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24th International Exhibition for Transport and Logistics Services and Intralogistics Technologies
15 - 17 April 2019 • Russia, Moscow, Crocus Expo, Pavilion 1

5 predictions for Russian transport & logistics in 2019

News
As 2018 draws to a close, it’s been a good year for Russian transport & logistics. But what about the future? With 2019 around the corner, TransRussia takes a look at five predictions for the next twelve months in Russia’s cargo transport sector.
5 predictions for Russian transport & logistics in 2019
From higher trade volumes to diving deep into digital platforms, Russian transport is going through a major transformation right now. Let’s examine what’s going to happen right now.
 

Forecasting the future for Russian transport & logistics

 

Higher international freight turnover

Container ship on the high seas
Russia’s enormous. That’s no secret. Because of its sheer size, it’s a major transport hub for international cargoes. Russia also depends on imports of certain commodities, such as heavy machinery, oil & gas equipment, and food & drink products, for domestic prosperity.
 
TransRussia’s first big forecast is a continued rise in international trade, based on 2018’s rising volumes with key partners. For instance, trade between India and Russia rose 21% across the year. Turkey rose to the status of 5th largest trading partner too.
 
China, a massive driver of East-West freight which Russia captures, saw a 30% increase in trade with Russia. Both parties are now on course to reach $100bn mutual trade.
 

Increased Russian domestic cargo volumes

Russian cargo train going through a plain

It’s a trend we’ve been seeing since 2016. Domestically, the levels of cargoes carried on all transport modes, road, rail, river and air, are increasing. In 2017, the volumes rose 2.7% and in 2018, so far, freight levels carried have grown a further 2.9%.
 
Part of the reason for this is increased investment in key transportation sectors. For instance, Road transport is on the cusp of a nationwide reconfiguring, with the government stepping up regulation and transparency. The end goal will be a smoother, more efficient trucking industry, capable of carrying higher cargo loads across Russia’s vast expanse.
 
Rail too is getting a major investment. RZD Russian Railways, pumping billions into improving rail infrastructure, rolling stock, and privatisation programmes, to improve the access levels on the behemoth that is the Russian rail network.
 
In Russia right now, the conditions are improving for increased transport & logistics business.
 

Digitalisation to transform Russia’s freight transportation systems

Digital platform
Russia is embracing digital platforms across the board, and that’s true of transport & logistics. The Ministry of Transport plans to launch a digital platform for cargo firms nationwide. 
 
A body called the Digital Transport & Logistics Association (DTLA) has been lobbying hard for such a system over the past 12 months, and it looks like its efforts are going to bear fruit soon.
 
DTLA’s end goal is to bring together the capabilities and capacities of Russia’s major transporters to create a joint multimodal logistics platform. Ultimately, the new platform will help create barrier-free transport throughout Russia.
 
So far, the DTLA has attracted major partners including RZD, Avtodor Russian Highways, Aeroflot and RT-Invest Transport Systems. The Ministry of Transport is also giving DTLA its full backing.
 
According to Transport Minister Evgeny Dietrich, the necessary go-ahead and governance legislature will be passed in 2019, with the platform’s first functional build going live by the end of that year. A 2022 end-date has been given for the full project’s completion. The cost? Some $6.7bn.
 
Digitalisation is going to sweep through Russia, so if you’re in the transport IT solutions business, keep watching this major market for upcoming business opportunities.
 

Higher demand for 3pl & intralogistics

Boxes on a warehouse conveyor belt

E-commerce in Russia is expected to grow 170% over the next five years. With online shopping become more and more popular, and lucrative, TransRussia is predicting a higher demand for 3pl and end-to-end logistics services.
 
There is certainly room to grow. For instance, outsourced logistics holds a 22% market share in Russia right now. When compared with China, at 48%, and the EU’s with 66%, there are significant growth opportunities.
 
International companies are already capitalising on this increased demand. Itella, a Russia-centric postal and logistics service from Finland’s Posti Group, now offers dedicated e-commerce delivery and fulfilment options for its Russian customers as a result of the growth in online shopping across the country.
 
This is also good news for the intralogistics sector. Warehousing, in particular, is experiencing an increase in supply. Over 350,000sqm was put into place around Russia (excluding Moscow) in 2017 – a 27.7% increase against the previous year. Demand is also growing, with a 25% Russia-wide increase in volume leased or purchased during 2017.
 
So, while the 3pl and intralogistics industries remain a little underdeveloped in Russia, that only makes both sectors fertile ground on which to sow the seeds of long-term business success.
 

Heightened business opportunities in Russia’s transport & logistics sector

Trucks on a bridge on the Russia-Estonia border
Our final prediction is a simple one: more business opportunities in Russia. With growing freight volumes, domestic and international, heightened government support, a major digital initiative, and a higher demand for intralogistics and 3pl services, prospects are very good.
 
There is as much as $150bn in deal potential available to companies in Russia right now. The truck is finding the cargo owners, service seekers, and new partners in the world’s largest country. 
 
TransRussia is here to help you find them.
 

TransRussia: Russia’s only international transport & logistics exhibition

 
TransRussia is the only event of its kind in Russia. 
 
For exhibitors, It’s the place to meet nearly 17,000 cargo owners, freight forwarders, retailers and others in need of transportation services and technologies on the Russian market.
 
79% of visitors purchase as a result of the exhibition and a further 71% of visitors only attend TransRussia amongst industry events. If it’s exclusively you’re after, you’ll find it at TransRussia.
 
Book your stand today and get ahead of your competition.
 
Alternatively, contact our team for more information on this industry-defining B2B exhibition.