Abstract
Due to the geopolitical location, Georgia can become the center for Caucasus transport-logistics; partly it still performs this function. The purpose of this research paper is to study and analyze the financial-economic and statistical position of the main indicators of the Georgian Railway Holding. Based on all the above mentioned, we have set out the tasks of the research: Statistic analysis of the value added created by the Railway Industry in the Georgian economy years 2006-2019, Determination of correlation between the general indicators of JSC "Georgian Railway" and factors operating on it, Comparative analysis of the financial indicators of the Georgian railway in the post soviet space. Data was taken from the Georgian Railway Information Technology Agency. We observed the sensitivity of cargo movement in the region. The correlation between the general indicators of JSC "Georgian Railway" and its operating factors are also reflected in the study. Despite the small portion of the railway in the country's GDP, its role in the socio-economic development of the country is great. The average annual geometric growth of the EBITDA of regionals railways is decreasing. This reduction is caused by general economic shocks in region and slowing of economic growth. However, it is worth mentioning that the results of Georgian Railway compared with the other countries are only 4% reduction. This means that the reduction of shipping of oil and dry cargo by the Georgian Railways in recent times is caused by external factors.
Highlights
Railway industry is an important part of Georgian economy
In this study indicate that the additional value to Gross domestic product (GDP) is the direct and indirect form of development and growth of various sectors of the economy of Georgia, as some part of the cargo shipped in the railway remains in Georgia and is used in the process of production, which in itself adds value added to the economic growth of the country
The compound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s lifespan
Summary
Railway industry is an important part of Georgian economy. Its strategic location near the Black Sea and the fact that Georgia is a marine gateway for the Transcaucasian region defines its geopolitical advantage and requires proper appreciation and application (Putkaradze B., 2013). In this study indicate that the additional value to GDP is the direct and indirect form of development and growth of various sectors of the economy of Georgia, as some part of the cargo shipped in the railway remains in Georgia and is used in the process of production, which in itself adds value added to the economic growth of the country. Can successfully implement its plans on the operational and administrative sides that they help in the solution of complicated problems They are of great importance for exercising proper managerial control and formulation of policy in a big undertaking like Indian Railways. The derivative financial assets and liabilities held by the consolidated entity have been classified as level 2 on the fair value hierarchy as values are indirectly derived from market indices (Queensland Rail, 2018). The new Canada Transportation Act, enacted July 1996, has facilitated the process of abandonment and acquisition of surplus lines by short line railways (Statistics Canada, 1999)
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