BAKU, Azerbaijan, December 18. The completion
of testing on the Baku-Tbilisi-Kars railway line (BTK) and
improvements in customs procedures are expected to help restore
freight volumes, as Azerbaijan and Türkiye will be able to fully
utilize rail connections through Georgia, Trend reports, citing
S&P Global Ratings.
According to the agency, S&P anticipates a slow but steady
upswing in freight traffic volumes for Georgian Railway (GR) from
2025 through 2027, thanks to the lifting of current capacity
roadblocks.
“Recently completed modernization of the main rail line has
significantly increased railway capacity to around 48 million tons
per year, compared with 27 million tons previously. The project was
commissioned in September 2025, and its full effect is expected to
materialize from 2026,” the report says.
S&P notes that the completion of testing on the BTK railway
line in 2025, along with streamlined customs procedures, will
further support the recovery of transportation volumes, as Türkiye
and Azerbaijan gain full access to rail connectivity via
Georgia.
In addition, the agency believes that GR’s current strategic and
marketing efforts, along with state-backed improvements, will
contribute to further growth in freight volumes over the medium and
long term.
According to S&P, an essential determinant in the
revitalization of cargo throughput will be GR's capacity to
navigate substantial capital outlays necessary for fostering
expansion, preserving current infrastructure, and upgrading its
fleet of rolling stock.
S&P Global Ratings forecasts that annual capital
expenditures will rise to about 150-170 million Georgian lari (GEL)
in 2025 and to 160-170 million GEL in 2026-2027, compared with 150
million GEL in 2024.
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