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Journal number 1 ∘ Tamar Arjevanidze
Global Logistics and Prospects for Georgian Rail Transportation

Expanded Summary

The article discusses the opportunities and prospects of Georgia as a country with geopolitical potential in the global transport logistics, including the development of Georgian railways and the analysis of logistical measures designed to maintain the stability of rail freight.

In last years the development of entrepreneurial strategy has become dependent on world logistics. To do this, enterprises use logistics in different ways, with their own methods and priorities. Globalization of economy is impossible without good logistics. Customers are focused on finding an enterprise that provides transportation and logistics.

Since logistics becomes international when the supply network crosses a national border, the creation of large logistics channels facilitates the development of international freight companies.

As we know, global logistical management involves more complex documents and requires regulation by governments. The role of the state in terms of transport regulations is very relevant.

For the global economy to function perfectly, it became necessary to find channels in the transportation sector that would connect large industrial enterprises with each other by quickly and efficiently overcoming barriers on continents. Therefore the system of transport corridors was created.

There are many barriers to the implementation of global logistics, such as cultural, tax, customs border and organizational systemic issues that require complex work.

In this regard, the creation of a robust transport and logistics system is one of the key and necessary factors in increasing the competitiveness of countries. In this situation, Georgia, due to its geopolitical location, has a real chance to carry and process the flow of additional cargo, which will increase revenues and improve production conditions for trade. Georgia's political vision in this particular geographical area is to promote the alignment of interests with all neighboring and partner countries. Therefore, the development of transport logistics infrastructure and maximizing the use of transit potential is a priority sector for investments.

A prominent example of global corridor planning and implementation is the TRACECA project, which addresses social and economic issues through trade, while purposefully seeking to reduce shipping costs and connect closed countries to the global market.

European logistics companies are actively offering commercial offers to new countries. This changes and the trade distribution system and directs new investments into logistics centers. Due to this, it became necessary to organize and launch large Western-style logistics organizations and centers in Georgia. The railway has been adapted accordingly, as the railways try to be guided by the new systemic management as well as by the new pricing policy, which helps to renew and improve the partnership.

The development of the transport function is directly related to the transit cargo volume increase, which depends on certain political-economic aspects and circumstances. The economic development and increase in shipping volume are impossible without regulated infrastructure, transport logistics and customs service.

Thus, comfortable, fast, preferential, and well-secured transport logistics is an integral part of the production process. Therefore, the requirements for the quality of operation of the transport system will be directly related to the transport process. The continuity and optimization of the transportation process, the reduction of delivery time, and the development of entire logistical system are particularly important.

 As the quality and speed of the South Caucasus corridor is significantly hampered by the fact that many borders have to be crossed and vehicles need to be replaced, international intermodal logistics companies should become more active and a common tariff policy should be established until existing infrastructure is replaced with improved infrastructure and services.

 It should be noted that the delay in the implementation of each project decreases the country's rating and importance in the international arena. Therefore, the main strategies that Georgia has set for 2021-2030 and its implementation should be properly studied, including: better grasp the potential of the middle corridor; To complete the main section of the East-West Highway by 2023; To pay more attention to the development of human capital; To establish a new customs checkpoint between Georgia and Azerbaijan; To digitize maritime services. Fulfillment of these will help us to attract investments and improve our rating.