AN UPDATED LOOK AT ROAD TRANSPORT IN RUSSIA
In the first of our series of extracts from our Russia Market Report: Transport & Logistics, we examine the Russian road transport sector
This is a vital cog in Russia’s transport & logistics machine. In fact, trucking carries the bulk of goods carried by logistics firms throughout the world’s largest country. Join us as we take a look at this important industry.
Road transport in Russia
Trucking in Russia is a US$4.78 billion industry.
The analytics firm Autostat estimates that Russia’s national truck fleet is composed of 3.7 million trucks alongside an additional 4.1million light commercial vehicles (LCVs). Some 80% of truckers are, however, commercially managed and are not government regulated in the same way as the railways.
Interestingly, half the market is actually controlled by foreign companies which gives them a market share worth over US$2 billion.
Rising road freight volumes
In 2018 road transport experienced the second highest growth in cargo turnover growth at 118.7 billion tonnes in the first half of the year.
This was a 3.2% increase compared to 2017’s volume and an encouraging sign for an industry still recovering from the recent recession. For context, turnover of road cargo only grew 1.6% in 2016.
Vehicles are carrying 70% of Russia’s containerised freight transport. According to the Russian Association of International Road Carriers the industry is growing between 10%-15 a year.
Road and rail are the twin pillars of Russian transportation and the increase in the volume of cargo that both are carrying is a strong indicator of Russia’s economic recovery.
Comparing Russian road and trail transport
An example of their relative costs is a comparison of cargo transported 3,350 km by road between Moscow and the Southern Siberian city of Novosibirsk. By road it cost around US$1,319 per twenty-foot equivalent unit (TEU) and US$1,551 per forty-foot equivalent unit (FEU), while the respective rail option would be US$690 and US$$1,069 per container.
While rail takes 11 days, however, the road journey only takes seven. Therefore, while road costs are about 30%-45% higher than rail, the transit time is up to 60% faster.
Download your copy of Russia Market Report: Transport & Logistics today
With $150bn in contract potential, Russia is a land brimming with possibilities for all transport & logistics professionals.
Our guide to the sector, Russia Market Report: Transport & Logistics, prepared with Menas Associates, will help you find them.
This 25-page report covers all you need to know about one of the largest developing transport & logistics sectors in the world. Inside, you’ll find:
- Russia’s logistics sector by transport mode, including road, rail, maritime and 3PL
- The role of foreign countries in Russian logistics
- A special focus on intralogistics
- More practicable information
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As Russia’s only international transport and logistics exhibition, this is an event you want to mark in your calendar for 2020. For exhibitors, you can meet nearly 17,000 cargo owners freight forwarders, retailers and others in need of transportation services and technologies on the Russian market.
Visitors are primed for purchasing, and more than two thirds will only attend TransRussia amongst industry events.
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