Georgia’s Ministry of Economy and Sustainable Development awarded a contract to Anaklia Development Consortium LLC to build and develop a deep sea port in Anaklia.

The $2.5 billion project will establish a new maritime corridor between China and Europe, helping restore the historic Silk Road and stimulating national and regional economic growth.

Located on the eastern edge of the Black Sea, Anaklia strategically sits on the shortest route from China to Europe. The route has recently become a focal point for $40 billion in Chinese infrastructure investments under the Silk Road Development Fund and already accounts for 26 percent of Chinese foreign trade volume. The recent opening of the $100 billion Asian Infrastructure Investment Bank (AIIB) will also support regional infrastructure development. The restoration of the Silk Road has been a major priority for Georgia as well and builds upon the government’s Deep and Comprehensive Free Industrial Agreement (DCFTA) with the European Union in December 2014.

The Anaklia Development Consortium is a joint venture between TBC Holding LLC, which is based in Georgia, and Conti International LLC, a major United States-based developer of infrastructure and capital projects. Other key partners include the leading port designer Moffatt & Nichol and the leading port transaction advisor Maritime & Transport Business Solutions from the Netherlands.

The government of Georgia, which initiated the project, has committed to invest $100 million in ensuring its success.

“The Anaklia project represents a one-of-a-kind investment in the restoration of the Silk Road that will pay dividends for generations of workers in Asia and Europe,” said Mamuka Khazaradze, president of TBC Holding. “The government of Georgia deserves much credit for its foresight in initiating this project and ensuring it receives the support necessary for its completion. Their level of commitment clearly reflects the Port’s tremendous economic importance to the country and the region.”

Construction on the project is scheduled to launch by the end of 2016, subject to completion of environmental reviews. The port will be operational three years after its groundbreaking. The project is expected to create as many as 3,400 jobs during the construction stage and 6,400 jobs to operate the port upon completion. The port will have the capacity to process 100 million tons of cargo and generate 0.5 percent of GDP annually by 2025.

“We are delighted and honored to be awarded the contract to undertake the infrastructure development of Anaklia’s Deep Sea Port,” said Kurt Conti, CEO and President of Conti International. “We are looking forward to breaking ground and working with the government of Georgia to help forge new paths from Asia to Europe as well as unlocking the economic potential of Georgia’s neighbors and landlocked nations in the Caucasus.”

As part of the agreement, the Anaklia Development Consortium also receives the right to develop a free industrial zone that will support the port’s operations and trade and be home to local and international entrepreneurship. It will be administered with a tax-free regime to incentivize shipping companies, manufacturers, businesses and employees to relocate and use the port.