Radio Free Europe, Czech Rep
Oct 22 2004

Armenians `Offered To Bid For Georgian Ports’

By Shakeh Avoyan 22/10/2004 11:04

Georgia has invited Armenian businessmen to participate in the
planned privatization of its Black Sea ports that serve as Armenia’s
main commercial conduits to the outside world, it was claimed on
Thursday.

Arsen Ghazarian, the chairman of Armenia’s biggest business
association, said the call for proposals was received by the Armenian
government recently and will be on the agenda of President Robert
Kocharian’s official visit to Tbilisi that begins on Friday.
Economic issues are expected to dominate his talks with President
Mikhail Saakashvili and other top Georgian officials. Kocharian and
Saakashvili will open an Armenian-Georgian business forum on Sunday.
In addition, more than two dozen Armenian firms will exhibit their
production in Tbilisi.

Ghazarian is one of more than 30 entrepreneurs that will accompany
Kocharian on the three-day trip. He said international tenders for
the Georgian ports of Poti and Batumi will take place within the next
six months and voiced his strong support for Armenian participation
in them.

`I we manage to make Armenian investments there it would be very good
because psychologically we will feel more confident [in external
trade],’ he told RFE/RL. `I am sure that the Georgians are making a
honest and sincere bid for investments. We will hold discussions with
them at the business forum.’

`I’m sure that Russian industrial groups as well as Western and
Turkish companies will also show interest. So the competition will be
tough,’ he added.

Ghazarian admitted that Armenian-based investors would stand little
chance of winning that competition without teaming up with their
wealthier counterparts from the Armenian Diaspora in Russia and the
West.

The Poti and Batumi facilities handle the bulk of cargo shipped to
and from Armenia. Their significance has grown further since the
closure of the land border between Georgia and Russia almost two
months ago.

Ghazarian, who owns one of Armenia’s biggest freight companies, said
the privatization will benefit Armenian traders regardless of its
outcome, arguing that the ports need substantial private investments
to increase their cargo-processing capacity.