Georgian Railway sees Freight Turnover by 8%

Freight turnover of Georgian Railway increased by 8% in 2019 compared to 2018. Davit Peradze, General Director of Georgian Railway stated this in an interview with Giorgi Isakadze, Chief Editor of Forbes Georgia.

According to the financial results of the railway, dry cargo shipments increased by 27%, petroleum products - 28% and container shipments - 37%.

To note, the cargo turnover rate had been 20.1 million t in 2012. However, the figure was declining y-o-y and it amounted to 10 million t in 2018. Index of 2019 was 10.8 million t.

David Peradze notes that as a result of these improvements, the total revenue of the Georgian Railways has increased to 501 million GEL.

“The Georgian Railways received revenue of more than half a billion GEL this year, namely 501 million GEL. Operating income increased by 15%, it is about 68 million GEL. I can also add that one is a freight and the other is our service - it is more social that envisages carrying passengers. Passenger transportation hit record high in 2019. We have transported over 3 million passengers this year through the Georgian Railways. The income from these activities has increased to 31 million GEL"-, says David Peradze.

Despite the revenue improvement, Georgian Railway will finish 2019 with a loss. The loss volume will equal to 69 million GEL. Peradze explains the loss by the difference of exchange rate. According to him, if there has not been the exchange rate difference, the railway would have a net profit of 66 million GEL.