Georgia’s land transport sector is going through a noticeable downturn, with a sharp drop in cargo volumes during the first half of the year, particularly toward Central Asia and third countries.
The Georgian Land Carriers Association has disclosed that the decline has been most visible in routes reliant on Turkey, a primary transit hub for Georgian shipments. The Association’s Chairman, Irakli Nemsadze, attributes the slowdown to rising inflation in Turkey, which has driven up the cost of goods and weakened the competitiveness of Turkish exports in the region.
“As Turkish shipments account for a large portion of our operations, any economic instability there immediately impacts us,” Nemsadze told Business Course.
While freight traffic toward Europe has remained relatively stable, other directions, particularly East, North, and Central Asia, have seen significant contraction. Nemsadze noted that Georgia’s limited domestic demand cannot support the country’s surplus transportation capacity.
Permit quotas and market restrictions for third-country routes have added to the burden. Some clients have started shifting to alternative logistics corridors, further reducing Georgia’s cargo flow.
Facing decreasing demand and increasing uncertainty, several Georgian freight operators have begun selling vehicles or exiting the market.
“European destinations remain the most consistent,” Nemsadze said. “But for those operating toward Central Asia, China, or neighboring states, the outlook remains bleak.”
