Fitch’s assessment is relevant, – Levan Sulaberidze, head of “Trans Caucasus Terminal”, subsidiary company of “Georgian Railway”, responds so placement of Georgian Railways JSC’s of ‘BB-‘ on Rating Watch Negative.
Sulaberidze noted with TV-company Maestro, that reduction of cargo turnover is caused by ongoing processes in the region through 2 years.
“For illustration, container cargo is declined by 16% in 2015 y-o-y, but the processes have been dramatically developed in the first half of this year, on the background of sharp devaluation of local currencies in the countries of transit corridor and those countries, which apply the corridor. It has been followed by local import increase in price and significant decline of consumer demand”, – Sulaberidze notes.
He has talked on positive relations with China. He declared that Georgian Railway started active works in 2014 and set up Trans Caspian Coordination Committee, however the corridor has very competitive tariffs of cargo transportation from China-Kazakhstan boarder to Georgian Ports.
“Our terminal has processed 4 trains with cargo of 20 and 40 pood containers in August-September. Now, smaller train of 40 pood is on the way, which will arrive to us from the East of China in a week. Chinese factor is especially important for us. We should know exact plan related to the cargo turnover of the next year late November. To my mind, it should be a big surprise”, – Sulaberidze has declared.
According to him, the idea of opening a corridor to Iran and Asia has been generated within the whole Georgia. Special tariffs are imposed to this rout and historically they are the lowest and none of the transport mean can compete with it. Thus, Georgian Railway works jointly with the partners to set up special tariffs for those cargos, which have not been served earlier.