Georgia Harnessing Reforms to Boost Maritime Sector
The maritime sector, often acknowledged as the life blood of global economy, is of crucial importance to modern societies. Nevertheless, the general public has a limited perception and appreciation of its influence and role as an essential element in terms of social and economic development, and as one of the best sources of high-salary employment. Creating a sustainable environment for the maritime industry is an important enabler for fostering trade, economic growth and general prosperity in Georgia.
“The European Union has allocated €300,000 for the creation of a five- and ten-year maritime development plan, which is being produced by the Georgian Maritime Transport Agency, and which aims to revitalize the sector,” reads an article by Joseph Hassmann printed in Investor.ge, an analytical business magazine.
Georgia is now beginning to see its maritime sector as the backbone of international trade and global markets for economic growth, something which promises huge possibilities for the country. “Rebuilding fleets, promoting the interest of shipowners to sail under the Georgian flag, attracting companies working in the maritime sector to set up camp in the country, expanding tourism and exploiting the Free Industrial Zones bordering the countries ports – the possibilities along its 310 kilometers of Black Sea coastline are vast,” Hassmann tells Investor.ge readers.
The Black Sea, strategically located between Europe, Asia and the Middle East, can be seen as a vital connecting hub. With due effort, Georgia can soon become one of the key players in the region. There are concrete initiatives that Georgia can take to further facilitate sustainable development of the maritime industry and with it, benefit the Georgian economy as a whole. The article highlights Georgia’s opportunities to make its maritime sector more attractive to leading maritime companies and promote the seafaring industry as a whole “by the provision of tax benefits and exemptions to shipowners and operators, the implementation of a tonnage tax, plans to handle port congestion and the promotion of maritime finance models for local banks, amongst others”.
Georgia has also seen progress in providing access to maritime education and training in order to supply the best qualified seafarers. “The reach and availability of education for seafarers is also expanding, with the Georgian government spending 6 million GEL ($2 million) on extending the Batumi State Maritime Academy into Poti by opening a new branch in the former building of the Hydro-Melioration School – a building included in the country’s list of historical heritage sites of the 20th century,” reads the article.
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