Georgia’s Strategic Role in Eurasian Transport and Digital Logistics Transformation

Georgia is an important element of the Middle Corridor, a trans-Caspian international transportation corridor that connects China and Europe via Central Asia and the South Caucasus. Its strategic location at the intersection of Europe and Asia makes it an important player in international transportation and logistics. As Georgia's logistics industry looks to further integrate into global supply chains, this strategic stance offers both enormous opportunity and difficult problems. By examining the institutional frameworks, policy efforts, and infrastructure that influence Georgia's performance in regional and global contexts, this paper investigates the country's present position in international transport logistics. The TRACECA (Transport Corridor Europe-Caucasus-Asia), the Baku-Tbilisi-Kars railway, and Georgia's Black Sea ports, notably Poti, Batumi, and Anaklia (proposed), are among the main logistical routes that travel through the country and are examined in this article. Georgia is positioned as a natural transit nation for cargo movements between the North and South as well as between the East and West thanks to these facilities. Georgia's full potential as a logistics center is, however, hampered by a number of issues. These include reliance on external political and economic variables, such Russian influence and regional wars, regulatory inefficiencies, limited cargo handling capacity, poor infrastructure in some areas, and geopolitical instability in the South Caucasus. Furthermore, Georgia is under further pressure to become more competitive due to competition from other routes, such as those via Russia, Iran, and sea channels. However, Georgia has benefited from new opportunities brought forth by the changing global logistics scene, which has been altered by the COVID-19 epidemic and the conflict between Russia and Ukraine. The Middle Corridor and Georgia's role within it have garnered fresh attention due to changing trade patterns and the growing interest of European and Asian entities in diversifying supply chains. Georgia can greatly improve its connectivity and logistical performance by investing in digitization, modernizing customs, and forming public-private infrastructure partnerships. A series of strategic growth directions for Georgia's logistics industry are suggested in the paper's conclusion. These consist of: (1) enhancing the integration of multimodal transportation; (2) investing in rail and port infrastructure; (3) enhancing cross-border logistics collaboration with neighboring nations; (4) bringing regulatory practices into compliance with EU standards; and (5) advancing Georgia as a hub for logistics and transportation through policies and international partnerships. Georgia can strengthen its position as a key hub in Eurasian logistics and a trustworthy transit partner in the global economy by implementing concerted policy initiatives and making focused investments. Keywords: Transport and Logistics Economy, Digital Economy in Supply Chains, Georgia’s Transit Function in Regional Trade, Infrastructure Investment and Economic Growth, Global Value Chains and Competitiveness.