Development Prospects of the Logistics Hub of Georgia Under Globalization

Abstract

Logistics operates in almost all sectors of economic activity. Its usage provides an opportunity to successfully solve the problems of any level related to material and information flows. In particular, these are: arrangement and development of production and information networks in the service area; development of rational direction of material flow and determination of strategy; construction and complex management of logistics chain; determination of transportation and storage volume; selection of facilities for delivery of raw materials and supplies, semi-finished and finished products; organizing of transport and transportation processes; and creation of an information system for their management.
Today, one of the priority directions of the Georgian economy is the development of logistics and transport infrastructure that will provide the country with an opportunity to become a logistics hub of the region along with a transport corridor. Globalization and growing economic ties with the European Union make this possible. In addition, using the possibility of Georgia’s full integration in international trade is also of particular importance. The paper discusses the issues that should play a decisive role in establishing Georgia as a logistics hub. It also analyzes the problems and assumes that solving these problems will contribute to the integration of Georgia into the transport system of the European Union and will enable the European standards to be introduced as well. It is concluded that an important criterion for the improvement of this area is the development of safe connections and corridors that should be the main strategic objective of the Georgian government