Logistics Weekly | August 23–31, 2026

2026-08-31

The Share of Logistics in the Georgian Economy

The share of the transport and warehousing sector in Georgia’s gross domestic product in 2025 was approximately 6.3%. In recent years, the figure has been steadily fluctuating between 6% and 7%. The sector’s economic activity is still concentrated in Tbilisi and port cities.

Eraskhi-Akhurik Railway Section

The Armenian government calls on the Russian Federation to sell the concession rights for the Eraskhi-Akhurik railway section to a third party acceptable to both countries. The project envisages the restoration of rail traffic, which will connect the main territory of Azerbaijan with the Nakhichevan Autonomous Republic.

Pashinyan noted that international freight carriers are looking for alternative routes bypassing the Eraskhi-Akhurik section. For the Armenian side, this scenario means missed investment opportunities. The situation is further aggravated by the active phase of construction of the new Kars-Nakhichevan railway line on Turkish territory, which is why Yerevan urgently needs to increase the competitiveness of its own railway network. It is important to note that within the framework of TRIPP, along with transport routes, it is planned to lay power lines, pipelines and fiber-optic cables. For information, the transport blockade of Armenia has been partially overcome. The Akhalkalaki-Kars railway line became available for export and import of Armenian cargo in May 2026.

Armenia can become a transit country

In Armenia, within the framework of the North-South Transport Corridor, Iranian companies have begun construction of the 7.2-kilometer-long Qajaran Tunnel. Of the total budget of the $395 million project, $200 million is a loan from the Eurasia Fund, while the remaining $195 million is financed by the Armenian government. The new transport hub will reduce the existing route by 14 kilometers and travel time by about 40 minutes, which will create the opportunity to bypass the Meghri Pass. For reference, the North-South Transport Corridor connects the Indian Ocean and Persian Gulf regions with the Black Sea and Europe through Armenia and Georgia.

There are other estimates: the transportation of Iranian cargo through the North-South Road Corridor on the territory of Armenia will take 5 hours instead of 9 hours, and the cost of transporting 1 ton of cargo per 1 km will decrease by 1.5-2 dollars.

British company in the Caspian region

The British Interocean Group, together with the Baku-based shipping company Green Line Shipping, has established a joint venture to expand its presence in Azerbaijan and the Caspian region. The main areas of activity of the British company are integrated marine and offshore services, support for the oil and gas and renewable energy sectors, engineering, asset integrity management, independent marine audits, geodetic and underwater technical services, as well as innovative solutions such as inspections using drones and assets.

Kazakhstan expands use of AI in transport

Kazakhstan is actively introducing artificial intelligence and digital technologies into transport networks to strengthen the country's role as a regional transport hub. AI is being used to select new routes for airlines, monitor road conditions and simplify freight transportation. One of the important initiatives is Smart Cargo, which combines data from 58 information systems on a single platform and checks documentation and necessary permits with the help of AI. According to the government, the system has increased the speed of border crossings by 30%, and reduced waiting times for carriers by 10 times. In parallel, Kazakhstan is developing digital railway systems and strengthening integration with platforms in China, Azerbaijan and Georgia, which is especially important for the development of the Middle Corridor.

Uzbekistan-Azerbaijan: Trade and Investment

Uzbekistan and Azerbaijan have set a goal of increasing bilateral trade to $1 billion by 2030. Economic ties, which started from a relatively small base, are gradually expanding to include automotive manufacturing, the oil and gas sector, investment and transport links across the Caspian Sea.

Kazakhstan’s New Railway

Kazakhstan expects to complete construction of a roughly 323-kilometer railway line in the Karaganda and Ulitau regions of central Kazakhstan by the end of 2026. The new line will shorten the Middle Corridor route by 149 kilometers and reduce congestion on the existing route. Kazakhstan Railways said in July that 202.5 kilometers of track had already been laid.

However, the next major challenge for the China-Europe route is the Caspian Sea. In Kazakh ports, containers must be transferred from trains to ships, which will then be transported to Azerbaijan, and then reloaded back onto the railway. It is the speed and regularity of this transfer that will determine how much time saved on the territory of Kazakhstan will ultimately be reflected in the reduction of cargo delivery times.

Kazakhstan and Singapore expand cooperation in the Middle Corridor

Kazakhstan and Singapore are strengthening cooperation in the direction of multimodal transport, logistics and digitalization, with a main focus on the development of the Middle Corridor. The parties will also expand trade, investment and technological cooperation, including in the fields of artificial intelligence and transport.

Georgia and Uzbekistan plan to strengthen the “Middle Corridor”

Georgia and Uzbekistan are strengthening the development of the “Middle Corridor” in order to expand trade links between Europe and Asia and reduce dependence on routes through Russia. Particular importance is attached to the ports of Poti and Batumi, which will play an important role in transporting cargo from Central Asia to Europe.

According to the World Bank, the cargo turnover of the “Middle Corridor” may reach 11 million tons by 2030. Georgia and Uzbekistan are also considering expanding logistics networks connecting China and India with Europe. 

Gyumri-Kars railway line to be restored

Armenia has announced an international tender for the restoration of the Armenian section of the Gyumri-Kars railway line, the 21-kilometer Gyumri-Akhurik section. After the design is completed, a separate tender will be announced for construction work, which is an important step towards the restoration of the railway connection that was interrupted more than 30 years ago.

Kazakhstan considers joining the “Trump Route”

Armenia is considering Kazakhstan’s participation in the “Trump Route” (TRIPP) project. According to Nikol Pashinyan, third countries can be involved in the project, and according to media reports, Yerevan is offering Kazakhstan and Kyrgyzstan to purchase a 5% stake in the project development company. A final decision has not been made yet.

At the same time, Armenia is demanding that Russia transfer the right to manage the railway to a third, neutral country. Kazakhstan is also being considered in this regard, although Moscow opposes the initiative.

Azerbaijani Railways Accelerates Digital Transformation

Azerbaijan, one of the main hubs of the Middle Corridor, continues to digitally develop its transport and logistics infrastructure. Azerbaijan Railways (ADY) has announced an international tender for the implementation of new IT solutions, which includes the implementation of a cloud-based HR system and SAP ERP. The project is mainly financed by a loan from the Asian Development Bank (ADB). One of the main steps is the launch of the Digital Logistics Platform (DLP) on the principle of a "single window", which will integrate the systems of ADY, ASCO, Baku International Sea Trade Port, customs and border services and ensure automatic data exchange.

EU's tough policy towards China

The parties of Germany's ruling coalition are calling on the EU to take stricter measures against unfair competition with China. The main focus is on protecting the German auto industry and reducing the impact of China's overproduction. The German side also supports tightening the EU's trade policy, including the use of additional trade restrictions on Chinese products, in order to maintain a level playing field for European manufacturers.

Armeno-Georgica Congress

An international scientific congress to be held in Yerevan, at the Holiday Inn Yerevan–Republic Square, on September 2–4, 2026. It is organized by the Geghard Scientific-Analytical Foundation of the National Academy of Sciences of Armenia and Ivane Javakhishvili Tbilisi State University. The event aims to conduct academic research on the historical and cultural relations between Armenia and Georgia — from ancient times to the beginning of the 19th century, as well as to discuss opportunities for dialogue and cooperation in modern relations.

Georgia and Turkey in the Middle Corridor

Turkey is modernizing the Divrigi-Kars-Georgian border railway line, with the aim of increasing its capacity to 20 million tons per year.

Internationally, the Middle Corridor connects China to Europe via Kazakhstan, the Caspian Sea, Azerbaijan and Georgia, with further connections continuing to Turkey. According to official data, container traffic increased by 36% in 2025 to approximately 77,000 TEU, although total freight traffic decreased from 4.48 million tons in 2024 to approximately 4.12 million tons.

TRACECA.GE