Railroad Law Services in Georgia | Legal.ge

RailroadLaw

What is the SMGS agreement?

SMGS is the Agreement on International Goods Transport by Rail, covering most post-Soviet and some Asian countries. It serves as the legal basis for waybills and liability rules for cross-border rail freight involving Georgia.

Can private companies own locomotives in Georgia?

Yes, private ownership of rolling stock, including locomotives, is permitted. However, operating them on the main railway network requires specific access agreements and compliance with strict technical safety regulations set by Georgian Railway.

How are rail freight tariffs calculated?

Tariffs are based on cargo type, weight, distance, and wagon type. While there are standard tariff policies, large-volume shippers can sometimes negotiate special conditions or discounts through long-term contracts.

What happens if my cargo is stolen during rail transport?

The carrier is liable for the loss. You must file a claim immediately upon arrival at the destination station, documenting the discrepancy with a commercial act. Legal assistance is often needed to enforce full compensation.

Railroad Law represents a specialized branch of transport law regulating relations connected to rail freight, infrastructure usage, and rolling stock operation. In Georgia, where the railway is a strategic artery of the economy connecting Europe and Asia, this field is particularly important for cargo owners, logistics companies, and investors. Legal services in the rail sector cover relations with the monopoly operator ("Georgian Railway"), as well as private wagon fleet management and legal provision for international transport.

Railroad law specialists offer clients diverse services aimed at the efficient and safe functioning of business. Key areas include:

Transportation contracts: Drafting and reviewing cargo transportation contracts, and legal verification of tariff calculations.
Rolling stock: Concluding purchase, sale, rent, and lease agreements for wagons and locomotives.
Dispute resolution: Claims for damages due to loss, damage, or delay of cargo; disputes regarding demurrage (wagon detention) fees.
Access to infrastructure: Legal regulation of using dead-end tracks and connecting to rail infrastructure.
International transport: Resolving issues arising under the SMGS agreement and supporting transit operations.
Safety: Legal investigation of rail incidents and determination of liability.

Practical examples where a railroad law lawyer's involvement is essential are quite complex. For instance, an exporter sends wine to Europe by rail, but the cargo spoils due to technical faults in the wagon. The railway denies liability, citing force majeure — here, the lawyer must prove the carrier's fault. In another case, a business has a private rail siding but cannot agree on operation terms with the railway, or is charged unrealistically high fees for wagon detention. Acquiring and subsequently leasing a wagon fleet is also relevant for investors, requiring solid legal guarantees.

The fundamental law in this field in Georgia is the "Railway Code of Georgia," which regulates the rules of rail transport functioning and the rights and duties of the carrier and client. Civil liability issues are based on the "Civil Code of Georgia." For international transport, the "Agreement on International Goods Transport by Rail" (SMGS), of which Georgia is a member, is critically important. Normative acts of the Government and the Ministry of Economy regarding technical operation and safety also apply.

Working with a lawyer ensures the protection of the client's interests in a monopolistic environment. The lawyer helps the client correctly draw up the consignment note, which is the main evidence in case of a dispute. Upon discovery of damage, the lawyer ensures the correct compilation of the commercial act, without which compensation for damages is impossible. In court disputes, the specialist's knowledge of rail specifics (technical regulations, deadlines, tariffs) is decisive for success.

Legal.ge is a platform where you can connect with narrow-profile experts in railroad law. Our database includes lawyers experienced in dealing with "Georgian Railway" as well as in international arbitrations. Rail transport involves high financial risks, so qualified legal support is not a luxury but a necessity. Choose Legal.ge specialists for the safety of your cargo and business.