Russia’s Logistics Industry
Spanning nine time zones and some of the most extreme climates anywhere on the globe, Russia vitallyneeds a solid logistical infrastructure to service domestic needs, industrial development and nationalcohesion.The logistics market in Russia has historically been under-developed, though government investment since
2008 has helped upgrade some of the country’s
infrastructure. Moreover, Russia’s location at the heart of
Eurasia makes it an indispensible nation for the global logistics and transport industry. The government hasrecognized this, making infrastructure development a priority for the coming years, and already foreigntransport and logistics companies are making significant investments in this huge and largely untappedmarket
NDUSTRY CONSOLIDATION AND GROWTH
There have been a number of deals by foreign firms entering or expanding in the Russian logistics sector. Aswell as this, Russian firms are consolidating within the sector, and taking part in cross-border deals thatwill integrate Russian logistics with the global industry. Below is a selection of recent deals that showcasethe dynamism and change in the sector.
DHL has invested
million) in Russia over the pastfive years.This investment has helped them rebound healthily from the 2008crisis, putting them in a strong position today. They use Russia as an important centre to connect both Westto Europe and South to China. They make use of existing rail opportunities while pushing for even more
investment in the road network, to really make the most of Russia’s ongoing opportunities.
In May 2012, Raven Russia
€165 million ($215 million) to acquire
the Pushkino Logistics Park 213,000 square meter logistics complex near Moscow. The sitehas three warehouses and two infrastructure buildings with space for rent of 213,000
square meters. Almost totally rented out, the park generates an annual rent of €18.6
million, reflecting a stabilized yield of 11.5 percent. The tenants include Auchan, DHL,Leroy Merlin and NLC.
Scottish logistics company InterBulk
Russian freight firm Globaltrans