Georgia promises 52% discount on railway transportation of grain to Armenia
31.08.2018,
15:02
Georgia promised Armenia a 52% discount on railway grain transportation, Deputy Minister of Transport, Communications and Information Technology Armen Pambukhchyan wrote on his Facebook page.
YEREVAN, August 31. /ARKA/. Georgia promised Armenia a 52% discount on railway grain transportation, Deputy Minister of Transport, Communications and Information Technology Armen Pambukhchyan wrote on his Facebook page.
He said under a provisional agreement between the South Caucasus Railways that operates Armenia’s railways and the Georgian Railways, prices for rail transportation of grain from the Georgian Black Sea port of Poti to Armenia will enjoy a 52% discount beginning from September 1," Pambukhchyan said.
Georgia's government said earlier this week it will impose a ban on imports and exports of grains and wheat and rye flour by trucks across its territory from September 15. It said grains and wheat and -rye flour should be transported only by rail or sea transport.
Armen Pambukhchyan said Tuesday in order to prevent the increase in transportation costs Armenian authorities began negotiations with Georgian counterparts in a bid to get a drop in transportation prices.
The Georgian Ministry of Finance said earlier the ban was imposed because of huge lines of trucks on the border crossing with Russia. It argued that the ban would not affect the economy, and would not trigger a rise in prices. However, Georgian businessmen do not agree with this opinion. They say the ban would definitely push the bread and flour prices up making also thousands of people engaged in this sector unemployed.
According to entrepreneurs' estimates, the cost of importing 1 ton of wheat by truck is $40. The ban would raise it by at least $30. From January to July 2018, more than $1.3 million worth grains were exported from Georgia, while imports amounted to more than $62.4 million. --0--
He said under a provisional agreement between the South Caucasus Railways that operates Armenia’s railways and the Georgian Railways, prices for rail transportation of grain from the Georgian Black Sea port of Poti to Armenia will enjoy a 52% discount beginning from September 1," Pambukhchyan said.
Georgia's government said earlier this week it will impose a ban on imports and exports of grains and wheat and rye flour by trucks across its territory from September 15. It said grains and wheat and -rye flour should be transported only by rail or sea transport.
Armen Pambukhchyan said Tuesday in order to prevent the increase in transportation costs Armenian authorities began negotiations with Georgian counterparts in a bid to get a drop in transportation prices.
The Georgian Ministry of Finance said earlier the ban was imposed because of huge lines of trucks on the border crossing with Russia. It argued that the ban would not affect the economy, and would not trigger a rise in prices. However, Georgian businessmen do not agree with this opinion. They say the ban would definitely push the bread and flour prices up making also thousands of people engaged in this sector unemployed.
According to entrepreneurs' estimates, the cost of importing 1 ton of wheat by truck is $40. The ban would raise it by at least $30. From January to July 2018, more than $1.3 million worth grains were exported from Georgia, while imports amounted to more than $62.4 million. --0--
