Georgians Envisioned the Southwest Corridor a Century Ago

2026-10-13

India – Iran – Armenia – Georgia: Historical Ties and Modern Trade Opportunities

More than a century ago, Georgian entrepreneurs and engineers were active in international transport projects linking the economic spheres of India, Iran, and the South Caucasus.

Today, this historical experience takes on special significance against the backdrop of the "Southwest Corridor" concept, which envisions the movement of cargo from India—via Iran and Armenia—to Georgia and its Black Sea ports.

The Southwest route concept aims to establish an additional transport corridor for Indian goods bound for Europe. Its economic importance extends beyond mere transit; it represents a prospect for developing new trade ties, logistics services, and investment opportunities.

Three Georgian Figures — Three Historical Directions

1. The India Direction — Ivane Varazashvili

Ivane Sopromis dze Varazashvili (1879–1955) was a Georgian engineer-colonel and a specialist in railway transport. Historical records indicate that in 1928, he traveled to Iran and became involved in a railway construction project aimed at extending a line from Iran to the Indian border.

The significance of his work lay in the fact that the railway project was intended to extend beyond Iran's borders, serving to establish a transport link toward India.

This historical concept is conceptually similar to the modern idea of ​​the Southwest Corridor: connecting cargo originating in India to the South Caucasus and Europe via Iran.

2. Iran — Akaki Khoshtaria

Akaki Khoshtaria (1873–1932) was a Georgian entrepreneur and financier who developed transport and industrial operations in Iran. In 1913, he founded the "Persles" company in northern Iran and constructed a dedicated railway line—"Talrud"—for transporting timber. His business activities also encompassed transport services, trade, and industrial investments.

Khoshtaria’s experience demonstrates that transport infrastructure creates real value for business when it facilitates production, the movement of raw materials, and trade flows.

Today, Iran serves as a pivotal link in the Southwest Corridor: connecting cargo from its ports northward—via Armenia and Georgia—to Black Sea markets creates additional transit opportunities.

3. Armenia — Giorgi Tumanishvili

Giorgi Pavles dze Tumanishvili (1872–1937) was a Georgian railway engineer whose work was directly linked to the Tbilisi–Yerevan railway line.

From 1896 to 1902, he worked as a section chief during the railway's construction and subsequently became the line's manager. From 1906 to 1918, Tumanishvili served as the chief engineer of the Transcaucasian Railway Administration.

His work constitutes a significant part of the history of transport links between Georgia and Armenia. Even today, the development of the South-West Corridor requires the effective interconnection of the two countries' transport infrastructure, the simplification of border procedures, and the reliable organization of cargo movement.

From Historical Ties to Modern Free Trade Opportunities

Transport infrastructure alone cannot ensure the development of the South-West Corridor. Equally important are trade regimes, customs cooperation, and the legal foundations of economic relations between the countries.

Armenia’s example is particularly interesting in this regard.

Armenia – Iran

On December 25, 2023, a free trade agreement was signed between the Eurasian Economic Union and Iran. The agreement entered into force on May 15, 2025. As a member of the Eurasian Economic Union, Armenia is a party to this agreement.

Armenia – India

On April 20, 2023, the first trilateral political consultations between the foreign affairs agencies of Armenia, Iran, and India took place in Yerevan, focusing on economic cooperation and regional transport links. On November 18, 2023, Armenia and India also discussed expanding their bilateral trade and economic relations.

However, accuracy is important: no bilateral free trade agreement between Armenia and India has been signed to date. The cooperation that developed in 2023 concerned the expansion of trade relations and customs issues, rather than an existing free trade regime.

Armenia – Georgia

The free trade agreement between Georgia and Armenia was signed on August 14, 1995, and entered into force on November 11, 1998. It establishes a free trade regime for the trade of goods between the two countries, subject to relevant rules and exceptions.

Conclusion: History and Modernity in a Shared Transport Space

Ivane Varazashvili’s railway project spanning from Iran to the Indian border, Akaki Khoshtaria’s transport business in Iran, and Giorgi Tumanishvili’s work on the Tbilisi-Yerevan railway represent three distinct historical examples united by a common idea: infrastructure serves as a tool for strengthening economic ties between nations.

Today, this historical experience is complemented by modern trade policies—specifically, the free trade agreement with Iran within the framework of the Eurasian Economic Union and the existing free trade regime with Georgia. Meanwhile, Armenia continues to expand its trade and transport cooperation with India.

These factors create significant prerequisites for the South-West Corridor; however, its success will depend on infrastructure readiness, the commercial competitiveness of shipping operations, customs procedures, and international cooperation.

A century ago, Georgian entrepreneurs and engineers were developing transport infrastructure in various countries. Today, the establishment of a new economic zone connecting India, Iran, Armenia, and Georgia could serve as a continuation of this historical legacy.

Zurab Maghradze, DBA

 

Sources:
nplg.gov.ge / georgianencyclopedia.ge
georgianencyclopedia.ge / eaeunion.org
commerce.gov.in / traceca.ge