The FINANCIAL — The presentation of terminal Lilo – 1 was held on January 22, 2008. The terminal was established to support the warehousing and distribution needs of customers throughout the Caucasus. The terminal is staffed with professionals experienced in warehousing and distribution. The highest level of service and security will be offered to customers in regards to their cargo, company representatives say. The renovated Lilo – 1 is well equipped to handle most rail and road cargo and storage needs.
According to Jumber Khatiashvili, CEO of Bagebi City Group, Joint-Stock Company Lilo – 1 entered Bagebi City Group in 2006.
“Bagebi City Group and Joint-Stock Company Lilo – 1 made all necessary changes together to give a modernized face to this terminal,” Khatiashvili declared to The FINANCIAL.
According to Khatuna Bitsadze, Director of Customs Terminal, Lilo – 1 was privatized in 2006 and approximately USD 10 million of investment were made. The investment amount will supposedly increase and is to reach USD 15 million by the end of 2008.
“The aim of this transformation is to receive a European standard terminal with refined services. Multiple repairs were made to the façade of the terminal and as a result customers today have a modernized building with additional facilities. The customs terminal reconstruction is now finished, though it is still only the first phase. By the end of 2008, renovation of the commercial warehouse terminal Lilo – 1 will be finished as well,” Khatiashvili said.
“Full rehabilitation of the warehousing manufactory was done with the above-mentioned sums. Railway impasses that were entering the terminal territory have been entirely renewed, the external infrastructure was put in order, and a large spectrum of logistic services has been invented,” Khatuna Bitsadze, Director of Customs Terminal, declared to The FINANCIAL.
“The terminal is a place in which services are more important than office comfort and conveniences. Lilo – 1 is a combined terminal, which provides both good service and a comfortable environment. The good service is due to new staff. Serious changes were also made regarding management. Today 200 people work at the terminal and most of them are young,” Khatiashvili added.
According to Khatuna Bitsadze, the Director of Customs Terminal, at this moment the terminal owns territory of 226.788 square meters, which is divided in to 3 zones: Customs Zone (55.264 square meters), Industrial Zone (43.304 square meters), and Industrial Zone (43.304 square meters).
“The area of the terminal is well regulated. Lilo – 1 plans to serve about 2 thousand road trucks and 3 thousand of railway access. Commercial warehouses are already functioning. The area of dry storage contains 38 thousand sq. m. This includes a warehouse temperature control system, 24 hour security, and fire alarm systems. Its location is convenient as this warehouse is close to Tbilisi International airport, Georgian Railway and central highways. Also Lilo – 1 is in the centre of the Caucasus. It is a guarantee of success and popularity,” Bitsadze declared.
“The warehouse is technically well equipped. It owns a ventilation and conditioning system, pass control system, video control system, and fibre-optic communication line, besides that it has other facilities: fast food to seat 100, secured parking for trucks, drivers lounge and a bank. The drivers lounge is a service which differs Lilo – 1 from other terminals. The terminal Lilo – 1 cooperates with Cartu Bank and customers can get all necessary banking services there. The most important aspect is the fares offered by Lilo – 1 terminal. Lilo – 1 has new fares and they will supposedly be acceptable for customers,” Bitsadze added.
According to the company, the fares are divided by several blocks, according to their importance: goods storage, goods inspection, goods storage at the truck warehouse, goods storage at the railway access and goods storage at the customs warehouse. The prices alter according to the period a customer wants their goods held. One day storage costs more than long term storage.
One day storage at the truck warehouse is GEL 100, for a second day the price decreases to GEL 10, for a third day the customer must pay GEL 15, for a fourth day – GEL 20, and for a fifth day – GEL 25. After five days the price is stabilized and a customer has only to pay GEL 25.
One day storage at the railway access is GEL 100, for a second day the price is changed to GEL 30, for a third day a customer pays GEL 40, for a fourth day – GEL 50, and for a fifth day – GEL 60. After five days the prices do not alter and a customer has only to pay GEL 60.
The prices of goods storage at the customs warehouse alter according to the space occupied by the goods and are also dependent on the goods’ occupation period. The occupation of 100 sq m will cost a customer GEL 16 for a year, the same space will cost GEL 14, 4 for two years and GEL 13, 3 for three years.
The occupation of 200-300 sq m will cost a customer GEL 15, 7 for a year, the same space will cost GEL 14, 1 for two years and GEL 13, 3 for three years.
The occupation of 300-500 sq m will cost a customer GEL 15, 1 for a year, the same space will cost GEL 113, 6, 1 for two years and GEL 12, 5 for three years.
The occupation of more than 500 sq m will cost a customer GEL 14, 8 over a year, the same space will cost GEL 13, 3 for two years and GEL 12, 5 for three years.
According to the company, all terminal services (sorting, picking and packing, loading, unloading, cargo transportation and storage) will be free for customers by the beginning of February.
“Making investments in reconstruction terminals is a very important step. The customs income index will rise up to 300 billion. The business market required such a type of terminal. It will support importers, exporters and business generally,” Giga Khvingia, the Head of Customs Control Organization Department, declared to The FINANCIAL.
On July 23, 2006, the former customs and warehouse terminal Lilo-1 was privatized. On December 28, 2006 the company was moderated as a Joint-Stock Company, 100% of which being under private ownership. The company has a new management group comprised of qualified staff whose aim it is to form a leading modern customs and commercial warehouse terminal and logistics centre in the Caucasus.
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