The “Middle Corridor” and Europe-Asia Transport Diversification - Assessing Georgia’s Strategic Importance in the New Reality of Global Trade

Abstract

This scientific paper discusses Georgia’s strategic role in the development of the Trans-Caspian International Transport Route, also known as the “Middle Corridor” (TITR). The new reality of global trade, driven by geopolitical changes and sanctions imposed against the Russian Federation, requires a radical diversification of transit routes between Europe and Asia. The study argues that the Middle Corridor is no longer just an alternative, but has become a geopolitical necessity to ensure the sustainability of regional supply chains.

The main objective of the study is to assess Georgia’s potential as a logistics hub in the context of its infrastructure capabilities and geopolitical risks. The methodology is based on qualitative and comparative analysis, using sectoral accounts and geoeconomic theories.

The analysis revealed that Georgia’s unique geographical position (Black Sea ports, Baku-Tbilisi-Kars railway) gives it a decisive advantage. However, the study highlights key challenges:

• Infrastructure constraints: In particular, the absence of a deep-sea port limits the achievement of economies of scale and increases operational costs.


• Regional inefficiencies: Non-harmonization of tariff policies among TITR countries and the need for multiple transshipments, which reduce the competitiveness of the corridor in terms of time and cost.


• Geopolitical risks: The Russian factor and regional instability, which negatively affect long-term investment decisions.

The conclusion is drawn that coordinated policy steps are needed to realize Georgia’s full potential as a logistics hub. Recommendations include: accelerated implementation of the deep-sea port, creation of a single tariff space within the TITR, and full integration of digital logistics platforms. If successful, Georgia will play a significant role in shaping the new Eurasian trade architecture, thereby elevating itself from a transit function to a regional hub for value addition.