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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