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Russia's Logistics Industry

Russia's Logistics Industry

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Published by thinkRUSSIA
A factsheet via www.ModernRussia.com - Russia's Logistics Industry
A factsheet via www.ModernRussia.com - Russia's Logistics Industry

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Published by: thinkRUSSIA on Jun 11, 2012
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09/09/2014

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Russia’s Logistics
Industry
 
 June 2012
 
* Materials disseminated by Ketchum Inc. on behalf of the Russian Federation. Additional information regarding the dissemination of these materials can be obtained at the Department of Justice.
 
 
2
 
Russia’s Logistics Industry
 
O
VERVIEW
 
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
.
I
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
more
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
wona contract on May 2, 2012 to providepackaging, warehousing and loading operations in Siberia.The contract, worthabout £8.1 million ($13.1 million) over 10 years, comes on top of a number ofexisting InterBulk contracts in Russia, and will provide services for a subsidiary of petrochemical companySibur at a polyethylene facility in Tomsk.
Russian freight firm Globaltrans
announced in April 2012 that it is buying therailcar unit of Metallinvest, to boost its fleet to 60,000 units. This will giveGlobaltrans a 7 percent market share of overall cargo volumes in Russia, which relies on rail to deliver oilproducts, grain and steel to its home and export markets. Globaltrans forecasts more consolidation in theRussian freight sector.
 

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