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Georgian Railway cargo rate decreases

By Messenger Staff
Monday, May 25
According to May 2009 data cargo transport through Georgian Railway has decreased 35% since March. Cargo transit is crucially important for Georgian Railway. Chevron has ceased its oil transit from Kazakhstan and another major company, Exxon, has reduced its cargo transit through Georgia by 80%.

At a briefing held on May 21 representatives of Georgian Railway complained that the opposition makes frequent statements about blockading the railways despite warnings. Such statements confuse companies and persuade them to reduce their transit though Georgia.

In October 2008 Georgian Railway transported 55,000 tonnes of cargo a day. This January it carried 30,000 thousand tonnes a day. The figure increased again in March, to 50,000 tonnes; but in April was back to 40,000 and in May so far it is 27,000 tonnes a day on average.

Georgian Railway says that this reduction can endanger the jobs of all its employees. Currently about 15,500 people receive permanent salaries from the company and more than 30,000 work for it as contractors. In 2008 Georgian Railway supplied GEL 110 million in dividends and taxes to the Georgian budget and in the current year GEL 81 million in dividends is projected.