![]() EKONOMISTI
The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University ![]() |
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Journal number 2 ∘
Revaz Javakhishvili ∘
Georgia in the middle corridor: reality, challenges, prospects Expanded Summary Historically, communication between the countries of Europe and Asia was carried out through Georgia. It was along this road that China began to supply its high-quality silk to European countries, which is why this route was called the “Great Silk Road.” The most important historical events at the turn of the 20th and 21st centuries once again put on the agenda the need to revive the ancient Great Silk Road. In 1990, at an international conference in Vladivostok, the idea was voiced to turn this old historical road into a modern transit and transport corridor, the implementation of which became possible only after the collapse of the Soviet Union. Subsequently, large-scale regional technical assistance programs (“TRACECA”) were created within the framework of Tacis, within the framework of which in 1995-2010. A number of technical assistance projects were implemented, which ensured institutional development and reform of the management of transport systems of its member countries, improvement of the legislative framework and compliance with Western requirements. At the initial stage of the transport corridor, the results of its activities were very impressive. However, in light of recent shipping problems and the pandemic, the role of the northern route connecting China to Europe via Russia has increased significantly. Along with the northern direction, China, Turkey, many countries of the Caucasus and Central Asia have long been trying to implement an alternative route - the “Middle Corridor”. However, until now, its role in the transport of goods between China and the EU is still insignificant (about 10%) due to the duration and cost of transportation. According to the Georgian Logistics Association, rail container transportation of goods from Central Asia to Europe along the “Middle Corridor” is 22% more expensive and 50% longer compared to the northern route. In addition, the northern route mainly passes through one country (Russia) and involves only railways, unlike the “Middle Corridor”, where goods are transported by a combination of sea and land transport and pass through several countries, which is necessary for the interests of many countries . be taken into account. The outbreak of Russian military operations in Ukraine put the search for alternative routes for transporting energy trains and other cargo on the European agenda, and the introduction of sanctions against Russia by the West significantly revived the “Middle Corridor”. Unfortunately, our country is faced with a new geopolitical situation with great challenges: Georgian railways and roads, seaports and terminals were not ready for the expected cargo transportation, and the construction of the deep-water port of Anaklia was stopped. In such a situation, the question naturally arises: to what extent can the middle corridor replace the northern route and what is holding back its development? The main obstacles to the competitiveness of the Middle Corridor are its high cost and unreliability, which is due to a number of infrastructural, administrative and political problems: • Cargo in the corridor will be transported along a combination of land and sea routes, which requires fast and efficient transfer from one to another, which is often impossible due to the low technical equipment of ports and terminals and the underdevelopment of intermediary transport services. ; • Shortage of transport ships on the Caspian Sea, as well as shortage of transport cars in Georgia and Azerbaijan; • Difficult climatic conditions of the Caspian Sea. Due to bad weather and severe storms, ferry services in Azerbaijan are sometimes delayed for several weeks; • Infrastructural, legal and other barriers to crossing the border; • Lack of tariff policy and unified efforts of the corridor countries to attract cargo and uninterrupted transportation; • Digitalization of the corridor to make cargo movement, control and security more flexible and predictable; • Political instability. As for the electricity sector itself, an event of great importance for our country was the creation of a project to lay a power transmission cable along the bottom of the Black Sea in the direction of Europe, which will connect Georgia and Romania. This places not only a large economic burden, but also other important burdens. Georgia is a member of the EU Energy Union, but currently has no direct connection with the EU energy system. Once this cable is installed, Georgia will have direct physical contact with the European Energy Union. In addition, the cable will need protection, so measures to ensure the security of the Black Sea transport corridor will be significantly expanded. The cable will make a significant contribution to establishing a closer connection with the European Union and will speed up the country's integration into the European Union. Today, in order to commission the transit transport hub of Georgia to its full capacity and fully utilize its potential, special importance is attached to accelerating the construction of the deep-water port of Anaklia, which will significantly increase the throughput and reliability of the corridor. In this case, its container terminal will play an important role, which will be equipped with the latest technologies and will be distinguished by the speed of container processing. This will greatly contribute to increasing the capacity and efficiency of the port and corridor, which will ultimately have a positive impact on the price of cargo handling and transportation, which is the highest in the region at the ports of our country. In the near future, the Middle Corridor will be put into operation at full capacity, and the increase in capacity is dictated by the further expansion of trade and economic relations between Asia-Europe and the countries of the corridor. It is also necessary to take into account the fact that after the end of the war, the restoration and development of the economy, transport and social infrastructure of Ukraine will require the transportation of large volumes of cargo, a significant part of which will be carried through the Middle Corridor. In addition, the corridor is very important both for Asia-Europe and for the countries of the transport chain, which significantly increases the prospects for its further development. Georgia is very interested in seeing the corridor operate at full capacity, increasing its capacity and efficiency. The country can benefit greatly from transit taxes and the added value of goods that can move through Georgia. Georgia, based on its geopolitical advantage, in the near future may become not only a regional hub of the Caucasus, but also an alternative highly competitive transit corridor connecting the continents of Europe and Asia. |