Georgia is located on the historic crossroads which have connected the Eurasian transport route of the old Silk Road with countries located around the black sea. It also connects directly to countries bordering the Mediterranean Sea via The Bosporus Strait and the Strait of the Dardanelles.
Geographically speaking, Georgia plays an important socio-political and cultural role in both Europe and Asia. This has allowed the country to gain global exposure both for its tech and business innovation, but also the opportunities of doing business in such a strategic place on the map.
In the past few months, Georgia has emerged as a growing startup hub and the site of an ambitious construction project in Batumi, which has garnered a partnership with an American company, Trammo. Headquartered in New York City, Trammo was founded in 1965 and currently has 450 employees. In 2011, Forbes named the company 34th in a list of the top 500 private U.S. companies.
Signed in January, the partnership is one of the first headlining partnerships for Georgia, which has quickly become a major investment focus for investors in the European Union.
Inside Georgia’s New Port Terminal in Batumi
The partnership, signed under the entity Wondernet Express LLP, began with the building of a port terminal for mineral fertilizers in Batumi, the third largest city in Georgia.
The terminal will not only expand the Batumi port and increase its importance in the whole region, but also create one of the main logistical corridors in the region. Experts are referring to it as the “new silk road”. This new terminal will have mineral fertilizers which will have the route from Central Asia through the Caspian Sea into Baku and then is delivered to Batumi by the railway.
This will be the shortest and most effective road to date, which will make it easier to connect central Asian products to the European market, all while increasing geopolitical importance of the involved countries.
This will function as a gate between east and west especially when Batumi is the new commercial center of Georgia. The terminal is predicted to be able to hold 60 thousand tons of fertilizer, a job costing roughly 17.5 million Euros with a launch date of 2020.
“The country has the potential to become an important transportation hub, which would in turn boost its economic growth, including in the Adjaria region,'' said Tornike Rijhvadze, Head of the Autonomic Republic of Adjara.
Edward Weiner, President of Trammo, expressed, “Our company has been a part of trans-central Asian trade route connecting the two markets. Baku and Batumi are the main hubs involved in this project. We needed a strong partner in the venture which turned out to be Wondernet Express. Environmental norms will be respected. The terminal will be outfitted with modern equipment for safely loading, storing and conveying the material. The company will maintain protection of ecological standards and contribute to the development of the country.”
How Georgia is Attracting New Startups and Capital
It should be noted that Georgia is not only a recognized logistics hub, but also developing its potential in information technology and start-ups. For example, the government has created the Georgian TechnoPark to spin innovation in the country’s capital. The favorable investment environment of Georgia enacted many initiatives to attract foreign investors who are interested in investing their capital in the Georgian ecosystem.
All these initiatives help Georgia to become not only a logistical hub, but also the region’s hub in terms of technological innovations and start-ups. This will help to develop the country and give it the opportunity to get an honorable place on the world’s map.