Smat ferryboat has already started its regular load transportation on the Caucasus-Poti route. After its tentative launch in April and transportation of the pipes of ArmRusGazArd in May the ferryboat has reached to transport Armenian load to Poti three times in late August. This information was provided to us by the RA Minister of Transportation and Commuincation Anrdanik Manukyan, who assured us that from now on the ferryboat will regularly transport Armenian load on Saturdays from Caucasus to Georgia and vice versa. Let’s remind that Uzbek businessman Khakim Matchanov built this boat. 50 wagons fit on the boat. At present Matchanov is building a second similar boat. “Smat should have started its regular functioning in March, however it occurred after over a 5-month delay. First the Russian border guards wouldn’t let the boat be harbored in Caucasus port. Afterward technical issues were originated at the port, due to which it became impossible to lift the load up the ship. Besides that the port didn’t have a customs check-point for the check-up of the load.” Manukyan assures that all the issues are solved. And the functioning of this ferryboat is very important for Armenia because after the Upper Lars passage was closed the Armenian load was being transported only by the Poti-Ilichevsk ferryboat, which would do it within a week. This route first of all serves the Ukrainian, Georgian, Bulgarian and only our load. Smat reaches Caucasus port within 2 days and first of all transports Armenian cargo.
– Mr. Manukyan, can Smat ferryboat regularly function now or maybe there are certain obstacles remaining?
– The ferryboat has started its functioning. Several days ago the Russian-Armenian Intergovernmental Session took place in Armenia and this issue was raised. The only issue to be solved is the documentation at the customs checkpoint. As there is no customs checkpoint in Caucasus port we have a problem was checking in the excised cargo. This issue was also discussed by the Armenian delegation, headed by RA Prime Minister, who visited Moscow two days ago. It was assigned to build a customs checkpoint by the end of the year. This means that we don’t have any obstacles any more. Now we need to provide cargo.
– Does this mean that the problems with the boat are solved but we don’t have sufficient cargo to transport?
– No, there is no problem with that. It’s just this is a new route and people are not used to that yet. When they check it and try once and make sure their cargo gets to the direction safely they will start to use it actively.
– Who should build the checkpoint? Months ago there were talks that the Russians refuse to build it themselves and that they are going to make Matchanov build it.
– There is no need to make anybody build anything. The customs checkpoint is going to be built by the Russians. They were bringing reasons by saying since it’s Matchanov’s boat he must provide a customs service. But I am repeating once again the Intergovernmental Committee decided that the checkpoint must be built by the Russians. Two days ago this issue was discussed by the Prime Ministers of Armenia and Russia and the Russian Prime Minister directly assigned the Russians to build it by the end of the year.
– In February you have stated that fees of cargo transportation by this route would be less expensive because the distance is twice shorter. However the owners are not offering any lower prices.
– No he has set a less expensive price for transportation. The Ilichevsk route defines 2400 USD for one wagon. In this case the fee is 2200 USD. And we are still negotiating with Matchanov so that he drops the fee. I have brought up a condition to him, by which he should give discounts for strategic cargo, such as wheat, oil, etc because their net price is expensive already.
– How much is the discount going to be?
– It’s not yet clear. We are still negotiating.
– But it’s also possible that he will refuse to lower the price because it is the only ferryboat that floats from Caucasus-Poti.
– Of course he will lower the fee. The main difficulties of using that port are taken care of and Matchnov will have many competitors. He doesn’t have any monopoly and he knows that. Thus he will have to offer lower fees. I am for the functioning of other ferryboats on that route.
– Matchanov has offered the Armenian side to purchase 45% of the ownership if the boat. Are there any people willing to buy it?
– Yes he has but unfortunately none of our businessmen wishes to buy it. We have offered it to all the businessmen and even Arsen Ghazaryan, the chair of the Businessmen Union, has offered it.
– Why is nobody willing to buy? What are the reasons of refusal?
– I can’t say for sure.
– Maybe the state should buy it.
– No. I am categorically against state’s intervention into business. I find it senseless.
– It could have bought for the beginning in order to develop the sector and lure the businessmen. Wouldn’t it be important for Armenia to have its share in the ferryboat? 45% would cost maximum 10 million USD. The price of the ferryboat is 20 million USD. It’s not excluded that some day Matchanov will decide that the Turkish route is more profitable for him than Poti.
– He had a plan like that. He wanted to exploit the ship on Caucasus-Samson route. But I think that this route is more profitable for him. I am sure that if Matchanov picks another route others will appear. For example, “Aninkov” company. I am saying one more time the main difficulties are settled. All we have to do is increase the interest to the route.
– Mr. Manukyan, there is no doubt that Armenia needs this boat very much and that cargo transportation is a profitable business. Why can we not have a share in it? Maybe the matter wasn’t explained properly to our businessmen.
– We have many rich Armenian businessmen living worldwide. They could have easily purchased that. People criticize a lot by saying that we have given this boat to the Russians. We could have even obtained the whole route if we wanted to. We have offered our Armenian businessmen to buy a few of the terminals of Batumi. Those were sold already a few months ago. Same situation is with Poti now. We are offering them to buy property here at least. But we can’t make people invest money.
– During the meeting the Prime Ministers have also spoken about the Upper Lars passage. Are there any prospects that the passage will be re-opened?
– In general there are always discussions about transport infrastructures but the Upper Lars passage is a purely Russian-Georgian conflict consequence. That is a political issue. Of course that is the will of other countries but Armenia is being a victim.