Georgia Turns an Ancient Trade Route Into a Modern Logistics Hub
Tbilisi, the capital of Georgia: a country that is rapidly connecting trade links.
Georgia is upgrading its role on the Middle Corridor, where new infrastructure could help reduce Eurasian freight transit times and improve supply-chain resilience.
Georgia’s ports, rail upgrades and dry-port infrastructure are strengthening its role as a logistics, manufacturing and re-export base along the Middle Corridor.
Striving to create a business-friendly climate through low taxes, investor incentives and free-trade zones, Georgia has trade deals that give access to 2.3 billion consumers.
In 1271, explorer Marco Polo left Venice for the Chinese court, a journey along the historic Silk Road that took about three years. Today goods can move along the East-West Middle Corridor in just 12 days. As the ancient Silk Road is revived as a modern trade route, the countries located along it are reshaping global trade.
The Government of Georgia is focused on turning the country's natural strengths and its position along the Middle Corridor into a strategic advantage. By actively investing in infrastructure, the country is transforming its location into a long-term competitive asset for trade, logistics and export-oriented businesses.
Georgia is building the hardware for faster trade
Georgia’s infrastructure investments are central to its Middle Corridor strategy. On the Black Sea, the Anaklia deepwater port project will expand the country’s logistics capabilities. Once complete, it will be able to handle nearly 8 million metric tons of cargo a year and accommodate the largest vessels.
Anaklia will operate alongside Georgia’s Black Sea ports of Poti and Batumi. According to the Georgian Ministry of Economy and Sustainable Development, Poti posted a 17% year-on-year increase in volumes handled in 2025, while Batumi recorded a 102% increase above its Q1 2026 cargo transshipment target.
Georgia is also strengthening inland logistics. Phase one of the Tbilisi Dry Port opened in June 2025, creating a more efficient integrated logistics hub for rail, road and customs services. Shifting cargo from truck-heavy routes to rail can also cut carbon emissions by as much as 76%.
These developments build on Georgia's already strong transport links. Between 2020 and 2025, international container volumes carried on Georgia’s railway network increased almost 20%, Middle Corridor container traffic rose 36%, and the number of containers transported by the Baku-Tbilisi-Kars railway, which connects the Caspian Sea to the Black Sea via Georgia, grew almost sixfold in the run-up to its full-scale operation that began early this year.
Satellite map of the Black Sea highlighting Georgia's Black Sea coastline, including Anaklia, Poti Port and Batumi Port. The Anaklia Deepwater Port Project and text describes that when the project is complete, it will handle the largest ships in the Black Sea. The map includes a container ship illustration and a dashed shipping route across the Black Sea, terminating at Anaklia on Georgia's western coast.
Source: Government of Georgia
A business climate for cross-border trade
New infrastructure is only part of Georgia’s logistics pitch. The country also offers a business environment designed to reduce barriers for companies setting up regional operations. According to the World Bank, out of 101 countries, Georgia ranks second for operational efficiency and 15th for its regulatory framework.
The government offers a wide range of competitive tax incentives, including a 0% tax rate on retained and reinvested profit, and streamlined administrative processes that reduce barriers to entry. State support is available for manufacturers and logistics companies, and the country's four Free Industrial Zones offer businesses preferential tax treatment.
Georgia also offers setup and operational costs that are lower than those of many Central and Eastern European nations. Together, these factors help explain why the country is attracting overseas investors and businesses.
Georgia’s free-trade network adds another advantage. Its agreements provide tariff-free access to a market of 2.3 billion consumers, spanning the EU, the European Free Trade Association, the Commonwealth of Independent States, China, Turkey, the UAE, the UK and Ukraine. An agreement with South Korea, awaiting ratification, is set to expand that reach further.
Data from the National Statistics Office of Georgia shows that companies are already using the country as a trade staging point. Re-exports now account for nearly 54% of total exports, indicating Georgia's growing role in international supply chains.
Line chart showing Georgia's total exports from 2022 to 2025. In 2022 it was $5.58 billion, in 2023 $6.1 billion, in 2024 $6.5 billion and in 2025 it was $7.29 billion. The chart shows a steady year-on-year increase in total exports. A blue shipping container is suspended above the chart as an illustrative graphic.
Faster trade turns location into leverage
The trade regional forecast supports Georgia's ambitions. The World Bank anticipates that travel time along the Middle Corridor will halve and trade flows will triple by 2030, with trade between corridor countries and the EU expected to rise by 28%.
Trade patterns across Eurasia are beginning to shift. Today, containers move from China to Europe via Georgia in about two weeks, much faster than maritime routes for many goods, which can take up to 45 days. For companies moving goods between Asia and Europe, this speed strengthens Georgia’s role as a logistics, manufacturing and re-export base.
The journey that once took Marco Polo about three years now takes just days. By reducing trade friction, Georgia is turning its geographic location into a long-term competitive asset.