Pylonology ● The Caucasus Beyond Competition

2026-10-17

Regional Cooperation

The future of the South Caucasus lies not in competition, but in cooperation. The flows of cargo moving from China, Central and South Asia, Japan, and Korea toward Europe are so diverse and large-scale that no single country or transport corridor can handle them alone. What is required is an integrated network of interconnected railways, seaports, highways, customs systems, and logistics centers.

In this process, Azerbaijan, Georgia, and Armenia need not replace one another; rather, they can strengthen each other’s capabilities. The restoration of railway connections in Armenia should not be viewed as an obstacle to the development of the Baku–Tbilisi–Kars (BTK) railway. On the contrary, if new and existing routes operate in a coordinated manner, the region will attract more cargo, offer a wider range of options for carriers, and enhance its own significance as a link between Asia and Europe. The logic is simple: the more well-developed routes, border crossings, and logistics hubs a region possesses, the more flexible and resilient its transit system becomes. Achieving this requires not only the construction of infrastructure but also a shared economic vision, coordinated tariffs, digital customs procedures, and the seamless movement of cargo.

The North Sea Experience — Competition Through Cooperation

The European experience clearly demonstrates that ports in neighboring countries can successfully coexist within a shared maritime space. Denmark, Germany, the Netherlands, and Belgium host major maritime and logistics hubs along the North Sea coast. Rotterdam, Antwerp-Bruges, Hamburg, and various Danish ports serve different types of cargo, industrial sectors, and trade routes. Their relationship is not based solely on competition: the ports are interconnected via rail, road, and inland waterway networks, while the industrial clusters that have developed around them generate shared economic value. Strengthening cooperation among European ports remains a highly relevant issue today.

The South Caucasus should adopt a similar approach. Baku could handle transport flows across the Caspian Sea; Georgia could facilitate the integration of Black Sea ports, railways, and overland corridors; and Yerevan—along with other logistics hubs in Armenia—could focus on developing additional transport and trade links. Realizing these opportunities will require further development of infrastructure, agreements, and services; however, with proper planning, this would significantly enhance the region’s overall appeal.

One Region, Multiple Corridors

Cargo moving from China, Central Asia, South Asia, Japan, and Korea toward Europe varies in terms of volume, value, delivery timelines, and specific transportation requirements. Consequently, servicing these operations requires not merely a railway or a port, but a comprehensive logistics ecosystem—encompassing warehouses, container terminals, customs and border infrastructure, digital document management, cargo insurance, financial services, and reliable transport schedules.

In this context, the "Middle Corridor" holds particular significance; it is a multimodal route connecting China and Central Asia to Europe via the Caspian Sea, Azerbaijan, Georgia, and Turkey. Its development necessitates not only an increase in throughput capacity but also the coordination of tariffs, customs procedures, and cargo movement across the participating countries.

Within this network, the Baku-Tbilisi-Kars (BTK) railway is of strategic importance. Following the modernization of the Georgian section in 2024, its annual design capacity was set at 5 million tons. However, to fully utilize the infrastructure's potential, stable cargo flows, efficient terminals, and a competitive tariff policy are essential. Therefore, the restoration of railways in Armenia does not automatically imply a weakening of the BTK (Baku-Tbilisi-Kars) line. New rail connections could create additional routes and access to new markets, while the BTK would continue to fulfill its role within the corridor linking Azerbaijan, Georgia, and Turkey. The primary objective is for these routes to complement one another, rather than allowing regional cooperation to devolve into zero-sum competition.

New routes increase the overall volume of trade and provide additional options for logistics chains. In a world fraught with sanctions regimes and disruptions, no transit route is superfluous.

More routes do not mean fewer winners; rather, they mean more options.

Georgia: A Connecting Hub on the Silk Road

Georgia’s strategic advantage extends beyond its mere geographical location. Its true potential lies in its capacity to link Black Sea ports, East-West and South-West transport corridors, regional markets, and international economic initiatives.

In this context, transport cooperation developed within the frameworks of TRACECA, the Middle Corridor, CASCA+, CAMCA, CAREC, the Lapis Lazuli Route, the Viking Train, and GUAM is significant. While these initiatives differ in their geographic scope, participants, and legal status, strengthening the links between them can foster the development of trade, transit, and regional economic integration. TRACECA, in particular, serves to improve transport connections between Europe, the Black Sea region, the South Caucasus, and Central Asia.

For Georgia, the primary objective is not merely for these programs to exist on a map, but to ensure their practical interconnection—through unified logistics services, simplified border crossings, digital document management, infrastructure compatible with international standards, and an environment attractive to investment.

The countries of the South Caucasus must coordinate their efforts in managing logistics services between Asia and Europe. From the moment cargo is loaded in Asia until it reaches its final destination in Europe, every stage must function as part of a unified process. This requires constant cooperation among states, railways, ports, logistics companies, and customs authorities.

Georgia’s objective should not be to replace its neighbors, but rather to help create a regional system in which it serves as the primary connecting link. By effectively leveraging its ports, railways, international corridors, and economic partnerships, Georgia can establish itself as the leading logistics and financial hub for the South Caucasus along the Silk Road.

The future belongs to the region that not only provides a route for cargo but also ensures its rapid, reliable, and economically viable movement. It is around this shared goal that Baku, Tbilisi, and Yerevan should unite—transforming the South Caucasus from a mere transit corridor for global trade into a fully-fledged economic and logistics space.

Zurab Maghradze, DBA