Tbilisi: Georgian-Russian ferry route agreed

The Messenger, Georgia
Jan 11 2005

Georgian-Russian ferry route agreed

Russian transport minister also discusses reopening of
Georgian-Russian railway through Abkhazia
By Keti Sikharulidze

Russian Transport Minister Igor Levitin visited Georgia on January 10
to sign an agreement on the opening of a railway-ferry link between
the Georgian port Poti and the Russian port Kavkaz.

Representing Georgia, Minister of Economic Development Aleksi
Aleksishvili signed the agreement.

“We signed three documents today relating to the ferry route,
shipping laws, and temporary export laws. These temporary laws will
be in force until February, when all those countries involved in the
project will have another meeting,” stated Levitin on Monday.

Representatives from Azerbaijan and Armenia also participated in the
signing of the document as observers.

Experts hope that shipping tariffs will be greatly decreased once the
route begins operating, making shipping more attractive.

Initially, a ferry carrying 25-30 rail wagons will run once a week
between Kavkaz and Poti: later it will operate three times a week.

Russia will be the fifth country with which Georgia has direct ferry
routes. Georgia has similar agreements with Bulgaria, Romania,
Ukraine and Turkey.

Chair of the Railway Department David Onoprishvili described the
opening of the ferry link as an act of utmost importance not only for
Georgia but also for Armenia and Azerbaijan as well.

“In such conditions when Azerbaijan categorically demands that
cargoes transported from Azerbaijan to Georgia not be then
transported on to Armenia, the opening of ferry will play a great
role for Armenians. The only way for Armenia to receive cargo is by
Georgian railway and also from Poti or Batumi Ports by ferry,”
Onoprishvili told Imedi TV.

On Saturday, a group of Russian railway experts visited Georgia to
negotiate with their Georgian colleagues. They prepared two documents
regarding the functioning of the ferry between Poti and Kavkaz.

“After signing these document we will continue working on other
documents, which must be agreed with the Russian railway department.
I think that it will take a month to prepare this documents and
everybody will start work,” Director of Georgian Railway Ramaz
Giorgadze told Rustavi-2.

Before signing the document Levitin met with Prime Minister Zurab
Zhvania and State Minister for Economic Structural Reform Kakha
Bendukidze, with whom he discussed not only the ferry connection, but
also the reopening of the Sokhumi-Senaki section of the
Russia-Georgia railway.

During a visit to Tbilisi in early November, Levitin said Russia was
ready to allot several million dollars to restore the line through
Abkhazia.

Speaking with Imedi TV Onoprishvili said that negotiation regarding
this issue had been held, but that the line’s rehabilitation would
need at least six-eight months and lots of money.

“But first of all, the situation must become clear. It is unclear
even for the Russian side with whom to hold negotiations. We will be
more competent in this after the elections in Abkhazia. If problems
with the customs office and the safety of cargo are not resolved, it
will be very difficult to speak of rehabilitating the line,”
Onoprishvili stated.

Early in November the Russian Transport Ministry had suggested to the
South Caucasus countries that a new company be formed to regulate
rail cargoes, but only Armenia has so far expressed interest in the
idea.

But now Tbilisi is ready to create a consortium involving the railway
departments of Georgia, Azerbaijan, Armenia and Russian to
rehabilitate the line. Shares in the consortium would be divided
equally, but before work can begin it must find funds to finance the
rehabilitation of the railway, which will cost between USD 34-50
million.

Before consideration of finances, however, Minister Bendukidze stated
that Russia must fulfill several important pre-conditions, only after
which will it be possible to restore the railway line through
Abkhazia.

“We will work within this consortium only if representative of the
Georgia Navy and Border department are placed at the Abkhaz-Russian
check-points on the River Psou. After we solve this we will start
discussing this issue, which would be economically very profitable,”
the state minister for structural reforms told journalists.

For Igor Levitin, the formation of the consortium is only a matter of
time. As for political issue such as the protection of cargo, he sees
no problem.

“The political problem is already solved, so now we have to hold a
campaign to solve problems with freight forwarding in all countries.
As for the safety of cargoes, the operative companies will insure
that they are protected on the Abkhaz-Russian railway line,” stated
Levitin.

However, although the political problem may have been resolved as
Levitin states, the Georgian side stressed that there remain many
issues to be discussed and agreed upon. “Restoring the railway line
through Abkhazia needs time. The transport ministries of Azerbaijan
and Armenia are also involved in this process, and we intend to
discuss these problems in greater detail in the hope of achieving
more concrete decisions,” stated Aleksishvili.

As reports Rustavi-2, following the negotiations, the Russian
delegation intends to head to Poti and Batumi Ports on January 11 to
attend a ceremony marking the opening of the Poti-Kavkaz ferry.

Some changes have been made to the agenda, however, as it was planned
for the first ferry to arrive in Poti, but this has since been
postponed as a result of disagreements regarding financial
obligations between the Georgian and Russian sides. The ceremony will
thus be symbolic.