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In 2021, freight volumes recovered and surpassed pre-pandemic levels for all transports, except maritime (-0.8% vs 2019), which struggled from limited capacity, labor shortages and congested ports.
The Russian invasion of Ukraine further deepened the issues caused by Covid-19 pandemic, such as production and transportation delays, increased input costs and commodity prices. In addition, the sanctions imposed on Russia and Belarus affected global and regional trade and transit flows.
In 7M 2022, the merchandise trade volume increased by 11.4% YoY. In value terms, driven by high inflation on both export and imported products, Georgia's trade turnover constituted even higher growth (+35.3% YoY).
Cargo transit, accounting for more than a third of total cargo transportation volumes, is an important driver of demand on transportation services in Georgia. Driven by recent geopolitical situation the interest toward Georgia as a transit country has increased. The country saw a surge in transit demand in Q2 2022 (+29% YoY) attracting higher cargo volumes from “northern routes” and accelerated Russia-Turkey trade.
Road transport plays a major role in the Georgian transportation sector, accounting for 73% of transported cargo in 6M 2022. In the same period, road cargo freight increased by 16% YoY, mainly driven by increased transit volumes between Russia and Turkey.
In 6M 2022, railway freight increased by 13% YoY. The growth accelerated in Q2 2022 indicating the positive impact of sanctions against Russia on demand for GR transit services. The cargo transportation volumes are expected to increase by 32% YoY in 2022 reaching 16 mln tons.
Georgian ports also saw a surge in demand in Q2 2022. Dry and bulk cargo (originated in Central Asia) increased by 29% YoY with ports working almost at the maximum of their capacity. In case of containers, despite increased traffic (+10% YoY) ports are still underutilized.
Accounting for less than 1% of total cargo transportation air freight is the least preferred means of cargo transportation in Georgia. The start of 2022 seems to be promising for the sector, as traffic posted a 4% and 41% YoY growths in Q1 and Q2, respectively.
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One US dollar trades at GEL 2.7160
11/07/2025