Georgia’s railway overhaul delivers early gains, PM

Georgian Prime Minister Irakli Kobakhidze on Tuesday said sweeping reforms at Georgian Railway were already yielding “tangible results”, one year after a complete management change at the company.

Speaking at a presentation described as a “historic renewal” of the railway, Kobakhidze said the overhaul had laid the groundwork for a series of reforms that were beginning to show measurable progress.

He stressed the strategic importance of connectivity for Georgia’s economic development, highlighting the country’s transit role and ongoing investments in infrastructure. These, he said, include the expansion of highways, upgrades to airports, and plans for a new international airport in Tbilisi by 2031, alongside the development of the Anaklia deep-sea port.

The prime minister said railway development was central to this broader strategy.

Kobakhidze also noted the company’s annual net profit has increased by 30%, with revenues rising by at least 40 million lari compared with the same period last year.

He also announced that, for the first time in recent years, a unified 10-year development plan has been established. The strategy included the full renewal of rolling stock, with plans to acquire 50 new locomotives, 1,500 wagons and 10 passenger trains.

Kobakhidze also confirmed plans to rehabilitate the historic Borjomi–Bakuriani railway, known as the Kukushka, citing its cultural and tourism value.

Overall investment in the railway sector over the next decade is expected to reach approximately $1.7bn, sourced from multiple channels, he added.

The prime minister said early results demonstrated that rapid progress was possible through improved management efficiency and efforts to tackle corruption and nepotism.

He thanked the economy minister and Georgian Railway’s director general, Lasha Abashidze, for overseeing the reforms, adding that the transformation of the railway sector was “only the beginning” of a longer-term development agenda.