agri food chain project georgia - presentation for world bank

Agricultural Food and Logistics HUBS & Food Supply Chain Modernisation

Agricultural Food and Logistics Centres Project Georgia

Project Concept :To deliver a solution to, and investment options, for fresh produce wholesale, food consolidation,

distribution (road and railway) and business support infrastructure to underpin the future competitiveness of the Agri-Food sector in Georgia.

Project Objectives: To transfer the existing fresh produce domestic growers markets led supply chain, into a new chill chain

system that enables produce life to be extended and seasonal price advantage and economic growth to be created. To facilitate through this new chill chain system improved food safety, food quality and food security within

the domestic and export fresh produce supply chain To create import substitution through the greater availability of domestic produce and longer seasons To underpin the development of free trade negotiations by delivering a safer, and higher quality domestic food

product and supply chain infrastructure To create more efficient food transportation (by releasing current bottleneck through the lack of a cool chain

system) routes to a single centre To reduce organic waste/spoiled produce (currently going to landfill at high cost) and turn it into a resource,

through renewable energy technology To create a Agricultural Food and Logistics Centre of sufficient scale to create investor and operator appetite. To provide Investment that recognises the affordability issue of the current fresh produce supply chain system, it

markets and warehousing storage and does not displace that system with unaffordable rental levels To create new value chains through the introduction of food processing and technical business support facilities.

Agricultural Food and Logistics Centre Project - Demand

• 90% of the current domestic fresh produce supply chain is still operated by the small producer, growers market and independent retailer and restaurant food service outlet

• Only 10% of the current fresh produce food supply chain is attributable to the multiple retailers• The production capacity of the current domestic fresh produce supply chain was 746,000 T

(Geostat 2010) – it is estimated that 250,000 T is traded daily and 496,000 would require storage.• The total capacity of transported and warehoused product (in non-temperature controlled

environments) within Georgia is 1.47m Tonnes, of which 842,000 T is identified as food product.

• Imports now account for 97,000 t of fruit and vegetables consumed, which is a form of import dependency

• There are 19 separate grower/wholesale market locations within Georgia but only a small number have storage and this is not food safe or of good standard

• Tbilisi represents 76% of total fruit and vegetable consumption (600,000 T) with Batumi (due to visitor numbers) and Kutaisi making up the balance

• There is only 15,000 MT of cold storage capacity for fresh produce across the whole of Georgia• Vegetable production needs to rise by 57% just to meet domestic demand (growth potential)• The Ukraine and Azerbaijan are key export markets, with Turkey the major import market

Agricultural Food and Logistic Centre Tbilisi – Site and Facilities

• The Agricultural Food and Logistics Centre project can deliver a 25 hectare site, with a built out capability of 143,235 sqm, within 15km of the city centre (therefore protecting against the breakup of the existing growers market supply chain due to increased travel to supply and customer points). The site has been identified and selected as the most feasible by the EPI process.

• The domestic and export facilities of the supply chain can be provided in 109,355 sqm of temperature controlled and Support Infrastructure, in 3 phases, with expansion land for a further phase 4.

Phase 1 Completion by 2014: 51, 018 sqm (78,000 T capacity) – Domestic Supply Chain infrastructure – Growers Market interface, Wholesale (Trading) Market (composite product, fruit and vegetables, red meat, dairy, fish and seafood) and Chilled storage. Waste Centre and Anaerobic Digestion Plant, Gatehouse/Admin centre and control point

Phase 2 Completion by 2017: 24, 726 sqm (38,400 T capacity) – Chilled storage and Import/Export Distribution infrastructure, Trading data centre (agri-product pricing and production information)

Phase 3 Completion by 2020 subject to Development Appraisal: 33,611 sqm – Agri-Educational and Technical Product testing and food development facilities', office accommodation, wine expo and retail food centre for public interface

Phase 4 Not in EPI Proposal, but indentified as expansion: 33,880 sqm (52,000 T capacity) of expansion land and/or railway terminal

Geographical Advantage & Food Supply Chain Import/ Export Product Flow

Kars

Port of Poti TbilisiGEORGIA

Caspian Sea

Baku

Lahore

Rawal-Pindi

Kutaisi

Consolidation & Assembly Locations –Connectivity

Kutaisi336,000

Tbilisi Existing Market & Proposed Agricultural Food & Logistics HUB -Location

Key

PopulationDensities

City Centre

City Outskirts

Suburban

VillageSettlement

Airport

TheProposedHub site

Tbilisi Existing Market & Proposed Agricultural Food & Logistics HUB -Connectivity

15Km Road Route

Tbilisi Existing and Proposed Market Locations

Tbilisi Bypass

Kakheti Highway

Sadguri Market

Mtkvari River

Proposed Agricultural Food & Logistics Hub Site

Domestic supply chain

Import/Export

Growers Market-1 day product lifeWholesalers5-7 day product life

1 month + product lifeChill

Store

Proposed Agricultural Food & Logistics HUB SitePhase 1 Domestic Food Supply Chain

– Domestic System;– Growers Market Trading Area (1 day product life)


– Domestic System;– Wholesalers Block A-D (5-7 days product life elongation)


– Domestic System;– Chill / Cold Store (long term 1 month + product life

elongation)


– Domestic System;– Waste Centre


– Domestic System;– AD Plant & Visitors Centre

Proposed Agricultural Food & Logistics HUB SitePhase 2 Import & Export Food Supply Chain

– Food Distribution HUB


– Food Distribution HUB– Data HUB


– Food Distribution HUB– Data HUB– Admin Building & Gatehouse/

Control Point


– Food Distribution HUB– Data HUB– Admin Building & Gatehouse/

Control Point– Multi-storey Car Park

Proposed Agricultural Food & Logistics HUB SitePhase 3 Business Support Infrastructure

– Office Blocks x 4


– Office Blocks x 4– Hotel


– Office Blocks x 4– Hotel– College


– Office Blocks x 4– Hotel– College– Wine Expo

Proposed Agricultural Food & Logistics HUB SitePhase 4 Expansion & Rail Integration

– Wholesale Market Expansion


– Wholesale Market Expansion– Food Distribution Expansion


– Wholesale Market Expansion– Food Distribution Expansion– Railway Terminal

Proposed New Rail Lines

Proposed Hub site

• Phase 5 plan view –– Business park extension back to the main road.

Site Planwith layout developed

Business Park and Logistics Centre Expansion Phase 5- Non Food

Tbilisi Bypass

Proposed Tbilisi Hub site

Proposed Batumi site

Relocation of the goods port to Poti opens opportunities for development of the city of Batumi and further growth of Tourism.

Batumi AGFLH and City Development Concept