PMC Research Centre published a report on Transportation and Logistics Sector in Georgia. According to the report, railway and sea transportation is down, while air transport - up.
The volume of goods transported by rail has decreased. In 2023, a drop of 8.2% was recorded in tons of goods transported by rail in Georgia compared to 2022. Most of that decline was caused by a decrease in the transportation of transit goods, which usually account for a significant portion of the goods transported in or through Georgia, possibly indicating underutilization of the Middle Corridor.
The volume of goods transported decreased in most modes of transport. The growth of exported, domestic, and transit goods transported slowed considerably in 2023, but still increased by 3.7% YoY.
Slight changes were observed in the types of goods transported by rail. In 2023, the main categories of goods transported by rail were metal ores, and coal and ignites & gas, which experienced moderate declines. These two categories collectively accounted for 57.4% of the total goods transported by rail in 2023, highlighting of the limited diversity in the types of goods transported by rail.
Most of the goods are transported by carriage on Georgian railways. In 2023, 90% of goods transported by rail in Georgia were transported by carriage. This percentage remains consistent across different types of transport units, although the share of containers increased to 15% for transit goods.
In terms of outgoing goods, final destination countries are reasonably diverse. In 2023, the share of the four leading final destination countries for goods leaving Georgia amounted to 37%. Kazakhstan accounted for the largest share, followed closely by Armenia and Russia.
Incoming goods transported by rail are primarily from Russia. In 2023, most incoming goods (48%) were from Russia, mainly comprising petroleum and petroleum oil imports. Meanwhile, Azerbaijan accounted for 27% of the total incoming goods transported by rail to Georgia.
AIR TRANSPORT
The volume of freight and mail carried through Georgia’s airports increased by 10% YoY in 2023, beginning to stabilize to pre-pandemic levels. Affected heavily by the COVID-19 pandemic, the volume of freight carried through the airports of Georgia decreased by 22% YoY in 2020. That declining trend continued in 2021 and 2022. However, in 2023, the volume of freight experienced growth, indicating a recovery in economic
conditions after the significant disruption of global supply chains caused by the pandemic.
The number of freight flights declined by 32% YoY in 2023. This reduction could be interpreted as another sign of stabilization after a spike caused by pandemic-related disruptions. During the pandemic, many airlines reduced or suspended passenger flights. As a result, the available belly cargo (cargo that is carried in the lower deck of a passenger aircraft) space in passenger aircraft diminished significantly and volume of freight carried declined as shown by the previous graph. To compensate for that, shippers turned to dedicated freight aircraft and charter flights to meet their transportation needs, driving up the number of freight flights.
The volume of freight carried through Georgia’s ports and terminals slightly decreased (YoY –7%) in 2023, continuing the negative trend recorded in the previous year. This decline was largely attributed to a fall in the volume of dry bulk freight (YoY -28%) and liquid bulk freight (YoY -15%). Meanwhile, the volume of freight transported via general cargo, which includes the weight of containers, increased by 20% YoY, reaching 6.014 million tons, the highest total for several years.
The number of containers carried through the ports and terminals of Georgia also increased by 45% YoY in 2023 and amounted to 693,976 twenty-foot equivalent unit (TEU) containers.
The increase in the volume of general cargo freight and the number of containers can be attributed to the redirection of container shipments to Georgia in lights of Russo-Ukrainian war and sanctions imposed on Russian shipments.
Meanwhile, the number of ships entering Georgia’s ports and terminals remained almost unchanged in 2023 compared to 2022. Ultimately, it appears that less freight was carried but by a similar number of ships. According to data on the volume of freight carried, the number of container ships increased by 48% (reaching a total of 440), while entries of all other types of ship declined in 2023 (the highest decline was recorded in the number of dry bulk ships (YoY -37%)).
SEA TRANSPORT
Most of ships (77%) entering Georgian ports and terminals in 2023 were less than 20 000 deadweight tonnage (DWT), and thus classified as “mini handy ships.” Most of the other ships entering Georgia’s ports and terminals are classified as “handysize” (10 000 – 40 000 DWT), with very few ships of a larger size in 2023. The latter fact is largely due to Georgia not having a deep-sea port.
The number of ships coming from Russia decreased by 67% YoY in 2023, which is likely due to the impact of its ongoing war on Ukraine. Previously, 14% of ships entering Georgia in 2022 were from Russia.
More than half of the ships entering Georgian ports and terminals in 2023 came from four countries: Türkiye (18%), Panama (16%), Liberia (16%) and Malta (15%). Türkiye is one of the main trading partners of Georgia, while large number of ships are entering from Panama, Liberia and Malta due to the benefits provided to ship owners by these countries in terms of regulations, taxation, and convenience. Thus, many ships are
registered in these countries.
