Rail freight is an important pillar for the supply chain in Georgia, especially when it comes to transit volumes. Since the Russian invasion of Ukraine, the search for alternative corridors between China and the EU placed the spotlight on the country and the Caucasus in general. RailFreight.com interviewed Lasha Amashukeli, a Georgian Senior Executive in Logistics & Business Development to assess the state of the industry and the country’s emerging role for Eurasian connectivity.
What is the current role of rail freight in Georgia? What is its market share? How many rail operators are there?
Rail plays a crucial, but not dominant, role in Georgia’s logistics sector. According to 2025 data, it generates the lowest revenue of all modes:
- Air transport: USD 2,190 billion
- Sea transport: USD 8,572 billion
- Road transport: USD 13,403 billion
- Rail transport: USD 1,173 billion
By volume, Georgian Rail handles roughly 10-12% of total national freight (around 3 million tons annually). In terms of turnover, its share is approximately 3.8-4.6%. However, rail becomes much more significant when we look specifically at transit. Around 30% of Georgia’s total transit volume is transported by rail. This highlights its strategic importance for international flows rather than domestic cargo.
The 6% annual decline in rail turnover in 2025 is largely linked to reduced transit volumes from Kazakhstan, especially ferroalloys and metals. This decrease was not due to rerouting to other transport modes, but rather a slight drop in Kazakhstan’s export production of these commodities and its domestic production decrease. Regarding operators: Georgian Railway (GR) remains the sole infrastructure owner and primary freight operator. It is fully state-owned, and there are currently no independent private operators running on its network.
How did the Russian invasion of Ukraine impact rail freight flows in Georgia?
The Russian invasion of Ukraine in 2022 had a significant impact on regional logistics flows. We saw a noticeable boost in rail freight volumes in Georgia, as traffic between China, Central Asia, and Europe began shifting away from Russian corridors. Freight volume in 2022 itself increased by approximately 22.3%, while turnover grew by around 45%, largely driven by new transit flows. This clearly demonstrated how quickly trade routes can adjust in response to geopolitical risk.
What has been the impact of the BTK line modernisation?
The Baku-Tbilisi-Kars (BTK) line is a very important segment of Georgia’s railway network. It represents roughly 10-15% of Georgia’s total railway transport capacity, but accounts for a much higher share -approximately 25-30% – of actual transit freight volumes. The modernisation (finished in 2024) significantly increased capacity on this segment, from about 1 million tons per year before 2024 to around 5 million tons annually after upgrades (for the Georgian segment alone). This expansion strengthens Georgia’s connection to Türkiye and further into Europe.
What are your thoughts on the Middle Corridor and what role can Georgia play in it?
The Middle Corridor (Trans-Caspian International Transport Route) has become a true game-changer as a sanctions-resilient alternative to Russian routes. The growth figures speak for themselves. Starting from the first year of the war, traffic on the corridor increased by 116%, and growth has continued since then. In 2025, we saw a threefold increase in container transportation, especially block trains moving along this route.
Georgia plays, and will continue to play a vital role in the corridor for various reasons. It has the largest and most modern Black Sea ports on the route (Poti and Batumi), compared to the Caspian ports. It has operated a fully digital customs system (ASYCUDA) since 2009. The government plans to invest in 2026 approximately 1 billion GEL (around 305 million euros) in railway modernisation, including renewal of locomotives and rolling stock, which remains one of the system’s weaker points.
The new Anaklia deep-sea port project on the Black Sea will enter an active construction phase in 2026, including the development of a new 17 km electrified single-track freight railway line connecting the main railway line directly to the port. All of these measures will significantly strengthen Georgia’s capabilities and reinforce its role within the Middle Corridor.
Of course, challenges remain. The corridor still faces bottlenecks on the Caspian Sea, partly due to water level fluctuations and infrastructure limitations on both sides. Waiting times can sometimes reach 14-18 days. There is also a lack of a fully harmonised digital system across all participating countries. However, all involved countries are actively working to address these issues, and improvements in coordination and infrastructure should further strengthen the corridor’s competitiveness.
The Georgian government suspended EU accession negotiations until 2028. Does this impact the present or future of rail freight and logistics?
In my view, this political decision will not have an immediate negative impact on rail freight or logistics flows. While EU funding can support railway development, trade flows are primarily driven by economic demand and regional connectivity. Trade continues to grow, governments change over time, but the country’s geographic position and strategic role remain constant.
In the long term, regulatory alignment with European standards and eventual EU integration remain strategically important for Georgia, both economically and institutionally, especially in terms of investment attractiveness and infrastructure modernisation. However, from a practical operational perspective, current logistics activities are unlikely to be directly affected.