Baku, Azerbaijan, July 26
By Tamilla Mammadova – Trend:
Georgia’s revenue in 2018 decreased 3.3 percent to $167.5 million, Trend reports via research of Galt & Taggart, the Organization of investment research in Georgia.
Significant reduction in freight transportation and logistics service revenues dragged the positive trends in other revenue streams. Freight transportation revenue, which made up 56.8 percent of total, was down 9.1 percent to $95.2 million in 2018. Revenue from logistic services was down 5.7 percent to $27.7 million.
Other revenue streams posted positive results in 2018, with freight handling and car rental revenue growing 1.9 percent to $20.4 million and 49.6 percent to $40 million, respectively. Passenger revenue experienced another strong year, with revenue growing 18.7 percent to $10.8 million in 2018.
Freight transportation revenue, largest revenue category, continued to decline as a result of reduced freight cargo, particularly liquid cargo. Total freight revenue drop was affected by significant drop in oil products transportation. Crude oil transportation going through Georgia dropped to 0.16 million tons in 2018. Resulting transportation revenues also dropped 52.1 percent to $1.5 million in 2018. Notably, transportation of crude oil from Turkmenistan through Georgia stopped in 2018, while in 2017 its share stood at 23 percent in total crude oil going through Georgia.
Revenue from oil products transportation declined 11.4 percent to $37.9 million in 2018. Changed destinations were the main reason for reduced revenues. Namely, the share of Kazakhstan, more profitable direction, decreased from 34 percent of total oil products transportation in 2017 to 11 percent in 2018.
Dry cargo transportation volumes were up while revenues declined 5.0 percent to $55.7million in 2018. Reduced sugar transportation (down 39.0 percent to $4.5 million in 2018) effected most this revenue category as tariffs were down and cane sugar transportation (more profitable product) dropped. Meanwhile, the ore products transportation growth (up 10.5 percent) partly offset this negative impact.
Freight car rental and passenger traffic revenues increased to $20.8 million in 2018 (up 49.6 percent and 18.7 percent, respectively). The former was related to increased usage of the company’s tank cars, open-wagons and grain carriers, by its daughter company. While the latter was effected by increased revenues per person (from GEL 8.5 or $3.4 in 2017 to GEL 9.6 or $3.8 in 2018) as passengers shifted to more profitable direction.
(1 USD = 2.91 GEL on July 26)