New prospects for the South Caucasian railway corridor
19 December, 2013
New prospects for the South Caucasian railway corridor

The South Caucasian railway transit corridor is expected to become more competitive after transportation tariffs are streamlined in all participant countries. Modernization of Georgian Railway (GR) now underway is expected to triple cargo turnover, adding allure to a route connecting Middle Asia and Europe for thousands of years.


A few weeks ago, an agreement on the TransCaspian International Transit Route Development was signed in Astana, the capital of Kazakhstan, Konstantine Guntsadze, Chairperson of Georgian Railway JSC, said to media on
6 December; accordingly, a coordinating committee staffed by representatives of Corridor countries such as Georgia, Azerbaijan and Kazakhstan will be set up soon.
It will seek to remove administrative barriers along the route, streamline transportation tariffs, and update infrastructure, with an expectation to enhance the competitive power of the Corridor and boost cargo turnover.
“Three key factors such as the Corridor’s economy, obsolete infrastructure and administrative barriers are hampering development of the South Caucasian railway route today,” Guntsadze said.
The Corridor’s seven key players are: the Kazakh railway, Kazakh Actau Port, Caspian Marine Lines, Baku Port infrastructure, Azeri Railway, GR, and the Black Sea Port infrastructure. It is an open secret that these players have been negotiating the unified transit/transportation tariff issue for more than ten years, but no practical consensus has been reached until this agreement in Astana.
In past, Corridor players have accused each other of jacking up transit fees, which was convenient for Russian Railway, a competitor covering a much more extensive territory; it has no state and administrative borders on the entire route, and offers just one tariff, which suits freight carriers much better.
As Guntsadze said in an interview with Georgian Journal, now all South Caucasian Corridor member countries realize that the Corridor will not be competitive without a liberalized transit policy and joint efforts. Therefore, in Astana, they decided to establish a one-stop unified tariff window that will cover freight shipping from Kazakhstan to Europe. And the removal of administrative barriers will insure speed and safety for cargo shipment.
“Three key issues are important for cargo shipping: speed, price, and safety, and we will be working on them to develop the South Caucasian Corridor and make it more competitive,” Guntsadze said.
The modernization of GR, a fully state owned enterprise, is also part of the entire South Caucasian Corridor development. The project is assessed at 270 million Swiss Francs and aims to double and gradually triple cargo turnover from the current 27 million tons per year by 2017, when the project will be completed.
A second tunnel will be built on Zvare-Kvishkheti passage, the system’s most problematic and congested juncture, which is anticipated to increase cargo turnover to 60 million tons per year; and after an auto-blocking mechanism is installed on the point, the turnover is expected to go as high as 100 million tons per year.
“And the key positive feature of this modernization is that once the project is through, the issue of cargo turnover capacity will not be raised at GR for 50-60 years,” Guntsadze said.

 

Print
Other Stories
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
24.09.2018
25.09.2018
USD
1
USD
2.6216
2.6226
EUR
1
EUR
3.0854
3.0868
GBP
1
GBP
3.4584
3.4416
RUB
100
RUB
3.9340
3.9814
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6226
EUR
1
EUR
3.0868
GBP
1
GBP
3.4416
RUB
100
RUB
3.9814