Possible Risk in Anaklia Port Created with the Landlord Model

2026-07-06

The “Landlord” model is the most common international practice of port management, where the state owns the land and basic infrastructure, and transfers direct operation and management to private companies.

There is a similar model in the case of Georgian Railways, but we can see what condition the railway is in. The main thing is not the model, but the impeccable observance of corporate governance principles, which are completely neglected in the case of our railway.

“Georgian Railways” is also formally a sovereign asset owned by the state, but in reality we have nepotism, bureaucracy and incompetence.

In a true “Landlord” model, independent, international-level professionals should sit on the governing board, and not individuals selected on political grounds. This principle is completely violated in the railway, which is why we have an inefficient railway company, whose transportation volume is decreasing, while net profit is “growing”.

Therefore, changing the model and avoiding the Chinese monopoly is the right step, but it is an illusion to think that the ‘landlord’ model will automatically save the project. If we adopt the same style of management in Anaklia as we have in the “Georgian Railways” — without corporate governance — the port will turn into another failed state-owned enterprise instead of a Western hub.

Dato Gochava, Professional Railwaymen’s Club