What Railway Transport Law Regulates
The functioning of railway transport in Georgia is governed by the Constitution, international treaties, the Railway Transport Code and other normative acts. Every relationship connected with the carriage of passengers and cargo must first conform to the Constitution and treaties, then to the Code. Military railway transportation is regulated by separate acts, so civil circulation rules do not apply. These principles are in Article 3 of the Code.
Who Manages Railway Transport and Exercises Supervision
Management of railway transport follows the procedure established by legislation. The annual budget, plans and the distribution of net profit after taxes are approved by the assembly of railway partners. State policy is implemented by the Ministry of Economy and Sustainable Development, while regulation and supervision belong to the Agency. To ensure safety, the Agency carries out technical regulation, recognizes medical institutions issuing health certificates for engine drivers, and may request any document or information.
Rights and Obligations of the Parties in Carriage
The railway must carry passengers and transport luggage, luggage-cargo and cargo under a public service contract, provided that the passenger or shipper complies with the Code and transportation rules, that carriage is possible with existing facilities, that unavoidable circumstances do not interfere, and that the cargo is not prohibited. Before transportation begins, the customer may request information about transport facilities and operating conditions. The parties may also contract on additional services. Service information is published in Georgian and, where needed, in another language.
For non-fulfillment of obligations the parties bear liability determined by the Code, other acts and the contract. They are liable only for violations committed by them or caused by their fault. Together with the damage, the infringing party must also pay the fee for carriage and other services. Any contract between the shipper, the consignee, the passenger and the railway that limits or exempts them from statutory liability is void, so a contractual limitation of liability has no legal force.
Railway Liability for Loss, Damage and Shortage of Cargo
From acceptance of cargo until its release, the railway bears proprietary liability for its safety, unless it proves that the damage was caused by the fault of the shipper or consignee, the natural properties of the cargo, packaging defects, or moisture exceeding the norms. The railway is also released where the cargo was carried in a proper wagon with intact sealing devices, or where the shortage does not exceed the norm of natural loss. If the cargo is not delivered within 30 days after the expiry of the delivery deadline, it is deemed lost; cargo arriving later may still be accepted against return of the compensation. If the consignee refuses acceptance or fails to dispose of the cargo within 4 days and nights after notice, the railway may realize it. Damage is compensated in the amount of the value of the lost cargo, for damage in the amount of the decrease in value, and according to the declared value where it exists. The transportation fee is returned proportionally. The same rules cover luggage.
Procedure and Deadlines for Claims and Lawsuits
In domestic transportation a claim may be submitted within the Civil Code time limits; in international transportation the limit is set by the agreement on international railway freight communication. For damage, the period runs from the day of release; for loss of cargo, after 10 days from the expiry of the delivery deadline; for loss of luggage, after 30 days; for non-fulfillment of a transportation application, after 5 days from payment. The railway must examine the claim and answer in writing within 2 months, and where recognized, compensate the damage within 2 weeks. A claim with incomplete documents is returned without examination within 10 days. A lawsuit may be filed if the railway rejected the claim or gave no answer within 2 months. Lawsuit deadlines are set by Georgian legislation.
Frequently Asked Questions
When is cargo deemed lost?
If the cargo is not delivered within 30 days after the expiry of the delivery deadline, it is deemed lost and the consignee may demand compensation.
Within what period must the railway answer a claim?
The railway must notify the claimant in writing within 2 months of receipt, and where the claim is recognized, compensate the damage within 2 weeks.
Can liability be limited by contract?
No. Any contract between the shipper, the consignee, the passenger and the railway that limits or exempts them from statutory liability is void.
When may I apply to court?
An application to court is possible where the railway rejected the claim or stayed silent for 2 months; the lawsuit is filed under the established procedure.
When is cargo deemed lost, and what then?
If it is not delivered within 30 days after the delivery deadline expired; compensation is then paid at the cargo value, and cargo arriving later may be accepted only on return of the compensation received.
How We Help on Legal.ge
On Legal.ge we assist shippers, consignees and passengers in railway disputes: we assess the situation, plan a claim within the deadlines and prepare a lawsuit. Contact our team for qualified assistance.