Georgia aims to become regional logistics hub with Alibaba-backed partnership

Georgia aims to become regional logistics hub with Alibaba-backed partnership
A warehouse of Cainiao, Alibaba's logistics unit in Wuxi, Jiangsu province, China, 26 October 2020
Reuters

Georgian Post is no longer focused solely on delivering letters and parcels across Georgia. The state postal operator is transforming into a regional logistics hub following a new agreement with Cainiao, the logistics arm of Alibaba.

Giorgi Eradze, Director General of Georgian Post, announced that the company has signed an agreement with Cainiao and is preparing to expand its delivery network to Kazakhstan, Turkmenistan and Kyrgyzstan.

Modernising logistics operations

Georgian Post handles domestic parcel deliveries, international shipments and courier services, including its "Home to Home" collection and delivery service. Customers can send documents, parcels, air mail and overland shipments both within Georgia and internationally, although restrictions apply to certain goods, including fragile items, perishables and medicines.

In recent years, the company has expanded beyond its traditional postal role by operating cargo terminals, working directly with international airlines and processing parcels for merchants and e-commerce platforms beyond Georgia's borders.

Partnership with Cainiao

According to Eradze, discussions with Cainiao began during a visit to Alibaba's campus several months ago.

Cainiao operates one of the world's largest e-commerce logistics networks, processing more than 50 million parcels each day through an extensive network of collection and delivery points.

Eradze said the partnership would allow Georgian Post to learn from a much larger operator while improving its own logistics systems and technology.

He said the agreement effectively gives both Georgian Post and Georgia a new role as a regional sorting and distribution hub. Cargo from across the region is delivered to Georgian Post's terminal, sorted and then forwarded to neighbouring countries.

The company is already handling cargo from Armenia, Azerbaijan and Uzbekistan, with Kazakhstan, Turkmenistan and Kyrgyzstan expected to be added to the network.

Cooperation with Silk Way West Airlines

Alongside the Cainiao agreement, Georgian Post has signed a memorandum of cooperation with Silk Way West Airlines, one of the region's largest cargo carriers.

Eradze said the objective was to bring strategic infrastructure, including the air cargo terminal, back under Georgian Post's management. He added that the agreement has already enabled the company to receive, sort and handle Silk Way West Airlines' cargo directly.

The company said imports through the terminal have increased by 1,750 per cent compared with the previous year, while exports have risen by 750 per cent. Total cargo turnover has grown by 2,300 per cent.

Expanding airline partnerships

Georgian Post has also signed cooperation agreements with Air Serbia, Turkish Airlines and Azerbaijan Airlines. Eradze said discussions are continuing with several other carriers.

He said the expanded airline partnerships are intended to reduce transit times and strengthen relationships with more international airlines, supporting the continued growth of Georgian Post's logistics network.

Regional ambitions

Georgian Post currently serves Armenia, Azerbaijan and Uzbekistan through its regional logistics operations, with Kazakhstan, Turkmenistan and Kyrgyzstan expected to join the network soon.

Together with its partnership with Cainiao and its growing network of airline agreements, the company aims to position Georgia as a key logistics gateway between Asia and Europe.

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