The Role of Georgian Railways in New Geopolitical Trends

Georgian Railways plays a vital role in the country’s economy, serving as a critical link in regional and international freight networks. In the third quarter of 2024, the railway transported 3.6 million tons of cargo, reflecting consistent performance compared to the previous year. This stability underscores the importance of Georgia’s geographic position and its growing logistical potential as a transit hub connecting Asia and Europe.

In Central Asia, significant developments are underway with the construction of a new railway route involving China, Kyrgyzstan, Uzbekistan, Iran, and Turkey. With an estimated investment of $8 billion, this project is set to streamline cargo transportation from China to Europe. Meanwhile, China has intensified its use of the Trans-Caspian International Transport Route, commonly referred to as the “Middle Corridor.” This route bypasses Russia and utilizes the Caspian Sea to connect China with Europe through Azerbaijan and Georgia. The corridor reduces transportation time by 10-15 days, offering a faster and safer alternative for global trade. Its strategic significance continues to grow, reflected in a remarkable 728% increase in container transit through Georgia between January and August 2024 compared to the previous year.

The success of this corridor depends on efficient infrastructure. Collaborative efforts by Georgia, Azerbaijan, and Kazakhstan led to the establishment of Middle Corridor Multimodal in late 2023, ensuring coordinated freight transport and transparent tariffs. Modernization of the Baku-Tbilisi-Kars railway line has further increased its capacity from 1 million to 5 million tons annually, highlighting the region’s commitment to enhancing transit efficiency. As a result, block trains now move goods from China to Georgia’s Black Sea ports within an average of 10-12 days, illustrating the corridor’s growing importance in global supply chains.

Georgia’s rail freight is distributed across domestic, international, and transit shipments, each contributing uniquely to the country’s economy. Domestic transport fosters internal connectivity and supports key sectors like agriculture and industry. International shipments, primarily dominated by imports, highlight Georgia’s role in global trade, while transit traffic underscores its status as a critical logistics hub. In 2024, the majority of Georgia’s transit trade flowed to destinations such as the Netherlands, Turkey, and the United States, while export efforts focused on Kazakhstan, Russia, and Armenia.

The continued development of Georgia’s railway infrastructure and its integration into Eurasian transport networks positions the country as a key player in global logistics. By leveraging its geographic advantages and investing in modernization, Georgia not only strengthens its internal economy but also elevates its role on the international stage. The vision of becoming a regional logistics hub is transforming Georgia into a vital link in the global supply chain, fostering long-term economic stability and growth.