Georgia Transport and Logistics

Sector outlook

Strategic link on the original “Silk Road”, Georgia serves as a trade and transit hub for the Southern Caucasus and Black Sea Region. Only access to the Black Sea for the Caucasus, Georgia’s sea ports are booming since 2000 and were privatised in 2008. The port of Poti, which handles most container shipments and some bulk, was acquired by RAK Investment Authority (UAE), which resold 80% of its shares to APM Terminals (Netherlands) in 2011 to focus on the development of the 300-hectare free industrial zone adjacent to the port (49-year lease). Acquired by KazTransOil (Kazakhstan), Batumi Sea Port (BSP) exports bulk oil and cargo (95% second-hand cars, 5% sugar and construction materials). The Kulevi Terminal was acquired by Socar (Azerbaijan) and Supsa Terminal by BP (UK).

Air transport has also grown substantially since 2000, especially in passenger transportation. Managed by TAV (Turkey), Tbilisi and Batumi airports attracted new airlines such as Pegasus, Qatar Airlines, Ukraine International Airlines, Alitalia, etc. The recently opened Mestia airport and the planned Poti airport will also be operated by private companies. Scheduled for 2012, the Kutaisi airport will be operated by the government to attract low cost airlines such as Easyjet.

Driven by Turkish companies, road transport includes both freight (road transport accounts for approximately 60% of total cargo transportation) and passenger transport (road transport accounts for 99% of total passenger transportation and is crucial for tourism).


Strategic direction/ specific schemes and incentives

Transport & logistics is a priority sector for the government. The Strategic “10-Point Plan” for Modernization and Employment 2011-2015 provides for the “Improvement of Infrastructure” and “Formation as a Regional and Logistic Hub”. To support the implementation of the plan, incentive schemes are offered to potential investors:

Georgia participates in the EU-funded TRACECA programme, which aims at developing the Europe-Caucasus-Asia transport corridor. Implemented by Egis International and Dornier Consulting as part of TRACECA, the LOGMOS project will conduct feasibility studies for investment opportunities in the logistics sector in Georgia.


Business opportunities

Development of facilities and services for the various modes of transportation:

  • Rail: Poti-Baku Container Block Train, other railway links under construction; 
  • Air: airport development and services, passenger flights and air freight (significant unused air cargo capacity); 
  • Maritime: oil and cargo shipments from the ports of Poti, Batumi, Kulevi and Supsa, expertise and monitoring systems;  
  • Road: construction of bridges, rehabilitation of secondary roads, passenger transport, domestic and international freight;  
  • Urban: feasibility studies and procurement contracts for new metro and light rail train lines in Tbilisi.

Development of logistics facilities and services:


Some success stories

RAK Investment Authority (UAE) acquired the port of Poti, which handles most container shipments and some bulk, in 2008. It resold 80% of its shares to Netherlands’ APM Terminals in 2011 to focus on the development of the 300-hectare free industrial zone adjacent to the port (49-year lease).

TAV (Turkey) successfully operates the Tbilisi and Batumi airports since 2005.

Polzug (Germany), a leading operator of container block trains owned by Germany’s Hamburg Port and Deutsche Bahn and Polish PKP. The group is active in the Caucasus since more than 10 years via its affiliate Silk Road Express Georgia in Poti and its Polzug Intermodal office in Baku. It launched the first container block train between the Georgian port of Poti and Baku, capital of Azerbaijan.

Clasquin (France) is an international forwarding group with a network of 41 wholly-owned offices in 17 countries, including Georgia. It arranges transportation of less than truckload (LTL), full truckload (FTL), less than container load (LCL), full container load (FCL) and airfreight to and from Europe, Asia, USA, CIS countries and all over the world.


Useful links and contacts

Georgian Chamber of Commerce and Industry

Georgian National Investment Agency

Georgia.gov.ge

Ministry of Economy and Sustainable Development

This publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of EUROCHAMBRES and can in no way be taken to reflect the views of the European Union.

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