Georgia, a country situated at the crossroads of Europe and Asia on the shores of the Black Sea, is undergoing an unprecedented period of transformation in its railway sector, characterised in particular by the acquisition of rolling stock, a programme supported by international financial institutions.
This year, the Georgian government is launching the largest investments in rolling stock in its history as an independent nation, with projects funded by international financial institutions such as the Asian Development Bank (ADB) and the World Bank.
These efforts aim not only to replace an ageing fleet of locomotives and railcars, but also to consolidate Georgia’s position as a key regional logistics hub on the Middle Corridor (or Trans-Caspian Corridor).
Tender for 45 freight locomotives
The Georgian Railways’ current rolling stock is suffering from significant wear and tear, with a large proportion of the locomotives and railcars being operated beyond their optimal service life. Of the company’s total of 91 locomotives, 71 are over 35 years old, making their replacement a matter of critical importance. This situation limits the company’s operational capacity and the efficiency of freight and passenger transport, at a time when demand for rail services is growing.
The operator also owns four double-decker electric ‘Kiss’ trains manufactured by Stadler, which have been in service since 2016 on the main intercity routes. For passenger services, the company also has several EMUs and conventional trains that have been in service for several decades, which is why it has launched a comprehensive modernisation and renewal programme.
In the first half of 2026, the railway company recorded a 10 per cent increase in freight transport compared with the same period the previous year, reaching 6.9 million tonnes. This result has not been achieved by Georgian Railways for several decades, and in order to maintain this pace and achieve its strategic objectives, Georgia urgently needs new, modern and energy-efficient rolling stock.
One of the most important initiatives is the procurement of 45 new electric freight locomotives – a project valued at 350 million USD – and plans to renew the entire locomotive fleet. “In the history of independent Georgia, the railways have never before organised a tender of this scale. This project will enable us to significantly improve freight transport, become much more efficient and have a much faster railway,” said Lasha Abashidze, Director General of the Georgian Railway Company.
The tender was launched with the support of the World Bank and the Asian Development Bank.
The procurement of these locomotives forms part of the ‘Trans-Caspian Transport Corridor – Improving Transport Accessibility and Infrastructure in Georgia (TC-GATE)’ project, which is led by the Georgian Government but is funded and implemented in partnership with international financial institutions. The programme has a total value of over 750 million USD, of which the World Bank is providing 372 million USD and the Asian Infrastructure Investment Bank (AIIB) is contributing 181 million USD. Both loans were approved by the two financial institutions in June 2026.
In addition, the Asian Development Bank (ADB) has invested USD 20 million in green bonds issued by Georgian Railways to refinance other projects to modernise existing lines.
Feasibility study for the procurement of passenger trains
In parallel, for passenger transport, Georgian Railways, with the support of the Asian Development Bank, has launched an international market study for the procurement of 10 electric passenger trains. Local and international companies interested in manufacturing rolling stock, from member states of the Asian Development Bank, are invited to participate in this study.
The aim of the market consultation is to inform potential suppliers about the project and the procurement strategy, as well as to gather feedback on technical requirements, delivery terms and market capacity. The results will be used to prepare the final tender documentation.
Once the consultation is complete, Georgian Railways and the Asian Development Bank will launch the international tender for the procurement of the trains, in accordance with the ADB’s procurement rules.
The 10 new electric trains will improve passenger services, increase the operational efficiency of Georgian Railways and reduce operating and maintenance costs.
Furthermore, as part of the modernisation of the passenger rolling stock fleet, five existing trains are undergoing an extensive overhaul and modernisation process, which includes the replacement of the interior, seats and lighting systems, as well as the installation of new safety and surveillance equipment.
The plan for the renewal of the rolling stock fleet
Political and financial support for these projects is essential and comes from key international partners such as the World Bank, the AIIB and the ADB. The entire rolling stock renewal programme is aligned with the Georgian Railways’ ten-year development strategy, which envisages total investments of USD 1.7 billion.
This strategy includes a three-year action plan for the period 2026–2028, which aims to double the capacity of the rail network and triple the annual number of passengers from 2 million to 5 million. The growth in rail transport will be supported by modern rolling stock, with plans announced by the national authorities including the purchase of 50 new locomotives and 1,500 railcars.
The Georgian government has announced its intention to secure up to one billion USD from the ADB for road and rail infrastructure projects, underlining its commitment to the sector’s development. This objective forms part of a structured ten-year plan, the most significant investment programme in Georgia’s rail sector.
“For the first time, a unified 10-year plan has been drawn up covering all major areas of railway development, including the complete renewal of the railcar fleet,” said Prime Minister Irakli Kobakhidze.
Impact on regional standing and the national economy
The massive investment in rolling stock has a clear aim: to transform Georgia into a faster, more reliable and more competitive transport corridor. The new rolling stock will enable increased capacity and transport speeds on the main railway lines, whilst the new locomotives will particularly support traffic on the Georgian section of the Middle Corridor. This corridor is vital for connecting Europe with Central and Eastern Asia, bypassing Russian territory.
By modernising its rolling stock, Georgia is consolidating its status as an international gateway and regional logistics hub, supported by both the Middle Corridor and the Baku–Tbilisi–Kars corridor.
The project also includes the construction of a new, modern depot for locomotive maintenance in the town of Khashuri (in central Georgia, 120 km west of Tbilisi), which will ensure the efficient, long-term operation of the new assets. In the long term, these investments will lead to an increase in the state railway company’s revenue, which will be reinvested in new projects, creating a virtuous cycle of development.
In addition to freight transport, passengers will benefit directly from these investments. Plans include the launch of new direct routes, such as Tbilisi–Kutaisi, and the reopening of the Tbilisi–Akhaltsikhe line, which has been suspended since 2009. The journey time on the Tbilisi–Batumi route will be reduced from 5½ hours to 4 hours, and the historic narrow-gauge Borjomi–Bakuriani line will also be rehabilitated.
In essence, Georgia is not only modernising its trains but is actively building its economic future, drawing on its unique geographical position and strong strategic partnerships.
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