Ministry Of Economy And
Sustainable Development OfGeorgia
Opportunity for developing logisticscenters in Georgia
What Georgia offers
A politically stable investment
destination
Corruption - free and
transparent business
environment
Free Trade Agreements with
2.3 bln market
No corporate profit tax on
reinvested profit
Skilled and competitively
priced labor force
Stable and growing financial
sector
Business Friendly Environment
Georgia is one of the leading countries in the world in terms ofstarting a business, dealing with
bureaucracy and the number of procedures required to launch and operate an enterprise
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Doing Business
Up from #112 in 2005
N 9
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Economic Freedom
Majority of Georgia’s reforms are oriented on the development offree,
open and transparent, private-sector driven
market economy
Up from #99 in 2005
N 13
Corruption Perception
Alongside recognitions as the top reformer in the world, Georgia is the
leader in the widerregion in terms of fighting with corruption. Corruption index is lower than in number of EUstates.
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Up from #130 in 2005
N 44
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Crime Index
Georgia is named asone of the safest place in the world according to the
Crime Index by the Numbeo
World
N 8
2017BB-
StableBa2-
StableBB-
Stable
No Corporate Profit tax on retained profit: From 2017
profit tax is deductible only in case of profit distribution9th Least Tax Burden Country in the World
Import Tax-0%, 5%, 12%
Corporate Profit Tax–
15%
Personal Income Tax–
20%VAT – 18%
Property Tax –up to 1%
Foreign-source income of
individuals fully exempted
No wealth taxNo payroll tax or
social contribution
Only 6 flat taxes today
Double Taxationavoidance with54 countries
Growth Friendly Tax Environment
Excise Tax –depends on
goods
Regional Hub for Doing Business
80% of good free from import tariff
Very simple and service oriented customs policyand
administration
No quantitative restrictions or tariffbarriers
Most FavoredNation (MFN) since2000
CIS - FTA EFTA - FTA
Turkey - FTA EU - DCFTA
China - FTA US, Canada, Japan - GSP
Overview of Georgia’s Logistics Sector
Georgia-Regional LogisticsHub
▪ Leveraging its location, Georgia’s transport economy can benefit from large addressable transit flows, growing
economies and landlocked resources
▪ Ports are cost-competitive vs. alternative routes
▪ Georgia’s existing transport economy is transitbased
▪ Upgrading regional transportinfrastructure
▪ Alternative route through Georgia takes 7-9 days from China to Europe instead of 45 days oftraditional route
Sea Port Roads and Railway International Airports
Poti Sea Port(APMTerminals)
Batumi Sea Port(BIH)
Kulevi Terminal(SOCAR)
Supsa Terminal(BP)
Georgian Railway - TotalLength:
2,083.9 km
Road - Total Length: 20,329 km
Tbilisi International Airport (TAV)
Batumi InternationalAirport(TAV)
Kutaisi International Airport(UAG)
Planned Planned Planned
• New Deep Sea Port-Anaklia • Georgian Railway ModernizationProject
• Tbilisi Railway Bypass• East-west highway• Rehabilitation ofexisting
infrastructure
Tbilisi International Airport• International Cargoterminal
Kutaisi International Airport• Apron extension• Cargo Terminal
• Development of the logisticcenters (Tbilisi and Kutaisi)
✓ Strategic Geographical Location in the Caucasus and along the
Silk Route
✓ Georgia’s Free Trade Agreements (2.3 bln market) offers new
business opportunities
✓ Government’s strong commitment to position Georgia as a
regional logistics hub
✓ Ambitious Transport Infrastructure Improvement Projects
✓ First Logistics Centres in the Caucasus offer first mover
advantages
✓ Excellent access to transport infrastructure and logistics network
Why Logistic center project?
Two Excellent Logistics Centres Locations in Tbilisi and KutaisiRegion
• Project objectives:
✓ development of a modern andstate-of-the-art Logistic centers inGeorgia
✓ Capability logistics Region
to position itself as ahub in South Caucasus
✓Settlement of local and international logistics companies
• Dornier Consulting Internationalcarried out a feasibility study for the creation of logistics centers in Georgia.
• Selecting the locations were selectedbased on multi-criteria analysis atmacro and micro levels.
Logistics Centre Tbilisi - Location
Main Objectives and Key figures
▪ First capable Logistics Hub for East Georgia as well as South Caucasus Region
▪ Area size 64.1 HA
▪ Southeast of Georgia’s capital Tbilisi
▪ The site is well connected to the railway network
▪ Implementation of a Rail-Road Container Terminal (about 8 ha)
▪ Start of operation in 2021
Territory for the logisticcenter
Distances:• Tbilisi center – 25 Km• Tbilisi International Airpot – 20 Km• Armenia – 50 Km• Azerbaijan – 40 Km• Turkey - 245 Km
Conceptual Design: Final Development Stage Land Plot I
Figures: Land Plot I and share on Land Plot II
Attribute Figures
Area Size 52.7 ha
Building Area 133,800 m²
Throughput
Capacity957,600 t/a
CAPEX
80.4
Million USD
Logistics Centre Tbilisi - Final Development Stage
Attribute Figures
Area Size 7.9 ha
Throughput
Capacity59,200 TEU/a
Capex15.2
Million USD
Conceptual Design: Final Development Stage Land Plot II with Container Terminal (CT)
Main Functional Modules
LC Service Centre:LC management, administration, control and communications, gas
station, garage, canteen + restaurant,hotel
Logistics Service Facilities: General warehousing, freight forwarding facilities,
temperature guided warehousing, refrigerated and chilled warehousing, bonded warehouse,
hazardous goodswarehouse
Logistics intensive Industries and Trade: Settlement of logisticsintensive
production or processing facilities
Logistics Centre Kutaisi - Location
Main Objectives and Key figures
First capable Logistics Hub for West Georgia
Area size 46 HA
▪
▪
▪ Excellent location adjacent to Kutaisi International Airport
▪ Optional further implementation of a Rail-Road Container Terminal(about 2.5 ha)
▪ Start of operation in 2020
Territory for the logisticcenter
Country Distances:• Kutaisi center – 30 Km• Kutaisi International Airport– 1 km• Poti Port – 75 Km• Turkey - 210 Km• Armenia – 300 Km• Azerbaijan –315 Km
Conceptual Design: Final Development Stage
Logistics Centre Kutaisi - Final Development Stage
Attribute LC Stage1 LC Stage2 Stage 1+2
Area Size 19.1 ha 27.0 ha 46.1 ha
Building Area 41,800 m² 92,600 m²134,400
m²
Throughput
Capacity 298,000 t/a672,800
t/a
970,800
t/a
CAPEX27.2
Million USD
45.4
Million
USD
72.6
Million
USD
Overview Development Stages 1 + 2: Key Figures Logistics Centre
Main Functional Modules
LC Service Centre: LC management, administration, control and communications, gas station, garage, canteen + restaurant,hotel
Logistics Service Facilities: General warehousing, freight forwarding facilities, temperature guided warehousing, refrigerated and chilled warehousing,
bonded warehouse, hazardous goodswarehouse
Logistics intensive Industries andTrade: Settlement of logistics intensive production or processing facilities (agriculture products and food processing)
How to apply for the Project?
Government of Georgia intends to announce an Expressionof Interest to select investor for the Logistics centersdevelopment
After announcement of Expression of Interest detailedfeasibility Study will be uploaded on the official web-site:www.economy.ge