Georgia to build $2.5b Black Sea port on China's Silk Road

Georgia on Monday announced plans to build a new deep-water Black Sea port in a $2.5-billion project that aims to boost trade between China and Europe along the historic Silk Road route.

Prime Minister Giorgi Kvirikashvili said the ex-Soviet country had awarded the contract to build the port to a joint venture called Anaklia Development Consortium, made up of Georgia's TBC Holding and US-based Conti International.

"The project will bring tremendous opportunities for Georgia and the entire region, making the new Silk Road concept fully operational," Kvirikashvili told journalists.

Under President Xi Jinping, China has launched a multibillion dollar drive to revive its strategic Silk Road trade routes on land and sea, to increase its footprint from central Asia to Europe.

Georgia aims to create a regional transport hub on the Black Sea's east coast, competing with Turkish ports for cargo ships carrying Chinese goods for Europe.

The new port will serve large ships that cannot dock at the ex-Soviet country's existing ports and instead go to Turkey to reload cargo onto smaller vessels.

The Georgian government will contribute $100 million, while the rest will be financed by the ADC consortium.