Share of the transport sector in Georgia s GDP

2025-04-25

In a situation where the percentage of the transport sector in the country's GDP is decreasing, this process indicates a shortage of investment in the transport sector, which ultimately affects the uneven utilization of the transport corridor's potential. All this leads to a decrease in the competitiveness and attractiveness of one of its priorities, the Middle Corridor, recognized by the country.

If we analyze the share of the transport segment in the country's GDP over the past 15 years (see diagram), we will see that in 2010-2012, the share of transport in GDP exceeded 7% and was the highest in the last 15 years. In 2016-2018, the share of transport in GDP fell below the 6% mark.

Such a trend indicates a deficit in the inflow of foreign direct investment in the transport sector.

Such an approach, in part, does not apply to countries dependent on the export of oil and gas resources. Despite the fact that Azerbaijan is developing the energy industry, in 2024 the share of transport in GDP amounted to 6.7%, which is much higher than the indicator in Georgia.

Of the already reduced foreign direct investment in Georgia in 2024 - 1.3 billion dollars, investment in the transport sector - 97 million dollars, amounted to only 7% of the total investment, which is an extremely low indicator for a country with transit ambitions.

The low share of transport in the country’s GDP, in addition to the lack of investment, is caused by the announced and repeatedly postponed, financially viable unfinished infrastructure projects, which, in addition to reducing the attractiveness of the corridor, disrupts the synchronization of the sustainable development of the country’s “hardware infrastructure”.

First of all, we have in mind several important infrastructure projects, such as the East-West 430 km expressway project, the implementation of which began in 2006, the completion dates of which were postponed 5 times under different governments, and after 19 years, the final completion date of the project is still unclear.

Also, the project of the Georgian section of the Baku-Tbilisi-Kars railway, the implementation of which began in 2008 and even today, 17 years later, the railway is operating with limited capacity.

Below is a list of 50 transport infrastructure and transport industry-related projects announced and not implemented, as well as ongoing – “delayed in time” – over the past 10 years:

Anaklia Port and Special Economic Zone – “Anaklia City”.

Construction of an access railway line and station to Anaklia Port.

Assigning a new function to the bypass railway.

Expansion of the container capacities of Poti Port.

Addition of a railway component to the Poti Free Industrial Zone.

Arrangement of infrastructure for logistics centers in Kumi and Kutaisi near Tbilisi.

Construction of a cargo terminal at Kutaisi Airport.

Development of a new runway and airfield infrastructure at Kutaisi Airport.

Completion of the railway pass modernization project.

Increasing the cargo handling capacity of the Baku-Tbilisi-Kars railway.

Restoration of additional exits of Tbilisi metro stations (Akhmeteli second exit project).

Development of an environmentally friendly tram transport network in Tbilisi.

Development of multi-level parking spaces in Tbilisi.

Renewal of metro cars to international standards.

Modernization of Tbilisi metro stations.

Restoration of the Tsnori-Sighnaghi cable car.

Construction of the Lentekhi-Mestia connecting road and tunnel.

Completion of the Samtredia-Grigoleti road section, restoration of the damaged bridge.

Construction of the Samtredia-Zugdidi bypass road connecting Anaklia and Poti ports.

Construction of the Tbilisi bypass road.

Construction of the Chumateleti-Kharagauli motorway.

Construction of the Batumi-Sarpi motorway.

Construction of the Tbilisi-Rustavi motorway.

Construction of the Natakhtari-Zhinvali motorway - rehabilitation.

Construction of the Rustavi-Tsitilei Khidi motorway.

Construction of the Rustavi-Sadakhlo motorway.

Construction of the Sairme-Abastumani motorway - rehabilitation.

Construction of the Grigoleti-Poti motorway - rehabilitation.

Construction of the Bakurtsikhe-Tsnori motorway - rehabilitation.

Construction of the Tsnori-Lagodekhi motorway - rehabilitation.

Construction of the Gurjaani (Chumlaki) - Telavi bypass road.

Completion of the Khulo-Goderdzi Pass Motorway.

Construction of the Sno – Roshka – Shatili – Omalo – Khadori – Batsara – Akhmeta “Mountain Roads” Motorway.

Renewal of the Railway Wagon and Locomotive Park.

Restoration of the Kakheti Railway.

Expansion of the Telavi Airport.

Implementation of the Omalo Airport Project.

Arrangement of the Kutaisi Airport Access Railway.

Arrangement of the above-ground metro in the direction of Digomi.

Construction of Samgori-Vazisubani, Akhmeteli-Temka and Sameba-Makhati Mt. cable cars in Tbilisi.

Construction of an above-ground metro in the direction of Lilo-Samgori-Airport.

Construction of a smart traffic light system in Tbilisi.

Construction of a “suspension” bridge near by “Vepkhvi and Mokme”.

“Imereti Agrozone” project – development of a warehouse.

Construction of counter-railway transportation infrastructure.

Project for an electric vehicle factory in Kutaisi.

Stadler train service center.

Joint venture for assembling Belarusian tractors in Batumi.

Placement of aircraft maintenance centers at Tbilisi and Kutaisi airports.

Construction of an international standard auto station in the village of Tsaishi, Zugdidi municipality.

Production of 8E1A electric locomotives at the Tbilisi Electric Locomotive Factory.

Launch of a Georgian-Chinese enterprise producing asynchronous locomotives and their spare parts.

In conclusion, the decrease in the percentage of the transport sector in the country's GDP is primarily due to the lack of investments and the delay in the implementation of financially viable infrastructure projects.

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