RUSSIAN LOGISTICS TODAY Mikhail Pimonenko North-Western Russia - PowerPoint PPT Presentation

RUSSIAN LOGISTICS TODAY Mikhail Pimonenko North-Western Russia Logistics Development Center ILOT “Rail Baltica Growth Corridor” project meeting Riga, Latvia 18-19 January 2011

1. About Centre “ILOT”. 2. Russia’s Place in Global Logistics. 3.Trends, advantages, scenario elements.

The centre ILOT was founded in the July of 2003 before the III International Euro-Asian Transport Conference as one of Russia’s responses for decisions of previous conferences. ILOT is a consulting, analytic and promotion centre for the North-West Russia transport and logistics business. The legislative form is non-profit-making partnership, so it is opened for participation of any transport and logistics actor as well as a company of other profile.

Baltic Pallet II , AG 2 “Transport Corridor Networks” NeLoC , “Networking Logistic Centers in the Baltic Sea Region” LogOn Baltic , “Developing Regions through Spatial Planning and Logistics & ICT Competence” Remote Access , “ New Spatial Development Zone for Border Regions of Latvia and Russia – Connecting Potentials of Two Countries“ LogNet , “Development of Logistics for Supplier Net Models”

2. Russia’s Place in Global Logistics

ITEMS EVALUATED for LPI RANKING 1. Customs 2. Infrastructure 3. International Shipment Documents 4. Logistics Competence 5. Tracing & Tracking 6. Domestic Logistics Costs 7. Timeliness

LPI Rank 2007 year European States Logistics Logistics Perfomance Perfomance Places According to Index rank Index rank LPI out of out of 150 countries 150 countries 15 15 16 16 4 4 47 47 99 99 42 42 58 58 74 74 11 11 9 9 40 40 3 3 18 18 7 7 115 115 22 22 139 139 26 26

TRANSPORT-LOGISTICS COSTS SHARE IN GOODS PRICES 2,5 times > EC RUSSIA

CONTAINERIZATION IN RUSSIA Russian share on international container transportation market no more than 1% Average world level of containerization - 60% RUSSIA: Import - 25% Export - 10% Internal transportation - 4-5%

Warehouse area per habitant in sq. m. • Saint-Petersburg - 0.15 ( existing) - 0.40 ( incl. in construction) Moscow – 0.5 • New York - ~ 10 • USA ( average in towns) - 3 •

CARGO through FINLAND to RUSSIA In 2008 through Finland to Russia were transported 196 000 containers, among it only 7000 by railway mode. Now through Vaaimaa, Nuyamaa and Imatra cross-border points to Russia move 8 500 - 10 000 container trucks per week.

COMPARISON OF LOGISTICS FIRMS EXPRESS DELIVERY OF DOCUMENTS TO NARVA, ESTONIA from SAINT-PETERSBURG - 150 km ЕМС 7 days 1 200 Rub DHL 2 days 2 600 Rub

CARGO TRANSPORTATION SPEED Inside Russia 9 km/hour It is logistics speed Inside Europe logistics speed 45 km/hour Suez Canal would be uncompetitive if 21 km/hour would be reached in Russia

RUSSIA’S TRANSPORT-LOGISTICS MARKET VOLUME: 2008 - 50-60 bln. $ 2009 – 37 bln. $ (RusBusinessConsult -RBC) STRUCTURE of MARKET: 17% - logistics share (52% -in the world)

HUMAN RESOURCES There are 300 000 carrier and 10 000 freight forwarding companies. If in every company 1-3 persons are busy by planning and organization of cargo transportation, It means, that nearly 1 000 000 pepeople in Russia are solving logistic problems

3. Trends, advantages, scenario elements

УСТЬ – ЛУГА

 Генеральная схема развития Морского торгового порта Усть - Луга предполагает строительство 16 перегрузочных комплексов.

WORKING TERMINALS 1)Multifunctional loading complex «South-2». 2)Timber terminal. 3) Universal loading terminal. 4) Coal terminal. 5)Technical sulfur terminal. 6) Rail and automobile ferry

TERMINALS IN CONSTRUCTION 1) Container terminal. 2) Complex for liquid cargo. 3) Baltic pipeline transportation system (BTS-2). 4) Technical sulfur terminal (2-nd turn)

RAILWAY COMMUNICATIONS  Routs by line Mga — Gatchina — Veimarn — Ust- Luga, joining to main railway Saint-Petersburg - Tallinn.  Reconstruction of “Luzhskay” near port station  Investments of JSC “RZD” 2005–2009 nearly 20,5 bln. Rub. 2010–2012 20,9 bln. Rub. Station Luzhskaya

MOTORWAYS COMMUNICATIONS Сегодня ведется ремонт и расширение отдельных участков  областной автодороги М -11 Усть - Луга — Котлы — Керстово до пересечения с автодорогой «Нарва» Санкт - Петербург — Таллин .  В перспективе – строительство автомагистрали до Великого Новгорода с выходом на трассу Хельсинки – Санкт - Петербург – Москва.

PROBLEMS 1. Weak transport infrastructure in the port Ust-Luga region. 2. Delay of constructing works. 3. Slow growth of cargo turnover

UST-LUGA CARGO TURNOVER Year mln. tons • 2003 0,4 • 2004 0,8 • 2005 0,7 • 2006 3,8 • 2007 7,1 • 2008 6,8 • 2009 10,4 • 2015 planning to reach 120,6 mln. tons!

Динамика грузооборота балтийских портов 2005-2009 г.г. 70 60 50 Млн. тонн 40 30 20 10 0 2005 2006 2007 2008 2009 Санкт-Петербург Таллинн Вентспилс Рига Клайпеда Калининград Усть-Луга

Functioning of October Railway Logistics Centre. СБОР ВЫРУЧКИ FORWARD OCTOBER RAILWAY RAILWAYS ЦФТО CONSIGNOR, SHIPPER корректирующих действий October Railway TERMINALS Logistics Centre ЦД PORTS Необходимость ТРАНЗИТНЫЕ ДОРОГИ да ПОТРЕБНОСТИ В ВОЗМОЖНОСТИ нет Параметры ПЕРЕВОЗКАХ ПРОПУСКА грузопотока Сокращение ГРУЗОПОТОКА оптимальны издержек ? Информационный поток ROAD CAPACITY: - BY TYPE AND VOLUME OF CARGO, Материальный поток - TIME OF CARRIAGE ADMISSION, - ROUTING OF TRANSPORTATION. • 2

AIMS of October Railway Logistics Centre. MAIN AIMS: Carriage flow optimization at port rail stations. Minimization of wastage due to “derelict” trains. • 1

PROBLEMS Planning of cargo delivering Monitoring of time measured loading Routing Monitoring of transportation • 3

LOGISTICS PROVIDER “MODUL”

CONCLUSIONS 1. Port Ust-Luga and railway approaches. Railway ferry. 2. Containerization. 3. Shift of cargo transportation to railway. 4. Growth of logistics cargo speed. 5. Development of up to date terminal infrastructure. Improvement of logistics centers operations. 6. High-speed railway traffic. 7. Multimodal transportation.

Many thanks for your attention ! Pimonenko Mikhail Ph/fax: +7 812 274 07 13 Mob: +7 921 943 76 87 E-mail: pimw@wnet.ru