The logistics sectors in Georgia, Tbilisi, play an important role in the country’s economy, and for this reason, it is considered a vital part of Georgia. Also, the development potential of the logistics industry in Georgia is very high. In this article, we will get to know the logistics sectors in Georgia country. Let’s know more about logistics industry:
Logistics Sectors in Georgia
As mentioned, Georgia has a diverse range of logistics sectors that contribute to its economic development. From transportation and warehousing to distribution and inventory management, these sectors form an integral part of the domestic supply chain network.
The transportation sector is a vital component of the logistics industry in Georgia. Tbilisi, being the capital city, serves as a central point for connecting different modes of transportation. This sector includes:
This sub-sector involves the movement of goods by road using trucks, vans, or other vehicles. It includes domestic transportation within Georgia as well as cross-border transport.
It encompasses the transportation of cargo via air carriers or freight airlines. Airports such as Tbilisi International Airport facilitate both domestic and international air freight operations.
Rail transport is another crucial mode for moving goods within Georgia and connecting with neighboring countries. The Georgian Railway network plays a vital role in facilitating trade through rail connections.
The maritime sector contributes significantly to international trade by allowing shipments to be transported by ships through seaports such as Poti Port and Batumi Port.
The second sector of the logistics sectors in Georgia is warehousing. Logistics companies operating in Tbilisi have access to state-of-the-art warehousing facilities that cater to various storage requirements. So, Warehousing Sector includes:
These specialized facilities provide secure storage space for various types of goods before distribution or further transportation takes place. They ensure proper inventory management and efficient handling processes.
This sub-sector focuses on managing stock levels efficiently to ensure optimal availability while minimizing costs. It involves activities like demand forecasting, stock replenishment, order processing, and monitoring inventory levels.
One of the logistics sectors in Georgia is the distribution sector. Tbilisi offers excellent opportunities for establishing distribution networks within Georgia. It includes:
Involves transporting goods from warehouses or production sites to local markets within Georgia’s cities and regions.
Deals with exporting or importing goods across international borders via established supply chains involving multiple modes of transportation.
Supply Chain Management (SCM) Sector
This sector encompasses various activities that oversee the entire flow of products from suppliers to end consumers. This sector of logistics industry includes:
Involves sourcing materials or products needed for production or resale. Selection of suppliers, negotiations, and contract administration are all included.
Ensures efficient utilization of resources during manufacturing processes to meet demand while minimizing costs.
Predicts future demand patterns based on market analysis and historical data. This helps in planning production, inventory management, and logistics operations.
Manages orders received from customers and ensures timely delivery by coordinating activities across the supply chain.
Customs Clearance Sector
This sector of logistics industry deals with customs procedures required for import/export operations:
Preparation and submission of necessary documents such as invoices, bills of lading, packing lists, certificates of origin, etc., for customs clearance purposes.
Determination of appropriate customs codes (Harmonized System codes) for accurate duty calculation based on the nature and characteristics of goods being imported or exported.
Ensuring adherence to customs regulations and requirements related to documentation accuracy, valuation methods, trade restrictions or embargoes imposed by authorities.
Georgia’s Government Attempts to Expand Logistics
What are the efforts of the Georgian government to expand logistics? You can see the answer below:
Georgia’s National Logistics Strategy:
The Georgian government unveiled its National Logistics Strategy in 2019, with the goal of developing the country’s logistics sector. The strategy lays out the government’s goals and objectives, which include enhancing infrastructure, streamlining customs procedures, and cultivating a trained workforce. The government has made great progress in putting the strategy into action, including the formation of a logistics development council and the execution of various logistics-related projects.
Investment in Infrastructure:
The Georgian government has made major infrastructure investments in order to improve the country’s logistics sector. Several infrastructure projects have been launched by the government, including the construction of new airports, the expansion of existing ports, and the development of new road networks. Georgia’s connectivity with neighboring nations has strengthened as a result of these infrastructural developments, as has the country’s logistics business.
Benefits of Investing in the logistics industry
What are the benefits of investing in the logistics industry?
1. Strategic Location
Georgia’s strategic location at the crossroads of Europe and Asia provides significant advantages for logistics investors. Because of its location, the country has access to numerous significant markets, including Russia, Turkey, and the EU. Furthermore, Georgia’s Black Sea location provides access to several major ports, making it an ideal hub for regional and international trade.
2. Competitive Business Environment
Georgia has worked hard to develop a business-friendly climate in order to attract foreign companies. The country’s low tax rates, simple business formation procedures, and efficient regulatory environment make it an appealing destination for logistics investment. Furthermore, the government provides several incentives to foreign logistics investors, including tax breaks and subsidies.
3. Skilled Labor Force
Georgia’s labor force is made up of highly educated and skilled individuals. The school system in the country stresses science, technology, engineering, and mathematics, resulting in a well-trained labor force for logistical operations. Furthermore, the government provides several training programs aimed at developing the skills of the country’s workforce, making it an ideal destination for logistics investors.
The logistics sectors in Georgia, particularly within Tbilisi, are thriving due to the country’s favorable geographic location and government support. With its well-connected transportation networks, modern warehousing facilities, and growing trade opportunities, the logistics industry in Georgia is poised for further growth. As businesses continue to expand their operations globally, investing in this sector presents numerous advantages for both local and international companies.