Challenges in Logistics Sector
The global crisis amid the pandemic and current challenges in the logistics sector – Giorgi Doborjginidze, director of the Logistics Association, discussed the mentioned issues for Business Partner TV program.
Valuable logistics is directly interconnected with the food safety of the country, Doborjginidze said and added that the border crossing operations proceed without obstacles, in practice. Cross-border trucking has not stopped and seaports continue operation in 24-hour regime. If the crisis lasts 2-3 months, the logistics chain companies will have to get reorganized and more diversify the supply sources, Doborjginidze said.
Obstacles arose interpedently of Georgia, but these obstacles were removed and cargoes keep crossing borders without problems, Doborjginidze explained.
Border crossing operations are fulfilled without obstacles in practice. Initially, there were certain barriers, imposed by not Georgia, but our neighboring countries, including drivers were delivered to quarantine regime. However, today, I can say that this process proceeds without obstacles, he noted.
„Cross-border trucking has not ceased. Seaports continue operation in 24-hour regime. However, EU imposed certain restrictions on overland shipments and these regulations have caused additional barriers and EU member countries tightened the control of their own borders within the EU space.
These regulations have generated certain queues, while before the crisis there were no border control, in practice. Today the control is exercised on cargo, overland shipments and vehicles and this process creates barriers in the border crossing process and delays the supplies”, Doborjginidze said.
Despite these unimportant obstacles, in the short-term period, we do not expect problems with supply of food and essential products. Our reserves, on the one hand, and continuous operation of supply operators ensure safe supplies. However, if the crisis lasts longer than expected, we will need to reorganize logistics and supply chains, he said.
As explained by Doborjginidze, in the short-term perspective the country does not expect essential obstacles, however, if the crisis lasts 2-3 months longer than expected, then “both logistics and supply operators will have to get reorganized. These companies will have to reduce their dependence on specific manufacturers and maximally diversify the supply networks”, Doborjginidze said.