The World Bank has announced its 2016 Logistics Performance Index (LPI) rankings. One hundred and sixty countries are evaluated based on the performance of their customs’ systems, infrastructure development and the amount of international shipping. This year Georgia dropped 14 places to 130 out of 160. In 2012 Georgia was ranked as 77th.
The index highlighted the lack of reforms to the existing customs and transportation system. Reduced international shipping over the past two years contributed to Georgia’s fall in the rankings. Georgia’s has made no significant improvements to its transportation system in recent years whilst others have. This is why countries which were ranked below Georgia in 2012 and 2014 have now surpassed it in 2016.
The Transportation system has not changed in recent years, whereas other countries have experienced important developments in this field, that’s why a lot of countries which were behind Georgia in 2012 have surpassed it in 2014 and 2016 results.
Georgia’s results in index’s criterias are follows: (5 points is the maximum)
Georgia’s LPI Score - 2.35 points
Customs - 2.26 points
Infrastructure - 2.17 points
International Shipments - 2.35 points
Logistics competence - 2.08 points
Tracking & Tracing - 2.44 points
Timeliness - 2.8 points
Georgia’s score only improved year on year in the customs ranking.
The Georgian government had aimed to boost its ranking in the index and it is mentioned in the 2020 Economic Development Programme of Georgia. In the same document the government acknowledges that the price of shipments and logistic services are not competitive. There are no logistics center which meets modern demands.
“Despite investments in the road and railway infrastructures, today’s transport infrastructure cannot cater for larger cargo. The price of shipments and logistics services aren’t competitive. There is no logistics center which correspond to modern demands. The competitiveness on routes going through Georgia is reduced due to the different procedures at the borders of neighbouring countries.” - Says the Georgia 2020 programme.
Germany was ranked first in this year’s rating whilst regionally, Turkey received the best score at 33rd place. Syria was ranked last place out of the 160 countries.