This research explores Georgia’s export transport system, highlighting the economic opportunities presented by trade with the European Union and the country’s growing role in the Middle Corridor.

It assesses how the transport system affects Georgia’s export potential, particularly for small and medium-sized enterprises (SMEs), and examines the policy and institutional framework, identifying key logistics challenges that limit SMEs’ access to European markets.

The study provides targeted recommendations to address these challenges, outlining short-term actions that can be implemented within 12 months and medium-term measures to drive systemic improvements over the next 12–36 months.

Key Challenges 

• Disproportionately high transport costs for SMEs (20-40% higher per ton than for large firms due to small shipment sizes)
• An ageing truck fleet that does not meet EU standards
• Indirect and time-consuming overland routes and ferry links
• Limited regional access to air cargo services
• Border bottlenecks and customs delays, especially at the Türkiye border
• Shortages in cold-chain infrastructure
• Fragmented shipment volumes and weak consolidation mechanisms
• Skills and knowledge gaps in logistics management
• Additional infrastructure shortfalls, including irregular ferry services, poor rural roads, and limited equipment leasing options.

Short-term Recommendations

• Launch a digital freight-matching platform to aggregate SME cargo and reduce per-unit transport costs.
• Establish regional consolidation hubs for shared trucking and container loads.
• Introduce seasonal charter cargo flights from regional airports.
• Expedite customs “green lane” procedures for SME shipments.
• Deploy mobile cold-storage units in major production regions.
• Subsidise SME access to quality warehouses.
• Form an SME logistics association to pool resources and advocate for common interests.

Medium-term Recommendations

• Modernise the truck fleet through leasing and subsidy programs
• Develop intermodal rail-port services on the Baku-Tbilisi-Kars corridor
• Create public-private partnership frameworks to invest in regional warehousing and cold-chain facilities
• Improve regulations (e.g., more flexible bonded-warehousing rules) to improve SME logistics flexibility

Additional Considerations

• Sustainable transport is key to accessing European markets. Under the European Green Deal, buyers are paying increasing attention to the carbon footprint of their supply chains. For Georgia, an ageing truck fleet, empty return journeys, and underused rail capacity are no longer just environmental concerns. They can also affect the competitiveness of Georgian exports.
• Systems and skills must advance together. For example, digital tools, such as e-CMR, can deliver results only when brokers and forwarders have capacity to use them.

Disclaimer

The research was conducted by the Georgian research company ACT LLC, with support from the European Union and UNDP through the ‘Inclusive Access to Markets’ project. 

Its contents are the sole responsibility of ACT LLC and do not necessarily reflect the views of the European Union and UNDP.