GEORGIA has reopened a 41km section of its East - West main line following a comprehensive upgrade undertaken by China Railway 23rd Bureau Group.
The main line is a key part of the Middle Corridor connecting central Asia and eastern Europe. According to local media reports, Georgian Railway (GR) says freight capacity on the line has been increased from 27 million tonnes to 48 million tonnes each year.
"With the completion of this project, the capacity of Georgian Railway has increased significantly, operating costs have been reduced, safety has been enhanced, and passenger comfort has improved," says Georgia’s prime minister, Irakli Kobakhidze.
"Railway modernisation is an integral part of the vision to ensure the fast, safe and uninterrupted movement of goods, and creates a solid foundation for accommodating growing trade flows between Europe and Asia."
New financing
The Georgian government has demonstrated its commitment to this growth by meeting with international financial institutions, including the World Bank and the Asian Development Bank (ADB), with the aim of securing new financing for railway modernisation and strategic infrastructure projects. Recent talks, which have included Alstom, have focused on funding the purchase of new locomotives and wagons for GR.
As part of broader railway reforms, the Georgian government expects to receive a total of Lari 325m ($US 120.61) in loan financing from the World Bank and ADB this year. The planned funding is evenly split between the two lending institutions.
Local media outlet Georgia Today reports that the GR fleet is in urgent need of modernisation, with 71 of its 91 locomotives more than 35 years old and the youngest already 20 years old. Similarly, around half of the passenger fleet is more than 35 years old.
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