Georgia’s freight transport industry

Georgia’s Freight Transport Industry

Georgia, located at the crossroads of Europe and Asia, plays a strategic role in regional trade and freight transportation. The country’s freight transport industry is a vital sector that supports both domestic logistics and international trade flows, especially along key corridors connecting Central Asia, the Black Sea, and Europe. Georgia’s geographical position, relatively open economy, and infrastructural development make it a crucial hub in the South Caucasus region.

Key Modes of Freight Transport

Georgia’s freight sector consists of road, rail, maritime, and air transportation. Among these, road and rail transport are the most dominant in moving goods domestically and across borders. The country’s road network covers more than 20,000 kilometers and is crucial for connecting urban and rural areas as well as linking neighboring countries like Armenia, Azerbaijan, and Turkey.

Rail transport is managed by Georgian Railways, a state-owned company, which serves as a key part of the Trans-Caspian International Transport Route (TITR) and the Baku-Tbilisi-Kars (BTK) railway corridor. These lines enable freight movement between China, Central Asia, and Europe via Georgia, without passing through Russia. The BTK line, in particular, is vital for containerized freight, providing a direct link from the Caspian Sea to the Black Sea and further into European markets.

Maritime freight is primarily handled through the ports of Poti and Batumi on the Black Sea coast. These ports act as major transshipment points for goods moving between Central Asia and Europe. Poti Port, managed by APM Terminals, is undergoing significant expansion to enhance its capacity and attract more international freight traffic. The planned deep-sea port in Anaklia, though delayed, is seen as a potential game-changer for boosting Georgia’s role as a regional freight hub.

Air cargo, though smaller in scale, is growing due to the rise of e-commerce and the increasing need for rapid delivery. Tbilisi International Airport handles most of the country’s air freight, followed by Kutaisi International Airport.

Economic Impact and Trade Corridors

The freight transport industry is a key enabler of Georgia’s export and import activities. The country exports agricultural products, minerals, and wine, while importing machinery, fuel, and consumer goods. The Middle Corridor initiative, which seeks to connect China with Europe via Central Asia and the South Caucasus, positions Georgia as a key transit country.

Georgia’s membership in the TRACECA (Transport Corridor Europe-Caucasus-Asia) program and free trade agreements with the EU, China, and other countries further enhance its freight potential. These agreements reduce tariffs and improve regulatory harmonization, making freight movement more efficient.

Challenges and Development Goals

Despite its strengths, the industry faces several challenges, including aging infrastructure, border crossing delays, and limited logistics services in rural areas. To address these, the government has launched initiatives to modernize roadways, digitize customs processes, and improve intermodal connectivity.

The continued development of logistics parks, freight terminals, and customs-free zones is also helping attract investment and streamline operations. With proper investment and regional cooperation, Georgia’s freight transport industry is poised to become a key player in Eurasian logistics.