FREIGHT-2007: Container Transportation in Russia and the Neighbouring States

Main Russian Container Industry Event of the Year
On 22-23 November 2007 St.Petersburg is to host the international conference «FREIGHT-2007: Container Transportation in Russia and the Neighbouring States». The conference is to be organized by SeaNews I&C under the brand name of FREIGHT. This will be the eleventh conference in the series and 4th one dedicated to the topic.
The 2007 container conference special features:
 Development rate vs. shortage of facilities = congestion
 Container operators expansion to the regions
 Dry ports as the market development resource
 Assets consolidation, investments in the segment, IPO
 Alternative transportation routes (Baltic states, Kazakhstan, Transsib)
The SeaNews conferences dedicated to transport and logistics have become the traditional meeting point of business with authorities and researchers. While container conferences are the major event for the Russian container business.
The FREIGHT conferences audience are the chiefs of transport organizations and associations, terminal operators, carriers, freight forwarders and linear agents; directors and heads of shipper- companies’ logistic subdivisions, as well as representatives of state bodies supervising the transport sector operation.
Large number of participants and the club nature of the events allow delegates considerable possibilities for fruitful professional communication.
The 2006 container conference was largely dedicated to transit. The delegates discussed the reasons for reduction of transit and the cargo flows reorientation, searched for solutions.
The solution of the transit problem is often seen in various international transport corridors, mentioned in his speech OOO Intervalira general director Valery Novikov. While in fact the notion of transport corridor has no relation to the notion of transit. The former emerged in Western Europe, with the intention of redirecting cargo flows from the overloaded highways to sea and water routes. The idea hardly brought good results.
V. Novikov gave the following answer to the question, why transit left Russia: if in the Soviet era we were able to offer shippers regular service with diverse geography in Baltic and Far East, common customer service via a net of agents and competitive through rates, none of these are there to offer now. Much has changed on Transsib and the rival sea route since those times. The ratio of container and conventional vessels is now 50%/50% against 30%/70%. The vessels average capacity grew from 3-4 th. TEU to 13 th. and more. While Transsib can only boast eventual electrification.
Nevertheless, the market participants admitted that there is a chance of bringing transit back to Transsib, which requires a quality service – through freight rate, competitive transit time, regular feed of containers and simplified documents turnover. The guaranteed delivery term should be within 17-30 days, while currently 30 days is the minimal term; average rate from South-Eastern Asia – some USD 1100, regularity – not less than for passenger service. The distance itself without speed and regularity is no advantage.
Irrespective of whether there is transit flow or not, infrastructure should be developed. Representatives of the largest port cities – St.Petersburg, Novorossiysk, Vladivostok – took floor at the conference. The ports located in cities are limited in their development and the two subjects – city and port – find it hard to coexist.
The solution is seen in developing dry container terminals and distribution centers. The demand was, and is way ahead of supply. Despite the large number of announced projects, the demand for A, B and B+ warehouses is far from being satisfied, stated Andrey Karpov, the head of the St.Petersburg Administration Committee on Transport and Transit Policy.
Nevertheless, such projects exist and are under realization. The deputy general director of OAO Vladivostok Commercial Seaport Alexandr Kononenko told the guests about the project of Yuzhny Primorsky terminal – a dry terminal some 30 km from the port is to free the port from warehousing and stuffing operations. Certain plans are considered by Novorossiysk, which were shared by marketing and development director of OOO Global Container Service Andrey Narayevsky.
If logistic centers focused on import gravitate towards ports, export logistics should take place not in ports, and not in Moscow, but in the regions of cargo flows origin. The project of regional container depots was presented at the «FREIGHT-2006» conference by vice president of NPH Strateg Sergey Shavzis.
Infrastructure development suggests attracting investments. But the reality the investors face may often differ greatly from the declarations. Kimmo Nordstrom, Containerships Ltd Oy CEO, chairman of OOO Moby Dick board of directors, shared his experience with the conference participants. He believes the main problem to be lack of a single body to deal with foreign investors. In any European country all the issued are settled quickly with a single body, while in Russia there a numerous authorities, with one saying “yes”, and another – “no”.
The second day of the 2006 conference was dedicated to an excursion – the delegates could see for themselves the point at issue between Containerships and Rosstroy, appreciate the warehousing technologies applied at the Admiral logistic terminal in Kronstadt.
The program of the 2007 conference will be not less exciting. We invite you to take part in the year’s event of the Russian container business. Detailed information is available on www.freight.ru. You can also ask you questions having contacted us by phone +7 (812) 380 38 25 or by e-mail freight@seanews.ru.