Russian transport & logistics news update April 2020

Welcome to the first of a new series of monthly news round ups in the Russian transport & logistics industry.

Here, we’ll be taking a look at some of the more interesting stories from across Russia’s $150bn transportation sector.

This month:
  • Trucking identified as a sector affected by the global situation
  • Wireless internet networking coming to Russian transport infrastructure
  • Rail discounts for food transportation

Russian transport & logistics market round up

Russia’s transport & logistics infrastructure to get wireless internet network

By 2024, key Russian infrastructure will be linked via wireless internet.

The purpose of the network will be to share data from Russia’s GLOSNASS satellite network for easier navigation.

Ultimately, this will be deployed on important road and railway links.

It will mainly be used to monitor traffic flows, report incidents, and help emergency services clear incidents if necessary.

GLOSNASS has been used in the logistics sector since 2020 to monitor movement of dangerous and perishable goods, as well as products currently under sanction in Russia due to ongoing trade embargoes.

At present, GLOSNASS is comprised of 27 satellites. 

Trucking identified as sector affected by global shutdown

Like many countries around the world, Russia is encouraging its population to self-isolate in order to keep healthy and safe.

As such, there has been less demand for cargo movement throughout the country, apart from essential products like foodstuffs.

Road transport has been identified as one of the sectors most affected by the present conditions by the Russian Government.

Trucking is the backbone of Russia’s transportation sector, responsible for carrying 70% of the nation’s freight.

With Russians self-isolating, however, and only permitted to leave their homes for emergencies or to pick up necessary items like food and medicine.

The demand for haulage throughout the world’s largest country has subsequentially shrunk.

Despite this, there will still be a need for last-mile deliveries of essential products, which is often carried via truck in Russia in collaboration with air, sea, and rail transport.

Food rides for less on Russia’s railway network

To keep foodstuff supplies steady Russia’s rail operator RZD has announced big discounts for carriers moving food & drink products across the country via rail.

Crops, seeds, flours and cereals, pasta, confectionery, sugar, salt, dairy goods, juices, and fruits and vegetables are all subject to reduced rates.

Discounts vary. For fully loaded wagons, rate reductions of between 13.2% to 42.5% are available. For empty loads, discounts are between 9.4% and 39.9%.

Entering force from April 4 2020, the reduced rates on rail foodstuff transportation will last until December 31 2020.