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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

Russian transport & logistics 2017 roundup

Over the past 12 months, there’s been something of a sea change in Russia’s transport and logistics industry. The sector holds up to $150 billion in deal potential for international and domestic transporters, fuelled by increased activity across sea, air, road, and rail transport modes.
Russian transport & logistics 2017 roundup
We’ve tracked the top trends and stories emerging from the sector across the year, and picked out some of the biggest for you to catch up on below.
Read on to find out more about how Russia’s transport and logistics sector has returned to growth, how it plans to snare more international traffic, and what the future holds for Russia’s massive transportation industry.
Don’t forget to download our free market guide to Russia’s transport and logistics industry for more in depth market knowledge.

Transport & Logistics in Russia: 2017’s top trends

Freight volumes rise again

2016 was a good year for Russia’s transport sector, as freight volumes rose alongside higher volumes of imports and exports. Fortunately, this wasn’t a one-off with the trend continuing across 2017.
For instance, road traffic, from the EU to Russia rose by 19.6%. Elsewhere, we find transhipment of cargoes through Russian seaports rose 16.4% against 2016’s volumes. 
Air traffic too enjoyed a bump too. At Moscow Sheremetyevo, Russia’s major international air cargo hub, 32.1% more cargo passed through, reaching a high of 60,000 tons.
Individual companies’ performance shows the scale of Russia’s freight recovery. Between January-September 2017, Transcontainer, Russia’s largest intermodal rail operator, transported 17.7% more containerised freight During this time, Transcontainer moved 1.31 million TEUs across Russia’s extensive rail network. 
Freight volumes are on the rise again, thanks to increasing imports and exports tied in with Russia’s ongoing economic economy. Increased levels of goods passing in and out of the country is fuelling an increased demand for transportation services throughout Russia – good news for transporters looking to break into a massively lucrative market.

Russia’s economy rebounds

As mentioned above, Russia’s economy moved out of recession and into growth in 2017. Estimates from the World Bank and International Monetary Fund suggest the economy grew 1.7% over the last 12 months – and this is set to continue over 2018.
The IMF suggests Russia’s economy will expand by 1.6% in the new year. The World Bank being slightly more optimistic in its forecasts by predicting growth of 1.7%. Either way, this is a positive outlook - especially after Russia’s recent economic wobbles.
What does this mean for transporters? A growing economy indicates Russians may enjoy higher spending, comparable to pre-recession levels, in the near future. More spending power means increased levels of retail activity, which in turn creates high levels of demand for domestic and international transporters.
It also affects imports of bulk commodities for certain sectors, such as those required in the construction industry. Imports of building and interior finishing materials have peaked at over $2 billion over the last few months – and getting such goods into Russia involves mass transport of bulky items like steel, stone, and timber.
Essentially, the conditions for real industry growth, and more business opportunities, will continue to improve through 2018 and beyond. Now is the time to enter Russia’s transportation and logistics market.

Seaports handle more cargoes

Between January-November, Russia’s many seaports witnessed a combined 9% year-on-year rise in cargo volumes. 716.7 million tons made its way through Russian ports during this time. This is very encouraging, in terms of external trade, because sea transport is responsible for handling the large bulk of Russia’s international cargoes.
According to data from Rosmorrechflot, the Federal Marine and River Transport Agency, showed it was the Arctic Basin that posted the largest growth, showing a massive 50.6% increase in freight traffic. In volume terms, this amounted to 67.23 million tons.
Now Russia is exploring the validity of the Northern Sea Route – a transport corridor cutting through the Arctic and a potential rival to the Suez Canal.
Seaports in the Caspian also posted very encouraging traffic volumes, where 3.52 million tons of was handled. Total freight volumes at Russia’s Caspian ports grew 35.4% during the review period.

International trade picks up

Signalling new confidence, spending power, and determination to grow international trade, Russia expanded relations with several nations across 2017 – including some countries currently under embargo.
Its biggest partner, China, accounted for significant increases in Russian external trade. Across the first half of 2017, trade turnover between it and Russia rose 35%. In total, this represented $38 billion worth of goods.
Chinese Vice Premier, Wang Yang, speaking in Moscow in, July 2017 said: “China firmly ranks first among Russia's trade partners. Bilateral investment cooperation, and cooperation in the area of cross-border infrastructure facilities construction, is steadily developing.”
Investment in Russia’s Far East, including the $41 billion Primorye corridors, is designed to facilitate easy cross-border transport with China, so freight volumes will likely rise in 2018 and beyond.
On the western front, trade between the Netherlands and Russia reached approximately $3.8 billion between Jan-July 2017 – a rise of 35% compared with the same period in 2016, according to Statistics Netherlands.
This is an intriguing development. As an EU state, the Netherlands is restricted in exporting some big volume products – notably fruits and vegetables. Even so, a pickup in trade is encouraging – especially as traffic between Russia and the EU dropped off dramatically after both party laid sanctions on each other.

The future looks bright for Russia’s transport & logistics sector – discover it at TransRussia 2018

2017’s activity and emerging trends display a renewed confidence in Russia’s transport and logistics industry. Cargo volumes are up as the economy recovers, and demand for professional services is growing too.
If you’re a transporter with services to offer, then make sure you’re at TransRussia 2018. As Russia’s only event dedicated to transport and logistics, it is the perfect place to meet major companies searching for logistics partners throughout Russia and the CIS.
80% of space at TransRussia 2018 has already been booked, so you’ll have to act fast if you want to act fast to secure the best of the remaining locations.
Need more information? Contact our team today.