05.Apr .2022 10:00

Georgia Tn the Global Logistics Chain - Goals and Plans of the Tbilisi Logistics Center

Georgia Tn the Global Logistics Chain - Goals and Plans of the Tbilisi Logistics Center
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The Russia-Ukrainian War provided the world with the opportunity to make some adjustments to its logistics supply chain. During this period, the entities involved in the process of transporting goods from Europe to Asia and vice versa are already talking about the fact that Georgia's transit function will increase even more. According to Galt & Taggart, the diversion of international cargo to Georgia will have a positive impact on the Georgian economy. This means that the demand for logistics services will increase in Georgia.

Creating the necessary service conditions for shipping the cargo is the prerogative of both the state and the private sector. Consequently, both sides must be prepared for changes and developments in logistics. Tbilisi Logistics Center, one of the largest companies in the field, clearly saw its role and function in this process, even before the war, and that is why its founders set up a logistics hub in Tbilisi when the company was founded in July 2020.

Archil Tsereteli, one of the founders and CEO of Tbilisi Logistics Center declares, that the company which entered the market amid the pandemic, has grown significantly despite significant challenges and competition. They tried to offer favorable terms to the customer and potential partners. Today, the company offers customers shipping from Western and Central European countries, Turkey, Kazakhstan, China - by sea.
"The founders of the company have been in the field of international shipping for a long time and we understand that transporting cargo alone could not drive business. Accordingly, the main goal of the Tbilisi Logistics Center is to bring, store and deliver cargo from the starting point, which means maintaining a logistics chain.

It should also be noted that there is a lot of competition in the field of shipping in Georgia, so at the beginning of the operation we were firmly determined to offer favorable conditions for our potential partners. In 2021, after shipping became more expensive, we started looking for alternative routes and were one of the first companies to move from Georgia via Iran to China. We started using the southern corridor. Shipping this way was about 30% cheaper. In this process, the insurance company "Aldagi" stood by us. He agreed to ensure our cargo through Iran, which increased our customers 'and partners' trust in us," Archil Tsereteli explained.

As a result, during the last 2021 "Tbilisi Logistics Center" has served 200 companies in the transportation of goods from around the world, some of which are their exclusive partner. The total volume of cargo transported last year was 4,000 units.

“During this period, we believe that we have reached serious success in cooperating with international companies. We have fully and exaggerated the plans for 2021. The main shipments still come in containers, in which we play one of the leading roles," said the director of the Tbilisi Logistics Center.
The company believes that the current situation in the region doubles the function of Georgia as a transit corridor. CEO Soso Kvitaishvili talks about the change in the world logistics chains and notes that the country should be able to respond to the interest in it.

"During the war, the Trans-Siberian Corridor is no longer available to many companies for a variety of reasons. For retailers, for example, cargo received through the Southern Corridor via Iran is more affordable because it is cheaper compared to shipping, and this has a significant impact on retail prices. Today, 90% of the importers operating in Georgia are located in the southern corridor.

There are mainly 2 transit corridors from Asia - Trans-Siberian and Trans-Caspian. In this situation, the railway corridor to Georgia allows the continuation of cargo traffic between Europe and Asia. In addition to providing additional economic benefits to Georgia, it is important to develop the necessary logistics services in the country, as the goal is not only to increase throughput, but also to receive, process and send products. Today the world market is looking for new alternatives and the interest from different sides towards our country as one of the links in the logistics chain is great. During this period, the transportation of goods from Kazakhstan to Europe and vice versa through Georgia became more active. Therefore, Tbilisi Logistics Center is not focused only on shipping and we want to provide logistics services of appropriate high standards in the country," - explained Soso Kvitaishvili.

To reach these goals, the company follows the idea of creating a plan - a logistics hub, which is still in its infancy, and plans to implement the plan in 2022 by investing GEL 10 million in arranging a warehouse in Tbilisi.

Tbilisi Logistics Center currently employs 30 people, but after the construction of logistics centers, about 100-150 jobs will be created in each department.