16 May, 2012, Ashgabat

1. Improvement of transport infrastructure as a Key Issues of development of regional cooperation and transit Prospects of Transport and Transit Development in Central Asia and the Caspian Region International Conference Representative of the Ministry of Economy and Sustainable Development of Georgia Ketevan Takaishvili 16 May, 2012, Ashgabat

2. Country Profile

3. Foreign Trade with EU Foreign Trade With EU 2011 Foreign Trade With EU 2010 • Trade Turnover – 25.7 percent of total turnover • Turnover – 1,753.6 mln. USD (11.5% growth) • Export – 290.4 mln. USD (22.3% growth) • Import – 1,463.2 mln. USD (9.6% growth) • Trade Turnover – 26.8 percent of total turnover • Turnover – 2,477.4 mln. USD (41.3% growth) • Export – 424.3 mln. USD (40.3% growth) • Import – 2,053.1 mln. USD (46.1% growth) Foreign Trade EU 2004-2011 Source: National Statistics Office of Geoegia

4. Diversified Trade Structure Export structure by country 2011 Import structure by country 2011 Export structure by product 2011 Import structure by product 2011 Source: National Statistics Office of Georgia

5. Linking Europe and Asia (Transit-2010) 6,699,943 tons 6,602,297 tons Ongoing railway modernisation project Russian Border Sukhumi Georgian Railway Senaki Zestaponi Khashuri Poti Tbilisi Part of GR network under modernisation Total Budget: More than 1,0 Bln USD Samtredia Marabda Gardabani Batumi Akhalkalaki Sadakhlo AzeriBorder Turkish Border ArmenianBorder

6. APMT Poti todayGeneral data ●Water area – 65.34 ha; ● Length of approach channel – 1.6 km; ● Length of breakwater – 1.8 km; ● Operating area – 30.0 ha; ● Total Capacity – 12 million ton; ● Total length of berth’s – 2.9 km; ● Total length of railway - 17.0 km; ● Direct access to hinterland ways; ● 100 hectare of development area; ● General and Break bulk Cargoes; ● Conventional and Project Cargoes; ● Liquid Cargoes; ● RO-RO and FERRY Terminals; ● Container Terminals; ● Multi-Purpose Terminal;

7. Port Poti – technical infrastructure Berth 14:Multipurpose terminal Berth 7:Container terminal Inland Container Terminal (ICT) ● Total area – 8.97 ha; ● Car parking – 654 slots (15 500 m2); ● Stripping area – 240 TEU (12 900 m2); ● Storage: Empty – 1700 TEU (5 high, 18 880 m2); Full – 432 TEU (3 high, 15 630 m2 ● Length – 253 m; ● Depth – 8.4 m; ● Storage area – 13 200 sq. m; ● Equipment – 2 MHC (100 ton each); ● Handling capacity – 250 000 TEU/y; ● Length – 211 m; ● Depth – 8.2 m; ● Storage area – 16 300 sq. m; ● Equipment – 3 (40-ton) portal cranes ● Handling capacity – 200 000 TEU/y;

8. Statistics of Poti Port Turnover (in ,000 tons) Cargo composition

9. Batumi International Container Terminal (BICT) BICT operates container terminal at berths 4 and 5 of the Batumi Port Terminal Area: 13.6 hectares Container yard: 3.6 hectares at present and 13.6 hectares when fully developed Container Terminal, Berths 4 and 5 Length: 284 meters Controlling depth: 11.7 meters Customs Warehouse with 625 m² area Handled Containers: 2008 - 44 197 TEU 2009 - 8 813 TEU 2010 - 16 318 TEU 2011 - 45 439 TEU

10. Batumi Port - Ongoing Developments Construction of new quay wall and yard at berth 12 ● Construction starts in 2012; ● Construction to be completed in June 2013; ● Planned length – 282 m; ● Planned depth – 13 m; ● 3 X LHC 550 LIBHERR harbor cranes; ● Rail line – 260 m; Construction of new container yard ● To be completed in January 2013; ● Planed area – over 15 ha; ● Equipment – 13 RTG; ● New rail line – 1.2 km; ● New road – 1.2 km; ● Annual throughput – 400 000 TEU;

11. Basic Multilateral Agreement – the legal basis In May 1993 during the Brussels Conference the European Union initiated a programme on the development of the Transport Corridor Europe – Caucasus – Asia (TRACECA)*. On 8 September, 1998 at the Summit in Baku thirteen countries signed the Basic Multilateral Agreement (TRACECA MLA), hence expressing their desire to develop economic relation, trade and transport communications in the regions of Europe, the Black Sea, the Caucasus, the Caspian Sea and Asia. The MLA was signed by Armenia, Azerbaijan, Bulgaria, Georgia, Iran, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan. Lithuania is an observer. Afghanistan (in 2003) and Pakistan (in 2004) officially applied for TRACECA MLA full membership. Turkmenistan is a member of EU TRACECA Programme since 1993. * TRACECA is ambitious EU Regional Programme under which since 1993 up to now were completed more than 65 Technical Assistance and Investment Projects with total budget more than 160 Mln EURO.

12. International Transport Corridor Europe-Caucasus-Asia Old Silk Road - (around 200B/C) TRACECA is a complex multi-modal transport system which aims to develop economic and trade relations and transportation links between countries and regions that is a significant contribution to the revival of one of the most famous historical routes of the Silk road. Useful Links New Silk Road (The TRACECA Corridor)

13. Poti/Batumi Ports: Gateway to the Caucasus and Central Asia Constanta (Romania) and Varna (Bulgaria) ports Georgian Ports (Poti and Batumi) 2500-2800 km TO or FROM EUROPE and Delivery Time 12-14 days TRACECA border crossing points in Turkmenistan: Turgundi, Andkhoy, Seraks;

14. Significant geo-strategic location of the Me3mbers of EC TRECECA Programme* and MLA Parties** with respect to inter-regional trade routes and transport communications *Turkmenistan is member of EC TRACECA Programme, but not signatory Party of TRACECA MLA; **In 2003 Afghanistan and 2005 Pakistan officially were applied for TRACECA MLA full membership;

15. TRACECA Technical Assistance Projects

16. TRACECA Investment Projects

17. TRACECA Projects implementation resulted in the increase of traffic flows in region

18. Main Trade Routes between Europe and Northern part of Afghanistan I-a: Poti/Batumi-Aktau-Mazari Sharif- Kabul $4200-4500 (6200km) I-c: Poti/Batumi-Turkmenbashi-Herat-Kabul $3800-4000 (3200km) I-b: Poti/Batumi-Baku-Turkmenbashi-Herat $3200-3500 (2300km) II-b: Karachi-Kandahar-Herat $4900-5100 (2140km) II-a: Karachi-Jalalabad-Kabul $3600-3800 (1500km) $4300-4500* 6200 km Comparison of some of indicative transportation costs per TEU via: I – TRACECA Corridor(multimodal) * II – Pakistan-Afghanistan (Unimodal/by road)**

19. Missing Transport Links hampering further development of Trade and Transport in the Region Railway connection Kolkhosabad-NijniPyanj-Shirkhan Bandar-Kundus 125 km Railway connection Atamyrat-Aqina-Andkhoy-Shiberghan 190 km Railway connection Tourgondi-Herat 102 km

20. Multimodal Terminal in Tourgundi

21. Multimodal Terminal in Tourgundi –Cont’d

22. Steps forward for efficient integration of Turkmenistan transport system into TRACECA Corridor and its network Accession of Turkmenistan to the TRACECA “Basic Multi-lateral Agreement on International Transport for Development of the Europe-Caucasus-Asia Corridor” (TRACECA MLA), in order to obtain fully mutual benefits from regional cooperation and facilitation of transit between Europe and Central Asia via TRACECA Corridor; Rehabilitation of Railway connection Serketabad-Tourgundi; Completion of Transport Missing Links in connection with Afghanistan and Iran with TRACEACA transport network (Turgundi-Herat and Atamyrat-Aqina-Andkhoy-Shibergh); Application of favourable condition for transit transportation of goods to/from Afghanistan via TRACECA Corridor;

23. Thank you for attention!