Georgia’s Role as a Regional Logistics Hub Strengthened

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Construction site in Georgia with cranes and transportation vehicles

Georgia, October 20, 2025

Recent developments highlight Georgia’s crucial role in regional logistics, driven by new construction projects enhancing connectivity and trade. These initiatives are positioning the state as a central hub for economic expansion in the Southeastern United States. Industry leaders emphasize the importance of infrastructure improvements in supporting a more efficient transportation network, ultimately benefiting local economies. The article delves into the significance of these projects and their potential impact on Georgia’s future growth and development.

Georgia’s Infrastructure Developments Enhance Regional Trade and Connectivity

Tbilisi, Georgia – In the past 48 hours, significant advancements in Georgia’s infrastructure have been announced, positioning the country as a pivotal hub for regional logistics and trade.

Completion of East-West Highway Link to Türkiye

The Asian Development Bank (ADB) has approved a $360 million loan to finalize the East-West Highway, connecting Georgia to Türkiye via the Sarpi border crossing. This 11-kilometer stretch between Batumi and Sarpi will meet Trans-European Motorway standards, enhancing trade and logistics between the two nations.

Development of Anaklia Deep Sea Port

The Georgian government has prioritized the development of the Anaklia Deep Sea Port, a green-field public-private partnership project. Upon completion, the port will handle up to 100 million tons annually, accommodating PANAMAX container vessels and direct shipping calls, thereby boosting Georgia’s role in regional trade.

Enhancements to the Middle Corridor

AD Ports Group has acquired a 60% stake in the Tbilisi Dry Port, an intermodal logistics hub set to begin operations in October 2024. This acquisition strengthens the Middle Corridor, connecting Asia to Europe through Georgia, and is expected to improve trade efficiency and capacity.

Ongoing Infrastructure Projects

The Railway Modernization Project, involving a Chinese company, is underway and aims to double the throughput capacity of Georgian railways by the end of 2024. Additionally, the East-West Highway and the Baku-Tbilisi-Kars railway line are both scheduled for completion by the end of 2024, further enhancing Georgia’s connectivity and trade capabilities.

Strategic Importance of Infrastructure Developments

These infrastructure projects are part of Georgia’s broader strategy to strengthen its position as a regional logistics hub. By improving road, rail, and port facilities, Georgia aims to facilitate smoother trade flows, attract new cargo streams, and generate economic opportunities for its population.

Background Context

Georgia’s strategic location at the crossroads of Europe and Asia has long made it a key transit route for goods. The development of the East-West Highway and the Anaklia Deep Sea Port are central to enhancing this role, providing modern infrastructure to support increasing trade volumes. The Middle Corridor, which includes these projects, is viewed as a critical international logistics conduit, connecting China and Central Asia through Kazakhstan, Azerbaijan, and Georgia to Turkey and Europe.

FAQ

What is the East-West Highway project in Georgia?

The East-West Highway is a major infrastructure project in Georgia aimed at creating a 455-kilometer east-west transport corridor connecting Azerbaijan and Armenia with Turkey. It involves upgrading sections of the E60 and E70 highways to strengthen Georgia’s position as a transport hub in the South Caucasus. The project includes redesigning major sections of Georgian highways to grade-separated highways, mostly as 2×2 expressways or motorways. As of 2021, over 160 kilometers of the S1 highway between Natakhtari and Samtredia have been upgraded to 2×2 motorway standards, with the remaining sections under construction. The project is sponsored by both European and Asian development banks, the World Bank, the European Union, and others, with credits amounting to more than $2 billion for the S1 upgrades alone, in addition to state funding. Construction companies from various European and Asian countries have been involved, with mixed success. Some tenders ran into technical and legal issues, with some contracts having been terminated by the Georgian government due to excessive underperformance of the contracted party, resulting in multiple-year delays on various lots.

What is the Anaklia Deep Sea Port project?

The Anaklia Deep Sea Port is a green-field public-private partnership project in Georgia, aiming to develop a state-of-the-art deep-sea port on the eastern Black Sea coastline. Upon completion, the port is expected to handle up to 100 million tons annually, accommodating PANAMAX container vessels and direct shipping calls. This development is part of Georgia’s strategy to enhance its role as a regional trade hub and improve connectivity with international markets.

What is the Middle Corridor in the context of Georgia’s infrastructure?

The Middle Corridor is a transcontinental trade route connecting China and Central Asia through Kazakhstan, Azerbaijan, and Georgia to Turkey and Europe. It includes a combination of rail, sea, and road links and is growing rapidly in importance as companies seek alternatives to existing shipping routes, aiming for speed, reliability, stability, and cost savings. Georgia’s infrastructure projects, such as the East-West Highway and the Anaklia Deep Sea Port, are central to enhancing this corridor, providing modern facilities to support increasing trade volumes.

What is the Railway Modernization Project in Georgia?

The Railway Modernization Project in Georgia involves upgrading the country’s railway infrastructure to double its throughput capacity by the end of 2024. This project aims to enhance the efficiency and capacity of Georgian railways, supporting the country’s role as a regional logistics hub and facilitating smoother trade flows across the region.

What is the Tbilisi Dry Port, and why is it significant?

The Tbilisi Dry Port is an intermodal logistics hub in Georgia, set to begin operations in October 2024. AD Ports Group has acquired a 60% stake in the port, enhancing the Middle Corridor that connects Asia to Europe through Georgia. This acquisition is expected to improve trade efficiency and capacity, reinforcing Georgia’s position as a key transit route for goods between continents.

Chart: Key Infrastructure Projects Enhancing Georgia’s Trade Connectivity

Project Description Completion Date Expected Capacity
East-West Highway Link to Türkiye Final 11-kilometer stretch connecting Batumi to Sarpi, meeting Trans-European Motorway standards. 2025 Enhanced trade and logistics capacity between Georgia and Türkiye.
Anaklia Deep Sea Port Development of a deep-sea port on the eastern Black Sea coastline. 2025 Up to 100 million tons annually, accommodating PANAMAX container vessels.
Railway Modernization Project Upgrading of Georgian railways to double throughput capacity. 2024 Increased efficiency and capacity of Georgian railways.
Tbilisi Dry Port Intermodal logistics hub enhancing the Middle Corridor. 2024 Improved trade efficiency and capacity between Asia and Europe.

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