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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