The Messenger, Georgia
March 9 2009

Russia-Armenia import-export problems

By Messenger Staff
Monday, March 9

Russian company Black Sea Ferry Investment, which runs rail ferry
transport between the Russian port of Kavkaz and Poti, has declared a
price cut of USD 400 for every transported carriage. The reason for
such a decrease is the serious slowing down of carriage transport
between the two countries.

Senior management of the company states that every month in 2008 four
journeys from Kavkaz to Poti were undertaken. The ferry boat was
loaded to full capacity but from 2009 Russian export to Armenia
decreased, and as is known mostly Armenian cargo was transported via
this route.

Export from Armenia to Russia has always been much less than export
from Russia to Armenia. The ferry boat connection between Kavkaz and
Poti was opened in 2004. The ferry was owned by Swiss-registered
company Preserve Capital Enterprises and mostly transported cargo to
and from Armenia. Before 2004 the connection with Poti was conducted
through the Ukrainian port of Ilichevsk, but in both cases the cargo
from Poti to Armenia was transported onward by rail. After Kavkaz port
opened the price of the transportation decreased by 25% and the time
from 50 hours to 31 hours.

In 2008 Armenia exported construction materials, mineral water, fruit
and vegetables to Russia whereas Russia exported to Armenia cars and
other machinery, tractors and different types of grain. The dramatic
decrease in traffic however has now made the continued profitability
of the ferry boat problematic. Hacked By Fdt