Kerry Logistics and Anaklia City Sign MOU on Strategic Cooperation for Georgia's Deep Sea Port and SEZ Development

4 July 2018

Kerry Logistics Network Limited ("Kerry Logistics"; Stock Code 0636.HK) today announced the signing of a memorandum of understanding between its member company Globalink and Georgia"s Anaklia City JSC ("Anaklia City") to cooperate in the development of the Anaklia Deep Sea Port ("Anaklia Port") and Special Economic Zone ("Anaklia SEZ") in Anaklia, Georgia. Leveraging its long presence in Georgia and the Caucasian region, Globalink is expected to bring in a wealth of logistics and multimodal freight knowledge and expertise to the project.

Scheduled for opening by the end of 2020, the Anaklia Port and Anaklia SEZ, comprising modern logistics and industrial parks, will be fully integrated with rail and road connections to the infrastructure networks of Georgia and neighbouring countries. The Anaklia Port is expected to become one of the largest ports in the Black Sea region and first deep water port in Georgia with a handling capacity of up to 10,000 TEUs vessels, catering for a mix of cargoes including containers, dry bulk, liquid bulk and other types of cargoes.

Edwardo Erni, Managing Director - China and North Asia of Kerry Logistics, said, "We are honoured to be given the opportunity to participate in this exciting project. Anaklia is a key cargo gateway in the Caucasian region. With Globalink's proven track record in the Georgian market, and our comprehensive multimodal freight network across Eurasia, we are committed to devising innovative solutions to facilitate the building of Anaklia Port into a successful logistics hub for the region with integrated logistics, sea-rail, and sea-road services."

Anaklia is strategically located along the shortest trade route between China and Europe in the Belt and Road network, acting as a cargo gateway of the landlocked Central Asian and Caucasian regions.

Ketevan Bochorishvili, CEO of Anaklia City JSC, said, "We are excited about the cooperation with Globalink which has a deep understanding and comprehensive experience in the Caucasian region and Central Asia. With the Anaklia Port and Anaklia SEZ, we are establishing a state-of-the-art logistics, trade and business platform, which will serve a pivotal role in increasing the connectivity of Georgia as it is positioned along the shortest route from China to Europe via the Middle Corridor and from India to Europe. The successful development of Anaklia projects is expected to unlock a potential market of over 150 million consumers and serve as a bridge between Asia and Europe."

On 28 June 2018, Hong Kong signed a free trade agreement ("FTA") with Georgia, which is the first FTA between Hong Kong and an economy in the Caucasian region of Eurasia. The FTA is comprehensive in scope, encompassing trade in goods and services, investments, a dispute settlement mechanism, and other related areas.

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