Poti logistic companies strike against the monopoly
17 April, 2014
Poti logistic companies strike against the monopoly
Employees of 42 freight carriers operating in Poti Port of Georgia started a warning strike on 4 April to protest the monopolist position of APM Terminals, which owns and operates Poti Port. The Ministry of Economy and Sustainable Development of Georgia promised to clear the situation to satisfy all sides, however, no solution was drawn as of yet. The strike halted Poti Port working process for 2 hours, however, this was just a warning for larger protests to come soon
if APM Terminals, which owns and manages the Poti Port together with its adjacent Poti Free Industrial Zone, does not stop the monopolist practice that poses threats to all 42 logistic companies based in Poti to go bankrupt and leave their 5 000 employees jobless.
APM Terminals is a unit of Denmark’s A.P. Moller-Maersk, the largest container ship operator in the world, which acquired 80 percent of the port in April 2011 from RAKIA UAE. The point is that Maersk terminal is located in the Clearance Economic Zone (CEZ), created by the State in 2011 for custom clearance procedures. This has put the said terminal in a privileged monopolist position. In 2011, the State made it mandatory to implement customs clearance procedures on all imported cars at this terminal only. Starting this May, all cargos are expected to be cleared only at these Maersk terminal, owners of other terminals say. However, there is no official law giving this kind of exclusive right to APM Terminals, which obviously enters into other logistic activity as well and will become a full logistics market monopolist soon. This will end up by shutting all the 42 companies based in logistic service in Poti down. According to Irakli Iashvili, Chairperson of the Supervisory Council of East Gate Group affiliated with the French-based CMA CGM [the third largest container transportation company in the world], all 42 companies are in compliance with Georgian labor code and warned their employees a month ahead about the impending bankruptcy and job closure. Employees got nervous and went on a warning strike to attract the attention of the State, which is the only one who can solve this problem.
As a matter of fact, the problem with logistics in Poti started in 2011 when the former government deployed state-owned CEZ throughout Georgia to ease business life, while private terminals said it killed the competition because CEZ seized their cargos. Since 2011 the State obliges shipping companies via verbal order only to implement customs clearance of cars at CEZ alone. As the power shifted in 2012 the problem only aggravated: Ministry of Finances made the requirement on car customs clearance procedures at APM Terminals exclusively legal, while unofficially allowed them to handle all cargos starting from 1 May 2014. As the Revenue Service of the MOF informed Georgian Journal, the law does not prohibit customs clearance procedures of any cargo, except cars, at other terminals. However, terminals report on the vicious practice of customs officers, mandated by a verbal order from upper ranks, never coming to other terminals to implement the lawful customs clearance. Administration of APM terminals waives any kind of monopolistic activity away and swears they pursue the best world practice to expand the port infrastructure.
Logistics companies repeatedly appealed to all instances of the Georgian government including to the Prime Minister and the Business Ombudsman to take the market competition under their personal control, but their voice remained unheard. This time, Ministry of Economy heard the voice. Dimitri Kumsishvili, Deputy Minister of Economy and Sustainable Development, visited Poti strike last week and promised to prevent the emergence of a monopolist.
“We will continue negotiations with APM Terminals in a way that APM Terminal might expand its business and at the same time lets other businesses operating in the port go ahead with their activity,” Kumsishvili stated. MOF, which supervises customs affairs, keeps silent.
Print
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
12.11.2018
13.11.2018
USD
1
USD
2.7146
2.7166
EUR
1
EUR
3.0800
3.0602
GBP
1
GBP
3.5325
3.4900
RUB
100
RUB
4.0430
4.0131
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.7166
EUR
1
EUR
3.0602
GBP
1
GBP
3.4900
RUB
100
RUB
4.0131
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30