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Armenia’s Gyumri dry port project in limbo as negotiations continue

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By Shushan Stepanyan 

Despite years of discussions and millions in feasibility studies, Armenia’s ambitious plan to establish a “dry port” in the Shirak region remains largely on paper. While the project has received preliminary approval and promises of government investment worth $37 million, construction timelines remain unclear as the Ministry of Economy continues negotiations with potential international partners. The proposed facility, intended to serve as a logistics hub connecting rail, air, and road transport near the Gyumri Airport, represents a key element in Armenia’s broader strategy to enhance its regional transportation infrastructure.

The Ministry of Economy first proposed creating a “dry port” in 2022. In an interview  in 2023, former Economy Minister Vahan Kerobyan said, “I believe that by the end of this year, we will hopefully have our partner with whom we will build the dry port.”

On December 18, 2023, the ministry announced that the project’s technical and economic justification was almost complete. 

“According to our current timeline for the Gyumri dry port, if we receive final approval at the upcoming Public Investment Committee, we will begin the construction phase within 6-9 months,” Kerobyan stated.

The Public Investment Committee gave preliminary approval to the dry port project on January 16, 2024.

What is a dry port?

A dry port is a logistics infrastructure and industrial park, meaning industrial companies rent spaces and closed hangars on a large territory to establish their production facilities. In parallel, a container terminal is created where containerised goods are stored and transferred either to nearby ports (Georgian ports are being considered), or transported elsewhere by road or air.

The dry port or industrial park is planned to be built near Gyumri Airport, with direct access to the railway, airport, and the North-South road.

The government has planned to invest $37 million in the project while also attracting foreign investors.

What phase is the project in? 

In response to CivilNet’s inquiry, the Ministry of Economy reported that the project’s technical and economic study was completed in 2023, with roughly $350,00 allocated for this purpose.

The study was conducted by the Netherlandish company Maritime & Transport Business Solutions B.V (MTBS). The company concluded that the project was feasible under certain conditions. The Ministry of Economy stated that work discussions are ongoing and the mentioned conditions are not subject to public disclosure.

Image from the website mtbs.nl, which carried out the feasibility study of the “dry port”

On July 8, 2024, the current Minister of Economy Gevorg Papoyan met with the UAE’s State Minister for Foreign Trade and Deputy Minister of Industry and Advanced Technology during his visit to Russia, presenting the dry port project and proposing to discuss cooperation possibilities.

The ministry is not specifying new deadlines for the dry port construction. They are still conducting negotiations to implement the program, attract potential investors, and select an operator.

“Negotiations are being held with several international organizations, including the Asian Development Bank (ADB), entities dealing with similar projects in Middle Eastern countries (UAE, Iraq, Qatar), including ports,” stated the Ministry of Economy in response to CivilNet’s inquiry.

It seems that while the government has not effectively abandoned the dry port creation program, its construction work remains uncertain with minimal public information.

The post Armenia’s Gyumri dry port project in limbo as negotiations continue appeared first on CIVILNET.


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