Interpipe has organized a hub in Batumi for transshipment of products in the eastern Black Sea

Interpipe, a Ukrainian industrial company, is implementing modern logistics solutions, focusing on reducing costs and expanding its supply geography. In cooperation with its partners, the company has set up a hub in the Georgian port of Batumi for transshipment of pipe products. From here, the goods are delivered to customers in the Caucasus and Central Asia by rail and road, said Evgeny Anikin, head of the company’s logistics and customs control department, in an interview with CFTS.

This solution has made it possible to significantly optimize transportation costs. At the hub, products are sorted for further delivery, which is similar to the company’s model in Houston (USA). Together with local railroad operators, the company managed to achieve favorable tariffs, making this route economically attractive.

At the same time, Interpipe moved its beam operations from the port of Constanta in Romania to Varna in Bulgaria. This reduced costs by 46%, saving more than $1 million in five months. As part of the new strategy, bulk carriers now sail not only through Izmail but also through Odesa, which reopened its ports in January and began accepting cargo again.

Until 2024, pipe products were delivered to the Caucasus and Central Asia by road via Europe. However, Interpipe has now switched to multimodal transportation, using several modes of transport, which saves money and reduces dependence on a single route.

Over the past two years, the company has significantly expanded its base of potential carriers in the Black Sea region, which allows it to choose a reliable partner at the best price. Such approaches helped save more than $900 thousand in the last 7 months alone.

As GMK Center reported earlier, Interpipe continues to invest in production to maintain its competitiveness in international markets. In 2023, the company’s capex is estimated at $31 million, up 48% y/y. In addition, the company has recently presented a major investment project worth about $1 billion, which involves the expansion of green steel production facilities.

Interpipe is an international vertically integrated pipe and wheel company that ranks among the top 10 seamless pipe producers in the world and among the top 3 producers of all-rolled railway wheels.