Challenges of Georgian Transport Systems and Ways to Overcome it

Abstract

Strategically located at the crossroads of Eurasian trade routes, Georgia has significant potential to become a major logistics hub, benefiting from corridors such as TRACECA and the "middle corridor". Despite its geographical advantage, the country's transport system faces significant challenges that hinder its efficiency and transit activities.

The article discusses the main problems of the Georgian transport system and possible ways to overcome them. Major issues include deteriorating infrastructure, with many roads and rail networks requiring significant modernization beyond individual projects, such as the east-west highway. The lack of multimodal integration is another major obstacle, as the underdeveloped intermodal nodes connecting rail, land highway and sea transport increase transit time and costs. In addition, insufficient digitization of logistics processes, real-time cargo tracking and customs procedures slows down processes and reduces international competitiveness. There is also a shortage of staff with relevant qualifications, which results from imperfect specialized education and relevant modern training programs. As a result, geopolitical risks and regional instability significantly affect the reliability of transit routes through Georgia.

Despite existing obstacles, recent reforms have already strengthened Georgia's transport and logistics sector, increased its transit potential and improved global market connectivity. By continuing its strategic development, Georgia is ready to fulfill its potential as a central logistics hub in the Caucasus and Central Asia.

The article discusses the general challenges in transport systems, specifically the problems in rail and sea transport and the ways to solve them.