Academic Scientific JournalsFrom Geographic Advantage to Strategic Hub: Georgia’s Role in International Logistics
DOI:
https://doi.org/10.26881/jpgs.2025.4.01Keywords:
small states, economic freedom, national security, GDP per capita, political instabilityAbstract
Thepurpose of the presented study is to analyze the strategic advantages of Georgia’s geographical location and the transport and logistics potential of the country, which can become one of the main drivers of the country’s economic growth. The scientific novelty of the work lies in the fact that it considers Georgia as one of the important links between Europe and Asia in the context of the modern Silk Road, which is based on both geographical factors and the political and economic environment. The emphasis is on the prospects for the country’s development as an intermodal logistics hub and on the opportunities that may become tangible through the implementation of the right infrastructural, educational and strategic policies. In addition, the work draws attention to the contradictions associated with monopoly structures, technological backwardness and institutional failures. The study revealed that Georgia’s geographical location, access to Black Sea ports, and stable relations with neighboring countries create a solid foundation for the country to use its transit potential and develop into a regional logistics hub. To do this, it is necessary to systematically upgrade transport infrastructure, attract investments, strengthen logistics education, and introduce technological systems. Effective logistics will not only promote economic growth and competitiveness but also significantly reduce trade costs and increase the country’s investment attractiveness. As a result of strategically planned reforms, Georgia can occupy a central place in the Eurasian trade space, which will significantly strengthen its economic and political position in the region in the long term.
Downloads
References
Abuselidze G., 2021, Competitiveness Analysis of the Georgian Transport and Logistics System in the Black Sea Region: Challenges and Perspectives, Lecture Notes in Computer Science, 12952, 133–148. doi: 10.1007/978-3-030-86973-1_10
Abuselidze G., Badulescu D. (Eds.), 2025, Prospects for the Development of Innovative Economy in the Region Under the Circumstances of Global Economic and Business Challenges, Samshoblo, Tbilisi.
Bowersox D. J., 1992, Logistical excellence: it’s not business as usual, Elsevier, Burlington. doi: 10.1016/C2009-0-26001-6
Cameron F., 2015. The Maritime Silk Road–an EU perspective. World Commerce Review, 1–4, http://www.worldcommercereview.com/html/cameron-the-maritime-silk-road-an-eu-perspective.html (accessed 22 May 2025).
Chania M., Putkaradze R., 2018, The Priorities of Georgian Economic Development in Conditions of Globalization, European Journal of Marketing and Economics, 5(2), 17–23.
Chikovani N., 2012, The Images of Self and Neighbours in Georgian History Textbooks: Representation of the Events of the Beginning of the 20th Century in the Post-Soviet Period [in:] The South Caucasus and Turkey: History Lessons of the 20th Century, Heinrich Böll Foundation South Caucasus Regional Office, Tbilisi, 65–93.
Clifford L., 2005, Developing a Strategy for Outsourcing, Logistics Management and Distribution Report, 40(6), 7.
Ekici Ş.Ö., Kabak Ö., Ülengin F., 2016, Linking to compete: Logistics and global competitiveness interaction, Transport Policy, 48, 117–128.
Federal Transit Administration (US) (Ed.)., 2017, 2015 Status of the Nation’s Highways, Bridges, and Transit Conditions and Performance Report to Congress, Government Printing Office, Washington.
Gondauri D., 2019, Development of the Railway Silk Road to Promote Georgian Economic Growth, University of Business and Technology, Tbilisi.
Kjellén R., Lifsform S., 2001, The State as a Living Organism, Review of International Studies, Berlin.
Krugman P., 1991, Increasing returns and economic geography, Journal of Political Economy, 99(3), 483–499.
Kuznetsova G.V., Podbiralina G.V., 2022, Transport digitalization, [in:] Intelligent Systems in Digital Transformation: Theory and Applications, Springer International Publishing, Cham, 579–608.
Leontiades J.E., 1985, Multinational Business Strategy, DC Heath & Co, Lexington, Mass.
Lintilä M., Berner A., Leppä J., Tiilikainen K., Mäkelä J., Vapaavuori J., ... Salminen K., 2018, National Growth Programme for the Transport Sector 2018–2022, Ministry of Economic Affairs and Employment of Finland, https://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/160721/1_2018_MEAE_guide_National_Growth_Programme_Transport_03042018.pdf (accessed 22 May 2025).
Meskhishvili M., 2019, Logistics Outsourcing and 3PL Services, Tbilisi Open University, Tbilisi.
Ministry of Economy and Sustainable Development of Georgia, 2023, National Transport and Logistics Strategy of Georgia for 2023–2030, Tbilisi.
Mistura F., 2019, Quantifying Private and Foreign Investment in Transport Infrastructure. International Transport Forum.
Narmania G., 2016, Waiting for the Silk Road, Forbes Georgia, Tbilisi, http://forbes.ge/news/1099/abreSumis-gzis-molodinSi (accessed 22 May 2025).
Nutsubidze P., 2018, Freight Transportation in Georgia, Tbilisi State University, Tbilisi.
Osadze L., Sosanidze M., 2022, Logistics Problems and Mail Challenges in Georgia, Economics, Business and Administration, 2, 193-202.
Papava V., 2020, Becoming European: Challenges for Georgia in the Twenty-First Century, iUniverse, Bloomington.
Pataraia I., 2019, Factors of introducing international logistics in the activities of enterprises operating in the foreign market, Batumi Navigation University, Batumi.
Porter M.E., 2008, On competition, Harvard Business Press, Boston.
Putkaradze R., 2019, Georgia in the European Union’s Eastern Partnership countries: Historical aspects and challenges, Ecoforum, 8(1), 0-0.
Shibasaki R., Kawasaki T., 2021, International intermodal container shipping network in South Asia: Modelling and policy simulations, International Journal of Shipping and Transport Logistics, 13(1–2), 70–101.
Turmanidze I., 2015, Transport Communications and Urban Development, Ilia State University, Tbilisi.
Tvalchrelidze A., Silagadze A., Keshelashvili G., Gegia D., 2011, Georgia’s Social Economic Development Program. Nekeri, Tbilisi.
Varga H., 2020, The future of road transportation in the EU, Metropolia University of Applied Sciences, Helsinki.
Vasiliauskas A.V., Barysiene J., 2008, Analysis of Lithuanian transport sector possibilities in the context of European – Asian trade relations, Transport, 23(1), 21–25.
Wang Y., Wang L., 2010, The economic growth effect of logistics industry FDI analysis, I-Business, 2(4), 377.
