Georgia’s Anaklia Pivots to State Ownership

Georgia’s Anaklia Pivots to State Ownership

Executive Summary:

• On July 6, the Georgian government announced that it will develop and own the Anaklia Deep Sea Port under a state-led “landlord model” after a People’s Republic of China (PRC)-led consortium selected in 2024 withdrew from the project.
• The decision has raised concerns over financing, cargo demand, and Georgia’s ability to sustain a project previously expected to rely on private investment. Anaklia’s success also depends on regional infrastructure and partnerships beyond Tbilisi’s control.
• Georgia is seeking greater regional participation, particularly from Central Asian states, to secure cargo flows and strengthen Anaklia’s role in the Middle Corridor.

On July 6, Georgian Minister of Economy and Sustainable Development Mariam Kvrivishvili announced that the Anaklia Deep Sea Port on Georgia’s Black Sea coast will be developed and owned by the Georgian state under a “landlord model,” with various states and international companies invited to lease and equip individual terminals (Ministry of Economy and Sustainable Development of Georgia, July 6). Kvrivishvili said the project had attracted broad international interest from Central Asia, the People’s Republic of China (PRC), the Gulf States, and the West, adding that she remained “optimistic and hoped to see the Chinese side participate as a partner in the Anaklia Deep Sea Port” (Business Media Georgia, July 7). 

The decision marks the third iteration of a project that began as a Western-backed venture. The Anaklia Development Consortium—comprising Georgia’s TBC Holding and the U.S.-based Conti Group—won the original contract in 2016 before Tbilisi canceled the deal in 2020. The China Communications Construction Company (CCCC)-led consortium selected in 2024 has now withdrawn without ever signing an investment agreement, despite its planned 49 percent stake in the project (see China Brief, June 21, 2024; Eurasianet, July 8). Georgian Prime Minister Irakli Kobakhidze framed the shift as a model that “will ensure the safety of our sovereign interest and diversity of partners” (1TV, July 7).

Kvrivishvili put the total cost of the project at approximately $1.1 billion, with the first vessel expected in 2029 (Business Media Georgia; Ministry of Economy and Sustainable Development of Georgia, July 6). She also highlighted the recent growth in cargo transit through Georgia, noting that turnover increased by 21 percent year-on-year in January–April and by 46 percent over the past four years (Ministry of Economy and Sustainable Development of Georgia, July 6).

The financing gap remains the project’s biggest challenge. The 2024 arrangement anticipated roughly $600 million in foreign direct investment, an inflow that no longer exists, while the state must mobilize an additional $200 million for berths and core infrastructure previously assigned to the CCCC-led consortium (CivicIDEA; Youtube/@Georgian Public Broadcaster, July 6). Kvrivishvili underscored that the project’s funding would come from the state budget and international financial institutions. Head of the Georgian think tank Civic IDEA and former Georgian Minister of Defense Tinatin Khidasheli argued that declining confidence among Western lenders leaves PRC banks as the most likely source of the remaining capital. She added that the project would have benefited more from a strategic private investor capable of assuming commercial risks and guaranteeing cargo flows (Business Media Georgia, July 9). Economists and analysts have also questioned Georgia’s ability to absorb the financial burden, citing limited borrowing capacity, strained relations with strategic partners, and the risk of increased public debt (Business Media Georgia, July 9, 10).

The port’s viability will depend on the broader transport corridor that connects it to regional markets. Several analysts noted that a port cannot succeed without supporting rail links, which depend on modernization in Azerbaijan and Central Asia beyond Tbilisi’s control (YouTube/@businessmediageorgia5018, July 10, 13). Paata Tsagareishvili of the Transport Corridor Research Center called the landlord model the only realistic alternative to the 2024 agreement, arguing that rapid transport development over the next two years could improve feasibility, though such projects are typically pursued by wealthier states (Business Media Georgia, July 9). The government has acknowledged this challenge, identifying Middle Corridor development as a strategic priority and outlining plans to mobilize $7 billion by 2032 for core transport and logistics infrastructure (Georgian Ministry of Economy and Sustainable Development, May 15). The plan includes a ten-year $1.7 billion Georgian Railway modernization project aimed at upgrading rolling stock and strengthening freight capacity (1TV, May 5).

Securing Central Asian engagement has become a key element of the government’s strategy to ensure Anaklia’s long-term viability. During her June visit to Kazakhstan, Kvrivishvili met with Kazakh Transport Minister Nurlan Sauranbayev and highlighted Anaklia’s role as a Middle Corridor hub connecting Central Asian states to European markets (Ministry of Economy and Sustainable Development of Georgia, June 29). The effort continued in July, when Kvrivishvili toured the construction site with Uzbek Investment, Industry, and Trade Minister Laziz Kudratov and Transport Minister Ilhom Mahkamov. The officials expressed Uzbekistan’s interest in establishing a presence in Georgia’s transport infrastructure and participating in strategic facilities, citing expected cargo growth from the China–Kyrgyzstan–Uzbekistan railway (Imedi News, July 4). The visit followed Uzbek President Shavkat Mirziyoyev’s state visit, which elevated Georgia–Uzbekistan relations to the level of a strategic partnership (see EDM, July 15). For landlocked Central Asian states, access to dedicated Black Sea terminals could strengthen westward trade routes and provide Anaklia with the cargo commitments needed to sustain operations.

Anaklia is Georgia’s only planned deep-sea port capable of handling Panamax-class vessels. This capacity is unavailable at existing Georgian ports, positioning Anaklia as a potential maritime gateway for the Middle Corridor (Interpressnews, July 4). The port could strengthen Georgia’s role as the corridor’s western hub, but its success will depend on more than construction. Financing, cargo commitments, and regional coordination will determine whether Anaklia becomes a functioning logistics hub or another fragmented infrastructure project. While Tbilisi has secured state control, the port’s long-term viability will depend on cooperation with Azerbaijan, Central Asia, and other transit states that can provide the connectivity and demand needed to strengthen the Middle Corridor as a more integrated and competitive transport route.