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Cargo from China will enter Europe through the Georgian transit corridor. In particular, the railway route covers about 11,300 kilometers bypassing the Russian Federation and passes through the territories of Kazakhstan, Azerbaijan, Georgia, Romania, Hungary, Slovakia, the Czech Republic and Germany.
With this decision, China is developing railways as an alternative way of shipping, through which it will supply cargo to Europe bypassing Russia. Now the main corridor for China is the so-called Middle Corridor. This network also includes Georgia.
The companies operating in the field of logistics say that in addition to the middle corridor cargo, Georgia receives cargo from Central Asia, so the timely completion of the railway modernization project will be crucial in order our railway infrastructure to withstand the increased cargo flow.
"Russia was one of the main cargo corridors for Central Asia. This can lead to obstacles, because no one was ready for it. No one thought that such a large flow of cargo would be diverted to our region. We are already facing the obstacles. If we used to receive 100 assignments earlier, now that figure is up to 800. Part of it is being canceled, because our railway cannot handle such a large load.
We will increase the maximum cargo flow by another 15-20%, but after the modernization we will be able to do more,” - Givi Chachanidze, Sales Manager of Cosco Shipping Lines said.
Given that the Georgian corridor will be used only for transit of cargo from China, the head of Kairos Logistics does not think it will have a significant impact on the Georgian economy, but the opposite will happen if Georgia receives cargo, handles it on the spot and thus enters Europe.
According to the industry experts, railways, as an alternative to shipping, are a relatively young alternative and will take many years to develop, as in the long run it will not be able to compete with shipping. Within the plan, all major works included in the modernization project should be completed by the end of this year.
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One US dollar trades at GEL 2.7315
06/06/2025