Poti Free Industrial Zone is the first tax-exempt area in the Caucasus with more than 100 companies. Most of them are trading companies. Poti FIZ team is constantly trying to develop services and infrastructure to make the area a large-scale regional trade and industrial hub. We talked to Davit Ebralidze, the director of Poti FIZ, about what projects we should expect from them this year and what the pandemic has changed.
– The abundance of FIZ in Georgia has undoubtedly increased competition. What business offers should potential investors expect from Poti FIZ this year?
In order to facilitate production and trade in Poti FIZ, we have developed specific commercial proposals for manufacturers and trading companies planning to lease land in Poti FIZ and build their own warehouses and production buildings. In this case, Poti FIZ will issue a construction permit for the 4th grade, including $ 1. Each investor will have a personal assistant who fully manages all FIZ-related issues, including permits.
In order to support women entrepreneurs, we have developed a special proposal, which provides the establishment of any type of company in Poti FIZ without a registration fee, only on the basis of a license and legal address.
I would especially like to mention the investment offer we have developed to attract foreign direct investment, which means, in case of $ 5 million investment, the investor will be able to receive the next 4-year lease for free for only 1 year of land lease.
– You are trying to find new companies in FIZ with the help of various sources.
We agree that finding potential investors is a complex work process involving a variety of sources and we are constantly striving to develop these tools. This time we have developed a special proposal and publicly started to expand the network of agents to stimulate the attraction of new companies. Under this offer, Poti FIZ agent will receive a commission on each registered company, regardless of the direction of business. We will be happy to work with law, consulting, bookkeeping, logistics companies, as well as individuals with experience working with investors and a base of contacts.
– During the pandemic, Poti FIZ was at the epicenter of cargo restrictions. How did you manage to cope with the challenges?
During the pandemic, the companies registered in the FIZ had to manage work and manufacturing business disruption processes. Following the protocol recommended by the healthcare, our team was able to develop a new work agenda in the shortest possible time, where the health of each employee, the driver of the cargo, was maximally protected. We processed 62,000 tons of cargo and were able to manage the flexible workflow during the crisis without closing the FIZ.
Of course, during the pandemic, some shortcomings were also identified, which were mainly related to the delayed delivery of various documents to registered companies – it became technically difficult to manage this process remotely. Also, the closure of the borders hindered the process of registration of new companies, which is one of the most important conditions for the full operation of Poti FIZ. These challenges have given us the stimulus to create an unified information base and fully digitize both the internal management structure of the company and the information base of registered companies.
– As you have mentioned, adapting to remote mode has created a problem for the investor to deliver certain types of information quickly and efficiently. How do you solve this issue?
In this regard, we have developed an innovative single-window principle space for each registered company, which has fully gathered all the information related to the investor, including the founding documents, as well as current news. All companies will enter the system remotely, with their own unique code, where they will have easy and fast access to the desired information.
We have also improved the remote registration system for new companies, which has made it as easy as possible for investors to register a business during a pandemic.
– What are your plans for the current year? What new project should we expect from Poti FIZ?
Despite the challenges, we have successfully completed negotiations on the opening of a regional center for non-ferrous metal concentrates in Poti FIZ. At this stage, the procedures for receiving the environmental impact assessment report from the Ministry of Environment Protection and Agriculture of Georgia are underway, upon receipt of which the logistics terminal infrastructure will be arranged.
I would also like to mention the establishment of a Polish-made textile accessory company, in particular: helmets, ski and other masks, whose raw materials will come mainly from China, and the final products will be exported to Poland and other European countries. At this stage, the enterprise is staffing and installing sewing machines. The factory will employ up to 30 locals. The enterprise is scheduled to open in April.
As you know, Poti FIZ is constantly developing infrastructure. We are currently building a 3000 sq / m A class warehouse, which will receive cargo for storage or light production in July.
– At the end of the interview I would like to ask you about Poti deep water port project. What impact will the construction of the new port have on the development of Poti FIZ?
The issue of construction of Poti deep-water port is uniquely important not only for the development of Poti FIZ, but also for the country and the region in general. Due to the practice of successful free zones in the world, most of the free zones are mainly located adjacently to the port, the development of which directly affects and contributes to the success of FIZs. The construction of a new port increases the possibility of receiving new cargo, the growth of which will lead to the development of logistics terminals and related businesses, which is directly related to Poti FIZ.
Construction of a new port in Poti, consultations are underway with the Poti City Hall, Poti Port and Georgian Railway administrations regarding the construction of possible access roads to the port. The main transit corridor in this project is the area of Poti Free Industrial Zone, which will connect the port directly to Poti FIZ and international rail and transport highways, which will give even more priority and favorable status to the Poti Free Industrial Zone and the region.