics Services (land allocation: about 55%);
 Container Terminal (land allocation: about 30%);
 Logistics-Intensive Industries and Trade (land allocation: about
15%);
Access to Urban, Regional and
International Transport Network
 3km – Tbilisi City Airport
 15km -Tbilisi City Centre
 300km – Poti Port
 500km – Alyat Port
 300km – Yerevan
Description of Internal Transport
Infrastructure
Road transport infrastructure:





Good connection to the urban, regional and supra-regional road network.
Proper accessibility of all plot of lands with truck and passenger car.
Favourable traffic management and minimization of crossings.
Securing of flowing traffic by appropriate standard cross-sections.
Consideration of stationary traffic.
Railway transport infrastructure:




Good access possibilities to the long-distance traffic nodes and rail freight stations.
Efficient operation of trains, train units and railway cars without expensive shunting procedures.
Reduction and/or avoidance of crossing road and railway transport infrastructure.
Sufficient provision of properties with track connection.
General Alignment of the Functional
Areas TAM/Veli
Stakeholders
Public Sector Stakeholders:






Georgian Railway
The State Customs Department
The Ministry of Economy and Sustainable Development of Georgia
The Ministry of Defence of Georgia
The Ministry of Regional Development and Infrastructure of Georgia
Tbilisi City Hall
Private Sector Stakeholders:
 Logistics service providers
 Industrial and commercial companies
Project Identification
The ILC will comprise the following functional areas:








Container terminal, with direct road and rail access.
Container depot.
Container service centre.
ILC service centre.
Logistics service facilities.
TIR parking.
Logistics intensive industries and trade.
An area for future expansion.
Performance Indicators
Performance Indicators
Social Discount Rate (SDR)
5.5%
10%
12%
Note
NA
a
17%
b
EIRR Economic Internal Rate of Return
%pa
MIRR Modified Internal Rate of Return
%pa
8%
11%
13%
c
EUR M
42
18
11
d
NPV Net Present Value
Switching values:
e
Costs could change by
%
88%
44%
29%
Benefits could change by
%
-47%
-31%
-23%
Investment Needs
The first estimation of required total investment needs (CAPEX)
and for each of the three envisaged stages of ILC development has
been calculated as follows:
 Total of Development Stages 1-3: € 41.3 million thereof
 Sum of Development Stage 1: € 31.7 million
 Sum of Development Stage 2: € 7.7 million
 Sum of Development Stage 3: € 1.9 million
Thank you for your attention