Georgia

Georgia is a vital land and maritime transit country in the Middle Corridor (TITR), connecting Central Asia to Europe via the East–West Highway and Poti and Batumi ports. Road transport dominates, with over 60% of transit trade routed through the E-60/E-70 corridor. The BTK railway enhances rail connectivity to Türkiye, though its limited utilization stems from cargo imbalances and infrastructure constraints.

In 2023, Poti Port processed nearly 600,000 TEUs, while plans are underway to expand capacity to 1.1 million TEUs by 2026.1 However, the Tsiteli Khidi BCP is reliant on the throughput capacity of the Krasyni Most BCP, and the slower rate at the latter affected the both of their overall border-crossing performance.

Surging outbound traffic, driven by rerouting from the Northern Corridor, overwhelmed Georgia’s infrastructure, sharply increasing border-crossing times (TFI1) and clearance costs (TFI2). Speeds (SWD/ SWOD) plummeted in 2023, with SWD dropping to 9.1 km/h, highlighting systemic congestion and inadequate corridor coordination.

Georgia is active in aligning with EU standards and implement customs digitalization. The expansion of the ports’ capacity and addressing the border delays at Tsiteli Khidi and Krasyni Most are critical for the country to fulfill its strategic potential as the Black Sea gateway for CAREC trade.

A General Decline

Table 6.2: Trade Facilitation Indicators for Georgia (2021–2023)

Trade Facilitation IndicatorsRoad Transport
202120222023% change
TFI1Time taken to clear a border-crossing point (hour)3.618.034.893.34%
Outbound4.223.345.394.37%
Inbound1.31.61.60.30%
TFI2Cost incurred at border-crossing clearance ($)498312145.01%
Outbound378112351.44%
Inbound949411421.40%
TFI3Cost incurred to travel a corridor section5621,4851,371-7.64%
($, per 500 km, per 20-ton cargo)
SWDSpeed to travel on CAREC Corridors (km/h)25.014.09.1-35.12%
SWODSpeed without Delay (km/h)32.640.635.213.42%
Source: CAREC Institute.

Georgia experienced a sharp and concerning deterioration in border clearance times in 2023. The average time to clear a BCP rose from 3.62 hr in 2021 to 17.99 hr in 2022 and escalated further to 34.77 hr in 2023—an overall increase of 93.3% year-on-year. The sharpest rise was in outbound clearance time, from 4.22 hr in 2021 to 23.33 hr in 2022 and then doubling again to 45.35 hr in 2023 (+94.4%). By contrast, inbound clearance times remained relatively stable at around 1.5 hr across the three years.

Such prolonged outbound delays originated from severe bottlenecks at the Krasyni Most BCP in Azerbaijan, and were compounded by limited processing capacity, increased transit cargo, and inefficient coordination among border agencies. Traffic rerouting from the Northern Corridor to the Middle Corridor following geopolitical disruptions (notably, the Russia–Ukraine war) also intensified traffic flows through Georgia, adding pressure to border infrastructure and operations. (For more details, refer to the Box Story on Krasyni Most in the country section on Azerbaijan).

Corresponding with the rising delays, border clearance costs surged significantly. TFI2 increased from $48.61 in 2021 to $83.42 in 2022 and soared further to $120.97 in 2023—a 45% year-on-year increase. Outbound clearance costs witnessed the steepest climb, from $37.09 in 2021 to $122.81 in 2023 (+51.4%). Inbound costs also rose from $93.64 to $114.26 (21.4%).

The border fees originated from the documentary procedures incurred at Krasyni Most. Georgian and Turkish drivers mainly use this BCP for onward shipment to Central Asia, and pay for the road permit into Azerbaijan and Kazakhstan and other transit fees. For shipment of large or irregular shaped items (common for infrastructure projects such as irrigation dams and power stations), the drivers need to have a special permit and sometimes even require customs escort. As such, these are not strictly border fees but transit fees, which increased in 2023.

TFI3 data points to persistently high transport costs in Georgia. From $561.76 in 2021, costs spiked to $1,484.93 in 2022 but moderated slightly to $1,371.50 in 2023, reflecting a 7.6% decrease. Although this is a positive shift, the figures still represent extremely high corridor costs relative to regional averages. Such elevated costs highlight inefficiencies in the trucking sector, high fuel and maintenance costs, and insufficient infrastructure along corridor routes. Port congestion and uncoordinated multimodal linkages (especially at the Alat and Kuryk ports) exacerbated the situation. Increased cargo traffic following global supply chain disruptions may have strained existing infrastructure and contributed to price hikes.

Speed performance in Georgia deteriorated sharply as well. SWD declined from 24.97 km/h in 2021 to just 9.10 km/h in 2023—a 64% overall decline over three years and a 35% drop from 2022. This suggests worsening congestion, insufficient road capacity, and inadequate scheduling or coordination mechanisms. SWOD also dropped from 40.62 km/h in 2022 to 35.17 km/h in 2023, reflecting a 13.4% decline.

  1. Ports of Europe, https://www.portseurope.com/georgias-port-of-poti-handled-66-more-containers-in-2023/. ↩︎