RUSSIAN TRANSPORT AND LOGISTICS SERVICE INDUSTRY TODAY
Take your chance to join TransRussia 2023
As one of the most comprehensive exhibitions for transport and logistics services, warehouse equipment and technologies in Russia, TransRussia invites you to book a stand for its 2023 edition.
The year 2022 marked a major transformation for the industry, including changes to the existing supply chains, reorientation of logistics flows from sea to land, from Europe to Asia. In the current conditions, the Russian market is forced to rebuild. Since many European companies are unable to continue their work, this is an excellent opportunity for you to strengthen your position in the Russian market and conclude contracts with the largest Russian transport and logistics companies that faced the need to find new partners and suppliers.
We firmly believe the information we are sharing with you today can help you to get a better idea about Russian transport and logistics service industry today and to be confident about your future participation in TransRussia 2023.
Changes in the geography of international cargo transportation destinations
To the date, the largest number of international cargo transportation is carried out by Turkey, China, India, and Southeast Asia. Turkey and China can be considered the beneficiaries of the current situation. There is a significant increase in trade with China: in four months, imports to Russia from Сhina increased by 11% compared to the same period last year, reaching $ 20.2 billion. Today "West-East" transport corridor, which includes a system of branched highways, is actively developing and will be extended through the regions of Siberia to Mongolia and China. The aim is to reduce the transit time between Moscow and Beijing to six days.
“North-South” route linking Russia, Azerbaijan and India, could become a shorter alternative for the transportation of goods from India and Latin America to European part, which are now going through Far Eastern ports and can create real competition for the route through the Suez Canal. In addition, North—South routes are routes through southern Russian ports towards Africa, which, in the next decade will begin to play a more important role in the global economy as a consumer market against the background of the continent's population growth and as a source of cargo base with the deployment of an increasing volume of production there.
Reorientation of logistics flows from sea to land. Recent investments
The Russian authorities are accelerating the construction of international transport corridors, developing internal routes to connect different parts of the country. It has been approved a five-year road construction plan providing for the allocation of 13 trillion rubles from the federal budget. Such amounts of financing will allow updating more than 100 thousand km of roads throughout Russia.
Reorientation to the eastern direction
The importance of the eastern polygon is growing, and the need for transportation to the east will only increase. Local transport companies are already adjusting to the situation and offering new routes and services. For example, Business Lines Group launched air delivery from China and Southeast Asia in order to unload seaports and railway terminals, which were overloaded due to the growing demand for delivery to the Far East.
Demand for warehouse space
Warehouses are becoming more and more in demand. The total volume of warehouse space in Russia by the end of 2021 amounted to more than 35 million square meters. m. At the same time, 2.43 million square meters were put into operation during the year (+27% compared to 2020).
According to the results of the first quarter of 2022, the demand for warehouse space remained high – during this period about 361 thousand square meters of space were rented and purchased, which is 33% more than in the first quarter of 2021.
In total, in the first quarter of 2022, more than 262 thousand square meters of space were put into operation, which significantly exceeds the indicators of similar periods in 2021 and 2020. By the end of the year, we expect about 1,062 thousand sq. m of warehouse space to be put into operation.
Today, due to the inaccessibility of a number of European components and equipment of warehouse complexes, the companies are reviewing the technical specifications of projects in order to simplify them and optimize costs, that opens opportunities for partnership with equipment suppliers from other geographies.
Can your company afford not to benefit from the recent expansion of the transport networks and demand to warehouse solutions in Russia?
By enquiring today, you get to enjoy some big benefits:
- Secure a better choice location in 2023’s venue
- Start your preparations for TransRussia 2023 in advance for peace of mind
- More time to market your brand in advance to hundreds of Russian players