Key Findings
CPMM road transport data for Georgia in 2022 showed the following year-on-year changes from 2021:
- Border-crossing time increased from 3.6 hours to 18.0 hours. This was due to border congestion at Tsiteli Khidi and Sarpi as a result of the greater use of the TITR Middle Corridor that followed the Russian Federation’s invasion of Ukraine in February 2022.
- Border-crossing cost for road shipments rose from $49 to $83.
- Total transport cost was up from $562 to $1,485.
- SWOD increased from 32.6 km/h to 40.6 km/h, but SWD slowed from 25.0 km/h to 14.0 km/h.
Table 3.5: Trade Facilitation Indicators for Georgia, 2020–2022
| Road Transport | ||||
| 2020 | 2021 | 2022 | ||
| TFI1 | Time taken to clear a border-crossing point (hour) | 13.0 | 3.6 | 18.0 |
| Outbound | 14.2 | 4.2 | 23.3 | |
| Inbound | 4.8 | 1.3 | 1.6 | |
| TFI2 | Cost incurred at border-crossing clearance ($) | 48 | 49 | 83 |
| Outbound | 45 | 37 | 81 | |
| Inbound | 78 | 94 | 94 | |
| TFI3 | Cost incurred to travel a corridor section ($, per 500km, per 20-ton cargo) | 87 | 562 | 1,485 |
| TFI4 | Speed to travel on CAREC Corridors (km/h) | 27.1 | 25.0 | 14.0 |
| SWOD | Speed without Delay (km/h) | 46.3 | 32.6 | 40.6 |
km = kilometer, km/h = kilometers per hour, SWOD = speed without delay, TFI = trade facilitation indicator.
Source: Asian Development Bank.
Table 3.6: Border-Crossing Performance in Georgia, 2020–2022
| BCP, Corridor and Direction of Trade | Duration, hours | Cost, $ | |||||||
| 2020 | 2021 | 2022 | 2020 | 2021 | 2022 | ||||
| Road Transport | |||||||||
| Tsiteli Khidi | Outbound | 5.1 | 2.4 | 24.2 | 43 | 52 | 92 | ||
| Inbound | 3.1 | 1.4 | 1.8 | – | 33 | 44 | |||
| Sarpi | Outbound | 36.2 | 6.2 | 20.8 | 10 | 10 | 10 | ||
| Inbound | – | – | – | – | – | – | |||
BCP = border-crossing point.
Source: Asian Development Bank.
Trends and Developments
Although cost and the time needed to cross borders in Georgia both rose dramatically in 2022, the time results—up more than 500%—were particularly striking. Total transport cost also rose. While SWOD increased, SWD was slowed by the much longer waits at the country’s BCPs.
These results were overwhelmingly due to severe effects and changes forced by the war in Ukraine. The war shifted many cargo shipments between Europe, Central Asia, and East Asia away from traditional routes through the Russian Federation, Belarus, and the now war-torn areas of Ukraine. As fighting and potential detention made Ukraine corridors risky for drivers or impassible, insurers refused coverage. International sanctions were imposed on the Russian Federation, and shippers and transport operators, especially European ones, searched for alternative routes to bypass its territory. Along with maritime shipments through Baltic seaports, one such route was the TITR, aka the Middle Corridor.
Georgia, as a TITR gateway for European and international goods moving to Central Asia through its Black Sea ports of Poti and Batumi, benefitted from the immense interest but was also challenged by the surge in trucks and cargo at its BCPs. These goods leave seaports such as Varna or Burgas in Bulgaria on vessels bound for Poti or Batumi. They then move eastward by road or rail across Georgia and Azerbaijan to the Alyat seaport in Baku for shipment across the Caspian to Aktau, Kuryk, or Turkmenbashy.
The added volumes created long truck queues at Georgia’s Sarpi BCP on its border with Türkiye and at Tsiteli Khidi on its border with Azerbaijan. The lengthy average border-crossing time in 2022 was the result. Road freight rates increased accordingly. The border-crossing time for outbound shipments—i.e., leaving Georgia—were longer than from those coming in. This in part reflected the fact that more merchandize goods were moving from Türkiye and Europe to Central Asia.
Recommendations
Resume sailing between Georgia and Constanta. Ship movements between Georgia’s ports and Constanta in Romania was suspended at the beginning of the Ukraine crisis due to the risk of damage to the vessels. This reduces transport capacity across the Black Sea. Georgia plays a key role in connecting Black Sea seaports. If the situation permits and the risk is perceived to lower, Romania and Georgia can review and decide the end of this suspension.
Provide parking for heavy transport vehicles. Theslow crossing time at the Sarpi BCP with Türkiye forces long lines of trucks to wait on the Georgia side. These queues can stretch for miles and are sometimes disorganized. The BCP lies in a narrow space between a hill and the sea, leaving little room to expand the parking area. Proper parking for heavy transport vehicles covered by TIR Carnets could be set up nearer to the outskirts of Batumi City to shorten these lineups.
Advance the development of an overall rail fare. Georgia Railways is a founding member of the Trans-Caspian International Route Association, whose members include the Kazakhstan and Azerbaijan railways and aim to develop an overall fare for rail shipments. Although this remains a work in progress, a reliable and transparent fare of this kind would simplify cost estimation by shippers who would like to use the route but currently find it difficult to obtain good information on all the fees and tariffs along the way.