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1 (37) March 2014

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CIM/SMGS Project: Building a Bridge

CIM/SMGS Project: Building a Bridge

Until today East-West and West-East freight traffic must cross an invisible frontier because of the existence of two different legal regimes:
Europe applies the CIM Uniform Rules, while Russia and Asia apply the SMGS Convention. The existence of these legal hurdles leads to interruption of movement, entailing delays, additional costs and administrative burdens. How can this process be made more user-friendly?

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The Beginning of the Project

The International Rail Transport Committee (CIT) was created in 1902 and for many years was active in the sphere of cross-border international rail transportation. Although the main area of CIT’s work is the practical implementation of the COTIF – the Convention on International Rail Traffic, it has also been also working towards the creation of a uniform international rail transport law.
The start of the project “Legal Interoperability CIM/SMGS” dates back to the Conference on International Rail Transport Law, which took place in October 2003, where the participants clearly expressed their aim to make available a common consignment note which can be used in through transport and which meets modern requirements.
Up until 2006, all rail freight consignments have been re-consigned as they passed from the CIM to the SMGS legal regime – on their way from Europe to Asia and back. This re-consignment required time-consuming work and additional expenses with no value added and sometimes led to incorrect data entered at the reconsignment points. In 2006 the common consignment note CIM/SMGS was created by the CIT. It forms an essential part of the joint CIT/OSJD (Organisation for Co-Operation between Railways) project on the legal interoperability of the CIM and the SMGS. The CIM/SMGS consignment note significantly simplifies the transition procedure at the reconsignment points and is based on the United Nations Layout Key for trade documents. To some degree it represents the sum of the CIM and the SMGS consignment notes. Thus, the common CIM/SMGS consignment note is building a bridge – between the different legal regimes of the CIM and SMGS that eliminates the obstac­les of language and borders.

Practical Implementation

Just over five years ago, on 25 July 2006, the first freight train delivered goods from the Ukraine, through Poland, to Germany with the common consignment note CIM/SMGS. Since then the CIM/SMGS consignment note has been used on 50 traffic lines within the 4 Trans-European rail corridors. Presently it is applied in more than 80% of all CIM/SMGS freight traffic, which shows a 20% increase in comparison to last year.
At the last meeting of the CIM/SMGS Group of Experts and the Legal Group, the experts provided figures of over 70% for container traffic and over 18% for single wagonload traffic. The CIM/SMGS consignment note made it possible to carry out a “through” freight transport in Euro-Asian rail traffic between Europe, where the CIM provisions are applicable and Eastern Europe, Russia and China, which are bound by the SMGS Convention. Thus, the CIM/SMGS system created a connection between two legal regimes and solved the above mentioned problems – it decreases costs and stand-by time, brings about more transpa­rency and reliability, since the consignment notes and customs documents do not have to be rewritten anymore. Selected pilot projects showed that you save 40 minutes on one wagon and 40 Euros on one consignment note through the use of the CIM/SMGS consignment note.
The statistics presented by RZD for 2012 show a threefold increase in the use of common CIM/SMGS consignment notes and reveal a definite upwards trend in 2012. In terms of its application in rail operations in the first 10 months of 2012, according to information provided by RZD, approx. 28,000 CIM/SMGS consignment notes were used. For example, Volkswagen shipments to Kaluga are very successful, with no interruptions worth mentioning. It was also specified that transhipment of this cargo is not to take place in Brest in Belarus, but in Malashevice in Poland. According to information provided by DB Schenker Rail (DBSR), to optimise transport services on Corridor II, split shipments using the common CIM/SMGS consignment note will be used. This will be examined shortly by DBSR in collaboration with RZD as part of the Trans Eurasia Logistic (TEL) for shipments to Kuntsevo II. An assessment of this arrangement will take place in 2013. Another successful service is the route served by DB Schenker Automotiv since 2011 for the shipment of car components to Nizhni Novgorod.
RZD and InterRail have confirmed that their clients were also interested in carrying out freight transportation with the CIM/SMGS consignment note from China to Germany and Switzerland. Moreover, according to InterRail, the CIM/SMGS note is already integrated into the IT-portal “Electronic Train” to ensure its enhanced application.
The economic growth of Baltic countries and the mutual trade with the Russian Federation – in addition to trade with Kazakhstan, China and others – are good reasons for predicting a substantial increase in demand for rail freight shipments in the Baltic region. Shipments of freight to Europe through the Port of Riga and its integration into the Trans-Siberian rail route provide an excellent opportunity to use the common CIM/SMGS consignment note for combined Eurasian shipments.
The Black Sea region has also witnessed significant developments during the last few years. The new Samsun-Kavkaz rail ferry service was officially inaugurated at the end of February 2013 in the Turkish port of Samsun. Expected benefits for the Black Sea countries stemming from the implementation of COTIF uniform law and inclusion in the CIM list of maritime and inland waterway services are obvious.

Terms and Conditions

Notwithstanding these very positive developments, freight traffic by rail between Europe, Russia and Asia still has significant development potential, since only 1% of it has been captured so far.
Creation of a harmonised international legal regime has been the declared long term legal and political goal for the next ten to fifteen years. Whilst waiting for the states to create this new uniform legal framework the UN Economic Commission for Europe (UNECE) is encouraging the railways and the trade associations involved to achieve harmonised solutions on a contractual basis.
The third phase of the project “Legal Interoper­ability of CIM/SMGS” includes the creation of standard rules for uniform rail transport law on a contractual basis. The Political Declaration on Euroasian Rail Transport Law was signed in February 2013 by 37 representatives of the participating countries, which undertook a commitment to officially start activities on harmonisation of rail transport law within the UN framework. In addition, it invited all interested railway freight companies, other stakeholders and international railway organisation to develop interim standard rules for Eurasian rail transport contracts.
By Dr Erik Evtimov,
Deputy Secretary General of the CIT

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The Beginning of the Project

The International Rail Transport Committee (CIT) was created in 1902 and for many years was active in the sphere of cross-border international rail transportation. Although the main area of CIT’s work is the practical implementation of the COTIF – the Convention on International Rail Traffic, it has also been also working towards the creation of a uniform international rail transport law.
The start of the project “Legal Interoperability CIM/SMGS” dates back to the Conference on International Rail Transport Law, which took place in October 2003, where the participants clearly expressed their aim to make available a common consignment note which can be used in through transport and which meets modern requirements.
Up until 2006, all rail freight consignments have been re-consigned as they passed from the CIM to the SMGS legal regime – on their way from Europe to Asia and back. This re-consignment required time-consuming work and additional expenses with no value added and sometimes led to incorrect data entered at the reconsignment points. In 2006 the common consignment note CIM/SMGS was created by the CIT. It forms an essential part of the joint CIT/OSJD (Organisation for Co-Operation between Railways) project on the legal interoperability of the CIM and the SMGS. The CIM/SMGS consignment note significantly simplifies the transition procedure at the reconsignment points and is based on the United Nations Layout Key for trade documents. To some degree it represents the sum of the CIM and the SMGS consignment notes. Thus, the common CIM/SMGS consignment note is building a bridge – between the different legal regimes of the CIM and SMGS that eliminates the obstac­les of language and borders.

Practical Implementation

Just over five years ago, on 25 July 2006, the first freight train delivered goods from the Ukraine, through Poland, to Germany with the common consignment note CIM/SMGS. Since then the CIM/SMGS consignment note has been used on 50 traffic lines within the 4 Trans-European rail corridors. Presently it is applied in more than 80% of all CIM/SMGS freight traffic, which shows a 20% increase in comparison to last year.
At the last meeting of the CIM/SMGS Group of Experts and the Legal Group, the experts provided figures of over 70% for container traffic and over 18% for single wagonload traffic. The CIM/SMGS consignment note made it possible to carry out a “through” freight transport in Euro-Asian rail traffic between Europe, where the CIM provisions are applicable and Eastern Europe, Russia and China, which are bound by the SMGS Convention. Thus, the CIM/SMGS system created a connection between two legal regimes and solved the above mentioned problems – it decreases costs and stand-by time, brings about more transpa­rency and reliability, since the consignment notes and customs documents do not have to be rewritten anymore. Selected pilot projects showed that you save 40 minutes on one wagon and 40 Euros on one consignment note through the use of the CIM/SMGS consignment note.
The statistics presented by RZD for 2012 show a threefold increase in the use of common CIM/SMGS consignment notes and reveal a definite upwards trend in 2012. In terms of its application in rail operations in the first 10 months of 2012, according to information provided by RZD, approx. 28,000 CIM/SMGS consignment notes were used. For example, Volkswagen shipments to Kaluga are very successful, with no interruptions worth mentioning. It was also specified that transhipment of this cargo is not to take place in Brest in Belarus, but in Malashevice in Poland. According to information provided by DB Schenker Rail (DBSR), to optimise transport services on Corridor II, split shipments using the common CIM/SMGS consignment note will be used. This will be examined shortly by DBSR in collaboration with RZD as part of the Trans Eurasia Logistic (TEL) for shipments to Kuntsevo II. An assessment of this arrangement will take place in 2013. Another successful service is the route served by DB Schenker Automotiv since 2011 for the shipment of car components to Nizhni Novgorod.
RZD and InterRail have confirmed that their clients were also interested in carrying out freight transportation with the CIM/SMGS consignment note from China to Germany and Switzerland. Moreover, according to InterRail, the CIM/SMGS note is already integrated into the IT-portal “Electronic Train” to ensure its enhanced application.
The economic growth of Baltic countries and the mutual trade with the Russian Federation – in addition to trade with Kazakhstan, China and others – are good reasons for predicting a substantial increase in demand for rail freight shipments in the Baltic region. Shipments of freight to Europe through the Port of Riga and its integration into the Trans-Siberian rail route provide an excellent opportunity to use the common CIM/SMGS consignment note for combined Eurasian shipments.
The Black Sea region has also witnessed significant developments during the last few years. The new Samsun-Kavkaz rail ferry service was officially inaugurated at the end of February 2013 in the Turkish port of Samsun. Expected benefits for the Black Sea countries stemming from the implementation of COTIF uniform law and inclusion in the CIM list of maritime and inland waterway services are obvious.

Terms and Conditions

Notwithstanding these very positive developments, freight traffic by rail between Europe, Russia and Asia still has significant development potential, since only 1% of it has been captured so far.
Creation of a harmonised international legal regime has been the declared long term legal and political goal for the next ten to fifteen years. Whilst waiting for the states to create this new uniform legal framework the UN Economic Commission for Europe (UNECE) is encouraging the railways and the trade associations involved to achieve harmonised solutions on a contractual basis.
The third phase of the project “Legal Interoper­ability of CIM/SMGS” includes the creation of standard rules for uniform rail transport law on a contractual basis. The Political Declaration on Euroasian Rail Transport Law was signed in February 2013 by 37 representatives of the participating countries, which undertook a commitment to officially start activities on harmonisation of rail transport law within the UN framework. In addition, it invited all interested railway freight companies, other stakeholders and international railway organisation to develop interim standard rules for Eurasian rail transport contracts.
By Dr Erik Evtimov,
Deputy Secretary General of the CIT

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Europe applies the CIM Uniform Rules, while Russia and Asia apply the SMGS Convention. The existence of these legal hurdles leads to interruption of movement, entailing delays, additional costs and administrative burdens. How can this process be made more user-friendly?

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Europe applies the CIM Uniform Rules, while Russia and Asia apply the SMGS Convention. The existence of these legal hurdles leads to interruption of movement, entailing delays, additional costs and administrative burdens. How can this process be made more user-friendly?

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The Beginning of the Project

The International Rail Transport Committee (CIT) was created in 1902 and for many years was active in the sphere of cross-border international rail transportation. Although the main area of CIT’s work is the practical implementation of the COTIF – the Convention on International Rail Traffic, it has also been also working towards the creation of a uniform international rail transport law.
The start of the project “Legal Interoperability CIM/SMGS” dates back to the Conference on International Rail Transport Law, which took place in October 2003, where the participants clearly expressed their aim to make available a common consignment note which can be used in through transport and which meets modern requirements.
Up until 2006, all rail freight consignments have been re-consigned as they passed from the CIM to the SMGS legal regime – on their way from Europe to Asia and back. This re-consignment required time-consuming work and additional expenses with no value added and sometimes led to incorrect data entered at the reconsignment points. In 2006 the common consignment note CIM/SMGS was created by the CIT. It forms an essential part of the joint CIT/OSJD (Organisation for Co-Operation between Railways) project on the legal interoperability of the CIM and the SMGS. The CIM/SMGS consignment note significantly simplifies the transition procedure at the reconsignment points and is based on the United Nations Layout Key for trade documents. To some degree it represents the sum of the CIM and the SMGS consignment notes. Thus, the common CIM/SMGS consignment note is building a bridge – between the different legal regimes of the CIM and SMGS that eliminates the obstac­les of language and borders.

Practical Implementation

Just over five years ago, on 25 July 2006, the first freight train delivered goods from the Ukraine, through Poland, to Germany with the common consignment note CIM/SMGS. Since then the CIM/SMGS consignment note has been used on 50 traffic lines within the 4 Trans-European rail corridors. Presently it is applied in more than 80% of all CIM/SMGS freight traffic, which shows a 20% increase in comparison to last year.
At the last meeting of the CIM/SMGS Group of Experts and the Legal Group, the experts provided figures of over 70% for container traffic and over 18% for single wagonload traffic. The CIM/SMGS consignment note made it possible to carry out a “through” freight transport in Euro-Asian rail traffic between Europe, where the CIM provisions are applicable and Eastern Europe, Russia and China, which are bound by the SMGS Convention. Thus, the CIM/SMGS system created a connection between two legal regimes and solved the above mentioned problems – it decreases costs and stand-by time, brings about more transpa­rency and reliability, since the consignment notes and customs documents do not have to be rewritten anymore. Selected pilot projects showed that you save 40 minutes on one wagon and 40 Euros on one consignment note through the use of the CIM/SMGS consignment note.
The statistics presented by RZD for 2012 show a threefold increase in the use of common CIM/SMGS consignment notes and reveal a definite upwards trend in 2012. In terms of its application in rail operations in the first 10 months of 2012, according to information provided by RZD, approx. 28,000 CIM/SMGS consignment notes were used. For example, Volkswagen shipments to Kaluga are very successful, with no interruptions worth mentioning. It was also specified that transhipment of this cargo is not to take place in Brest in Belarus, but in Malashevice in Poland. According to information provided by DB Schenker Rail (DBSR), to optimise transport services on Corridor II, split shipments using the common CIM/SMGS consignment note will be used. This will be examined shortly by DBSR in collaboration with RZD as part of the Trans Eurasia Logistic (TEL) for shipments to Kuntsevo II. An assessment of this arrangement will take place in 2013. Another successful service is the route served by DB Schenker Automotiv since 2011 for the shipment of car components to Nizhni Novgorod.
RZD and InterRail have confirmed that their clients were also interested in carrying out freight transportation with the CIM/SMGS consignment note from China to Germany and Switzerland. Moreover, according to InterRail, the CIM/SMGS note is already integrated into the IT-portal “Electronic Train” to ensure its enhanced application.
The economic growth of Baltic countries and the mutual trade with the Russian Federation – in addition to trade with Kazakhstan, China and others – are good reasons for predicting a substantial increase in demand for rail freight shipments in the Baltic region. Shipments of freight to Europe through the Port of Riga and its integration into the Trans-Siberian rail route provide an excellent opportunity to use the common CIM/SMGS consignment note for combined Eurasian shipments.
The Black Sea region has also witnessed significant developments during the last few years. The new Samsun-Kavkaz rail ferry service was officially inaugurated at the end of February 2013 in the Turkish port of Samsun. Expected benefits for the Black Sea countries stemming from the implementation of COTIF uniform law and inclusion in the CIM list of maritime and inland waterway services are obvious.

Terms and Conditions

Notwithstanding these very positive developments, freight traffic by rail between Europe, Russia and Asia still has significant development potential, since only 1% of it has been captured so far.
Creation of a harmonised international legal regime has been the declared long term legal and political goal for the next ten to fifteen years. Whilst waiting for the states to create this new uniform legal framework the UN Economic Commission for Europe (UNECE) is encouraging the railways and the trade associations involved to achieve harmonised solutions on a contractual basis.
The third phase of the project “Legal Interoper­ability of CIM/SMGS” includes the creation of standard rules for uniform rail transport law on a contractual basis. The Political Declaration on Euroasian Rail Transport Law was signed in February 2013 by 37 representatives of the participating countries, which undertook a commitment to officially start activities on harmonisation of rail transport law within the UN framework. In addition, it invited all interested railway freight companies, other stakeholders and international railway organisation to develop interim standard rules for Eurasian rail transport contracts.
By Dr Erik Evtimov,
Deputy Secretary General of the CIT

[~DETAIL_TEXT] =>

The Beginning of the Project

The International Rail Transport Committee (CIT) was created in 1902 and for many years was active in the sphere of cross-border international rail transportation. Although the main area of CIT’s work is the practical implementation of the COTIF – the Convention on International Rail Traffic, it has also been also working towards the creation of a uniform international rail transport law.
The start of the project “Legal Interoperability CIM/SMGS” dates back to the Conference on International Rail Transport Law, which took place in October 2003, where the participants clearly expressed their aim to make available a common consignment note which can be used in through transport and which meets modern requirements.
Up until 2006, all rail freight consignments have been re-consigned as they passed from the CIM to the SMGS legal regime – on their way from Europe to Asia and back. This re-consignment required time-consuming work and additional expenses with no value added and sometimes led to incorrect data entered at the reconsignment points. In 2006 the common consignment note CIM/SMGS was created by the CIT. It forms an essential part of the joint CIT/OSJD (Organisation for Co-Operation between Railways) project on the legal interoperability of the CIM and the SMGS. The CIM/SMGS consignment note significantly simplifies the transition procedure at the reconsignment points and is based on the United Nations Layout Key for trade documents. To some degree it represents the sum of the CIM and the SMGS consignment notes. Thus, the common CIM/SMGS consignment note is building a bridge – between the different legal regimes of the CIM and SMGS that eliminates the obstac­les of language and borders.

Practical Implementation

Just over five years ago, on 25 July 2006, the first freight train delivered goods from the Ukraine, through Poland, to Germany with the common consignment note CIM/SMGS. Since then the CIM/SMGS consignment note has been used on 50 traffic lines within the 4 Trans-European rail corridors. Presently it is applied in more than 80% of all CIM/SMGS freight traffic, which shows a 20% increase in comparison to last year.
At the last meeting of the CIM/SMGS Group of Experts and the Legal Group, the experts provided figures of over 70% for container traffic and over 18% for single wagonload traffic. The CIM/SMGS consignment note made it possible to carry out a “through” freight transport in Euro-Asian rail traffic between Europe, where the CIM provisions are applicable and Eastern Europe, Russia and China, which are bound by the SMGS Convention. Thus, the CIM/SMGS system created a connection between two legal regimes and solved the above mentioned problems – it decreases costs and stand-by time, brings about more transpa­rency and reliability, since the consignment notes and customs documents do not have to be rewritten anymore. Selected pilot projects showed that you save 40 minutes on one wagon and 40 Euros on one consignment note through the use of the CIM/SMGS consignment note.
The statistics presented by RZD for 2012 show a threefold increase in the use of common CIM/SMGS consignment notes and reveal a definite upwards trend in 2012. In terms of its application in rail operations in the first 10 months of 2012, according to information provided by RZD, approx. 28,000 CIM/SMGS consignment notes were used. For example, Volkswagen shipments to Kaluga are very successful, with no interruptions worth mentioning. It was also specified that transhipment of this cargo is not to take place in Brest in Belarus, but in Malashevice in Poland. According to information provided by DB Schenker Rail (DBSR), to optimise transport services on Corridor II, split shipments using the common CIM/SMGS consignment note will be used. This will be examined shortly by DBSR in collaboration with RZD as part of the Trans Eurasia Logistic (TEL) for shipments to Kuntsevo II. An assessment of this arrangement will take place in 2013. Another successful service is the route served by DB Schenker Automotiv since 2011 for the shipment of car components to Nizhni Novgorod.
RZD and InterRail have confirmed that their clients were also interested in carrying out freight transportation with the CIM/SMGS consignment note from China to Germany and Switzerland. Moreover, according to InterRail, the CIM/SMGS note is already integrated into the IT-portal “Electronic Train” to ensure its enhanced application.
The economic growth of Baltic countries and the mutual trade with the Russian Federation – in addition to trade with Kazakhstan, China and others – are good reasons for predicting a substantial increase in demand for rail freight shipments in the Baltic region. Shipments of freight to Europe through the Port of Riga and its integration into the Trans-Siberian rail route provide an excellent opportunity to use the common CIM/SMGS consignment note for combined Eurasian shipments.
The Black Sea region has also witnessed significant developments during the last few years. The new Samsun-Kavkaz rail ferry service was officially inaugurated at the end of February 2013 in the Turkish port of Samsun. Expected benefits for the Black Sea countries stemming from the implementation of COTIF uniform law and inclusion in the CIM list of maritime and inland waterway services are obvious.

Terms and Conditions

Notwithstanding these very positive developments, freight traffic by rail between Europe, Russia and Asia still has significant development potential, since only 1% of it has been captured so far.
Creation of a harmonised international legal regime has been the declared long term legal and political goal for the next ten to fifteen years. Whilst waiting for the states to create this new uniform legal framework the UN Economic Commission for Europe (UNECE) is encouraging the railways and the trade associations involved to achieve harmonised solutions on a contractual basis.
The third phase of the project “Legal Interoper­ability of CIM/SMGS” includes the creation of standard rules for uniform rail transport law on a contractual basis. The Political Declaration on Euroasian Rail Transport Law was signed in February 2013 by 37 representatives of the participating countries, which undertook a commitment to officially start activities on harmonisation of rail transport law within the UN framework. In addition, it invited all interested railway freight companies, other stakeholders and international railway organisation to develop interim standard rules for Eurasian rail transport contracts.
By Dr Erik Evtimov,
Deputy Secretary General of the CIT

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Until today East-West and West-East freight traffic must cross an invisible frontier because of the existence of two different legal regimes:
Europe applies the CIM Uniform Rules, while Russia and Asia apply the SMGS Convention. The existence of these legal hurdles leads to interruption of movement, entailing delays, additional costs and administrative burdens. How can this process be made more user-friendly?

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Until today East-West and West-East freight traffic must cross an invisible frontier because of the existence of two different legal regimes:
Europe applies the CIM Uniform Rules, while Russia and Asia apply the SMGS Convention. The existence of these legal hurdles leads to interruption of movement, entailing delays, additional costs and administrative burdens. How can this process be made more user-friendly?

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РЖД-Партнер

Swimming Skyscrapers

Swimming Skyscrapers

The possibility of using next-generation container carriers – large vessels like Triple-E – is being discussed now. Recently they began to come into the Russian ports – Vostochny, Vanino, and Nakhodka. However, such super fleets are still rare.

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Sea Gigantomania

The European Commission predicts a 50% increase of container loads via sea routes from Asia and South America to the EU by 2030, in comparison with 2013. According to Siim Kallas, Vice President of the European Commission, responsible for mobility and transport, use of traditional vessels for transport of such volumes will create bottlenecks on some of the international routes. Therefore, it is hoped that use of the next generation of container carriers, capable of transporting up to 18,300 TEU will avoid creating such bottle­necks. If all containers, which can be carried by such Triple-E vessels, are loaded onto trucks, the length of this caravan will be the same as the length of the route from Rotterdam to Paris. Annually 200-300 such giant ships are built globally.
The use of floating skyscrapers, as stevedores call Triple-E, is profit­able for cargo owners, because it allows transporting freight on trans­oceanic routes with the minimum of expenses. “Large vessels use less fuel per 1 TEU and is less harmful to the environment,” said Richard Smith, Vice President for Global Transportations at Sears Holdings. The service of small container carriers is more expensive.

Lot of Advantages

At the same time, owners of next-generation container carriers are not ready to send them to all seaports. Except for the depth of moorings, a number of factors, including features of navigation channels, matter. The international operators demand hi-tech equipment guaranteeing rapid processing of the vessel’s cargo at moorings from stevedores. Also a lot of attention is paid to the existence of backloading terminals and railway tracks onto which it is possible to bring the consolidated container consignment. The possibility of a bunkering became one more factor attracting large-capacity fleet.
It creates additional incentives for the development of sea oil depots located in the Far East, – “RN-Nakhodkanefteprodukt” (Krabovaya bay) and “Transbunker” (Vanino port). It is extremely profitable for Russian Railways JSC as fuel on oil depots is brought in tank-cars. According to Stanislav Borisov, Director of RN-Trans, together with Freight One they had already organised a flow of empty cars from the station adjoining the Komsomolsky oil refinery (a part of Rosneft). The next stage for faster turnover of tank wagons is the organisation of ring routes. The production capacity of Komsomolsky Refinery is more than 7 million tons of oil products a year. Large container vessels create all the necessary conditions for the development of bunkering services and stimulate growth of freight turnover in the Far Eastern ports of Russia. Stevedores from Vanino and Nakhodka say that it also promotes diversification of their services: some years ago coal was the main freight, now high-yielding cargoes also arrive there.

Difficulties Happen

At the same time it is not easy to provide the necessary level of service for the next-generation container vessels. For example, the larger the ship, the more difficult it is to collect enough cargo for loading. However, according to Ken Miyoshi, Exe­cutive Director of Yusen Logistics Europe, this problem can be solved, through closer cooperation between ship-owners and forwarding agents. But it is necessary to do it in a way convenient for ship-owners. They have already begun to make corrections to their schedules and rotation of their services, adding new ports, where there is an opportunity to consolidate loads. This fact, by the way, is one of the reasons large-capacity container vessels are coming to the Russian Far Eastern ports.
However, recently, as Oleg Prokofiev, Deputy Director for Development and Marketing of Mortrans, remarks, there are additional risks which can reduce the attractiveness of the Russian terminals. One of them is the attitude of the Central Energetic Customs of Russia. Its Chief Pavel Strelnikov forbade road bunkering of the fleet in his telegram in August, 2013.
That is quite important for owners of large container carriers, because they can fuel in the Far East at anchorage. Otherwise it is necessary to create a special terminal for them. It is possible to do it in the Vanino port, but it requires both time and investment. Last year volumes of bunkering in the Far East fell. Because of that, the price of bunker fuel fell: if in November 2013 the average price of IFO-180 HS was $525 for a ton, in January 2014 it was $476.
The companies, bearing losses, complained to the Federal Antimonopoly Service of Russia. Accor­ding to Vitaly Kovalyov, President of Association of Fuelers, the antimonopoly department supported them, and said that customs in this case hadn’t paid attention to the possibility of customs monitoring of vessels at anchorage. Of course, customs can do it. But it can assist with turning fuel for the ship.
Further risks can arise, it will depend on what decisions will be made by the International Maritime Organisation (IMO). Now the questions of safety, arising during turning of large vessels, aren’t regulated in any special order. On the contrary, a maximum of privileges are created for this fleet. However the situation can change. In December 2013 one of the next-generation container carriers was involved in an accident. It became a reason for the acceptance of a special document setting out safety rules for container carriers containing more than 8,000 TEU. If the IMO work in the same direction, a choice of suitable terminals for large vessels can be reduced considerably.
There is no strategy in Russia to help ports to create conditions for the attraction of Triple-E vessels which in the nearest future will dominate on the international routes. Moreover, similar vessels will dictate a further development of technologies of shipping. In future these vessels will be serviced by the minimum of crew: the equipment, allowing remote control, is being developed already. Anyway the possibility of accepting similar vessels by ports is a question of competitiveness for national terminals.
By Andrey Lazarev

[~DETAIL_TEXT] =>

Sea Gigantomania

The European Commission predicts a 50% increase of container loads via sea routes from Asia and South America to the EU by 2030, in comparison with 2013. According to Siim Kallas, Vice President of the European Commission, responsible for mobility and transport, use of traditional vessels for transport of such volumes will create bottlenecks on some of the international routes. Therefore, it is hoped that use of the next generation of container carriers, capable of transporting up to 18,300 TEU will avoid creating such bottle­necks. If all containers, which can be carried by such Triple-E vessels, are loaded onto trucks, the length of this caravan will be the same as the length of the route from Rotterdam to Paris. Annually 200-300 such giant ships are built globally.
The use of floating skyscrapers, as stevedores call Triple-E, is profit­able for cargo owners, because it allows transporting freight on trans­oceanic routes with the minimum of expenses. “Large vessels use less fuel per 1 TEU and is less harmful to the environment,” said Richard Smith, Vice President for Global Transportations at Sears Holdings. The service of small container carriers is more expensive.

Lot of Advantages

At the same time, owners of next-generation container carriers are not ready to send them to all seaports. Except for the depth of moorings, a number of factors, including features of navigation channels, matter. The international operators demand hi-tech equipment guaranteeing rapid processing of the vessel’s cargo at moorings from stevedores. Also a lot of attention is paid to the existence of backloading terminals and railway tracks onto which it is possible to bring the consolidated container consignment. The possibility of a bunkering became one more factor attracting large-capacity fleet.
It creates additional incentives for the development of sea oil depots located in the Far East, – “RN-Nakhodkanefteprodukt” (Krabovaya bay) and “Transbunker” (Vanino port). It is extremely profitable for Russian Railways JSC as fuel on oil depots is brought in tank-cars. According to Stanislav Borisov, Director of RN-Trans, together with Freight One they had already organised a flow of empty cars from the station adjoining the Komsomolsky oil refinery (a part of Rosneft). The next stage for faster turnover of tank wagons is the organisation of ring routes. The production capacity of Komsomolsky Refinery is more than 7 million tons of oil products a year. Large container vessels create all the necessary conditions for the development of bunkering services and stimulate growth of freight turnover in the Far Eastern ports of Russia. Stevedores from Vanino and Nakhodka say that it also promotes diversification of their services: some years ago coal was the main freight, now high-yielding cargoes also arrive there.

Difficulties Happen

At the same time it is not easy to provide the necessary level of service for the next-generation container vessels. For example, the larger the ship, the more difficult it is to collect enough cargo for loading. However, according to Ken Miyoshi, Exe­cutive Director of Yusen Logistics Europe, this problem can be solved, through closer cooperation between ship-owners and forwarding agents. But it is necessary to do it in a way convenient for ship-owners. They have already begun to make corrections to their schedules and rotation of their services, adding new ports, where there is an opportunity to consolidate loads. This fact, by the way, is one of the reasons large-capacity container vessels are coming to the Russian Far Eastern ports.
However, recently, as Oleg Prokofiev, Deputy Director for Development and Marketing of Mortrans, remarks, there are additional risks which can reduce the attractiveness of the Russian terminals. One of them is the attitude of the Central Energetic Customs of Russia. Its Chief Pavel Strelnikov forbade road bunkering of the fleet in his telegram in August, 2013.
That is quite important for owners of large container carriers, because they can fuel in the Far East at anchorage. Otherwise it is necessary to create a special terminal for them. It is possible to do it in the Vanino port, but it requires both time and investment. Last year volumes of bunkering in the Far East fell. Because of that, the price of bunker fuel fell: if in November 2013 the average price of IFO-180 HS was $525 for a ton, in January 2014 it was $476.
The companies, bearing losses, complained to the Federal Antimonopoly Service of Russia. Accor­ding to Vitaly Kovalyov, President of Association of Fuelers, the antimonopoly department supported them, and said that customs in this case hadn’t paid attention to the possibility of customs monitoring of vessels at anchorage. Of course, customs can do it. But it can assist with turning fuel for the ship.
Further risks can arise, it will depend on what decisions will be made by the International Maritime Organisation (IMO). Now the questions of safety, arising during turning of large vessels, aren’t regulated in any special order. On the contrary, a maximum of privileges are created for this fleet. However the situation can change. In December 2013 one of the next-generation container carriers was involved in an accident. It became a reason for the acceptance of a special document setting out safety rules for container carriers containing more than 8,000 TEU. If the IMO work in the same direction, a choice of suitable terminals for large vessels can be reduced considerably.
There is no strategy in Russia to help ports to create conditions for the attraction of Triple-E vessels which in the nearest future will dominate on the international routes. Moreover, similar vessels will dictate a further development of technologies of shipping. In future these vessels will be serviced by the minimum of crew: the equipment, allowing remote control, is being developed already. Anyway the possibility of accepting similar vessels by ports is a question of competitiveness for national terminals.
By Andrey Lazarev

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The possibility of using next-generation container carriers – large vessels like Triple-E – is being discussed now. Recently they began to come into the Russian ports – Vostochny, Vanino, and Nakhodka. However, such super fleets are still rare.

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The possibility of using next-generation container carriers – large vessels like Triple-E – is being discussed now. Recently they began to come into the Russian ports – Vostochny, Vanino, and Nakhodka. However, such super fleets are still rare.

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Sea Gigantomania

The European Commission predicts a 50% increase of container loads via sea routes from Asia and South America to the EU by 2030, in comparison with 2013. According to Siim Kallas, Vice President of the European Commission, responsible for mobility and transport, use of traditional vessels for transport of such volumes will create bottlenecks on some of the international routes. Therefore, it is hoped that use of the next generation of container carriers, capable of transporting up to 18,300 TEU will avoid creating such bottle­necks. If all containers, which can be carried by such Triple-E vessels, are loaded onto trucks, the length of this caravan will be the same as the length of the route from Rotterdam to Paris. Annually 200-300 such giant ships are built globally.
The use of floating skyscrapers, as stevedores call Triple-E, is profit­able for cargo owners, because it allows transporting freight on trans­oceanic routes with the minimum of expenses. “Large vessels use less fuel per 1 TEU and is less harmful to the environment,” said Richard Smith, Vice President for Global Transportations at Sears Holdings. The service of small container carriers is more expensive.

Lot of Advantages

At the same time, owners of next-generation container carriers are not ready to send them to all seaports. Except for the depth of moorings, a number of factors, including features of navigation channels, matter. The international operators demand hi-tech equipment guaranteeing rapid processing of the vessel’s cargo at moorings from stevedores. Also a lot of attention is paid to the existence of backloading terminals and railway tracks onto which it is possible to bring the consolidated container consignment. The possibility of a bunkering became one more factor attracting large-capacity fleet.
It creates additional incentives for the development of sea oil depots located in the Far East, – “RN-Nakhodkanefteprodukt” (Krabovaya bay) and “Transbunker” (Vanino port). It is extremely profitable for Russian Railways JSC as fuel on oil depots is brought in tank-cars. According to Stanislav Borisov, Director of RN-Trans, together with Freight One they had already organised a flow of empty cars from the station adjoining the Komsomolsky oil refinery (a part of Rosneft). The next stage for faster turnover of tank wagons is the organisation of ring routes. The production capacity of Komsomolsky Refinery is more than 7 million tons of oil products a year. Large container vessels create all the necessary conditions for the development of bunkering services and stimulate growth of freight turnover in the Far Eastern ports of Russia. Stevedores from Vanino and Nakhodka say that it also promotes diversification of their services: some years ago coal was the main freight, now high-yielding cargoes also arrive there.

Difficulties Happen

At the same time it is not easy to provide the necessary level of service for the next-generation container vessels. For example, the larger the ship, the more difficult it is to collect enough cargo for loading. However, according to Ken Miyoshi, Exe­cutive Director of Yusen Logistics Europe, this problem can be solved, through closer cooperation between ship-owners and forwarding agents. But it is necessary to do it in a way convenient for ship-owners. They have already begun to make corrections to their schedules and rotation of their services, adding new ports, where there is an opportunity to consolidate loads. This fact, by the way, is one of the reasons large-capacity container vessels are coming to the Russian Far Eastern ports.
However, recently, as Oleg Prokofiev, Deputy Director for Development and Marketing of Mortrans, remarks, there are additional risks which can reduce the attractiveness of the Russian terminals. One of them is the attitude of the Central Energetic Customs of Russia. Its Chief Pavel Strelnikov forbade road bunkering of the fleet in his telegram in August, 2013.
That is quite important for owners of large container carriers, because they can fuel in the Far East at anchorage. Otherwise it is necessary to create a special terminal for them. It is possible to do it in the Vanino port, but it requires both time and investment. Last year volumes of bunkering in the Far East fell. Because of that, the price of bunker fuel fell: if in November 2013 the average price of IFO-180 HS was $525 for a ton, in January 2014 it was $476.
The companies, bearing losses, complained to the Federal Antimonopoly Service of Russia. Accor­ding to Vitaly Kovalyov, President of Association of Fuelers, the antimonopoly department supported them, and said that customs in this case hadn’t paid attention to the possibility of customs monitoring of vessels at anchorage. Of course, customs can do it. But it can assist with turning fuel for the ship.
Further risks can arise, it will depend on what decisions will be made by the International Maritime Organisation (IMO). Now the questions of safety, arising during turning of large vessels, aren’t regulated in any special order. On the contrary, a maximum of privileges are created for this fleet. However the situation can change. In December 2013 one of the next-generation container carriers was involved in an accident. It became a reason for the acceptance of a special document setting out safety rules for container carriers containing more than 8,000 TEU. If the IMO work in the same direction, a choice of suitable terminals for large vessels can be reduced considerably.
There is no strategy in Russia to help ports to create conditions for the attraction of Triple-E vessels which in the nearest future will dominate on the international routes. Moreover, similar vessels will dictate a further development of technologies of shipping. In future these vessels will be serviced by the minimum of crew: the equipment, allowing remote control, is being developed already. Anyway the possibility of accepting similar vessels by ports is a question of competitiveness for national terminals.
By Andrey Lazarev

[~DETAIL_TEXT] =>

Sea Gigantomania

The European Commission predicts a 50% increase of container loads via sea routes from Asia and South America to the EU by 2030, in comparison with 2013. According to Siim Kallas, Vice President of the European Commission, responsible for mobility and transport, use of traditional vessels for transport of such volumes will create bottlenecks on some of the international routes. Therefore, it is hoped that use of the next generation of container carriers, capable of transporting up to 18,300 TEU will avoid creating such bottle­necks. If all containers, which can be carried by such Triple-E vessels, are loaded onto trucks, the length of this caravan will be the same as the length of the route from Rotterdam to Paris. Annually 200-300 such giant ships are built globally.
The use of floating skyscrapers, as stevedores call Triple-E, is profit­able for cargo owners, because it allows transporting freight on trans­oceanic routes with the minimum of expenses. “Large vessels use less fuel per 1 TEU and is less harmful to the environment,” said Richard Smith, Vice President for Global Transportations at Sears Holdings. The service of small container carriers is more expensive.

Lot of Advantages

At the same time, owners of next-generation container carriers are not ready to send them to all seaports. Except for the depth of moorings, a number of factors, including features of navigation channels, matter. The international operators demand hi-tech equipment guaranteeing rapid processing of the vessel’s cargo at moorings from stevedores. Also a lot of attention is paid to the existence of backloading terminals and railway tracks onto which it is possible to bring the consolidated container consignment. The possibility of a bunkering became one more factor attracting large-capacity fleet.
It creates additional incentives for the development of sea oil depots located in the Far East, – “RN-Nakhodkanefteprodukt” (Krabovaya bay) and “Transbunker” (Vanino port). It is extremely profitable for Russian Railways JSC as fuel on oil depots is brought in tank-cars. According to Stanislav Borisov, Director of RN-Trans, together with Freight One they had already organised a flow of empty cars from the station adjoining the Komsomolsky oil refinery (a part of Rosneft). The next stage for faster turnover of tank wagons is the organisation of ring routes. The production capacity of Komsomolsky Refinery is more than 7 million tons of oil products a year. Large container vessels create all the necessary conditions for the development of bunkering services and stimulate growth of freight turnover in the Far Eastern ports of Russia. Stevedores from Vanino and Nakhodka say that it also promotes diversification of their services: some years ago coal was the main freight, now high-yielding cargoes also arrive there.

Difficulties Happen

At the same time it is not easy to provide the necessary level of service for the next-generation container vessels. For example, the larger the ship, the more difficult it is to collect enough cargo for loading. However, according to Ken Miyoshi, Exe­cutive Director of Yusen Logistics Europe, this problem can be solved, through closer cooperation between ship-owners and forwarding agents. But it is necessary to do it in a way convenient for ship-owners. They have already begun to make corrections to their schedules and rotation of their services, adding new ports, where there is an opportunity to consolidate loads. This fact, by the way, is one of the reasons large-capacity container vessels are coming to the Russian Far Eastern ports.
However, recently, as Oleg Prokofiev, Deputy Director for Development and Marketing of Mortrans, remarks, there are additional risks which can reduce the attractiveness of the Russian terminals. One of them is the attitude of the Central Energetic Customs of Russia. Its Chief Pavel Strelnikov forbade road bunkering of the fleet in his telegram in August, 2013.
That is quite important for owners of large container carriers, because they can fuel in the Far East at anchorage. Otherwise it is necessary to create a special terminal for them. It is possible to do it in the Vanino port, but it requires both time and investment. Last year volumes of bunkering in the Far East fell. Because of that, the price of bunker fuel fell: if in November 2013 the average price of IFO-180 HS was $525 for a ton, in January 2014 it was $476.
The companies, bearing losses, complained to the Federal Antimonopoly Service of Russia. Accor­ding to Vitaly Kovalyov, President of Association of Fuelers, the antimonopoly department supported them, and said that customs in this case hadn’t paid attention to the possibility of customs monitoring of vessels at anchorage. Of course, customs can do it. But it can assist with turning fuel for the ship.
Further risks can arise, it will depend on what decisions will be made by the International Maritime Organisation (IMO). Now the questions of safety, arising during turning of large vessels, aren’t regulated in any special order. On the contrary, a maximum of privileges are created for this fleet. However the situation can change. In December 2013 one of the next-generation container carriers was involved in an accident. It became a reason for the acceptance of a special document setting out safety rules for container carriers containing more than 8,000 TEU. If the IMO work in the same direction, a choice of suitable terminals for large vessels can be reduced considerably.
There is no strategy in Russia to help ports to create conditions for the attraction of Triple-E vessels which in the nearest future will dominate on the international routes. Moreover, similar vessels will dictate a further development of technologies of shipping. In future these vessels will be serviced by the minimum of crew: the equipment, allowing remote control, is being developed already. Anyway the possibility of accepting similar vessels by ports is a question of competitiveness for national terminals.
By Andrey Lazarev

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The possibility of using next-generation container carriers – large vessels like Triple-E – is being discussed now. Recently they began to come into the Russian ports – Vostochny, Vanino, and Nakhodka. However, such super fleets are still rare.

[~PREVIEW_TEXT] =>

The possibility of using next-generation container carriers – large vessels like Triple-E – is being discussed now. Recently they began to come into the Russian ports – Vostochny, Vanino, and Nakhodka. However, such super fleets are still rare.

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РЖД-Партнер

Paperwork...Seriously?

Paperwork...Seriously?

It drains your time, your resources and your money. Let us take all the companies on the planet – daily all together, they print about 3 trillion papers, it means – about 15 million tons of paper are spent every year for their work matters. Do you know that the weight of the Burj Khalifa in Dubai is 500 thousand tons? It means that all the printed documents every year weighs thirty times more than the tallest man-made structure ever built.

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Reliable or Easier?

The Enterprise Content Management market is growing annually by 8%. According to Gartner, the American information technology research and advisory firm, it will grow by 10.1% by the end of this year and will be $5.7 billion. Russia stands out from the crowd – its market for software is growing by 15%, and in the field of electronic management systems – by 23% per year. That is nearly 4 times more than the global total.
Anyway, there are not many completely paperless companies in the world nowadays. So according the latest research from XEROX Company, the percentage of people who still need printing is threefold higher than those who try not to print. According to the latest research by Generix Group, 65% of French denounced the overabundance of papers in their daily lives and 45% of the polled employees judge that their company does not have sufficient use of electronic documentation. Almost the same situation as in Russia.
Prime Minister of Russia Dmitry Medvedev noticed, the process of getting e-signatures – the key link for an electronic management process – looks “bitter” today, as you need at first to buy it for $30. Russian law formalising e-signatures was signed in 2011, but it is based on the obsolete IT-research of the 1980s and is hard to understand. It is stated that a person who wishes to have e-signature has to keep two USB-flash cards with secret codes. Keys should be taken to a special center. And while putting e-signature on a document, the person should approve and protect it with one of his codes.
In the USA, for example, a person can use e-signature without any problems – just put it under the information he agrees with. It is legal. And if something is wrong and the matter goes to court, the court will have to check e-mail messages, the IP-address, login, password to find the truth. For sure, the Russian way is more reliable, but can’t the secret USB-flash cards just be stolen?
Experts offer easier solutions to protect the information. The best one is e-mail verification, because only the person who gets the link to the document in his own post, can sign it. IP-address verification is also a great solution. More time-consuming options such as verification by video-connection or phone can also be used.
Despite such a difficult procedure, four out of five Russian companies use e-signature for their tax returns and all the companies working with government purchases also use this technology. Moreover, by the end of this year government promises to approve the law about e-stamps.

E-Logistics

While Russia with its IT-innovations stays little bit aside, the trend is that in Europe and the USA, where green logistics matters, more and more companies are trying to decrease the loss of natural resources and turn their attention to the latest innovations in the IT-sphere. Now there are many of them on the market available for all the platforms: iPad, iPhone, Android, Blackberry, Windows Phone and common Desktop. Experts say, that as soon as you implement electronic document circulation in a company, all the benefits will become obvious. Email, export, e-sign all of your data and more. Only using mobile apps you are able, for example, to do barcode scanning, which can help quickly look up inventory or equipment and can be useful for running a warehouse.
Another function that can save the time for all workers is integration. Usually customers frequently request copies of documents such as receipts and invoices. With mobile apps for your business no longer do customers need to call or send an email to receive a copy – they don’t have to spend time locating and sending the document. Both parties have access to the data and can retrieve it whenever they wish. Can paper forms do this?
“We have a variety of apps for logistics and transportation. These are great for increasing efficiency and productivity while elimina­ting information gaps and costs that companies often incur due to using paper forms for their work circulation and processes”, says Jason Peck, head of the marketing team at Canvas, a cloud-based software service. Let’s discuss just few of them.

Vehicle Inspection Forms

This mobile application provides a form for vehicle pre-trips, inspections and safety checks. This very thorough and extensive inspection business app makes sure the end-user does all the necessary inspections and repairs before giving the vehicle back to the owner. All basic details of the owner are recorded, vehicle information, drivers controls, body integrity check, undercarriage check, brake check, engine compartment check, pressure fuel, lighting and electric, additional material checks, and inspection results. The end-user can fill in specifics or choose from a drop down menu of “failed”, “repaired”, or “passed” inspection. Signature capture is also offered with this application.
Jason Peck: This is a great app for evaluating and inspecting vehicles before sending them out on a trip. The great thing about having this app is that a business could require that certain parts or areas of the vehicle be inspected. If the organisation is using paper forms for this, there is a chance the person doing the inspection could skip required fields and provide incomplete information, but with the mobile app, this can’t happen

Bill of Lading

For shippers and carriers, the bill of lading is an essential document. Whether you’re sending your pro­ducts 100 miles or 5,000, the bill of lading form will help get them there. It includes contact information for shipper, recipient, third party billing, and carrier, and itemised lists for both the customer’s order and the carrier’s tracking information. It also includes information on loading and billing.
Jason Peck: This is an essential app to help provide proof of shipment and receipt and to help aid in the logistics of delivering products. Having a mobile version of this form is ideal, so lost or mis-interpreted paper forms are never the cause of errors with shipment or delivery.

Simple Gas Log

Whether you have a single company car or a fleet of delivery trucks, you need to know how much you’re spending on gas. Fuel spending is easy to track with the gas log. The simple version has the license number at the top as well as an itemised transaction list that includes fields for the date, current mileage, amount spent, gallons purchased, and price per gallon.
Jason Peck: Whether an organisation has a single truck or vehicle or an entire fleet, it’s important to track spending on gas/fuel. This app will track this so a business can see exactly how much is being spent.

Drivers Daily Log

An application used for keeping a daily driver’s log. This application can be customised so that all the necessary information is kept for any delivery or freight driver. It is perfect for both private company fleets and freight companies, this will make the lives easier for the drivers and the vehicle inspectors. Forms include tracking for driver information, hours of work, mileage, pre-inspection, post-inspection, and delivery details. Every little detail that is involved with the logistics of delivery is incorporated into this application. Because the driver is required to sign off on the inspection of the entire truck, this is an inexpensive way to maintain the integrity of goods and company assets.
Jason Peck: This is a great app for freight drivers and vehicle inspectors, as it makes it easy to track things like driver information, hours of work, mileage, pre-inspection and post-inspection details and delivery information. This app can help a business track company vehicle usage and driver utilisation in order to optimise operational efficiency.
RZD-Partner Publishing House
supports GREEN LOGISTIC. iPad version of the magazine is coming soon!

[~DETAIL_TEXT] =>

Reliable or Easier?

The Enterprise Content Management market is growing annually by 8%. According to Gartner, the American information technology research and advisory firm, it will grow by 10.1% by the end of this year and will be $5.7 billion. Russia stands out from the crowd – its market for software is growing by 15%, and in the field of electronic management systems – by 23% per year. That is nearly 4 times more than the global total.
Anyway, there are not many completely paperless companies in the world nowadays. So according the latest research from XEROX Company, the percentage of people who still need printing is threefold higher than those who try not to print. According to the latest research by Generix Group, 65% of French denounced the overabundance of papers in their daily lives and 45% of the polled employees judge that their company does not have sufficient use of electronic documentation. Almost the same situation as in Russia.
Prime Minister of Russia Dmitry Medvedev noticed, the process of getting e-signatures – the key link for an electronic management process – looks “bitter” today, as you need at first to buy it for $30. Russian law formalising e-signatures was signed in 2011, but it is based on the obsolete IT-research of the 1980s and is hard to understand. It is stated that a person who wishes to have e-signature has to keep two USB-flash cards with secret codes. Keys should be taken to a special center. And while putting e-signature on a document, the person should approve and protect it with one of his codes.
In the USA, for example, a person can use e-signature without any problems – just put it under the information he agrees with. It is legal. And if something is wrong and the matter goes to court, the court will have to check e-mail messages, the IP-address, login, password to find the truth. For sure, the Russian way is more reliable, but can’t the secret USB-flash cards just be stolen?
Experts offer easier solutions to protect the information. The best one is e-mail verification, because only the person who gets the link to the document in his own post, can sign it. IP-address verification is also a great solution. More time-consuming options such as verification by video-connection or phone can also be used.
Despite such a difficult procedure, four out of five Russian companies use e-signature for their tax returns and all the companies working with government purchases also use this technology. Moreover, by the end of this year government promises to approve the law about e-stamps.

E-Logistics

While Russia with its IT-innovations stays little bit aside, the trend is that in Europe and the USA, where green logistics matters, more and more companies are trying to decrease the loss of natural resources and turn their attention to the latest innovations in the IT-sphere. Now there are many of them on the market available for all the platforms: iPad, iPhone, Android, Blackberry, Windows Phone and common Desktop. Experts say, that as soon as you implement electronic document circulation in a company, all the benefits will become obvious. Email, export, e-sign all of your data and more. Only using mobile apps you are able, for example, to do barcode scanning, which can help quickly look up inventory or equipment and can be useful for running a warehouse.
Another function that can save the time for all workers is integration. Usually customers frequently request copies of documents such as receipts and invoices. With mobile apps for your business no longer do customers need to call or send an email to receive a copy – they don’t have to spend time locating and sending the document. Both parties have access to the data and can retrieve it whenever they wish. Can paper forms do this?
“We have a variety of apps for logistics and transportation. These are great for increasing efficiency and productivity while elimina­ting information gaps and costs that companies often incur due to using paper forms for their work circulation and processes”, says Jason Peck, head of the marketing team at Canvas, a cloud-based software service. Let’s discuss just few of them.

Vehicle Inspection Forms

This mobile application provides a form for vehicle pre-trips, inspections and safety checks. This very thorough and extensive inspection business app makes sure the end-user does all the necessary inspections and repairs before giving the vehicle back to the owner. All basic details of the owner are recorded, vehicle information, drivers controls, body integrity check, undercarriage check, brake check, engine compartment check, pressure fuel, lighting and electric, additional material checks, and inspection results. The end-user can fill in specifics or choose from a drop down menu of “failed”, “repaired”, or “passed” inspection. Signature capture is also offered with this application.
Jason Peck: This is a great app for evaluating and inspecting vehicles before sending them out on a trip. The great thing about having this app is that a business could require that certain parts or areas of the vehicle be inspected. If the organisation is using paper forms for this, there is a chance the person doing the inspection could skip required fields and provide incomplete information, but with the mobile app, this can’t happen

Bill of Lading

For shippers and carriers, the bill of lading is an essential document. Whether you’re sending your pro­ducts 100 miles or 5,000, the bill of lading form will help get them there. It includes contact information for shipper, recipient, third party billing, and carrier, and itemised lists for both the customer’s order and the carrier’s tracking information. It also includes information on loading and billing.
Jason Peck: This is an essential app to help provide proof of shipment and receipt and to help aid in the logistics of delivering products. Having a mobile version of this form is ideal, so lost or mis-interpreted paper forms are never the cause of errors with shipment or delivery.

Simple Gas Log

Whether you have a single company car or a fleet of delivery trucks, you need to know how much you’re spending on gas. Fuel spending is easy to track with the gas log. The simple version has the license number at the top as well as an itemised transaction list that includes fields for the date, current mileage, amount spent, gallons purchased, and price per gallon.
Jason Peck: Whether an organisation has a single truck or vehicle or an entire fleet, it’s important to track spending on gas/fuel. This app will track this so a business can see exactly how much is being spent.

Drivers Daily Log

An application used for keeping a daily driver’s log. This application can be customised so that all the necessary information is kept for any delivery or freight driver. It is perfect for both private company fleets and freight companies, this will make the lives easier for the drivers and the vehicle inspectors. Forms include tracking for driver information, hours of work, mileage, pre-inspection, post-inspection, and delivery details. Every little detail that is involved with the logistics of delivery is incorporated into this application. Because the driver is required to sign off on the inspection of the entire truck, this is an inexpensive way to maintain the integrity of goods and company assets.
Jason Peck: This is a great app for freight drivers and vehicle inspectors, as it makes it easy to track things like driver information, hours of work, mileage, pre-inspection and post-inspection details and delivery information. This app can help a business track company vehicle usage and driver utilisation in order to optimise operational efficiency.
RZD-Partner Publishing House
supports GREEN LOGISTIC. iPad version of the magazine is coming soon!

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It drains your time, your resources and your money. Let us take all the companies on the planet – daily all together, they print about 3 trillion papers, it means – about 15 million tons of paper are spent every year for their work matters. Do you know that the weight of the Burj Khalifa in Dubai is 500 thousand tons? It means that all the printed documents every year weighs thirty times more than the tallest man-made structure ever built.

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It drains your time, your resources and your money. Let us take all the companies on the planet – daily all together, they print about 3 trillion papers, it means – about 15 million tons of paper are spent every year for their work matters. Do you know that the weight of the Burj Khalifa in Dubai is 500 thousand tons? It means that all the printed documents every year weighs thirty times more than the tallest man-made structure ever built.

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Reliable or Easier?

The Enterprise Content Management market is growing annually by 8%. According to Gartner, the American information technology research and advisory firm, it will grow by 10.1% by the end of this year and will be $5.7 billion. Russia stands out from the crowd – its market for software is growing by 15%, and in the field of electronic management systems – by 23% per year. That is nearly 4 times more than the global total.
Anyway, there are not many completely paperless companies in the world nowadays. So according the latest research from XEROX Company, the percentage of people who still need printing is threefold higher than those who try not to print. According to the latest research by Generix Group, 65% of French denounced the overabundance of papers in their daily lives and 45% of the polled employees judge that their company does not have sufficient use of electronic documentation. Almost the same situation as in Russia.
Prime Minister of Russia Dmitry Medvedev noticed, the process of getting e-signatures – the key link for an electronic management process – looks “bitter” today, as you need at first to buy it for $30. Russian law formalising e-signatures was signed in 2011, but it is based on the obsolete IT-research of the 1980s and is hard to understand. It is stated that a person who wishes to have e-signature has to keep two USB-flash cards with secret codes. Keys should be taken to a special center. And while putting e-signature on a document, the person should approve and protect it with one of his codes.
In the USA, for example, a person can use e-signature without any problems – just put it under the information he agrees with. It is legal. And if something is wrong and the matter goes to court, the court will have to check e-mail messages, the IP-address, login, password to find the truth. For sure, the Russian way is more reliable, but can’t the secret USB-flash cards just be stolen?
Experts offer easier solutions to protect the information. The best one is e-mail verification, because only the person who gets the link to the document in his own post, can sign it. IP-address verification is also a great solution. More time-consuming options such as verification by video-connection or phone can also be used.
Despite such a difficult procedure, four out of five Russian companies use e-signature for their tax returns and all the companies working with government purchases also use this technology. Moreover, by the end of this year government promises to approve the law about e-stamps.

E-Logistics

While Russia with its IT-innovations stays little bit aside, the trend is that in Europe and the USA, where green logistics matters, more and more companies are trying to decrease the loss of natural resources and turn their attention to the latest innovations in the IT-sphere. Now there are many of them on the market available for all the platforms: iPad, iPhone, Android, Blackberry, Windows Phone and common Desktop. Experts say, that as soon as you implement electronic document circulation in a company, all the benefits will become obvious. Email, export, e-sign all of your data and more. Only using mobile apps you are able, for example, to do barcode scanning, which can help quickly look up inventory or equipment and can be useful for running a warehouse.
Another function that can save the time for all workers is integration. Usually customers frequently request copies of documents such as receipts and invoices. With mobile apps for your business no longer do customers need to call or send an email to receive a copy – they don’t have to spend time locating and sending the document. Both parties have access to the data and can retrieve it whenever they wish. Can paper forms do this?
“We have a variety of apps for logistics and transportation. These are great for increasing efficiency and productivity while elimina­ting information gaps and costs that companies often incur due to using paper forms for their work circulation and processes”, says Jason Peck, head of the marketing team at Canvas, a cloud-based software service. Let’s discuss just few of them.

Vehicle Inspection Forms

This mobile application provides a form for vehicle pre-trips, inspections and safety checks. This very thorough and extensive inspection business app makes sure the end-user does all the necessary inspections and repairs before giving the vehicle back to the owner. All basic details of the owner are recorded, vehicle information, drivers controls, body integrity check, undercarriage check, brake check, engine compartment check, pressure fuel, lighting and electric, additional material checks, and inspection results. The end-user can fill in specifics or choose from a drop down menu of “failed”, “repaired”, or “passed” inspection. Signature capture is also offered with this application.
Jason Peck: This is a great app for evaluating and inspecting vehicles before sending them out on a trip. The great thing about having this app is that a business could require that certain parts or areas of the vehicle be inspected. If the organisation is using paper forms for this, there is a chance the person doing the inspection could skip required fields and provide incomplete information, but with the mobile app, this can’t happen

Bill of Lading

For shippers and carriers, the bill of lading is an essential document. Whether you’re sending your pro­ducts 100 miles or 5,000, the bill of lading form will help get them there. It includes contact information for shipper, recipient, third party billing, and carrier, and itemised lists for both the customer’s order and the carrier’s tracking information. It also includes information on loading and billing.
Jason Peck: This is an essential app to help provide proof of shipment and receipt and to help aid in the logistics of delivering products. Having a mobile version of this form is ideal, so lost or mis-interpreted paper forms are never the cause of errors with shipment or delivery.

Simple Gas Log

Whether you have a single company car or a fleet of delivery trucks, you need to know how much you’re spending on gas. Fuel spending is easy to track with the gas log. The simple version has the license number at the top as well as an itemised transaction list that includes fields for the date, current mileage, amount spent, gallons purchased, and price per gallon.
Jason Peck: Whether an organisation has a single truck or vehicle or an entire fleet, it’s important to track spending on gas/fuel. This app will track this so a business can see exactly how much is being spent.

Drivers Daily Log

An application used for keeping a daily driver’s log. This application can be customised so that all the necessary information is kept for any delivery or freight driver. It is perfect for both private company fleets and freight companies, this will make the lives easier for the drivers and the vehicle inspectors. Forms include tracking for driver information, hours of work, mileage, pre-inspection, post-inspection, and delivery details. Every little detail that is involved with the logistics of delivery is incorporated into this application. Because the driver is required to sign off on the inspection of the entire truck, this is an inexpensive way to maintain the integrity of goods and company assets.
Jason Peck: This is a great app for freight drivers and vehicle inspectors, as it makes it easy to track things like driver information, hours of work, mileage, pre-inspection and post-inspection details and delivery information. This app can help a business track company vehicle usage and driver utilisation in order to optimise operational efficiency.
RZD-Partner Publishing House
supports GREEN LOGISTIC. iPad version of the magazine is coming soon!

[~DETAIL_TEXT] =>

Reliable or Easier?

The Enterprise Content Management market is growing annually by 8%. According to Gartner, the American information technology research and advisory firm, it will grow by 10.1% by the end of this year and will be $5.7 billion. Russia stands out from the crowd – its market for software is growing by 15%, and in the field of electronic management systems – by 23% per year. That is nearly 4 times more than the global total.
Anyway, there are not many completely paperless companies in the world nowadays. So according the latest research from XEROX Company, the percentage of people who still need printing is threefold higher than those who try not to print. According to the latest research by Generix Group, 65% of French denounced the overabundance of papers in their daily lives and 45% of the polled employees judge that their company does not have sufficient use of electronic documentation. Almost the same situation as in Russia.
Prime Minister of Russia Dmitry Medvedev noticed, the process of getting e-signatures – the key link for an electronic management process – looks “bitter” today, as you need at first to buy it for $30. Russian law formalising e-signatures was signed in 2011, but it is based on the obsolete IT-research of the 1980s and is hard to understand. It is stated that a person who wishes to have e-signature has to keep two USB-flash cards with secret codes. Keys should be taken to a special center. And while putting e-signature on a document, the person should approve and protect it with one of his codes.
In the USA, for example, a person can use e-signature without any problems – just put it under the information he agrees with. It is legal. And if something is wrong and the matter goes to court, the court will have to check e-mail messages, the IP-address, login, password to find the truth. For sure, the Russian way is more reliable, but can’t the secret USB-flash cards just be stolen?
Experts offer easier solutions to protect the information. The best one is e-mail verification, because only the person who gets the link to the document in his own post, can sign it. IP-address verification is also a great solution. More time-consuming options such as verification by video-connection or phone can also be used.
Despite such a difficult procedure, four out of five Russian companies use e-signature for their tax returns and all the companies working with government purchases also use this technology. Moreover, by the end of this year government promises to approve the law about e-stamps.

E-Logistics

While Russia with its IT-innovations stays little bit aside, the trend is that in Europe and the USA, where green logistics matters, more and more companies are trying to decrease the loss of natural resources and turn their attention to the latest innovations in the IT-sphere. Now there are many of them on the market available for all the platforms: iPad, iPhone, Android, Blackberry, Windows Phone and common Desktop. Experts say, that as soon as you implement electronic document circulation in a company, all the benefits will become obvious. Email, export, e-sign all of your data and more. Only using mobile apps you are able, for example, to do barcode scanning, which can help quickly look up inventory or equipment and can be useful for running a warehouse.
Another function that can save the time for all workers is integration. Usually customers frequently request copies of documents such as receipts and invoices. With mobile apps for your business no longer do customers need to call or send an email to receive a copy – they don’t have to spend time locating and sending the document. Both parties have access to the data and can retrieve it whenever they wish. Can paper forms do this?
“We have a variety of apps for logistics and transportation. These are great for increasing efficiency and productivity while elimina­ting information gaps and costs that companies often incur due to using paper forms for their work circulation and processes”, says Jason Peck, head of the marketing team at Canvas, a cloud-based software service. Let’s discuss just few of them.

Vehicle Inspection Forms

This mobile application provides a form for vehicle pre-trips, inspections and safety checks. This very thorough and extensive inspection business app makes sure the end-user does all the necessary inspections and repairs before giving the vehicle back to the owner. All basic details of the owner are recorded, vehicle information, drivers controls, body integrity check, undercarriage check, brake check, engine compartment check, pressure fuel, lighting and electric, additional material checks, and inspection results. The end-user can fill in specifics or choose from a drop down menu of “failed”, “repaired”, or “passed” inspection. Signature capture is also offered with this application.
Jason Peck: This is a great app for evaluating and inspecting vehicles before sending them out on a trip. The great thing about having this app is that a business could require that certain parts or areas of the vehicle be inspected. If the organisation is using paper forms for this, there is a chance the person doing the inspection could skip required fields and provide incomplete information, but with the mobile app, this can’t happen

Bill of Lading

For shippers and carriers, the bill of lading is an essential document. Whether you’re sending your pro­ducts 100 miles or 5,000, the bill of lading form will help get them there. It includes contact information for shipper, recipient, third party billing, and carrier, and itemised lists for both the customer’s order and the carrier’s tracking information. It also includes information on loading and billing.
Jason Peck: This is an essential app to help provide proof of shipment and receipt and to help aid in the logistics of delivering products. Having a mobile version of this form is ideal, so lost or mis-interpreted paper forms are never the cause of errors with shipment or delivery.

Simple Gas Log

Whether you have a single company car or a fleet of delivery trucks, you need to know how much you’re spending on gas. Fuel spending is easy to track with the gas log. The simple version has the license number at the top as well as an itemised transaction list that includes fields for the date, current mileage, amount spent, gallons purchased, and price per gallon.
Jason Peck: Whether an organisation has a single truck or vehicle or an entire fleet, it’s important to track spending on gas/fuel. This app will track this so a business can see exactly how much is being spent.

Drivers Daily Log

An application used for keeping a daily driver’s log. This application can be customised so that all the necessary information is kept for any delivery or freight driver. It is perfect for both private company fleets and freight companies, this will make the lives easier for the drivers and the vehicle inspectors. Forms include tracking for driver information, hours of work, mileage, pre-inspection, post-inspection, and delivery details. Every little detail that is involved with the logistics of delivery is incorporated into this application. Because the driver is required to sign off on the inspection of the entire truck, this is an inexpensive way to maintain the integrity of goods and company assets.
Jason Peck: This is a great app for freight drivers and vehicle inspectors, as it makes it easy to track things like driver information, hours of work, mileage, pre-inspection and post-inspection details and delivery information. This app can help a business track company vehicle usage and driver utilisation in order to optimise operational efficiency.
RZD-Partner Publishing House
supports GREEN LOGISTIC. iPad version of the magazine is coming soon!

[DETAIL_TEXT_TYPE] => html [~DETAIL_TEXT_TYPE] => html [PREVIEW_TEXT] =>

It drains your time, your resources and your money. Let us take all the companies on the planet – daily all together, they print about 3 trillion papers, it means – about 15 million tons of paper are spent every year for their work matters. Do you know that the weight of the Burj Khalifa in Dubai is 500 thousand tons? It means that all the printed documents every year weighs thirty times more than the tallest man-made structure ever built.

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It drains your time, your resources and your money. Let us take all the companies on the planet – daily all together, they print about 3 trillion papers, it means – about 15 million tons of paper are spent every year for their work matters. Do you know that the weight of the Burj Khalifa in Dubai is 500 thousand tons? It means that all the printed documents every year weighs thirty times more than the tallest man-made structure ever built.

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РЖД-Партнер

Will the Russian logistics Rise to the Clouds?

Will the Russian logistics Rise to the Clouds?

At the end of last year IBM published an annual Five in Five forecast, which says that cloud technologies will get into all business areas in the near future. Logistics will be no exception, and there are new services appearing right now that are able to solve the most acute of the industry problems. Kirill Vlasov, Log4pro project supervisor, Chairman of Directors at STS Logistics and Co-Chairman of the Russian Regional Group of the BVL National Association of Logistic Operators of Germany, tells us what the future of logistics in Russia may look like.

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New Thinking

–  Mr Vlasov, are cloud solutions being implemented in transport logistics in Russia?

– Cloud solutions are a very young market which is still less than 5 years old but some advanced technologies are already being implemented in the U.S., Europe and Brazil. In Russia and the CIS countries, this business sector is almost empty. The expansion of similar western products is unlikely here, since the transportation patterns used in Russia are drastically
different from American and European ones.

– What do the cloud technologies need to become popular?

– Two years ago German professionals argued to me that cloud technologies would not catch on in logistics as cargo transportation is a business based on trust. People used to sit down for talks, get acquainted, there was a spark of chemistry, they signed contracts and only then a partnership began. It was difficult even to imagine entrusting your cargo to a company that you have never met “face to face”.  Well, everything changes. Consider eBay for example. We used to buy books, CDs, then clothes from them, and now more than 10,000 new and used cars are sold every month at this site. People start to think differently and then act differently.

– In Russia as well?

– I’m sure that at most in 5 years there will be solutions in Russia we could not even dream of before. Right now leading European companies are developing a concept of crowdsourcing logistics for package cargo. For instance, a student travelling the same route every day subscribes to deliver small packages to destinations along his route. He enters the cloud, takes an order, exe­cutes it without any extra effort (everything is done on his way to the University) and earns a little bit. The cost of such a delivery is many times lower then of the courier delivery.

Problem Issues

– What do you think are the main problems of Russian logistics?

– The truth is that it is based on truck delivery, and this market consists of hundreds of thousands of players of various size – large corporations, small companies and individual entrepreneurs. New companies are constantly arriving that want to make some money but are not ready to abide by the law. So the main problem of Russian logistics is the unreliability of truck deliveries. There are quite a few operators who actually evade taxes; some operators are not ready to process documents carefully and correctly and to handle steadily a large amount of cargo; there also some plainly criminal elements. A conside­rable share of the market is held by shipping agents and independent dispatchers who don’t have their own fleets and are in fact dealers that bring together customers and contractors and charge a commission. Complicated paperwork is another problem. In Russia you need more than a dozen documents for a simple truck haulage: a delivery note, a consignment note, a shipment description, a copy of the driver’s internal passport, vehicle certificate. In some cases, when transporting alcoholic bevera­ges for instance, the amount of documents can be measured by the dozens. Electronic document flow is also developing slowly in Russia.

– How can cloud technologies solve these problems?

– Transportation is a spot market, where demand and supply are both present at the very same time, and in a cloud an integrated platform for cargo owners and contractors can be set up. So you start a tender for a haulage, specify criteria (e.g., route, transportation type, cargo type, its weight and volume, required temperature conditions and so on) and immediately see offers from contractors that participate in the cloud platform. Now in the Russian segment of the Internet there are several such marketplaces that are being developed by startups like ati.su, Gruzoobzor, our platform Log4pro.com, Loginet, Autogit, Della; note that in order to enter our marketplace a company has to provide all the registration documents and pass a complete check by our security service.

– …and thus you achieve a transportation safety guarantee. What about document stora­ge safety?

– Security can be achieved with the help of standard non-cloud applications by e.g. Antor, 1С, Oracle. These companies sell their software (for instance the cost of Oracle TMS Oracle Transportation Management or SAP for Logistics Service Providers costs start at $100.000), you can install it and enter all the data yourself. Since however the amount of haulages even in a medium-sized company can total thousands a month, technical staff are required to enter all this data to the database. It is possible to automate this process in a cloud. Other advantages of cloud-based technologies are that there is no more need to install and then update the software and the responsibility for the data input can be placed on the contractor, freeing up your own human resources and its cost.

– What other options does the application of cloud technologies bring?

– You can track and trace the cargo movement along the route (tracking and tracing) which enables calculation of an accurate delivery time to the destination. Using the calculation data one can schedule deliveries and solve the empty shelves and surplus problem. Tracking and tracing can help in evaluating a contractor’s service quality: for instance, I know that a truck is to pick up my cargo at 9 a.m. If the truck was on time, it gets 1 point, if it was late – 0, and if it came 50 minutes earlier – 0.5 points. Thus it is possible to calculate automatically the KPI (Key perfor­ma­nce indicators) of the quality of each haulage and obtain a reliable rating of haulage quality for every contractor.

– Which tasks cannot be accomplished even with the help of the new technologies?

– So far none of the cloud logistics project has provided a platform for mobile routing of packa­ge freight. For instance, a driver follows a certain route, delivers and picks up cargos. If instead of a printed route he had a tablet computer, where new orders automatically appeared, the truck would be able to instantly complete appropriate orders. Cloud technologies are also unable now to account for goods defects or deficiency.

– Is it possible to use the cloud marketplaces not only in transport logistics but also in warehouse management?

– Definitely. At the moment large warehouses are as a rule rented via dealers whose commission can total in the hundreds of thousands of dollars. An integrated platform would enable real estate consultants to focus on analysis of the legal aspects of a deal, and the lessees would be spared extra charges.

Our Main Risk Is Corruption

– It often happens in Russia that helpful ideas and innovations do not live up to expectations. There are several reasons for that which cannot be recited without mentioning the value detraction of the Russian business society…

– Value detraction is the main factor that can slow down implementation of new technologies into transportation and logistics. If the major goal of a top-manager or a specialist, who makes decisions, is to get a kickback from a “trusted” contractor (getting a kickback is bribery) rather than to optimise a delivery process, it doesn’t make sense for him to implement new, transparent technologies but it does make sense to hamper the innovations. The second problem for cloud technologies is the sluggishness of the business processes management. Once we offered to install our Log4pro solution at a company. They liked the software but it didn’t work on Explorer 7, and there was a policy at the company to use this browser only. In such a situation one has to rewrite the code for an antique browser which is used by only 3% of our customers.

– What other factors can hinder the implementation of new technologies?

– The personal factor. For instance, the person who supervises the company’s truck haulage likes a solution, it makes his life easier. But the decision is made by the logistics director rather than him. And in a large company the Logistics Director is virtually a demigod. He has no time to think over how to contract a truck, he has a tried and tested business-process for it, e.g. issuing a tender via e-mail – which is in fact a last century’s technology.

– What is the main advantage of the cloud technologies application for a customer who orders a haulage?

– A cloud TMS (Transportation Management System) is a new stage in logistics development. What can be more convenient than a single site with shared access for a cargo shipper and transportation carrier? You ask for haulage documents and get them in 5 minutes, and moreover you know which contract they belong to, who is responsible for the haulage in the contractor’s office and who exactly delivers your cargo! Contractors know what they deliver and where to, who drives the truck and where the truck actually is. You must admit that it is very convenient I use and can hardly be replaced with anything, since the optimal truck movement requires accurate routing and correct application of logistics management tools. A well-handled site for haulage orders is a unique set of working tools for logistics specialists, which can be expanded every day in order to account for market needs and legislation adjustments.

– Still, how realistic is implementation of cloud technologies which requires transpa­rency from Russian business processes, which is so to say problematic?

– Officials of some company once told us: “You think of tomorrow. The business of your platform is unimaginable in Russia!” It may be so for some market players. Kickbacks and recruitment of dispatchers for a low commission is an everyday fact of life for companies that don’t value their business reputation and try to make money by any means available. Cloud intelligent systems for logistics management is not just a future, it is our present. We are shaping tomorrow’s logistics and will keep working to implement innovations, so companies that join this process create a conve­nient and up-to-date marketplace.
Interviewed by Marina Ermolenko

[~DETAIL_TEXT] =>

New Thinking

–  Mr Vlasov, are cloud solutions being implemented in transport logistics in Russia?

– Cloud solutions are a very young market which is still less than 5 years old but some advanced technologies are already being implemented in the U.S., Europe and Brazil. In Russia and the CIS countries, this business sector is almost empty. The expansion of similar western products is unlikely here, since the transportation patterns used in Russia are drastically
different from American and European ones.

– What do the cloud technologies need to become popular?

– Two years ago German professionals argued to me that cloud technologies would not catch on in logistics as cargo transportation is a business based on trust. People used to sit down for talks, get acquainted, there was a spark of chemistry, they signed contracts and only then a partnership began. It was difficult even to imagine entrusting your cargo to a company that you have never met “face to face”.  Well, everything changes. Consider eBay for example. We used to buy books, CDs, then clothes from them, and now more than 10,000 new and used cars are sold every month at this site. People start to think differently and then act differently.

– In Russia as well?

– I’m sure that at most in 5 years there will be solutions in Russia we could not even dream of before. Right now leading European companies are developing a concept of crowdsourcing logistics for package cargo. For instance, a student travelling the same route every day subscribes to deliver small packages to destinations along his route. He enters the cloud, takes an order, exe­cutes it without any extra effort (everything is done on his way to the University) and earns a little bit. The cost of such a delivery is many times lower then of the courier delivery.

Problem Issues

– What do you think are the main problems of Russian logistics?

– The truth is that it is based on truck delivery, and this market consists of hundreds of thousands of players of various size – large corporations, small companies and individual entrepreneurs. New companies are constantly arriving that want to make some money but are not ready to abide by the law. So the main problem of Russian logistics is the unreliability of truck deliveries. There are quite a few operators who actually evade taxes; some operators are not ready to process documents carefully and correctly and to handle steadily a large amount of cargo; there also some plainly criminal elements. A conside­rable share of the market is held by shipping agents and independent dispatchers who don’t have their own fleets and are in fact dealers that bring together customers and contractors and charge a commission. Complicated paperwork is another problem. In Russia you need more than a dozen documents for a simple truck haulage: a delivery note, a consignment note, a shipment description, a copy of the driver’s internal passport, vehicle certificate. In some cases, when transporting alcoholic bevera­ges for instance, the amount of documents can be measured by the dozens. Electronic document flow is also developing slowly in Russia.

– How can cloud technologies solve these problems?

– Transportation is a spot market, where demand and supply are both present at the very same time, and in a cloud an integrated platform for cargo owners and contractors can be set up. So you start a tender for a haulage, specify criteria (e.g., route, transportation type, cargo type, its weight and volume, required temperature conditions and so on) and immediately see offers from contractors that participate in the cloud platform. Now in the Russian segment of the Internet there are several such marketplaces that are being developed by startups like ati.su, Gruzoobzor, our platform Log4pro.com, Loginet, Autogit, Della; note that in order to enter our marketplace a company has to provide all the registration documents and pass a complete check by our security service.

– …and thus you achieve a transportation safety guarantee. What about document stora­ge safety?

– Security can be achieved with the help of standard non-cloud applications by e.g. Antor, 1С, Oracle. These companies sell their software (for instance the cost of Oracle TMS Oracle Transportation Management or SAP for Logistics Service Providers costs start at $100.000), you can install it and enter all the data yourself. Since however the amount of haulages even in a medium-sized company can total thousands a month, technical staff are required to enter all this data to the database. It is possible to automate this process in a cloud. Other advantages of cloud-based technologies are that there is no more need to install and then update the software and the responsibility for the data input can be placed on the contractor, freeing up your own human resources and its cost.

– What other options does the application of cloud technologies bring?

– You can track and trace the cargo movement along the route (tracking and tracing) which enables calculation of an accurate delivery time to the destination. Using the calculation data one can schedule deliveries and solve the empty shelves and surplus problem. Tracking and tracing can help in evaluating a contractor’s service quality: for instance, I know that a truck is to pick up my cargo at 9 a.m. If the truck was on time, it gets 1 point, if it was late – 0, and if it came 50 minutes earlier – 0.5 points. Thus it is possible to calculate automatically the KPI (Key perfor­ma­nce indicators) of the quality of each haulage and obtain a reliable rating of haulage quality for every contractor.

– Which tasks cannot be accomplished even with the help of the new technologies?

– So far none of the cloud logistics project has provided a platform for mobile routing of packa­ge freight. For instance, a driver follows a certain route, delivers and picks up cargos. If instead of a printed route he had a tablet computer, where new orders automatically appeared, the truck would be able to instantly complete appropriate orders. Cloud technologies are also unable now to account for goods defects or deficiency.

– Is it possible to use the cloud marketplaces not only in transport logistics but also in warehouse management?

– Definitely. At the moment large warehouses are as a rule rented via dealers whose commission can total in the hundreds of thousands of dollars. An integrated platform would enable real estate consultants to focus on analysis of the legal aspects of a deal, and the lessees would be spared extra charges.

Our Main Risk Is Corruption

– It often happens in Russia that helpful ideas and innovations do not live up to expectations. There are several reasons for that which cannot be recited without mentioning the value detraction of the Russian business society…

– Value detraction is the main factor that can slow down implementation of new technologies into transportation and logistics. If the major goal of a top-manager or a specialist, who makes decisions, is to get a kickback from a “trusted” contractor (getting a kickback is bribery) rather than to optimise a delivery process, it doesn’t make sense for him to implement new, transparent technologies but it does make sense to hamper the innovations. The second problem for cloud technologies is the sluggishness of the business processes management. Once we offered to install our Log4pro solution at a company. They liked the software but it didn’t work on Explorer 7, and there was a policy at the company to use this browser only. In such a situation one has to rewrite the code for an antique browser which is used by only 3% of our customers.

– What other factors can hinder the implementation of new technologies?

– The personal factor. For instance, the person who supervises the company’s truck haulage likes a solution, it makes his life easier. But the decision is made by the logistics director rather than him. And in a large company the Logistics Director is virtually a demigod. He has no time to think over how to contract a truck, he has a tried and tested business-process for it, e.g. issuing a tender via e-mail – which is in fact a last century’s technology.

– What is the main advantage of the cloud technologies application for a customer who orders a haulage?

– A cloud TMS (Transportation Management System) is a new stage in logistics development. What can be more convenient than a single site with shared access for a cargo shipper and transportation carrier? You ask for haulage documents and get them in 5 minutes, and moreover you know which contract they belong to, who is responsible for the haulage in the contractor’s office and who exactly delivers your cargo! Contractors know what they deliver and where to, who drives the truck and where the truck actually is. You must admit that it is very convenient I use and can hardly be replaced with anything, since the optimal truck movement requires accurate routing and correct application of logistics management tools. A well-handled site for haulage orders is a unique set of working tools for logistics specialists, which can be expanded every day in order to account for market needs and legislation adjustments.

– Still, how realistic is implementation of cloud technologies which requires transpa­rency from Russian business processes, which is so to say problematic?

– Officials of some company once told us: “You think of tomorrow. The business of your platform is unimaginable in Russia!” It may be so for some market players. Kickbacks and recruitment of dispatchers for a low commission is an everyday fact of life for companies that don’t value their business reputation and try to make money by any means available. Cloud intelligent systems for logistics management is not just a future, it is our present. We are shaping tomorrow’s logistics and will keep working to implement innovations, so companies that join this process create a conve­nient and up-to-date marketplace.
Interviewed by Marina Ermolenko

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At the end of last year IBM published an annual Five in Five forecast, which says that cloud technologies will get into all business areas in the near future. Logistics will be no exception, and there are new services appearing right now that are able to solve the most acute of the industry problems. Kirill Vlasov, Log4pro project supervisor, Chairman of Directors at STS Logistics and Co-Chairman of the Russian Regional Group of the BVL National Association of Logistic Operators of Germany, tells us what the future of logistics in Russia may look like.

[~PREVIEW_TEXT] =>

At the end of last year IBM published an annual Five in Five forecast, which says that cloud technologies will get into all business areas in the near future. Logistics will be no exception, and there are new services appearing right now that are able to solve the most acute of the industry problems. Kirill Vlasov, Log4pro project supervisor, Chairman of Directors at STS Logistics and Co-Chairman of the Russian Regional Group of the BVL National Association of Logistic Operators of Germany, tells us what the future of logistics in Russia may look like.

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New Thinking

–  Mr Vlasov, are cloud solutions being implemented in transport logistics in Russia?

– Cloud solutions are a very young market which is still less than 5 years old but some advanced technologies are already being implemented in the U.S., Europe and Brazil. In Russia and the CIS countries, this business sector is almost empty. The expansion of similar western products is unlikely here, since the transportation patterns used in Russia are drastically
different from American and European ones.

– What do the cloud technologies need to become popular?

– Two years ago German professionals argued to me that cloud technologies would not catch on in logistics as cargo transportation is a business based on trust. People used to sit down for talks, get acquainted, there was a spark of chemistry, they signed contracts and only then a partnership began. It was difficult even to imagine entrusting your cargo to a company that you have never met “face to face”.  Well, everything changes. Consider eBay for example. We used to buy books, CDs, then clothes from them, and now more than 10,000 new and used cars are sold every month at this site. People start to think differently and then act differently.

– In Russia as well?

– I’m sure that at most in 5 years there will be solutions in Russia we could not even dream of before. Right now leading European companies are developing a concept of crowdsourcing logistics for package cargo. For instance, a student travelling the same route every day subscribes to deliver small packages to destinations along his route. He enters the cloud, takes an order, exe­cutes it without any extra effort (everything is done on his way to the University) and earns a little bit. The cost of such a delivery is many times lower then of the courier delivery.

Problem Issues

– What do you think are the main problems of Russian logistics?

– The truth is that it is based on truck delivery, and this market consists of hundreds of thousands of players of various size – large corporations, small companies and individual entrepreneurs. New companies are constantly arriving that want to make some money but are not ready to abide by the law. So the main problem of Russian logistics is the unreliability of truck deliveries. There are quite a few operators who actually evade taxes; some operators are not ready to process documents carefully and correctly and to handle steadily a large amount of cargo; there also some plainly criminal elements. A conside­rable share of the market is held by shipping agents and independent dispatchers who don’t have their own fleets and are in fact dealers that bring together customers and contractors and charge a commission. Complicated paperwork is another problem. In Russia you need more than a dozen documents for a simple truck haulage: a delivery note, a consignment note, a shipment description, a copy of the driver’s internal passport, vehicle certificate. In some cases, when transporting alcoholic bevera­ges for instance, the amount of documents can be measured by the dozens. Electronic document flow is also developing slowly in Russia.

– How can cloud technologies solve these problems?

– Transportation is a spot market, where demand and supply are both present at the very same time, and in a cloud an integrated platform for cargo owners and contractors can be set up. So you start a tender for a haulage, specify criteria (e.g., route, transportation type, cargo type, its weight and volume, required temperature conditions and so on) and immediately see offers from contractors that participate in the cloud platform. Now in the Russian segment of the Internet there are several such marketplaces that are being developed by startups like ati.su, Gruzoobzor, our platform Log4pro.com, Loginet, Autogit, Della; note that in order to enter our marketplace a company has to provide all the registration documents and pass a complete check by our security service.

– …and thus you achieve a transportation safety guarantee. What about document stora­ge safety?

– Security can be achieved with the help of standard non-cloud applications by e.g. Antor, 1С, Oracle. These companies sell their software (for instance the cost of Oracle TMS Oracle Transportation Management or SAP for Logistics Service Providers costs start at $100.000), you can install it and enter all the data yourself. Since however the amount of haulages even in a medium-sized company can total thousands a month, technical staff are required to enter all this data to the database. It is possible to automate this process in a cloud. Other advantages of cloud-based technologies are that there is no more need to install and then update the software and the responsibility for the data input can be placed on the contractor, freeing up your own human resources and its cost.

– What other options does the application of cloud technologies bring?

– You can track and trace the cargo movement along the route (tracking and tracing) which enables calculation of an accurate delivery time to the destination. Using the calculation data one can schedule deliveries and solve the empty shelves and surplus problem. Tracking and tracing can help in evaluating a contractor’s service quality: for instance, I know that a truck is to pick up my cargo at 9 a.m. If the truck was on time, it gets 1 point, if it was late – 0, and if it came 50 minutes earlier – 0.5 points. Thus it is possible to calculate automatically the KPI (Key perfor­ma­nce indicators) of the quality of each haulage and obtain a reliable rating of haulage quality for every contractor.

– Which tasks cannot be accomplished even with the help of the new technologies?

– So far none of the cloud logistics project has provided a platform for mobile routing of packa­ge freight. For instance, a driver follows a certain route, delivers and picks up cargos. If instead of a printed route he had a tablet computer, where new orders automatically appeared, the truck would be able to instantly complete appropriate orders. Cloud technologies are also unable now to account for goods defects or deficiency.

– Is it possible to use the cloud marketplaces not only in transport logistics but also in warehouse management?

– Definitely. At the moment large warehouses are as a rule rented via dealers whose commission can total in the hundreds of thousands of dollars. An integrated platform would enable real estate consultants to focus on analysis of the legal aspects of a deal, and the lessees would be spared extra charges.

Our Main Risk Is Corruption

– It often happens in Russia that helpful ideas and innovations do not live up to expectations. There are several reasons for that which cannot be recited without mentioning the value detraction of the Russian business society…

– Value detraction is the main factor that can slow down implementation of new technologies into transportation and logistics. If the major goal of a top-manager or a specialist, who makes decisions, is to get a kickback from a “trusted” contractor (getting a kickback is bribery) rather than to optimise a delivery process, it doesn’t make sense for him to implement new, transparent technologies but it does make sense to hamper the innovations. The second problem for cloud technologies is the sluggishness of the business processes management. Once we offered to install our Log4pro solution at a company. They liked the software but it didn’t work on Explorer 7, and there was a policy at the company to use this browser only. In such a situation one has to rewrite the code for an antique browser which is used by only 3% of our customers.

– What other factors can hinder the implementation of new technologies?

– The personal factor. For instance, the person who supervises the company’s truck haulage likes a solution, it makes his life easier. But the decision is made by the logistics director rather than him. And in a large company the Logistics Director is virtually a demigod. He has no time to think over how to contract a truck, he has a tried and tested business-process for it, e.g. issuing a tender via e-mail – which is in fact a last century’s technology.

– What is the main advantage of the cloud technologies application for a customer who orders a haulage?

– A cloud TMS (Transportation Management System) is a new stage in logistics development. What can be more convenient than a single site with shared access for a cargo shipper and transportation carrier? You ask for haulage documents and get them in 5 minutes, and moreover you know which contract they belong to, who is responsible for the haulage in the contractor’s office and who exactly delivers your cargo! Contractors know what they deliver and where to, who drives the truck and where the truck actually is. You must admit that it is very convenient I use and can hardly be replaced with anything, since the optimal truck movement requires accurate routing and correct application of logistics management tools. A well-handled site for haulage orders is a unique set of working tools for logistics specialists, which can be expanded every day in order to account for market needs and legislation adjustments.

– Still, how realistic is implementation of cloud technologies which requires transpa­rency from Russian business processes, which is so to say problematic?

– Officials of some company once told us: “You think of tomorrow. The business of your platform is unimaginable in Russia!” It may be so for some market players. Kickbacks and recruitment of dispatchers for a low commission is an everyday fact of life for companies that don’t value their business reputation and try to make money by any means available. Cloud intelligent systems for logistics management is not just a future, it is our present. We are shaping tomorrow’s logistics and will keep working to implement innovations, so companies that join this process create a conve­nient and up-to-date marketplace.
Interviewed by Marina Ermolenko

[~DETAIL_TEXT] =>

New Thinking

–  Mr Vlasov, are cloud solutions being implemented in transport logistics in Russia?

– Cloud solutions are a very young market which is still less than 5 years old but some advanced technologies are already being implemented in the U.S., Europe and Brazil. In Russia and the CIS countries, this business sector is almost empty. The expansion of similar western products is unlikely here, since the transportation patterns used in Russia are drastically
different from American and European ones.

– What do the cloud technologies need to become popular?

– Two years ago German professionals argued to me that cloud technologies would not catch on in logistics as cargo transportation is a business based on trust. People used to sit down for talks, get acquainted, there was a spark of chemistry, they signed contracts and only then a partnership began. It was difficult even to imagine entrusting your cargo to a company that you have never met “face to face”.  Well, everything changes. Consider eBay for example. We used to buy books, CDs, then clothes from them, and now more than 10,000 new and used cars are sold every month at this site. People start to think differently and then act differently.

– In Russia as well?

– I’m sure that at most in 5 years there will be solutions in Russia we could not even dream of before. Right now leading European companies are developing a concept of crowdsourcing logistics for package cargo. For instance, a student travelling the same route every day subscribes to deliver small packages to destinations along his route. He enters the cloud, takes an order, exe­cutes it without any extra effort (everything is done on his way to the University) and earns a little bit. The cost of such a delivery is many times lower then of the courier delivery.

Problem Issues

– What do you think are the main problems of Russian logistics?

– The truth is that it is based on truck delivery, and this market consists of hundreds of thousands of players of various size – large corporations, small companies and individual entrepreneurs. New companies are constantly arriving that want to make some money but are not ready to abide by the law. So the main problem of Russian logistics is the unreliability of truck deliveries. There are quite a few operators who actually evade taxes; some operators are not ready to process documents carefully and correctly and to handle steadily a large amount of cargo; there also some plainly criminal elements. A conside­rable share of the market is held by shipping agents and independent dispatchers who don’t have their own fleets and are in fact dealers that bring together customers and contractors and charge a commission. Complicated paperwork is another problem. In Russia you need more than a dozen documents for a simple truck haulage: a delivery note, a consignment note, a shipment description, a copy of the driver’s internal passport, vehicle certificate. In some cases, when transporting alcoholic bevera­ges for instance, the amount of documents can be measured by the dozens. Electronic document flow is also developing slowly in Russia.

– How can cloud technologies solve these problems?

– Transportation is a spot market, where demand and supply are both present at the very same time, and in a cloud an integrated platform for cargo owners and contractors can be set up. So you start a tender for a haulage, specify criteria (e.g., route, transportation type, cargo type, its weight and volume, required temperature conditions and so on) and immediately see offers from contractors that participate in the cloud platform. Now in the Russian segment of the Internet there are several such marketplaces that are being developed by startups like ati.su, Gruzoobzor, our platform Log4pro.com, Loginet, Autogit, Della; note that in order to enter our marketplace a company has to provide all the registration documents and pass a complete check by our security service.

– …and thus you achieve a transportation safety guarantee. What about document stora­ge safety?

– Security can be achieved with the help of standard non-cloud applications by e.g. Antor, 1С, Oracle. These companies sell their software (for instance the cost of Oracle TMS Oracle Transportation Management or SAP for Logistics Service Providers costs start at $100.000), you can install it and enter all the data yourself. Since however the amount of haulages even in a medium-sized company can total thousands a month, technical staff are required to enter all this data to the database. It is possible to automate this process in a cloud. Other advantages of cloud-based technologies are that there is no more need to install and then update the software and the responsibility for the data input can be placed on the contractor, freeing up your own human resources and its cost.

– What other options does the application of cloud technologies bring?

– You can track and trace the cargo movement along the route (tracking and tracing) which enables calculation of an accurate delivery time to the destination. Using the calculation data one can schedule deliveries and solve the empty shelves and surplus problem. Tracking and tracing can help in evaluating a contractor’s service quality: for instance, I know that a truck is to pick up my cargo at 9 a.m. If the truck was on time, it gets 1 point, if it was late – 0, and if it came 50 minutes earlier – 0.5 points. Thus it is possible to calculate automatically the KPI (Key perfor­ma­nce indicators) of the quality of each haulage and obtain a reliable rating of haulage quality for every contractor.

– Which tasks cannot be accomplished even with the help of the new technologies?

– So far none of the cloud logistics project has provided a platform for mobile routing of packa­ge freight. For instance, a driver follows a certain route, delivers and picks up cargos. If instead of a printed route he had a tablet computer, where new orders automatically appeared, the truck would be able to instantly complete appropriate orders. Cloud technologies are also unable now to account for goods defects or deficiency.

– Is it possible to use the cloud marketplaces not only in transport logistics but also in warehouse management?

– Definitely. At the moment large warehouses are as a rule rented via dealers whose commission can total in the hundreds of thousands of dollars. An integrated platform would enable real estate consultants to focus on analysis of the legal aspects of a deal, and the lessees would be spared extra charges.

Our Main Risk Is Corruption

– It often happens in Russia that helpful ideas and innovations do not live up to expectations. There are several reasons for that which cannot be recited without mentioning the value detraction of the Russian business society…

– Value detraction is the main factor that can slow down implementation of new technologies into transportation and logistics. If the major goal of a top-manager or a specialist, who makes decisions, is to get a kickback from a “trusted” contractor (getting a kickback is bribery) rather than to optimise a delivery process, it doesn’t make sense for him to implement new, transparent technologies but it does make sense to hamper the innovations. The second problem for cloud technologies is the sluggishness of the business processes management. Once we offered to install our Log4pro solution at a company. They liked the software but it didn’t work on Explorer 7, and there was a policy at the company to use this browser only. In such a situation one has to rewrite the code for an antique browser which is used by only 3% of our customers.

– What other factors can hinder the implementation of new technologies?

– The personal factor. For instance, the person who supervises the company’s truck haulage likes a solution, it makes his life easier. But the decision is made by the logistics director rather than him. And in a large company the Logistics Director is virtually a demigod. He has no time to think over how to contract a truck, he has a tried and tested business-process for it, e.g. issuing a tender via e-mail – which is in fact a last century’s technology.

– What is the main advantage of the cloud technologies application for a customer who orders a haulage?

– A cloud TMS (Transportation Management System) is a new stage in logistics development. What can be more convenient than a single site with shared access for a cargo shipper and transportation carrier? You ask for haulage documents and get them in 5 minutes, and moreover you know which contract they belong to, who is responsible for the haulage in the contractor’s office and who exactly delivers your cargo! Contractors know what they deliver and where to, who drives the truck and where the truck actually is. You must admit that it is very convenient I use and can hardly be replaced with anything, since the optimal truck movement requires accurate routing and correct application of logistics management tools. A well-handled site for haulage orders is a unique set of working tools for logistics specialists, which can be expanded every day in order to account for market needs and legislation adjustments.

– Still, how realistic is implementation of cloud technologies which requires transpa­rency from Russian business processes, which is so to say problematic?

– Officials of some company once told us: “You think of tomorrow. The business of your platform is unimaginable in Russia!” It may be so for some market players. Kickbacks and recruitment of dispatchers for a low commission is an everyday fact of life for companies that don’t value their business reputation and try to make money by any means available. Cloud intelligent systems for logistics management is not just a future, it is our present. We are shaping tomorrow’s logistics and will keep working to implement innovations, so companies that join this process create a conve­nient and up-to-date marketplace.
Interviewed by Marina Ermolenko

[DETAIL_TEXT_TYPE] => html [~DETAIL_TEXT_TYPE] => html [PREVIEW_TEXT] =>

At the end of last year IBM published an annual Five in Five forecast, which says that cloud technologies will get into all business areas in the near future. Logistics will be no exception, and there are new services appearing right now that are able to solve the most acute of the industry problems. Kirill Vlasov, Log4pro project supervisor, Chairman of Directors at STS Logistics and Co-Chairman of the Russian Regional Group of the BVL National Association of Logistic Operators of Germany, tells us what the future of logistics in Russia may look like.

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At the end of last year IBM published an annual Five in Five forecast, which says that cloud technologies will get into all business areas in the near future. Logistics will be no exception, and there are new services appearing right now that are able to solve the most acute of the industry problems. Kirill Vlasov, Log4pro project supervisor, Chairman of Directors at STS Logistics and Co-Chairman of the Russian Regional Group of the BVL National Association of Logistic Operators of Germany, tells us what the future of logistics in Russia may look like.

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РЖД-Партнер

Choosing Profitable Route from the EU to Russia

According to customs statistics, the European Union's share of the total turnover of Russian goods amounts to almost 50%. Most of the freight is carried to the RF by sea and road transport. Why is rail so unpopular among European exporters?

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Building Chains

The advantages of railways are the possibility to guarantee observation of delivery terms (especially for container trains), the lack of queues at border crossings, freedom from ice conditions, and stable prices during the year. Nevertheless, cargo owners are not eager to switch to railways. To understand the reason, we have decided to calculate the cost of transportation by different transport modes. Let’s take a large producer of furniture fittings from Germany, and a producer of pet food from Belgium as examples.
We will discuss four basic variants of cargo transportation: a road vehicle with the capacity of 120 cub. m.; a road vehicle with 82 cub. m. capacity; multimodal transportation by a container train via the Duisburg port (a 40-foot box with the capacity of 67.5 cub. m.); multimodal transportation via the
St Petersburg port (45-foot container with 86 cub. m. capacity).
Using container trucks to carry out these projects is unprofitable, because when the freight leaves the plant, it is non-containerised.
When calculating, we took two basic parameters into account: the total time needed for logistics ope­rations (calculated as the sum of time spent on every operation) and the total cost of transportation (calculated as the sum of cost of every operation). The furniture fittings of the German producer are carried to Russia (Zheleznodorozhny town, the Moscow region) from two places – Vlotho and Kirchlengern. The basic types of operations fulfilled by participants in the logistics chain, including terminal services, customs clearance, etc., the cost of these services for freight carried by every transport mode and the time needed were defined. 
Table 1 was based on the data. It shows how much time is needed for door-to-door transportation and the total cost of all elements in the logistics chains.
Calculations for the Belgian pet food producer were done in a similar way. The freight of the company is carried to the Chekhov district of the Moscow region from two cities –
Meer and Hoogstraten (Belgium) via Hazeldonk (the Netherlands) to pass veterinary checks. Then, the freight can be transported by road vehicles directly to the Moscow region, or by sea on the Antwerp – St Petersburg line, or by railway via the Duisburg port (see table 2).
Since the information about ta­riffs on transportation by road and sea transport were received from a customs broker, who attracts contractor organisations, an agency charge was separated from the cost of these types of transportation. This allowed calculation of the cost of transportation in case the service is bought directly from a transport forwarder or a sea line. Prices for railway transportation were received from the service provider.

Whose Prices Are the Lowest?

If you have a look at the tables below, you’ll see that the most profitable is the route where sea transport is used, that with the use of motor vehicles is more expensive, and the railway turned out to be the most expensive. The cost of transportation of a forty-foot container with the 67.5 cub.m. capacity by railway is comparable with that by truck with the 120 cub.m. capacity, and the available capacity of the latter is twice as large.
Meanwhile, the analysis of the dynamics of pricing of road transport shows that there are seasonal fluctuations. We analysed the cost of road transportation from Essen to Moscow in the period from September 2010 till June 2012. There is an increase in prices in spring, there is a period of stabilisation in summer, and some price fluctuations in autumn. The average cost of transportation in this period, however, was €3,800 (vehicle with the 82 cub. m. capacity).
The cost of sea transportation can increase because of the ice extra charge (in November – April), which amounts to €218 for a 45-foot box. Prices for railway transportation remain stable during throughout the year, although in 2010-2012 on the Belarusian–Russian section of the route (from the Brest station to the Kuntsevo-2 station), they increased by 27.4% – from €1,350 to €1,720 for a 40-foot container (regardless the station service, delivery to the consignee’s warehouse, customs clearance, etc.). Meanwhile, important factors in choosing the route for freight transportation are the conditions and the cost of organising customs clearance. According to table 3, the most profitable conditions of organising customs clearan­ce are offered in the sea port of
St Petersburg, and the least profitable – at the Kuntsevo-2 railway station (the arrival station of the Duisburg – Moscow regular container train). Therefore, taking into account the cost and the conditions of organising customs clearance, one can make the following conclusions: the low cost of sea charter and attractive conditions for customs clearance in the St Petersburg sea port make the sea route most profitable even taking into account the extra ice charge levied between November – April.
Road transport is the second most economically efficient. Conditions for customs clearance fluctuate from one customs terminal to another, but having made a compulsory payment for the terminal service pack, a customer can count on one or two days of free freight storage in the customs control zone.
According to the results of the research, railways are the least attractive from the economic viewpoint. Despite the relatively low cost of transportation on the Duisburg – Moscow route by container train, there are a lot of additional expenses (renting a container, delivery to the departure station by truck, terminal services at the Kuntsevo-2 station, unattractive terms of customs clearance, etc.), which make the railway route less popular among consignors.

What Can Be Done?  

The analysis of the business activity of RZD and its subsidiaries in the EU logistics market shows that the focus is on the development of cooperation between large companies, whose cargo flows are large enough to form regular full-fledged container trains (projects for Volkswagen Group Rus, PSA Peugeot-Citroen), and on large infrastructure projects, such as the extension of the 1520 mm railway to Vienna (the project is estimated at €4.7 billion).
Prerequisites for attracting cargo owners to the railway can be the revision of the current price formation policy, and the cost of the whole logistics chain must be taken into account, not just rates on the railway transportation element; the revision of the cost and conditions of terminal services, customs clearance, and the provision of additional services. Conditions at railway terminals must be as good as in off-dock terminals and in sea ports (several days of storing cargo for free with a guarantee of competitive conditions of work for customs brokers, independent transport and forwarding companies, etc.).
By Konstantin Piskun
* the article is based on the 2013 data.
RZD-Partner International will continue
to monitor the situation

[~DETAIL_TEXT] =>

Building Chains

The advantages of railways are the possibility to guarantee observation of delivery terms (especially for container trains), the lack of queues at border crossings, freedom from ice conditions, and stable prices during the year. Nevertheless, cargo owners are not eager to switch to railways. To understand the reason, we have decided to calculate the cost of transportation by different transport modes. Let’s take a large producer of furniture fittings from Germany, and a producer of pet food from Belgium as examples.
We will discuss four basic variants of cargo transportation: a road vehicle with the capacity of 120 cub. m.; a road vehicle with 82 cub. m. capacity; multimodal transportation by a container train via the Duisburg port (a 40-foot box with the capacity of 67.5 cub. m.); multimodal transportation via the
St Petersburg port (45-foot container with 86 cub. m. capacity).
Using container trucks to carry out these projects is unprofitable, because when the freight leaves the plant, it is non-containerised.
When calculating, we took two basic parameters into account: the total time needed for logistics ope­rations (calculated as the sum of time spent on every operation) and the total cost of transportation (calculated as the sum of cost of every operation). The furniture fittings of the German producer are carried to Russia (Zheleznodorozhny town, the Moscow region) from two places – Vlotho and Kirchlengern. The basic types of operations fulfilled by participants in the logistics chain, including terminal services, customs clearance, etc., the cost of these services for freight carried by every transport mode and the time needed were defined. 
Table 1 was based on the data. It shows how much time is needed for door-to-door transportation and the total cost of all elements in the logistics chains.
Calculations for the Belgian pet food producer were done in a similar way. The freight of the company is carried to the Chekhov district of the Moscow region from two cities –
Meer and Hoogstraten (Belgium) via Hazeldonk (the Netherlands) to pass veterinary checks. Then, the freight can be transported by road vehicles directly to the Moscow region, or by sea on the Antwerp – St Petersburg line, or by railway via the Duisburg port (see table 2).
Since the information about ta­riffs on transportation by road and sea transport were received from a customs broker, who attracts contractor organisations, an agency charge was separated from the cost of these types of transportation. This allowed calculation of the cost of transportation in case the service is bought directly from a transport forwarder or a sea line. Prices for railway transportation were received from the service provider.

Whose Prices Are the Lowest?

If you have a look at the tables below, you’ll see that the most profitable is the route where sea transport is used, that with the use of motor vehicles is more expensive, and the railway turned out to be the most expensive. The cost of transportation of a forty-foot container with the 67.5 cub.m. capacity by railway is comparable with that by truck with the 120 cub.m. capacity, and the available capacity of the latter is twice as large.
Meanwhile, the analysis of the dynamics of pricing of road transport shows that there are seasonal fluctuations. We analysed the cost of road transportation from Essen to Moscow in the period from September 2010 till June 2012. There is an increase in prices in spring, there is a period of stabilisation in summer, and some price fluctuations in autumn. The average cost of transportation in this period, however, was €3,800 (vehicle with the 82 cub. m. capacity).
The cost of sea transportation can increase because of the ice extra charge (in November – April), which amounts to €218 for a 45-foot box. Prices for railway transportation remain stable during throughout the year, although in 2010-2012 on the Belarusian–Russian section of the route (from the Brest station to the Kuntsevo-2 station), they increased by 27.4% – from €1,350 to €1,720 for a 40-foot container (regardless the station service, delivery to the consignee’s warehouse, customs clearance, etc.). Meanwhile, important factors in choosing the route for freight transportation are the conditions and the cost of organising customs clearance. According to table 3, the most profitable conditions of organising customs clearan­ce are offered in the sea port of
St Petersburg, and the least profitable – at the Kuntsevo-2 railway station (the arrival station of the Duisburg – Moscow regular container train). Therefore, taking into account the cost and the conditions of organising customs clearance, one can make the following conclusions: the low cost of sea charter and attractive conditions for customs clearance in the St Petersburg sea port make the sea route most profitable even taking into account the extra ice charge levied between November – April.
Road transport is the second most economically efficient. Conditions for customs clearance fluctuate from one customs terminal to another, but having made a compulsory payment for the terminal service pack, a customer can count on one or two days of free freight storage in the customs control zone.
According to the results of the research, railways are the least attractive from the economic viewpoint. Despite the relatively low cost of transportation on the Duisburg – Moscow route by container train, there are a lot of additional expenses (renting a container, delivery to the departure station by truck, terminal services at the Kuntsevo-2 station, unattractive terms of customs clearance, etc.), which make the railway route less popular among consignors.

What Can Be Done?  

The analysis of the business activity of RZD and its subsidiaries in the EU logistics market shows that the focus is on the development of cooperation between large companies, whose cargo flows are large enough to form regular full-fledged container trains (projects for Volkswagen Group Rus, PSA Peugeot-Citroen), and on large infrastructure projects, such as the extension of the 1520 mm railway to Vienna (the project is estimated at €4.7 billion).
Prerequisites for attracting cargo owners to the railway can be the revision of the current price formation policy, and the cost of the whole logistics chain must be taken into account, not just rates on the railway transportation element; the revision of the cost and conditions of terminal services, customs clearance, and the provision of additional services. Conditions at railway terminals must be as good as in off-dock terminals and in sea ports (several days of storing cargo for free with a guarantee of competitive conditions of work for customs brokers, independent transport and forwarding companies, etc.).
By Konstantin Piskun
* the article is based on the 2013 data.
RZD-Partner International will continue
to monitor the situation

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According to customs statistics, the European Union's share of the total turnover of Russian goods amounts to almost 50%. Most of the freight is carried to the RF by sea and road transport. Why is rail so unpopular among European exporters?

[~PREVIEW_TEXT] =>

According to customs statistics, the European Union's share of the total turnover of Russian goods amounts to almost 50%. Most of the freight is carried to the RF by sea and road transport. Why is rail so unpopular among European exporters?

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    [DETAIL_TEXT] => 

Building Chains

The advantages of railways are the possibility to guarantee observation of delivery terms (especially for container trains), the lack of queues at border crossings, freedom from ice conditions, and stable prices during the year. Nevertheless, cargo owners are not eager to switch to railways. To understand the reason, we have decided to calculate the cost of transportation by different transport modes. Let’s take a large producer of furniture fittings from Germany, and a producer of pet food from Belgium as examples.
We will discuss four basic variants of cargo transportation: a road vehicle with the capacity of 120 cub. m.; a road vehicle with 82 cub. m. capacity; multimodal transportation by a container train via the Duisburg port (a 40-foot box with the capacity of 67.5 cub. m.); multimodal transportation via the
St Petersburg port (45-foot container with 86 cub. m. capacity).
Using container trucks to carry out these projects is unprofitable, because when the freight leaves the plant, it is non-containerised.
When calculating, we took two basic parameters into account: the total time needed for logistics ope­rations (calculated as the sum of time spent on every operation) and the total cost of transportation (calculated as the sum of cost of every operation). The furniture fittings of the German producer are carried to Russia (Zheleznodorozhny town, the Moscow region) from two places – Vlotho and Kirchlengern. The basic types of operations fulfilled by participants in the logistics chain, including terminal services, customs clearance, etc., the cost of these services for freight carried by every transport mode and the time needed were defined. 
Table 1 was based on the data. It shows how much time is needed for door-to-door transportation and the total cost of all elements in the logistics chains.
Calculations for the Belgian pet food producer were done in a similar way. The freight of the company is carried to the Chekhov district of the Moscow region from two cities –
Meer and Hoogstraten (Belgium) via Hazeldonk (the Netherlands) to pass veterinary checks. Then, the freight can be transported by road vehicles directly to the Moscow region, or by sea on the Antwerp – St Petersburg line, or by railway via the Duisburg port (see table 2).
Since the information about ta­riffs on transportation by road and sea transport were received from a customs broker, who attracts contractor organisations, an agency charge was separated from the cost of these types of transportation. This allowed calculation of the cost of transportation in case the service is bought directly from a transport forwarder or a sea line. Prices for railway transportation were received from the service provider.

Whose Prices Are the Lowest?

If you have a look at the tables below, you’ll see that the most profitable is the route where sea transport is used, that with the use of motor vehicles is more expensive, and the railway turned out to be the most expensive. The cost of transportation of a forty-foot container with the 67.5 cub.m. capacity by railway is comparable with that by truck with the 120 cub.m. capacity, and the available capacity of the latter is twice as large.
Meanwhile, the analysis of the dynamics of pricing of road transport shows that there are seasonal fluctuations. We analysed the cost of road transportation from Essen to Moscow in the period from September 2010 till June 2012. There is an increase in prices in spring, there is a period of stabilisation in summer, and some price fluctuations in autumn. The average cost of transportation in this period, however, was €3,800 (vehicle with the 82 cub. m. capacity).
The cost of sea transportation can increase because of the ice extra charge (in November – April), which amounts to €218 for a 45-foot box. Prices for railway transportation remain stable during throughout the year, although in 2010-2012 on the Belarusian–Russian section of the route (from the Brest station to the Kuntsevo-2 station), they increased by 27.4% – from €1,350 to €1,720 for a 40-foot container (regardless the station service, delivery to the consignee’s warehouse, customs clearance, etc.). Meanwhile, important factors in choosing the route for freight transportation are the conditions and the cost of organising customs clearance. According to table 3, the most profitable conditions of organising customs clearan­ce are offered in the sea port of
St Petersburg, and the least profitable – at the Kuntsevo-2 railway station (the arrival station of the Duisburg – Moscow regular container train). Therefore, taking into account the cost and the conditions of organising customs clearance, one can make the following conclusions: the low cost of sea charter and attractive conditions for customs clearance in the St Petersburg sea port make the sea route most profitable even taking into account the extra ice charge levied between November – April.
Road transport is the second most economically efficient. Conditions for customs clearance fluctuate from one customs terminal to another, but having made a compulsory payment for the terminal service pack, a customer can count on one or two days of free freight storage in the customs control zone.
According to the results of the research, railways are the least attractive from the economic viewpoint. Despite the relatively low cost of transportation on the Duisburg – Moscow route by container train, there are a lot of additional expenses (renting a container, delivery to the departure station by truck, terminal services at the Kuntsevo-2 station, unattractive terms of customs clearance, etc.), which make the railway route less popular among consignors.

What Can Be Done?  

The analysis of the business activity of RZD and its subsidiaries in the EU logistics market shows that the focus is on the development of cooperation between large companies, whose cargo flows are large enough to form regular full-fledged container trains (projects for Volkswagen Group Rus, PSA Peugeot-Citroen), and on large infrastructure projects, such as the extension of the 1520 mm railway to Vienna (the project is estimated at €4.7 billion).
Prerequisites for attracting cargo owners to the railway can be the revision of the current price formation policy, and the cost of the whole logistics chain must be taken into account, not just rates on the railway transportation element; the revision of the cost and conditions of terminal services, customs clearance, and the provision of additional services. Conditions at railway terminals must be as good as in off-dock terminals and in sea ports (several days of storing cargo for free with a guarantee of competitive conditions of work for customs brokers, independent transport and forwarding companies, etc.).
By Konstantin Piskun
* the article is based on the 2013 data.
RZD-Partner International will continue
to monitor the situation

[~DETAIL_TEXT] =>

Building Chains

The advantages of railways are the possibility to guarantee observation of delivery terms (especially for container trains), the lack of queues at border crossings, freedom from ice conditions, and stable prices during the year. Nevertheless, cargo owners are not eager to switch to railways. To understand the reason, we have decided to calculate the cost of transportation by different transport modes. Let’s take a large producer of furniture fittings from Germany, and a producer of pet food from Belgium as examples.
We will discuss four basic variants of cargo transportation: a road vehicle with the capacity of 120 cub. m.; a road vehicle with 82 cub. m. capacity; multimodal transportation by a container train via the Duisburg port (a 40-foot box with the capacity of 67.5 cub. m.); multimodal transportation via the
St Petersburg port (45-foot container with 86 cub. m. capacity).
Using container trucks to carry out these projects is unprofitable, because when the freight leaves the plant, it is non-containerised.
When calculating, we took two basic parameters into account: the total time needed for logistics ope­rations (calculated as the sum of time spent on every operation) and the total cost of transportation (calculated as the sum of cost of every operation). The furniture fittings of the German producer are carried to Russia (Zheleznodorozhny town, the Moscow region) from two places – Vlotho and Kirchlengern. The basic types of operations fulfilled by participants in the logistics chain, including terminal services, customs clearance, etc., the cost of these services for freight carried by every transport mode and the time needed were defined. 
Table 1 was based on the data. It shows how much time is needed for door-to-door transportation and the total cost of all elements in the logistics chains.
Calculations for the Belgian pet food producer were done in a similar way. The freight of the company is carried to the Chekhov district of the Moscow region from two cities –
Meer and Hoogstraten (Belgium) via Hazeldonk (the Netherlands) to pass veterinary checks. Then, the freight can be transported by road vehicles directly to the Moscow region, or by sea on the Antwerp – St Petersburg line, or by railway via the Duisburg port (see table 2).
Since the information about ta­riffs on transportation by road and sea transport were received from a customs broker, who attracts contractor organisations, an agency charge was separated from the cost of these types of transportation. This allowed calculation of the cost of transportation in case the service is bought directly from a transport forwarder or a sea line. Prices for railway transportation were received from the service provider.

Whose Prices Are the Lowest?

If you have a look at the tables below, you’ll see that the most profitable is the route where sea transport is used, that with the use of motor vehicles is more expensive, and the railway turned out to be the most expensive. The cost of transportation of a forty-foot container with the 67.5 cub.m. capacity by railway is comparable with that by truck with the 120 cub.m. capacity, and the available capacity of the latter is twice as large.
Meanwhile, the analysis of the dynamics of pricing of road transport shows that there are seasonal fluctuations. We analysed the cost of road transportation from Essen to Moscow in the period from September 2010 till June 2012. There is an increase in prices in spring, there is a period of stabilisation in summer, and some price fluctuations in autumn. The average cost of transportation in this period, however, was €3,800 (vehicle with the 82 cub. m. capacity).
The cost of sea transportation can increase because of the ice extra charge (in November – April), which amounts to €218 for a 45-foot box. Prices for railway transportation remain stable during throughout the year, although in 2010-2012 on the Belarusian–Russian section of the route (from the Brest station to the Kuntsevo-2 station), they increased by 27.4% – from €1,350 to €1,720 for a 40-foot container (regardless the station service, delivery to the consignee’s warehouse, customs clearance, etc.). Meanwhile, important factors in choosing the route for freight transportation are the conditions and the cost of organising customs clearance. According to table 3, the most profitable conditions of organising customs clearan­ce are offered in the sea port of
St Petersburg, and the least profitable – at the Kuntsevo-2 railway station (the arrival station of the Duisburg – Moscow regular container train). Therefore, taking into account the cost and the conditions of organising customs clearance, one can make the following conclusions: the low cost of sea charter and attractive conditions for customs clearance in the St Petersburg sea port make the sea route most profitable even taking into account the extra ice charge levied between November – April.
Road transport is the second most economically efficient. Conditions for customs clearance fluctuate from one customs terminal to another, but having made a compulsory payment for the terminal service pack, a customer can count on one or two days of free freight storage in the customs control zone.
According to the results of the research, railways are the least attractive from the economic viewpoint. Despite the relatively low cost of transportation on the Duisburg – Moscow route by container train, there are a lot of additional expenses (renting a container, delivery to the departure station by truck, terminal services at the Kuntsevo-2 station, unattractive terms of customs clearance, etc.), which make the railway route less popular among consignors.

What Can Be Done?  

The analysis of the business activity of RZD and its subsidiaries in the EU logistics market shows that the focus is on the development of cooperation between large companies, whose cargo flows are large enough to form regular full-fledged container trains (projects for Volkswagen Group Rus, PSA Peugeot-Citroen), and on large infrastructure projects, such as the extension of the 1520 mm railway to Vienna (the project is estimated at €4.7 billion).
Prerequisites for attracting cargo owners to the railway can be the revision of the current price formation policy, and the cost of the whole logistics chain must be taken into account, not just rates on the railway transportation element; the revision of the cost and conditions of terminal services, customs clearance, and the provision of additional services. Conditions at railway terminals must be as good as in off-dock terminals and in sea ports (several days of storing cargo for free with a guarantee of competitive conditions of work for customs brokers, independent transport and forwarding companies, etc.).
By Konstantin Piskun
* the article is based on the 2013 data.
RZD-Partner International will continue
to monitor the situation

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According to customs statistics, the European Union's share of the total turnover of Russian goods amounts to almost 50%. Most of the freight is carried to the RF by sea and road transport. Why is rail so unpopular among European exporters?

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According to customs statistics, the European Union's share of the total turnover of Russian goods amounts to almost 50%. Most of the freight is carried to the RF by sea and road transport. Why is rail so unpopular among European exporters?

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РЖД-Партнер

Russian Logistics, Foreign IT Platforms

Russian Logistics, Foreign IT Platforms

So far there have been no Russian made IT platforms that manage a client’s logistics chain. The reason for that seems simple – there are only a few companies that are able to render these services. The reality however is more complicated. Fully-fledged integrated logistics and logistics outsourcing are feasible only when business processes are transparent, which is hindered in Russia by tough conditions for business operations and insufficient support from the authorities.

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We Are Nothing without IT

Nowadays it is hard to imagine an enterprise that does not have its ope­ration at least partially automated. Business processes in various companies, including logistics, can be managed by systems such as ERP (company’s resources), CRM (customer relations), TMS ( transportation), WMS (storage), YMS (yard management), HRMS (human resources), 1С (finance) and others. These systems can be integrated as well as standalone. Standalone systems are interconnected with the help of special integration solutions (modules). It is the latter situation that is common for a typical company that expands gradually.
Speaking about 3PL and 4PL supply chain management, Yrysbek Tashbaev, Development Director, Logistika website, considers the solutions by companies such as JDA, Microsoft, Oracle, PSI Logistics and SAP to be the most popular platforms in Russia. He notes, “Develo­pers are starting to offer cloud solutions as well. They are cheaper, but using them compromises business safety as the operating and financial data are stored at the premises of an external service provider.”
When discussing services involving the full integration of a logistics operator into a client’s business processes in Russia, experts usual­ly mention Hyundai Motor CIS and GEFCO, which have sufficient experience in 4PL. There are, however, far more companies in Russia that manage only certain parts of supply chains.
The Facts of the Matter
Logistics operator’s’ OYT platform usually manages 4 flows – finance, products, information (it is in fact the main flow as its life cycle starts long before the production and transportation stage, and it is the last flow to be terminated), and finally the third-party services.
Transportation is the most difficult part especially if it involves customs formalities (for Russia, as a rule, it means importing components for locally manufactured goods). Here is an example. A couple of years ago a German factory producing BOSCH power tools was launched in the Saratov Region; two thirds of the area was occupied by a component storage facility since their delivery from abroad took significantly less time than the customs clearance. The resulting storage of 2 weeks’ supply is definitely inefficient, but these are the day-to-day realities in this country, and we have to live with that.
The biggest transportation problem is however that out of the four possible transport modes only trucks allow the setting up of a well-managed fleet with the necessary informational support. Other types of transport are either lacking state-of-the-art infrastructure or unpredictable regarding delivery time. That is why contrary to the USA and Europe there are no IT solutions for multimodal logistics in Russia. Besides, it is easier to manage a truck fleet; for instance, FM Logistic, a company that uses mostly trucks, has its information support built on an IT platform that is able to mana­ge both its own business processes and those entrusted by customers.
Ruslan Kiss, CEO of Russian Logistics Provider CJSC believes that the scarcity of these practices in Russia is due to the low number of large logistics companies as well as by the mentality of local entrepreneurs and their unwillingness to disclose their business processes to third parties.

To Start from the Warehouse Up

The scope of using IT in logistics depends on the development stage of the company, which usually started with just a warehouse. This pattern is common only in Russia. Initially storage businesses focused on warehouse rental, then safe storage came along and later – extra services. Then a delivery of goods either to customers or to manufacturing was added.
IT-services for warehouses are now so advanced that you can literally talk to the goods stored. Victoria Serbina, Head of external and transversal solutions group at FM Logistic says that her colleagues from Poland and France implement voicepicking at their warehouses. “WMS issues a voice command, and a picker reports on the job completion via headset, with his speech being automatically recognised. This technology makes it possible to dispense with wireless terminals and traditional picking chart lists, which improves efficiency. Drawing on our foreign colleagues’ experience we have decided to implement voice technologies at our warehouses in Russia”, she adds. A similar decision has been made by the Finnish company Itella that uses voicepicking in Finland and is testing it at its Russian warehouses.
State-of-the-art IT solutions make the logistics agile, fitting into human activities. This may also affect the business operations in its entirety, e.g. in retail. Thus the logistics operator for Hugo Boss AG (clothing production and retail) has set up a technological platform, incorporating all the retail stores and production facilities. It processes requests, automatically composed at the stores by reading the bar-code of the goods being sold, and arranges delivery to the stores and to the appropriate warehouses. When the company began its ope­rations in Russia, it incorporated its Russian units into the global IT platform, just as a new employee in an office is hooked up to the corporate network.
Today there is a demand for stock management and goods delivery from local businessmen. There is also demand for something larger, i.e. integrated logistics services, but the supply has been insufficient so far. According to R. Kiss, it is due to the slow development of logistics management platforms. “In this respect we lag a long way behind Europe and the USA, and basically we adapt some parts of the readily available solutions to the Russian conditions”, he says.
Indeed, the automation level of even the largest Russian companies often resembles that of the 1990-es. Dmitry Shutchenko, Head of the Business Projects Department, at IntelLex CJSC, believes that the outlook for IT implementation into the transportation field depends first and foremost on the company management’s awareness of the need to adopt TMS (Transportation Management System). “The increase of competition in transportation will result in the recognition that there will be a considerable cost-saving thanks to IT systems. Besides, the operational efficiency of the interactions with customers and service quality will be brought into the foreground, and that cannot be achieved without up-to-date technologies”, he says. European companies have long realised it, and therefore invest heavily into information support and infrastructure, so the amount of investments into IT differs in Russia by an order of magnitude.
It should be noted that the peculiarities of transportation, legis­lation and accounting in Russia preclude the implementation of the foreign vendors’ solutions in full, since a major overhaul of software to the local conditions is required. This is the first reason why the European and U.S. software is rarely used by Russian logistics companies. The second reason is the high cost of this software. “I can tell from the experience of our company that a successful implementation of TMS requires from the consultants and personnel a comprehensive knowledge and a solid expertise. You cannot learn it during a single project, since even similar looking businesses’ ope­rations may drastically differ in their internal processes. In my experience it is impossible to find 2 identical implementations among the 80 we have done, whereas the abilities of the IT department are quite limited as a rule. That why the expertise of both IT professionals and specialists in the application domain is required“, states D. Shutchenko.
“One can say that the market does not meet our needs”, says Denis Mokshin, Head of the Technologies Department, Major Cargo Servi­ce. “At the moment large vendors offer many integrated solutions that may be relatively cheap on their own, but their implementation costs a lot, and it will only pay off in decades. So only a few companies can afford these solutions.”
Nevertheless market players note that the supply of logistics software has increased several times over the last decade. The biggest obstacle is however the lack of interagency electronic interaction in Russia. After that is arranged there will be an environment for the development of Logistics IT platforms and business operations will become more transparent.
By Marina Ermolenko

viewpoint
Natalia Semichastnova,
Executive Officer, Astrosoft:

– It shall be noted that automation often results in a fresh look on the company’s business processes, solves many problems with redundancy, adjustment of documentation inner sequence, and detects bottlenecks in the business processes, so it may be a catalyst for strategic changes. Among the services we have rendered there is a develop­ment of a performance discipline control system for Transoil LLC, which has certain management challenges due to its spatial spread, as well as development of payroll job and resource management automation for a large Russian ship operator.
 
Igor Rebelsky,
General Director, VIG Trans:

– We tried a lot of ready software products for optimization of logistics business processes, but we were not satisfied with the results as they had features we did not need, among other things. So we decided to develop our own IT solution and integrate it into the company’s processes. What have we achieved? The software managed to reduce the amount of faults due to human errors, clients are now able to monitor online the cargo location and order execution phase. All the issues of inventory control logistics at our Ochakovo warehouse are now resolved, as all the proces­ses of cargo reception and storage are automated.

Boris Bukh,
Director of Competence Center at Itella NLC:

– In half a year after an implementation of new software it is usually feasible to strike the balance and draw a conclusion how efficient a particular IT system has been, and then a decision on its further application is made. Several software solutions that are regularly used at our company have already passed such a check.
Most often we embed IT solutions into our warehouse management operations. We cannot work without a WMS, since it tracks all the goods and allows for interaction with the IT platforms of our clients who use various accounting systems. Invoicing has not been fully automated yet, but we are working on it.



Dmitry Koltsov,
Head of the Internal Automation Group, City Express:

– We use mobile terminals that enable our couriers to receive data on new delivery orders, to register received and delivered dispatches and information on these dispatches. The mobile terminals also gather information on couriers’ location that becomes readily available to dispatchers thus being able to optimise delivery routes and courier’s employment. A long-term task is to automate routing of dispatches reception and delivery. It has not been completed yet since it is difficult to account for all the factors: the delivery can be made by either a pedestrian courier or by a vehicle courier; one should also account for traffic jams.

Victoria Serbina,
Head of External and Transversal Solutions Group at FM Logistic:

– Regretfully there are few IT solutions vendors in the market who know the peculiarities of warehouse operations. So there is a department within our company, FM2I, which designs, develops and implements innovative solutions for all our IT platforms. This benefits FM Logistic a lot since our IT professionals have an insider’s knowledge of all the details of warehouse operations, transportation, co-packing, supply chains.
However even our own company buys some solutions on the market. We do not have any preferred vendors and each time we arrange a transparent tender. A solution must meet our needs, and we pay special attention to SLA (Service Level Agreement) and system maintenance terms.

[~DETAIL_TEXT] =>

We Are Nothing without IT

Nowadays it is hard to imagine an enterprise that does not have its ope­ration at least partially automated. Business processes in various companies, including logistics, can be managed by systems such as ERP (company’s resources), CRM (customer relations), TMS ( transportation), WMS (storage), YMS (yard management), HRMS (human resources), 1С (finance) and others. These systems can be integrated as well as standalone. Standalone systems are interconnected with the help of special integration solutions (modules). It is the latter situation that is common for a typical company that expands gradually.
Speaking about 3PL and 4PL supply chain management, Yrysbek Tashbaev, Development Director, Logistika website, considers the solutions by companies such as JDA, Microsoft, Oracle, PSI Logistics and SAP to be the most popular platforms in Russia. He notes, “Develo­pers are starting to offer cloud solutions as well. They are cheaper, but using them compromises business safety as the operating and financial data are stored at the premises of an external service provider.”
When discussing services involving the full integration of a logistics operator into a client’s business processes in Russia, experts usual­ly mention Hyundai Motor CIS and GEFCO, which have sufficient experience in 4PL. There are, however, far more companies in Russia that manage only certain parts of supply chains.
The Facts of the Matter
Logistics operator’s’ OYT platform usually manages 4 flows – finance, products, information (it is in fact the main flow as its life cycle starts long before the production and transportation stage, and it is the last flow to be terminated), and finally the third-party services.
Transportation is the most difficult part especially if it involves customs formalities (for Russia, as a rule, it means importing components for locally manufactured goods). Here is an example. A couple of years ago a German factory producing BOSCH power tools was launched in the Saratov Region; two thirds of the area was occupied by a component storage facility since their delivery from abroad took significantly less time than the customs clearance. The resulting storage of 2 weeks’ supply is definitely inefficient, but these are the day-to-day realities in this country, and we have to live with that.
The biggest transportation problem is however that out of the four possible transport modes only trucks allow the setting up of a well-managed fleet with the necessary informational support. Other types of transport are either lacking state-of-the-art infrastructure or unpredictable regarding delivery time. That is why contrary to the USA and Europe there are no IT solutions for multimodal logistics in Russia. Besides, it is easier to manage a truck fleet; for instance, FM Logistic, a company that uses mostly trucks, has its information support built on an IT platform that is able to mana­ge both its own business processes and those entrusted by customers.
Ruslan Kiss, CEO of Russian Logistics Provider CJSC believes that the scarcity of these practices in Russia is due to the low number of large logistics companies as well as by the mentality of local entrepreneurs and their unwillingness to disclose their business processes to third parties.

To Start from the Warehouse Up

The scope of using IT in logistics depends on the development stage of the company, which usually started with just a warehouse. This pattern is common only in Russia. Initially storage businesses focused on warehouse rental, then safe storage came along and later – extra services. Then a delivery of goods either to customers or to manufacturing was added.
IT-services for warehouses are now so advanced that you can literally talk to the goods stored. Victoria Serbina, Head of external and transversal solutions group at FM Logistic says that her colleagues from Poland and France implement voicepicking at their warehouses. “WMS issues a voice command, and a picker reports on the job completion via headset, with his speech being automatically recognised. This technology makes it possible to dispense with wireless terminals and traditional picking chart lists, which improves efficiency. Drawing on our foreign colleagues’ experience we have decided to implement voice technologies at our warehouses in Russia”, she adds. A similar decision has been made by the Finnish company Itella that uses voicepicking in Finland and is testing it at its Russian warehouses.
State-of-the-art IT solutions make the logistics agile, fitting into human activities. This may also affect the business operations in its entirety, e.g. in retail. Thus the logistics operator for Hugo Boss AG (clothing production and retail) has set up a technological platform, incorporating all the retail stores and production facilities. It processes requests, automatically composed at the stores by reading the bar-code of the goods being sold, and arranges delivery to the stores and to the appropriate warehouses. When the company began its ope­rations in Russia, it incorporated its Russian units into the global IT platform, just as a new employee in an office is hooked up to the corporate network.
Today there is a demand for stock management and goods delivery from local businessmen. There is also demand for something larger, i.e. integrated logistics services, but the supply has been insufficient so far. According to R. Kiss, it is due to the slow development of logistics management platforms. “In this respect we lag a long way behind Europe and the USA, and basically we adapt some parts of the readily available solutions to the Russian conditions”, he says.
Indeed, the automation level of even the largest Russian companies often resembles that of the 1990-es. Dmitry Shutchenko, Head of the Business Projects Department, at IntelLex CJSC, believes that the outlook for IT implementation into the transportation field depends first and foremost on the company management’s awareness of the need to adopt TMS (Transportation Management System). “The increase of competition in transportation will result in the recognition that there will be a considerable cost-saving thanks to IT systems. Besides, the operational efficiency of the interactions with customers and service quality will be brought into the foreground, and that cannot be achieved without up-to-date technologies”, he says. European companies have long realised it, and therefore invest heavily into information support and infrastructure, so the amount of investments into IT differs in Russia by an order of magnitude.
It should be noted that the peculiarities of transportation, legis­lation and accounting in Russia preclude the implementation of the foreign vendors’ solutions in full, since a major overhaul of software to the local conditions is required. This is the first reason why the European and U.S. software is rarely used by Russian logistics companies. The second reason is the high cost of this software. “I can tell from the experience of our company that a successful implementation of TMS requires from the consultants and personnel a comprehensive knowledge and a solid expertise. You cannot learn it during a single project, since even similar looking businesses’ ope­rations may drastically differ in their internal processes. In my experience it is impossible to find 2 identical implementations among the 80 we have done, whereas the abilities of the IT department are quite limited as a rule. That why the expertise of both IT professionals and specialists in the application domain is required“, states D. Shutchenko.
“One can say that the market does not meet our needs”, says Denis Mokshin, Head of the Technologies Department, Major Cargo Servi­ce. “At the moment large vendors offer many integrated solutions that may be relatively cheap on their own, but their implementation costs a lot, and it will only pay off in decades. So only a few companies can afford these solutions.”
Nevertheless market players note that the supply of logistics software has increased several times over the last decade. The biggest obstacle is however the lack of interagency electronic interaction in Russia. After that is arranged there will be an environment for the development of Logistics IT platforms and business operations will become more transparent.
By Marina Ermolenko

viewpoint
Natalia Semichastnova,
Executive Officer, Astrosoft:

– It shall be noted that automation often results in a fresh look on the company’s business processes, solves many problems with redundancy, adjustment of documentation inner sequence, and detects bottlenecks in the business processes, so it may be a catalyst for strategic changes. Among the services we have rendered there is a develop­ment of a performance discipline control system for Transoil LLC, which has certain management challenges due to its spatial spread, as well as development of payroll job and resource management automation for a large Russian ship operator.
 
Igor Rebelsky,
General Director, VIG Trans:

– We tried a lot of ready software products for optimization of logistics business processes, but we were not satisfied with the results as they had features we did not need, among other things. So we decided to develop our own IT solution and integrate it into the company’s processes. What have we achieved? The software managed to reduce the amount of faults due to human errors, clients are now able to monitor online the cargo location and order execution phase. All the issues of inventory control logistics at our Ochakovo warehouse are now resolved, as all the proces­ses of cargo reception and storage are automated.

Boris Bukh,
Director of Competence Center at Itella NLC:

– In half a year after an implementation of new software it is usually feasible to strike the balance and draw a conclusion how efficient a particular IT system has been, and then a decision on its further application is made. Several software solutions that are regularly used at our company have already passed such a check.
Most often we embed IT solutions into our warehouse management operations. We cannot work without a WMS, since it tracks all the goods and allows for interaction with the IT platforms of our clients who use various accounting systems. Invoicing has not been fully automated yet, but we are working on it.



Dmitry Koltsov,
Head of the Internal Automation Group, City Express:

– We use mobile terminals that enable our couriers to receive data on new delivery orders, to register received and delivered dispatches and information on these dispatches. The mobile terminals also gather information on couriers’ location that becomes readily available to dispatchers thus being able to optimise delivery routes and courier’s employment. A long-term task is to automate routing of dispatches reception and delivery. It has not been completed yet since it is difficult to account for all the factors: the delivery can be made by either a pedestrian courier or by a vehicle courier; one should also account for traffic jams.

Victoria Serbina,
Head of External and Transversal Solutions Group at FM Logistic:

– Regretfully there are few IT solutions vendors in the market who know the peculiarities of warehouse operations. So there is a department within our company, FM2I, which designs, develops and implements innovative solutions for all our IT platforms. This benefits FM Logistic a lot since our IT professionals have an insider’s knowledge of all the details of warehouse operations, transportation, co-packing, supply chains.
However even our own company buys some solutions on the market. We do not have any preferred vendors and each time we arrange a transparent tender. A solution must meet our needs, and we pay special attention to SLA (Service Level Agreement) and system maintenance terms.

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So far there have been no Russian made IT platforms that manage a client’s logistics chain. The reason for that seems simple – there are only a few companies that are able to render these services. The reality however is more complicated. Fully-fledged integrated logistics and logistics outsourcing are feasible only when business processes are transparent, which is hindered in Russia by tough conditions for business operations and insufficient support from the authorities.

[~PREVIEW_TEXT] =>

So far there have been no Russian made IT platforms that manage a client’s logistics chain. The reason for that seems simple – there are only a few companies that are able to render these services. The reality however is more complicated. Fully-fledged integrated logistics and logistics outsourcing are feasible only when business processes are transparent, which is hindered in Russia by tough conditions for business operations and insufficient support from the authorities.

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We Are Nothing without IT

Nowadays it is hard to imagine an enterprise that does not have its ope­ration at least partially automated. Business processes in various companies, including logistics, can be managed by systems such as ERP (company’s resources), CRM (customer relations), TMS ( transportation), WMS (storage), YMS (yard management), HRMS (human resources), 1С (finance) and others. These systems can be integrated as well as standalone. Standalone systems are interconnected with the help of special integration solutions (modules). It is the latter situation that is common for a typical company that expands gradually.
Speaking about 3PL and 4PL supply chain management, Yrysbek Tashbaev, Development Director, Logistika website, considers the solutions by companies such as JDA, Microsoft, Oracle, PSI Logistics and SAP to be the most popular platforms in Russia. He notes, “Develo­pers are starting to offer cloud solutions as well. They are cheaper, but using them compromises business safety as the operating and financial data are stored at the premises of an external service provider.”
When discussing services involving the full integration of a logistics operator into a client’s business processes in Russia, experts usual­ly mention Hyundai Motor CIS and GEFCO, which have sufficient experience in 4PL. There are, however, far more companies in Russia that manage only certain parts of supply chains.
The Facts of the Matter
Logistics operator’s’ OYT platform usually manages 4 flows – finance, products, information (it is in fact the main flow as its life cycle starts long before the production and transportation stage, and it is the last flow to be terminated), and finally the third-party services.
Transportation is the most difficult part especially if it involves customs formalities (for Russia, as a rule, it means importing components for locally manufactured goods). Here is an example. A couple of years ago a German factory producing BOSCH power tools was launched in the Saratov Region; two thirds of the area was occupied by a component storage facility since their delivery from abroad took significantly less time than the customs clearance. The resulting storage of 2 weeks’ supply is definitely inefficient, but these are the day-to-day realities in this country, and we have to live with that.
The biggest transportation problem is however that out of the four possible transport modes only trucks allow the setting up of a well-managed fleet with the necessary informational support. Other types of transport are either lacking state-of-the-art infrastructure or unpredictable regarding delivery time. That is why contrary to the USA and Europe there are no IT solutions for multimodal logistics in Russia. Besides, it is easier to manage a truck fleet; for instance, FM Logistic, a company that uses mostly trucks, has its information support built on an IT platform that is able to mana­ge both its own business processes and those entrusted by customers.
Ruslan Kiss, CEO of Russian Logistics Provider CJSC believes that the scarcity of these practices in Russia is due to the low number of large logistics companies as well as by the mentality of local entrepreneurs and their unwillingness to disclose their business processes to third parties.

To Start from the Warehouse Up

The scope of using IT in logistics depends on the development stage of the company, which usually started with just a warehouse. This pattern is common only in Russia. Initially storage businesses focused on warehouse rental, then safe storage came along and later – extra services. Then a delivery of goods either to customers or to manufacturing was added.
IT-services for warehouses are now so advanced that you can literally talk to the goods stored. Victoria Serbina, Head of external and transversal solutions group at FM Logistic says that her colleagues from Poland and France implement voicepicking at their warehouses. “WMS issues a voice command, and a picker reports on the job completion via headset, with his speech being automatically recognised. This technology makes it possible to dispense with wireless terminals and traditional picking chart lists, which improves efficiency. Drawing on our foreign colleagues’ experience we have decided to implement voice technologies at our warehouses in Russia”, she adds. A similar decision has been made by the Finnish company Itella that uses voicepicking in Finland and is testing it at its Russian warehouses.
State-of-the-art IT solutions make the logistics agile, fitting into human activities. This may also affect the business operations in its entirety, e.g. in retail. Thus the logistics operator for Hugo Boss AG (clothing production and retail) has set up a technological platform, incorporating all the retail stores and production facilities. It processes requests, automatically composed at the stores by reading the bar-code of the goods being sold, and arranges delivery to the stores and to the appropriate warehouses. When the company began its ope­rations in Russia, it incorporated its Russian units into the global IT platform, just as a new employee in an office is hooked up to the corporate network.
Today there is a demand for stock management and goods delivery from local businessmen. There is also demand for something larger, i.e. integrated logistics services, but the supply has been insufficient so far. According to R. Kiss, it is due to the slow development of logistics management platforms. “In this respect we lag a long way behind Europe and the USA, and basically we adapt some parts of the readily available solutions to the Russian conditions”, he says.
Indeed, the automation level of even the largest Russian companies often resembles that of the 1990-es. Dmitry Shutchenko, Head of the Business Projects Department, at IntelLex CJSC, believes that the outlook for IT implementation into the transportation field depends first and foremost on the company management’s awareness of the need to adopt TMS (Transportation Management System). “The increase of competition in transportation will result in the recognition that there will be a considerable cost-saving thanks to IT systems. Besides, the operational efficiency of the interactions with customers and service quality will be brought into the foreground, and that cannot be achieved without up-to-date technologies”, he says. European companies have long realised it, and therefore invest heavily into information support and infrastructure, so the amount of investments into IT differs in Russia by an order of magnitude.
It should be noted that the peculiarities of transportation, legis­lation and accounting in Russia preclude the implementation of the foreign vendors’ solutions in full, since a major overhaul of software to the local conditions is required. This is the first reason why the European and U.S. software is rarely used by Russian logistics companies. The second reason is the high cost of this software. “I can tell from the experience of our company that a successful implementation of TMS requires from the consultants and personnel a comprehensive knowledge and a solid expertise. You cannot learn it during a single project, since even similar looking businesses’ ope­rations may drastically differ in their internal processes. In my experience it is impossible to find 2 identical implementations among the 80 we have done, whereas the abilities of the IT department are quite limited as a rule. That why the expertise of both IT professionals and specialists in the application domain is required“, states D. Shutchenko.
“One can say that the market does not meet our needs”, says Denis Mokshin, Head of the Technologies Department, Major Cargo Servi­ce. “At the moment large vendors offer many integrated solutions that may be relatively cheap on their own, but their implementation costs a lot, and it will only pay off in decades. So only a few companies can afford these solutions.”
Nevertheless market players note that the supply of logistics software has increased several times over the last decade. The biggest obstacle is however the lack of interagency electronic interaction in Russia. After that is arranged there will be an environment for the development of Logistics IT platforms and business operations will become more transparent.
By Marina Ermolenko

viewpoint
Natalia Semichastnova,
Executive Officer, Astrosoft:

– It shall be noted that automation often results in a fresh look on the company’s business processes, solves many problems with redundancy, adjustment of documentation inner sequence, and detects bottlenecks in the business processes, so it may be a catalyst for strategic changes. Among the services we have rendered there is a develop­ment of a performance discipline control system for Transoil LLC, which has certain management challenges due to its spatial spread, as well as development of payroll job and resource management automation for a large Russian ship operator.
 
Igor Rebelsky,
General Director, VIG Trans:

– We tried a lot of ready software products for optimization of logistics business processes, but we were not satisfied with the results as they had features we did not need, among other things. So we decided to develop our own IT solution and integrate it into the company’s processes. What have we achieved? The software managed to reduce the amount of faults due to human errors, clients are now able to monitor online the cargo location and order execution phase. All the issues of inventory control logistics at our Ochakovo warehouse are now resolved, as all the proces­ses of cargo reception and storage are automated.

Boris Bukh,
Director of Competence Center at Itella NLC:

– In half a year after an implementation of new software it is usually feasible to strike the balance and draw a conclusion how efficient a particular IT system has been, and then a decision on its further application is made. Several software solutions that are regularly used at our company have already passed such a check.
Most often we embed IT solutions into our warehouse management operations. We cannot work without a WMS, since it tracks all the goods and allows for interaction with the IT platforms of our clients who use various accounting systems. Invoicing has not been fully automated yet, but we are working on it.



Dmitry Koltsov,
Head of the Internal Automation Group, City Express:

– We use mobile terminals that enable our couriers to receive data on new delivery orders, to register received and delivered dispatches and information on these dispatches. The mobile terminals also gather information on couriers’ location that becomes readily available to dispatchers thus being able to optimise delivery routes and courier’s employment. A long-term task is to automate routing of dispatches reception and delivery. It has not been completed yet since it is difficult to account for all the factors: the delivery can be made by either a pedestrian courier or by a vehicle courier; one should also account for traffic jams.

Victoria Serbina,
Head of External and Transversal Solutions Group at FM Logistic:

– Regretfully there are few IT solutions vendors in the market who know the peculiarities of warehouse operations. So there is a department within our company, FM2I, which designs, develops and implements innovative solutions for all our IT platforms. This benefits FM Logistic a lot since our IT professionals have an insider’s knowledge of all the details of warehouse operations, transportation, co-packing, supply chains.
However even our own company buys some solutions on the market. We do not have any preferred vendors and each time we arrange a transparent tender. A solution must meet our needs, and we pay special attention to SLA (Service Level Agreement) and system maintenance terms.

[~DETAIL_TEXT] =>

We Are Nothing without IT

Nowadays it is hard to imagine an enterprise that does not have its ope­ration at least partially automated. Business processes in various companies, including logistics, can be managed by systems such as ERP (company’s resources), CRM (customer relations), TMS ( transportation), WMS (storage), YMS (yard management), HRMS (human resources), 1С (finance) and others. These systems can be integrated as well as standalone. Standalone systems are interconnected with the help of special integration solutions (modules). It is the latter situation that is common for a typical company that expands gradually.
Speaking about 3PL and 4PL supply chain management, Yrysbek Tashbaev, Development Director, Logistika website, considers the solutions by companies such as JDA, Microsoft, Oracle, PSI Logistics and SAP to be the most popular platforms in Russia. He notes, “Develo­pers are starting to offer cloud solutions as well. They are cheaper, but using them compromises business safety as the operating and financial data are stored at the premises of an external service provider.”
When discussing services involving the full integration of a logistics operator into a client’s business processes in Russia, experts usual­ly mention Hyundai Motor CIS and GEFCO, which have sufficient experience in 4PL. There are, however, far more companies in Russia that manage only certain parts of supply chains.
The Facts of the Matter
Logistics operator’s’ OYT platform usually manages 4 flows – finance, products, information (it is in fact the main flow as its life cycle starts long before the production and transportation stage, and it is the last flow to be terminated), and finally the third-party services.
Transportation is the most difficult part especially if it involves customs formalities (for Russia, as a rule, it means importing components for locally manufactured goods). Here is an example. A couple of years ago a German factory producing BOSCH power tools was launched in the Saratov Region; two thirds of the area was occupied by a component storage facility since their delivery from abroad took significantly less time than the customs clearance. The resulting storage of 2 weeks’ supply is definitely inefficient, but these are the day-to-day realities in this country, and we have to live with that.
The biggest transportation problem is however that out of the four possible transport modes only trucks allow the setting up of a well-managed fleet with the necessary informational support. Other types of transport are either lacking state-of-the-art infrastructure or unpredictable regarding delivery time. That is why contrary to the USA and Europe there are no IT solutions for multimodal logistics in Russia. Besides, it is easier to manage a truck fleet; for instance, FM Logistic, a company that uses mostly trucks, has its information support built on an IT platform that is able to mana­ge both its own business processes and those entrusted by customers.
Ruslan Kiss, CEO of Russian Logistics Provider CJSC believes that the scarcity of these practices in Russia is due to the low number of large logistics companies as well as by the mentality of local entrepreneurs and their unwillingness to disclose their business processes to third parties.

To Start from the Warehouse Up

The scope of using IT in logistics depends on the development stage of the company, which usually started with just a warehouse. This pattern is common only in Russia. Initially storage businesses focused on warehouse rental, then safe storage came along and later – extra services. Then a delivery of goods either to customers or to manufacturing was added.
IT-services for warehouses are now so advanced that you can literally talk to the goods stored. Victoria Serbina, Head of external and transversal solutions group at FM Logistic says that her colleagues from Poland and France implement voicepicking at their warehouses. “WMS issues a voice command, and a picker reports on the job completion via headset, with his speech being automatically recognised. This technology makes it possible to dispense with wireless terminals and traditional picking chart lists, which improves efficiency. Drawing on our foreign colleagues’ experience we have decided to implement voice technologies at our warehouses in Russia”, she adds. A similar decision has been made by the Finnish company Itella that uses voicepicking in Finland and is testing it at its Russian warehouses.
State-of-the-art IT solutions make the logistics agile, fitting into human activities. This may also affect the business operations in its entirety, e.g. in retail. Thus the logistics operator for Hugo Boss AG (clothing production and retail) has set up a technological platform, incorporating all the retail stores and production facilities. It processes requests, automatically composed at the stores by reading the bar-code of the goods being sold, and arranges delivery to the stores and to the appropriate warehouses. When the company began its ope­rations in Russia, it incorporated its Russian units into the global IT platform, just as a new employee in an office is hooked up to the corporate network.
Today there is a demand for stock management and goods delivery from local businessmen. There is also demand for something larger, i.e. integrated logistics services, but the supply has been insufficient so far. According to R. Kiss, it is due to the slow development of logistics management platforms. “In this respect we lag a long way behind Europe and the USA, and basically we adapt some parts of the readily available solutions to the Russian conditions”, he says.
Indeed, the automation level of even the largest Russian companies often resembles that of the 1990-es. Dmitry Shutchenko, Head of the Business Projects Department, at IntelLex CJSC, believes that the outlook for IT implementation into the transportation field depends first and foremost on the company management’s awareness of the need to adopt TMS (Transportation Management System). “The increase of competition in transportation will result in the recognition that there will be a considerable cost-saving thanks to IT systems. Besides, the operational efficiency of the interactions with customers and service quality will be brought into the foreground, and that cannot be achieved without up-to-date technologies”, he says. European companies have long realised it, and therefore invest heavily into information support and infrastructure, so the amount of investments into IT differs in Russia by an order of magnitude.
It should be noted that the peculiarities of transportation, legis­lation and accounting in Russia preclude the implementation of the foreign vendors’ solutions in full, since a major overhaul of software to the local conditions is required. This is the first reason why the European and U.S. software is rarely used by Russian logistics companies. The second reason is the high cost of this software. “I can tell from the experience of our company that a successful implementation of TMS requires from the consultants and personnel a comprehensive knowledge and a solid expertise. You cannot learn it during a single project, since even similar looking businesses’ ope­rations may drastically differ in their internal processes. In my experience it is impossible to find 2 identical implementations among the 80 we have done, whereas the abilities of the IT department are quite limited as a rule. That why the expertise of both IT professionals and specialists in the application domain is required“, states D. Shutchenko.
“One can say that the market does not meet our needs”, says Denis Mokshin, Head of the Technologies Department, Major Cargo Servi­ce. “At the moment large vendors offer many integrated solutions that may be relatively cheap on their own, but their implementation costs a lot, and it will only pay off in decades. So only a few companies can afford these solutions.”
Nevertheless market players note that the supply of logistics software has increased several times over the last decade. The biggest obstacle is however the lack of interagency electronic interaction in Russia. After that is arranged there will be an environment for the development of Logistics IT platforms and business operations will become more transparent.
By Marina Ermolenko

viewpoint
Natalia Semichastnova,
Executive Officer, Astrosoft:

– It shall be noted that automation often results in a fresh look on the company’s business processes, solves many problems with redundancy, adjustment of documentation inner sequence, and detects bottlenecks in the business processes, so it may be a catalyst for strategic changes. Among the services we have rendered there is a develop­ment of a performance discipline control system for Transoil LLC, which has certain management challenges due to its spatial spread, as well as development of payroll job and resource management automation for a large Russian ship operator.
 
Igor Rebelsky,
General Director, VIG Trans:

– We tried a lot of ready software products for optimization of logistics business processes, but we were not satisfied with the results as they had features we did not need, among other things. So we decided to develop our own IT solution and integrate it into the company’s processes. What have we achieved? The software managed to reduce the amount of faults due to human errors, clients are now able to monitor online the cargo location and order execution phase. All the issues of inventory control logistics at our Ochakovo warehouse are now resolved, as all the proces­ses of cargo reception and storage are automated.

Boris Bukh,
Director of Competence Center at Itella NLC:

– In half a year after an implementation of new software it is usually feasible to strike the balance and draw a conclusion how efficient a particular IT system has been, and then a decision on its further application is made. Several software solutions that are regularly used at our company have already passed such a check.
Most often we embed IT solutions into our warehouse management operations. We cannot work without a WMS, since it tracks all the goods and allows for interaction with the IT platforms of our clients who use various accounting systems. Invoicing has not been fully automated yet, but we are working on it.



Dmitry Koltsov,
Head of the Internal Automation Group, City Express:

– We use mobile terminals that enable our couriers to receive data on new delivery orders, to register received and delivered dispatches and information on these dispatches. The mobile terminals also gather information on couriers’ location that becomes readily available to dispatchers thus being able to optimise delivery routes and courier’s employment. A long-term task is to automate routing of dispatches reception and delivery. It has not been completed yet since it is difficult to account for all the factors: the delivery can be made by either a pedestrian courier or by a vehicle courier; one should also account for traffic jams.

Victoria Serbina,
Head of External and Transversal Solutions Group at FM Logistic:

– Regretfully there are few IT solutions vendors in the market who know the peculiarities of warehouse operations. So there is a department within our company, FM2I, which designs, develops and implements innovative solutions for all our IT platforms. This benefits FM Logistic a lot since our IT professionals have an insider’s knowledge of all the details of warehouse operations, transportation, co-packing, supply chains.
However even our own company buys some solutions on the market. We do not have any preferred vendors and each time we arrange a transparent tender. A solution must meet our needs, and we pay special attention to SLA (Service Level Agreement) and system maintenance terms.

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So far there have been no Russian made IT platforms that manage a client’s logistics chain. The reason for that seems simple – there are only a few companies that are able to render these services. The reality however is more complicated. Fully-fledged integrated logistics and logistics outsourcing are feasible only when business processes are transparent, which is hindered in Russia by tough conditions for business operations and insufficient support from the authorities.

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So far there have been no Russian made IT platforms that manage a client’s logistics chain. The reason for that seems simple – there are only a few companies that are able to render these services. The reality however is more complicated. Fully-fledged integrated logistics and logistics outsourcing are feasible only when business processes are transparent, which is hindered in Russia by tough conditions for business operations and insufficient support from the authorities.

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РЖД-Партнер

Many Means, One Platform

One way of improving traffic control is integration of computer systems onto a unified platform. It improves interaction between the company’s divisions, which helps to decrease idling times of trains and leads to improvement
of resources usage speed and more effective planning of repair works.

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Time to Move Forward!

Now large corporations need integration of all their subsystems. This trend, according to Vladimir Andreyev, General Director of the DocsVision Company, is explained by the benefits of the united environment of automotive processes, file archive, and help information. Additional opportunities arise due to aggregation of tasks from adjacent systems, and from the emergence of the general instruments of develo­p­ment and administration.
A more difficult scheme of integration assumes interaction of various types of systems – operational dispatching management (SCADA), planning of resources of the enterprise (ERP) and a production executive system (MES).
According to professor of St. Petersburg Institute for Informatics and Automation of the Russian Academy of Sciences Boris Sokolov, RZD JSC, first, needs integration at the level of SCADA-systems that will help to solve problems, which arise because of the increased complexity of the networks of automated workplaces. It makes coordination of services more complicated. Therefore, it is important to create intelligent systems of moni­toring and management, covering all
levels of the transportation process.
According to experts at NIIAS JSC, the first stage of creation of a unified intelligent control system on railway transport was created in 2012-2013. It was made from three pilot projects on different routes: St Petersburg – Moscow, Mariinsk – Nakhodka and Yaroslavl Main. Network, local and station levels of integration were tested there. Various aspects of decisions were approved.
As a whole, practical use of the software showed that the general directions of the system were chosen correctly. It also opened up prospects for further development of software pro­ducts. A network-centric approach to the creation of a uniform intelligent system and cross-platform technologies are among them. It means that the additional independent modules were built in the general platform. In addition, it allowed carrying out integration in stages. Moreover, new software products gave the chance to automate more and more functions. Finally, they turned into clear processes that expanded the network of integrated workplaces.
Systems for management of passenger traffic were tested on the St. Petersburg – Moscow railroad. It was simpler, than to integrate the systems connected with freight transportation. Therefore, later a similar system for freight was introduced in 2013 on the St. Petersburg – Buslovskaya site in the Northwest of Russia.
According to Sergey Pugachev, Head of Servi­ce of Corporate Informatisation of the Oktyabrskaya Railway, development of the automated systems allowed the railroad in the Northwest of the Russian Federation to expand the practice of using railway technologies in the transportation process and to improve interaction between vertical structures (including the system for an internal exchange of services). It is necessary for the reduction of all idling times of trains where railroads join. Besides, without integration of computer systems, it would be difficult to introduce technologies for risk management for cargo transportation and to improve strategic management. Usage of similar tools helped the route to achieve notable improvements in a number of areas in 2013.
According to Vadim Morozov, First Vice President of RZD, the first results of the system’s operation allow the technology to be considered a significant breakthrough project in the sphere of transportation management under operational conditions”.

From Pilot Projects to Reality

It is necessary to implement this technology on the entire network. Recently experts presented the scheme for such integration, which has to capture three main levels of the automated working systems. We will try to describe them.
The first block concerns dispatching services. Infrastructure and management of safety dispatchers provide freight transportation also. In each of the listed services, the computer systems are traditionally used. And now it is important to create effective interaction between them.
The second block covers computer control systems for the transportation process. They provide sche­duling information for of cargo trains. Thus, dispatchers have to to bring together all the factors influencing schedules, including all restrictions (for example, admission of passenger structures and suburban electric trains on the same routes as cargo trains). It is a difficult task because it is necessary to plan volumes of loading and a departure time for trains in advance. In addition, RZD, except for long-term contracts for transportation within a year have to satisfy the operational demands of clients. Therefore, there are risks of failures of transit.
Experts from RZD try to estimate the influence of these risks annually with the help of computer modeling. Complex algorithms are used in this modeling.
Based on this mathematical model for management of traffic control, monthly schedules of train movements in various directions are planned. Then they are coordinated with the plans of other management agencies. As a result, it ends up being a daily schedule of cargo trains. And the task of the programmer here is to provide the selection showing the factors which are important for this purpose. The problem is that they are kept in a number of specialised systems. In particular, the “Automatic Dispatcher System” and “Ural”. And it takes time to find the data required. But these operations can be automated.
Integration of all automated workplaces allows dispatchers to control transportation more effectively and adjust plans depending on a developing situation. And if program advisers are connected to the system, it will help dispatchers to understand a situation even faster.
It is especially important when the dispatcher has to look for some ways. For example, he can let the driver make up for time lost because of delay. He can change the schedule of other trains in the automated mode. And he can transfer traffic control at any sites to a manual mode, helping structures to interact quicker with each other. Lastly, the dispatcher has the right to open a reserve route for other trains.
Now the rights of dispatchers have been considerably extended. They can turn on the red light for one train and let others pass along the green channel.
But are decisions made on routes effective? The central office needs to know. Without complex automation, it is difficult, integration of computer systems allows this.
The third block of information systems is intended for the management of infrastructure. It is required to strengthen interaction between the first two blocks and to bring together the plans for train operation with the plans for development of traveling facilities.
These three blocks have to be more closely integrated with a number of local information systems. For example, the indicators connected with quality of use of cars influence train operation and infrastructure. Therefore, it is also neces­sary to improve risk management which arise because of the technical condition of a rolling stock. Without it, it is difficult to expand systems of auto maintenance.

Intelligent Systems and Transport Nets

In the long term intelligent system will assist expansion of the potential for interaction with other information systems too. In particular, according to experts from RZD, a successful example is the project of development of electronic document flow in the Ust-Luga logistics center, where the level of coordination of structural divisions of the company and its clients was raised due to the unification of technologies, e-documents  and mobile workplaces .
Intelligent systems opens new horizons of interaction with the railroads of other countries. According to Kirill Baranov, Deputy Director of the Main Computer Center of RZD, it allows agreement about the uniform principles of information exchange on an interstate level. The integration system of data transmission “Infoset-21” which is used to optimise operational work on the 1520 space was formed as a result. In particular, the uniform automated database of wagon parks and containers, models of transportation processes and other subsystems is being implemented
Creation of similar info nets assumes a new level of integration. ®
By Andrey Lazarev

viewpoint
Andrey Pavlovsky,
Head of the Department of Informatisation, RZD JSC:

– Recently the need for integration of various automated systems used by the railway administrations of different countries has been felt more keenly. For
example, systems for planning repairs of freight cars, for calculation of use of freight cars, for the accounting of loading of specialised cars with violation of their specialisation. Also implementation of information systems at interstate level is very important. This problem is solved by the project on creation of the integrated product - “Infoset-21”.

Denis Efremov,
the architect of decisions for the transport branches in the Eastern Europe, CIS, Middle East and Africa regions:

– Large holdings need integrated solutions for mana­gement of transport and logistic activity today. For example, they need to coordinate their transportation of goods, management of repairs, resource planning, management of finance. Therefore there is a demand for uniform transparent processes within information systems.

[~DETAIL_TEXT] =>

Time to Move Forward!

Now large corporations need integration of all their subsystems. This trend, according to Vladimir Andreyev, General Director of the DocsVision Company, is explained by the benefits of the united environment of automotive processes, file archive, and help information. Additional opportunities arise due to aggregation of tasks from adjacent systems, and from the emergence of the general instruments of develo­p­ment and administration.
A more difficult scheme of integration assumes interaction of various types of systems – operational dispatching management (SCADA), planning of resources of the enterprise (ERP) and a production executive system (MES).
According to professor of St. Petersburg Institute for Informatics and Automation of the Russian Academy of Sciences Boris Sokolov, RZD JSC, first, needs integration at the level of SCADA-systems that will help to solve problems, which arise because of the increased complexity of the networks of automated workplaces. It makes coordination of services more complicated. Therefore, it is important to create intelligent systems of moni­toring and management, covering all
levels of the transportation process.
According to experts at NIIAS JSC, the first stage of creation of a unified intelligent control system on railway transport was created in 2012-2013. It was made from three pilot projects on different routes: St Petersburg – Moscow, Mariinsk – Nakhodka and Yaroslavl Main. Network, local and station levels of integration were tested there. Various aspects of decisions were approved.
As a whole, practical use of the software showed that the general directions of the system were chosen correctly. It also opened up prospects for further development of software pro­ducts. A network-centric approach to the creation of a uniform intelligent system and cross-platform technologies are among them. It means that the additional independent modules were built in the general platform. In addition, it allowed carrying out integration in stages. Moreover, new software products gave the chance to automate more and more functions. Finally, they turned into clear processes that expanded the network of integrated workplaces.
Systems for management of passenger traffic were tested on the St. Petersburg – Moscow railroad. It was simpler, than to integrate the systems connected with freight transportation. Therefore, later a similar system for freight was introduced in 2013 on the St. Petersburg – Buslovskaya site in the Northwest of Russia.
According to Sergey Pugachev, Head of Servi­ce of Corporate Informatisation of the Oktyabrskaya Railway, development of the automated systems allowed the railroad in the Northwest of the Russian Federation to expand the practice of using railway technologies in the transportation process and to improve interaction between vertical structures (including the system for an internal exchange of services). It is necessary for the reduction of all idling times of trains where railroads join. Besides, without integration of computer systems, it would be difficult to introduce technologies for risk management for cargo transportation and to improve strategic management. Usage of similar tools helped the route to achieve notable improvements in a number of areas in 2013.
According to Vadim Morozov, First Vice President of RZD, the first results of the system’s operation allow the technology to be considered a significant breakthrough project in the sphere of transportation management under operational conditions”.

From Pilot Projects to Reality

It is necessary to implement this technology on the entire network. Recently experts presented the scheme for such integration, which has to capture three main levels of the automated working systems. We will try to describe them.
The first block concerns dispatching services. Infrastructure and management of safety dispatchers provide freight transportation also. In each of the listed services, the computer systems are traditionally used. And now it is important to create effective interaction between them.
The second block covers computer control systems for the transportation process. They provide sche­duling information for of cargo trains. Thus, dispatchers have to to bring together all the factors influencing schedules, including all restrictions (for example, admission of passenger structures and suburban electric trains on the same routes as cargo trains). It is a difficult task because it is necessary to plan volumes of loading and a departure time for trains in advance. In addition, RZD, except for long-term contracts for transportation within a year have to satisfy the operational demands of clients. Therefore, there are risks of failures of transit.
Experts from RZD try to estimate the influence of these risks annually with the help of computer modeling. Complex algorithms are used in this modeling.
Based on this mathematical model for management of traffic control, monthly schedules of train movements in various directions are planned. Then they are coordinated with the plans of other management agencies. As a result, it ends up being a daily schedule of cargo trains. And the task of the programmer here is to provide the selection showing the factors which are important for this purpose. The problem is that they are kept in a number of specialised systems. In particular, the “Automatic Dispatcher System” and “Ural”. And it takes time to find the data required. But these operations can be automated.
Integration of all automated workplaces allows dispatchers to control transportation more effectively and adjust plans depending on a developing situation. And if program advisers are connected to the system, it will help dispatchers to understand a situation even faster.
It is especially important when the dispatcher has to look for some ways. For example, he can let the driver make up for time lost because of delay. He can change the schedule of other trains in the automated mode. And he can transfer traffic control at any sites to a manual mode, helping structures to interact quicker with each other. Lastly, the dispatcher has the right to open a reserve route for other trains.
Now the rights of dispatchers have been considerably extended. They can turn on the red light for one train and let others pass along the green channel.
But are decisions made on routes effective? The central office needs to know. Without complex automation, it is difficult, integration of computer systems allows this.
The third block of information systems is intended for the management of infrastructure. It is required to strengthen interaction between the first two blocks and to bring together the plans for train operation with the plans for development of traveling facilities.
These three blocks have to be more closely integrated with a number of local information systems. For example, the indicators connected with quality of use of cars influence train operation and infrastructure. Therefore, it is also neces­sary to improve risk management which arise because of the technical condition of a rolling stock. Without it, it is difficult to expand systems of auto maintenance.

Intelligent Systems and Transport Nets

In the long term intelligent system will assist expansion of the potential for interaction with other information systems too. In particular, according to experts from RZD, a successful example is the project of development of electronic document flow in the Ust-Luga logistics center, where the level of coordination of structural divisions of the company and its clients was raised due to the unification of technologies, e-documents  and mobile workplaces .
Intelligent systems opens new horizons of interaction with the railroads of other countries. According to Kirill Baranov, Deputy Director of the Main Computer Center of RZD, it allows agreement about the uniform principles of information exchange on an interstate level. The integration system of data transmission “Infoset-21” which is used to optimise operational work on the 1520 space was formed as a result. In particular, the uniform automated database of wagon parks and containers, models of transportation processes and other subsystems is being implemented
Creation of similar info nets assumes a new level of integration. ®
By Andrey Lazarev

viewpoint
Andrey Pavlovsky,
Head of the Department of Informatisation, RZD JSC:

– Recently the need for integration of various automated systems used by the railway administrations of different countries has been felt more keenly. For
example, systems for planning repairs of freight cars, for calculation of use of freight cars, for the accounting of loading of specialised cars with violation of their specialisation. Also implementation of information systems at interstate level is very important. This problem is solved by the project on creation of the integrated product - “Infoset-21”.

Denis Efremov,
the architect of decisions for the transport branches in the Eastern Europe, CIS, Middle East and Africa regions:

– Large holdings need integrated solutions for mana­gement of transport and logistic activity today. For example, they need to coordinate their transportation of goods, management of repairs, resource planning, management of finance. Therefore there is a demand for uniform transparent processes within information systems.

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One way of improving traffic control is integration of computer systems onto a unified platform. It improves interaction between the company’s divisions, which helps to decrease idling times of trains and leads to improvement
of resources usage speed and more effective planning of repair works.

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One way of improving traffic control is integration of computer systems onto a unified platform. It improves interaction between the company’s divisions, which helps to decrease idling times of trains and leads to improvement
of resources usage speed and more effective planning of repair works.

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Time to Move Forward!

Now large corporations need integration of all their subsystems. This trend, according to Vladimir Andreyev, General Director of the DocsVision Company, is explained by the benefits of the united environment of automotive processes, file archive, and help information. Additional opportunities arise due to aggregation of tasks from adjacent systems, and from the emergence of the general instruments of develo­p­ment and administration.
A more difficult scheme of integration assumes interaction of various types of systems – operational dispatching management (SCADA), planning of resources of the enterprise (ERP) and a production executive system (MES).
According to professor of St. Petersburg Institute for Informatics and Automation of the Russian Academy of Sciences Boris Sokolov, RZD JSC, first, needs integration at the level of SCADA-systems that will help to solve problems, which arise because of the increased complexity of the networks of automated workplaces. It makes coordination of services more complicated. Therefore, it is important to create intelligent systems of moni­toring and management, covering all
levels of the transportation process.
According to experts at NIIAS JSC, the first stage of creation of a unified intelligent control system on railway transport was created in 2012-2013. It was made from three pilot projects on different routes: St Petersburg – Moscow, Mariinsk – Nakhodka and Yaroslavl Main. Network, local and station levels of integration were tested there. Various aspects of decisions were approved.
As a whole, practical use of the software showed that the general directions of the system were chosen correctly. It also opened up prospects for further development of software pro­ducts. A network-centric approach to the creation of a uniform intelligent system and cross-platform technologies are among them. It means that the additional independent modules were built in the general platform. In addition, it allowed carrying out integration in stages. Moreover, new software products gave the chance to automate more and more functions. Finally, they turned into clear processes that expanded the network of integrated workplaces.
Systems for management of passenger traffic were tested on the St. Petersburg – Moscow railroad. It was simpler, than to integrate the systems connected with freight transportation. Therefore, later a similar system for freight was introduced in 2013 on the St. Petersburg – Buslovskaya site in the Northwest of Russia.
According to Sergey Pugachev, Head of Servi­ce of Corporate Informatisation of the Oktyabrskaya Railway, development of the automated systems allowed the railroad in the Northwest of the Russian Federation to expand the practice of using railway technologies in the transportation process and to improve interaction between vertical structures (including the system for an internal exchange of services). It is necessary for the reduction of all idling times of trains where railroads join. Besides, without integration of computer systems, it would be difficult to introduce technologies for risk management for cargo transportation and to improve strategic management. Usage of similar tools helped the route to achieve notable improvements in a number of areas in 2013.
According to Vadim Morozov, First Vice President of RZD, the first results of the system’s operation allow the technology to be considered a significant breakthrough project in the sphere of transportation management under operational conditions”.

From Pilot Projects to Reality

It is necessary to implement this technology on the entire network. Recently experts presented the scheme for such integration, which has to capture three main levels of the automated working systems. We will try to describe them.
The first block concerns dispatching services. Infrastructure and management of safety dispatchers provide freight transportation also. In each of the listed services, the computer systems are traditionally used. And now it is important to create effective interaction between them.
The second block covers computer control systems for the transportation process. They provide sche­duling information for of cargo trains. Thus, dispatchers have to to bring together all the factors influencing schedules, including all restrictions (for example, admission of passenger structures and suburban electric trains on the same routes as cargo trains). It is a difficult task because it is necessary to plan volumes of loading and a departure time for trains in advance. In addition, RZD, except for long-term contracts for transportation within a year have to satisfy the operational demands of clients. Therefore, there are risks of failures of transit.
Experts from RZD try to estimate the influence of these risks annually with the help of computer modeling. Complex algorithms are used in this modeling.
Based on this mathematical model for management of traffic control, monthly schedules of train movements in various directions are planned. Then they are coordinated with the plans of other management agencies. As a result, it ends up being a daily schedule of cargo trains. And the task of the programmer here is to provide the selection showing the factors which are important for this purpose. The problem is that they are kept in a number of specialised systems. In particular, the “Automatic Dispatcher System” and “Ural”. And it takes time to find the data required. But these operations can be automated.
Integration of all automated workplaces allows dispatchers to control transportation more effectively and adjust plans depending on a developing situation. And if program advisers are connected to the system, it will help dispatchers to understand a situation even faster.
It is especially important when the dispatcher has to look for some ways. For example, he can let the driver make up for time lost because of delay. He can change the schedule of other trains in the automated mode. And he can transfer traffic control at any sites to a manual mode, helping structures to interact quicker with each other. Lastly, the dispatcher has the right to open a reserve route for other trains.
Now the rights of dispatchers have been considerably extended. They can turn on the red light for one train and let others pass along the green channel.
But are decisions made on routes effective? The central office needs to know. Without complex automation, it is difficult, integration of computer systems allows this.
The third block of information systems is intended for the management of infrastructure. It is required to strengthen interaction between the first two blocks and to bring together the plans for train operation with the plans for development of traveling facilities.
These three blocks have to be more closely integrated with a number of local information systems. For example, the indicators connected with quality of use of cars influence train operation and infrastructure. Therefore, it is also neces­sary to improve risk management which arise because of the technical condition of a rolling stock. Without it, it is difficult to expand systems of auto maintenance.

Intelligent Systems and Transport Nets

In the long term intelligent system will assist expansion of the potential for interaction with other information systems too. In particular, according to experts from RZD, a successful example is the project of development of electronic document flow in the Ust-Luga logistics center, where the level of coordination of structural divisions of the company and its clients was raised due to the unification of technologies, e-documents  and mobile workplaces .
Intelligent systems opens new horizons of interaction with the railroads of other countries. According to Kirill Baranov, Deputy Director of the Main Computer Center of RZD, it allows agreement about the uniform principles of information exchange on an interstate level. The integration system of data transmission “Infoset-21” which is used to optimise operational work on the 1520 space was formed as a result. In particular, the uniform automated database of wagon parks and containers, models of transportation processes and other subsystems is being implemented
Creation of similar info nets assumes a new level of integration. ®
By Andrey Lazarev

viewpoint
Andrey Pavlovsky,
Head of the Department of Informatisation, RZD JSC:

– Recently the need for integration of various automated systems used by the railway administrations of different countries has been felt more keenly. For
example, systems for planning repairs of freight cars, for calculation of use of freight cars, for the accounting of loading of specialised cars with violation of their specialisation. Also implementation of information systems at interstate level is very important. This problem is solved by the project on creation of the integrated product - “Infoset-21”.

Denis Efremov,
the architect of decisions for the transport branches in the Eastern Europe, CIS, Middle East and Africa regions:

– Large holdings need integrated solutions for mana­gement of transport and logistic activity today. For example, they need to coordinate their transportation of goods, management of repairs, resource planning, management of finance. Therefore there is a demand for uniform transparent processes within information systems.

[~DETAIL_TEXT] =>

Time to Move Forward!

Now large corporations need integration of all their subsystems. This trend, according to Vladimir Andreyev, General Director of the DocsVision Company, is explained by the benefits of the united environment of automotive processes, file archive, and help information. Additional opportunities arise due to aggregation of tasks from adjacent systems, and from the emergence of the general instruments of develo­p­ment and administration.
A more difficult scheme of integration assumes interaction of various types of systems – operational dispatching management (SCADA), planning of resources of the enterprise (ERP) and a production executive system (MES).
According to professor of St. Petersburg Institute for Informatics and Automation of the Russian Academy of Sciences Boris Sokolov, RZD JSC, first, needs integration at the level of SCADA-systems that will help to solve problems, which arise because of the increased complexity of the networks of automated workplaces. It makes coordination of services more complicated. Therefore, it is important to create intelligent systems of moni­toring and management, covering all
levels of the transportation process.
According to experts at NIIAS JSC, the first stage of creation of a unified intelligent control system on railway transport was created in 2012-2013. It was made from three pilot projects on different routes: St Petersburg – Moscow, Mariinsk – Nakhodka and Yaroslavl Main. Network, local and station levels of integration were tested there. Various aspects of decisions were approved.
As a whole, practical use of the software showed that the general directions of the system were chosen correctly. It also opened up prospects for further development of software pro­ducts. A network-centric approach to the creation of a uniform intelligent system and cross-platform technologies are among them. It means that the additional independent modules were built in the general platform. In addition, it allowed carrying out integration in stages. Moreover, new software products gave the chance to automate more and more functions. Finally, they turned into clear processes that expanded the network of integrated workplaces.
Systems for management of passenger traffic were tested on the St. Petersburg – Moscow railroad. It was simpler, than to integrate the systems connected with freight transportation. Therefore, later a similar system for freight was introduced in 2013 on the St. Petersburg – Buslovskaya site in the Northwest of Russia.
According to Sergey Pugachev, Head of Servi­ce of Corporate Informatisation of the Oktyabrskaya Railway, development of the automated systems allowed the railroad in the Northwest of the Russian Federation to expand the practice of using railway technologies in the transportation process and to improve interaction between vertical structures (including the system for an internal exchange of services). It is necessary for the reduction of all idling times of trains where railroads join. Besides, without integration of computer systems, it would be difficult to introduce technologies for risk management for cargo transportation and to improve strategic management. Usage of similar tools helped the route to achieve notable improvements in a number of areas in 2013.
According to Vadim Morozov, First Vice President of RZD, the first results of the system’s operation allow the technology to be considered a significant breakthrough project in the sphere of transportation management under operational conditions”.

From Pilot Projects to Reality

It is necessary to implement this technology on the entire network. Recently experts presented the scheme for such integration, which has to capture three main levels of the automated working systems. We will try to describe them.
The first block concerns dispatching services. Infrastructure and management of safety dispatchers provide freight transportation also. In each of the listed services, the computer systems are traditionally used. And now it is important to create effective interaction between them.
The second block covers computer control systems for the transportation process. They provide sche­duling information for of cargo trains. Thus, dispatchers have to to bring together all the factors influencing schedules, including all restrictions (for example, admission of passenger structures and suburban electric trains on the same routes as cargo trains). It is a difficult task because it is necessary to plan volumes of loading and a departure time for trains in advance. In addition, RZD, except for long-term contracts for transportation within a year have to satisfy the operational demands of clients. Therefore, there are risks of failures of transit.
Experts from RZD try to estimate the influence of these risks annually with the help of computer modeling. Complex algorithms are used in this modeling.
Based on this mathematical model for management of traffic control, monthly schedules of train movements in various directions are planned. Then they are coordinated with the plans of other management agencies. As a result, it ends up being a daily schedule of cargo trains. And the task of the programmer here is to provide the selection showing the factors which are important for this purpose. The problem is that they are kept in a number of specialised systems. In particular, the “Automatic Dispatcher System” and “Ural”. And it takes time to find the data required. But these operations can be automated.
Integration of all automated workplaces allows dispatchers to control transportation more effectively and adjust plans depending on a developing situation. And if program advisers are connected to the system, it will help dispatchers to understand a situation even faster.
It is especially important when the dispatcher has to look for some ways. For example, he can let the driver make up for time lost because of delay. He can change the schedule of other trains in the automated mode. And he can transfer traffic control at any sites to a manual mode, helping structures to interact quicker with each other. Lastly, the dispatcher has the right to open a reserve route for other trains.
Now the rights of dispatchers have been considerably extended. They can turn on the red light for one train and let others pass along the green channel.
But are decisions made on routes effective? The central office needs to know. Without complex automation, it is difficult, integration of computer systems allows this.
The third block of information systems is intended for the management of infrastructure. It is required to strengthen interaction between the first two blocks and to bring together the plans for train operation with the plans for development of traveling facilities.
These three blocks have to be more closely integrated with a number of local information systems. For example, the indicators connected with quality of use of cars influence train operation and infrastructure. Therefore, it is also neces­sary to improve risk management which arise because of the technical condition of a rolling stock. Without it, it is difficult to expand systems of auto maintenance.

Intelligent Systems and Transport Nets

In the long term intelligent system will assist expansion of the potential for interaction with other information systems too. In particular, according to experts from RZD, a successful example is the project of development of electronic document flow in the Ust-Luga logistics center, where the level of coordination of structural divisions of the company and its clients was raised due to the unification of technologies, e-documents  and mobile workplaces .
Intelligent systems opens new horizons of interaction with the railroads of other countries. According to Kirill Baranov, Deputy Director of the Main Computer Center of RZD, it allows agreement about the uniform principles of information exchange on an interstate level. The integration system of data transmission “Infoset-21” which is used to optimise operational work on the 1520 space was formed as a result. In particular, the uniform automated database of wagon parks and containers, models of transportation processes and other subsystems is being implemented
Creation of similar info nets assumes a new level of integration. ®
By Andrey Lazarev

viewpoint
Andrey Pavlovsky,
Head of the Department of Informatisation, RZD JSC:

– Recently the need for integration of various automated systems used by the railway administrations of different countries has been felt more keenly. For
example, systems for planning repairs of freight cars, for calculation of use of freight cars, for the accounting of loading of specialised cars with violation of their specialisation. Also implementation of information systems at interstate level is very important. This problem is solved by the project on creation of the integrated product - “Infoset-21”.

Denis Efremov,
the architect of decisions for the transport branches in the Eastern Europe, CIS, Middle East and Africa regions:

– Large holdings need integrated solutions for mana­gement of transport and logistic activity today. For example, they need to coordinate their transportation of goods, management of repairs, resource planning, management of finance. Therefore there is a demand for uniform transparent processes within information systems.

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One way of improving traffic control is integration of computer systems onto a unified platform. It improves interaction between the company’s divisions, which helps to decrease idling times of trains and leads to improvement
of resources usage speed and more effective planning of repair works.

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РЖД-Партнер

Big Brother for Railway

Big Brother for Railway

It is well known that attracting a new customer costs five times more than keeping an existing one. This principle is followed by most passenger carriers, which offer new IT solutions to their target audience. What future technologies and what strategies will lead railway companies to success?

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Looking for Common Standards

British mobile phone operator O2 has recently conducted a study and found that poor communication with customers and failed digi­tal solutions can cost the British transport industry £1,2 billion (approximately US $1.5 billion) a year. According to the research, about two thirds of all rail tickets sales depend on intelligent technologies.
From this point of view, the most significant experience is that of India, where last March a record was set – more than 500,000 tickets were sold in one day through their online service. In comparison, in Russia only 17 million e-tickets for long-distance trains were sold in 2012 (averaging just over 46,000 tickets per day).
Indian Railways are going to go even further and improve their service in such a way as to be able to sell more than 7 million tickets per minute. To speed up this process the company plans to integrate sales of travel documents and its identification database, which contains biometric information about citizens.
There are many solutions for maintaining communication with the passenger in the field of railways. But, according to Scheherazade Zekri-Chevallet, Commercial Director of the company Thalys (operator of the CPA on the route Paris-Brussels-Cologne-Amsterdam), their implementation is complicated by the lack of common standards, such as, for example, air carriers have. The airlines have created effective ticketing instruments - e-tickets, online registration and booking of additional services (transfers by car, catering, etc.). All of which can be relevant to the railway industry.
According to experts at the Terrapin Company, it is possible to highlight 30 innovative services, which today really attract passengers to the railway. Among them are the standard ones: catering, WiFi, shops in the stations, online ticket purchasing, etc. The most important is the introduction of modern intelligent systems, for example CRM-customer relationship. In Russia this is partly done through the introduction of the loyalty program “Russian Railways Bonus”.
In addition to loyalty programs, you can also refer to CRM messaging with customers, call centers and the development of mobile applications that provide real-time train scheduling information. Incidentally, CRM technologies promise increased profitability of services by 200-800% over two to three years.
Another innovation, which passenger carriers in Europe have bet on, is the contactless smart card, which can be used by passengers for ticket payments for any transport mode, making it easy to connect to another line or another transport mode. Such cards are used in London, Hong Kong and Tokyo. But, as promised by the developers of the technology of electronic tickets Oyster, which is used in London, these cards will not be needed, they will be replaced by mobile phones.

Creation of Loyalty


The most promising technology of today is Big Data, which also includes CRM tools. There is no exact definition of this technology among European carriers now, as it is not widespread today in logistics. In general, Big Data consists of several segments. In addition to various systems for controlling train movements, this technology is data mining, which, by the way, is often criticised for violating the confidentiality of personal information. In fact, it is the collection of all information about the passenger, allowing you to analyse their behavior and preferences in order to improve the quality of services. However, such systems are only just beginning to be created.
In his speech at the last Conference of the American Transport Association expert Lyndon Henry described an example of such a system – the Bay Area Rapid Transit (BART), which is a network of high-speed trains operating in the San Francisco Bay area.
A team of engineers and analysts gathers all the data about the movement of trains. One of the main goals is scheduling the flow of passengers, avoiding, for example, empty electric trains. Also information that is read from the tickets is used for counting the number of people passing through the gate in the station in certain time periods.
However, the legality of the use of such data is still in question. In Seattle, for example, the system of unified regional travel cards (ORCA) is very popular. These cards are usually given to employees at work. The information about the passage of persons through the Big System Data can come directly to the employer.
Another controversial question is about how railway companies “collect the mood” of passengers, for which the railway companies can monitor the personal correspondence of the passenger and his accounts in social networks. Last summer a Japanese railway company JR East, which has accumulated a huge database about its customers by collecting information from their transport cards, illegally sold the data to third parties.
But Big Data, as experts believe, can bring companies and their clients benefits, for example through the creation of a large-scale B2C system based on the preferences and the needs of passengers and increase the level of security. For this purpose the technology has already been introduced by the International Air Transport Association. The airlines exchange information on passengers, which then is also sent to border control (while in the program only Canada and Australia are involved). Due to the fact that the data comes from different sources, it can be used not only to capture fugitive criminals, but also to improve the quality of the service.
In the rail industry Big Data, although promising, has so far been difficult to implement and has not been a profitable way to increase the loyalty of the passengers, so major carriers rely on other technologies.

In Need of Intermodality


European railway companies believe that today a passenger can be attracted only by offering “door-to-door” transportation. “Intermo­dality is crucial for the client. This means that it is now necessary to links with other modes of transport, such as air,” says Scheherazade Zekri-Chevallet. So the com­pany Thalys has an agreement with Jet Airways and Brussels Airlines on passenger transportation by rail between airports in Paris and Brussels.
According to Javier Gonzalez Marcos, Director of Information Systems at Renfe (the national railway network company of Spain), the development of intermodali­ty inevitably entails the need to improve the technology, because passengers must be able to effectively plan their trip. “Passengers will need to use different transport modes in a coordinated way to complete the trip. They will need to know the timetables of the transport they use and the waiting times (customs, check-in, etc) to plan the whole trip,” he said.
Another priority, he believes, is to increase mobility. “This needs to be re-engineered to be accessible through a tablet or a smartphone. It means that the on-board personnel will be able to know in real-time the train seat availability, the arrival time to the next station, have an opportunity to request a lamp repair, sell a seat class upgrade or, for example, give information about hotels or car rental to the passengers,” said Javier.
Similar technology was recently introduced by Deutsche Bahn. Using the Touch & Travel option passengers may identify their location through a smartphone and get a ticket with a bar-code, which will be scanned by the conductor on the train. “Currently, the systems cannot sometimes “talk to each other”. Standardisation of interfaces can make the sale of rail tickets much easier, “says the head of project and programme management passenger transportation at Deutsche Bahn Rutger Fenkes. “Unfortunately, in many cases it is still more efficient for a travel agent to sell an airline ticket than to sell a rail journey, especially if it involves multiple operators without interlining or code share agreements”, he said.
There is fierce competition not only between the various modes of transport, but also between the various carriers. But the most important factor for a passenger remains lowest cost. According to the report by the EU called “Competition”, that accounts for 43% percent, but in recent times such criterion as “effective logistics” (20%) was also taken into account. Thus, providing the mobility using IT solutions opens new perspectives for rail.
By Kristina Alexandrova

[~DETAIL_TEXT] =>

Looking for Common Standards

British mobile phone operator O2 has recently conducted a study and found that poor communication with customers and failed digi­tal solutions can cost the British transport industry £1,2 billion (approximately US $1.5 billion) a year. According to the research, about two thirds of all rail tickets sales depend on intelligent technologies.
From this point of view, the most significant experience is that of India, where last March a record was set – more than 500,000 tickets were sold in one day through their online service. In comparison, in Russia only 17 million e-tickets for long-distance trains were sold in 2012 (averaging just over 46,000 tickets per day).
Indian Railways are going to go even further and improve their service in such a way as to be able to sell more than 7 million tickets per minute. To speed up this process the company plans to integrate sales of travel documents and its identification database, which contains biometric information about citizens.
There are many solutions for maintaining communication with the passenger in the field of railways. But, according to Scheherazade Zekri-Chevallet, Commercial Director of the company Thalys (operator of the CPA on the route Paris-Brussels-Cologne-Amsterdam), their implementation is complicated by the lack of common standards, such as, for example, air carriers have. The airlines have created effective ticketing instruments - e-tickets, online registration and booking of additional services (transfers by car, catering, etc.). All of which can be relevant to the railway industry.
According to experts at the Terrapin Company, it is possible to highlight 30 innovative services, which today really attract passengers to the railway. Among them are the standard ones: catering, WiFi, shops in the stations, online ticket purchasing, etc. The most important is the introduction of modern intelligent systems, for example CRM-customer relationship. In Russia this is partly done through the introduction of the loyalty program “Russian Railways Bonus”.
In addition to loyalty programs, you can also refer to CRM messaging with customers, call centers and the development of mobile applications that provide real-time train scheduling information. Incidentally, CRM technologies promise increased profitability of services by 200-800% over two to three years.
Another innovation, which passenger carriers in Europe have bet on, is the contactless smart card, which can be used by passengers for ticket payments for any transport mode, making it easy to connect to another line or another transport mode. Such cards are used in London, Hong Kong and Tokyo. But, as promised by the developers of the technology of electronic tickets Oyster, which is used in London, these cards will not be needed, they will be replaced by mobile phones.

Creation of Loyalty


The most promising technology of today is Big Data, which also includes CRM tools. There is no exact definition of this technology among European carriers now, as it is not widespread today in logistics. In general, Big Data consists of several segments. In addition to various systems for controlling train movements, this technology is data mining, which, by the way, is often criticised for violating the confidentiality of personal information. In fact, it is the collection of all information about the passenger, allowing you to analyse their behavior and preferences in order to improve the quality of services. However, such systems are only just beginning to be created.
In his speech at the last Conference of the American Transport Association expert Lyndon Henry described an example of such a system – the Bay Area Rapid Transit (BART), which is a network of high-speed trains operating in the San Francisco Bay area.
A team of engineers and analysts gathers all the data about the movement of trains. One of the main goals is scheduling the flow of passengers, avoiding, for example, empty electric trains. Also information that is read from the tickets is used for counting the number of people passing through the gate in the station in certain time periods.
However, the legality of the use of such data is still in question. In Seattle, for example, the system of unified regional travel cards (ORCA) is very popular. These cards are usually given to employees at work. The information about the passage of persons through the Big System Data can come directly to the employer.
Another controversial question is about how railway companies “collect the mood” of passengers, for which the railway companies can monitor the personal correspondence of the passenger and his accounts in social networks. Last summer a Japanese railway company JR East, which has accumulated a huge database about its customers by collecting information from their transport cards, illegally sold the data to third parties.
But Big Data, as experts believe, can bring companies and their clients benefits, for example through the creation of a large-scale B2C system based on the preferences and the needs of passengers and increase the level of security. For this purpose the technology has already been introduced by the International Air Transport Association. The airlines exchange information on passengers, which then is also sent to border control (while in the program only Canada and Australia are involved). Due to the fact that the data comes from different sources, it can be used not only to capture fugitive criminals, but also to improve the quality of the service.
In the rail industry Big Data, although promising, has so far been difficult to implement and has not been a profitable way to increase the loyalty of the passengers, so major carriers rely on other technologies.

In Need of Intermodality


European railway companies believe that today a passenger can be attracted only by offering “door-to-door” transportation. “Intermo­dality is crucial for the client. This means that it is now necessary to links with other modes of transport, such as air,” says Scheherazade Zekri-Chevallet. So the com­pany Thalys has an agreement with Jet Airways and Brussels Airlines on passenger transportation by rail between airports in Paris and Brussels.
According to Javier Gonzalez Marcos, Director of Information Systems at Renfe (the national railway network company of Spain), the development of intermodali­ty inevitably entails the need to improve the technology, because passengers must be able to effectively plan their trip. “Passengers will need to use different transport modes in a coordinated way to complete the trip. They will need to know the timetables of the transport they use and the waiting times (customs, check-in, etc) to plan the whole trip,” he said.
Another priority, he believes, is to increase mobility. “This needs to be re-engineered to be accessible through a tablet or a smartphone. It means that the on-board personnel will be able to know in real-time the train seat availability, the arrival time to the next station, have an opportunity to request a lamp repair, sell a seat class upgrade or, for example, give information about hotels or car rental to the passengers,” said Javier.
Similar technology was recently introduced by Deutsche Bahn. Using the Touch & Travel option passengers may identify their location through a smartphone and get a ticket with a bar-code, which will be scanned by the conductor on the train. “Currently, the systems cannot sometimes “talk to each other”. Standardisation of interfaces can make the sale of rail tickets much easier, “says the head of project and programme management passenger transportation at Deutsche Bahn Rutger Fenkes. “Unfortunately, in many cases it is still more efficient for a travel agent to sell an airline ticket than to sell a rail journey, especially if it involves multiple operators without interlining or code share agreements”, he said.
There is fierce competition not only between the various modes of transport, but also between the various carriers. But the most important factor for a passenger remains lowest cost. According to the report by the EU called “Competition”, that accounts for 43% percent, but in recent times such criterion as “effective logistics” (20%) was also taken into account. Thus, providing the mobility using IT solutions opens new perspectives for rail.
By Kristina Alexandrova

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It is well known that attracting a new customer costs five times more than keeping an existing one. This principle is followed by most passenger carriers, which offer new IT solutions to their target audience. What future technologies and what strategies will lead railway companies to success?

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Looking for Common Standards

British mobile phone operator O2 has recently conducted a study and found that poor communication with customers and failed digi­tal solutions can cost the British transport industry £1,2 billion (approximately US $1.5 billion) a year. According to the research, about two thirds of all rail tickets sales depend on intelligent technologies.
From this point of view, the most significant experience is that of India, where last March a record was set – more than 500,000 tickets were sold in one day through their online service. In comparison, in Russia only 17 million e-tickets for long-distance trains were sold in 2012 (averaging just over 46,000 tickets per day).
Indian Railways are going to go even further and improve their service in such a way as to be able to sell more than 7 million tickets per minute. To speed up this process the company plans to integrate sales of travel documents and its identification database, which contains biometric information about citizens.
There are many solutions for maintaining communication with the passenger in the field of railways. But, according to Scheherazade Zekri-Chevallet, Commercial Director of the company Thalys (operator of the CPA on the route Paris-Brussels-Cologne-Amsterdam), their implementation is complicated by the lack of common standards, such as, for example, air carriers have. The airlines have created effective ticketing instruments - e-tickets, online registration and booking of additional services (transfers by car, catering, etc.). All of which can be relevant to the railway industry.
According to experts at the Terrapin Company, it is possible to highlight 30 innovative services, which today really attract passengers to the railway. Among them are the standard ones: catering, WiFi, shops in the stations, online ticket purchasing, etc. The most important is the introduction of modern intelligent systems, for example CRM-customer relationship. In Russia this is partly done through the introduction of the loyalty program “Russian Railways Bonus”.
In addition to loyalty programs, you can also refer to CRM messaging with customers, call centers and the development of mobile applications that provide real-time train scheduling information. Incidentally, CRM technologies promise increased profitability of services by 200-800% over two to three years.
Another innovation, which passenger carriers in Europe have bet on, is the contactless smart card, which can be used by passengers for ticket payments for any transport mode, making it easy to connect to another line or another transport mode. Such cards are used in London, Hong Kong and Tokyo. But, as promised by the developers of the technology of electronic tickets Oyster, which is used in London, these cards will not be needed, they will be replaced by mobile phones.

Creation of Loyalty


The most promising technology of today is Big Data, which also includes CRM tools. There is no exact definition of this technology among European carriers now, as it is not widespread today in logistics. In general, Big Data consists of several segments. In addition to various systems for controlling train movements, this technology is data mining, which, by the way, is often criticised for violating the confidentiality of personal information. In fact, it is the collection of all information about the passenger, allowing you to analyse their behavior and preferences in order to improve the quality of services. However, such systems are only just beginning to be created.
In his speech at the last Conference of the American Transport Association expert Lyndon Henry described an example of such a system – the Bay Area Rapid Transit (BART), which is a network of high-speed trains operating in the San Francisco Bay area.
A team of engineers and analysts gathers all the data about the movement of trains. One of the main goals is scheduling the flow of passengers, avoiding, for example, empty electric trains. Also information that is read from the tickets is used for counting the number of people passing through the gate in the station in certain time periods.
However, the legality of the use of such data is still in question. In Seattle, for example, the system of unified regional travel cards (ORCA) is very popular. These cards are usually given to employees at work. The information about the passage of persons through the Big System Data can come directly to the employer.
Another controversial question is about how railway companies “collect the mood” of passengers, for which the railway companies can monitor the personal correspondence of the passenger and his accounts in social networks. Last summer a Japanese railway company JR East, which has accumulated a huge database about its customers by collecting information from their transport cards, illegally sold the data to third parties.
But Big Data, as experts believe, can bring companies and their clients benefits, for example through the creation of a large-scale B2C system based on the preferences and the needs of passengers and increase the level of security. For this purpose the technology has already been introduced by the International Air Transport Association. The airlines exchange information on passengers, which then is also sent to border control (while in the program only Canada and Australia are involved). Due to the fact that the data comes from different sources, it can be used not only to capture fugitive criminals, but also to improve the quality of the service.
In the rail industry Big Data, although promising, has so far been difficult to implement and has not been a profitable way to increase the loyalty of the passengers, so major carriers rely on other technologies.

In Need of Intermodality


European railway companies believe that today a passenger can be attracted only by offering “door-to-door” transportation. “Intermo­dality is crucial for the client. This means that it is now necessary to links with other modes of transport, such as air,” says Scheherazade Zekri-Chevallet. So the com­pany Thalys has an agreement with Jet Airways and Brussels Airlines on passenger transportation by rail between airports in Paris and Brussels.
According to Javier Gonzalez Marcos, Director of Information Systems at Renfe (the national railway network company of Spain), the development of intermodali­ty inevitably entails the need to improve the technology, because passengers must be able to effectively plan their trip. “Passengers will need to use different transport modes in a coordinated way to complete the trip. They will need to know the timetables of the transport they use and the waiting times (customs, check-in, etc) to plan the whole trip,” he said.
Another priority, he believes, is to increase mobility. “This needs to be re-engineered to be accessible through a tablet or a smartphone. It means that the on-board personnel will be able to know in real-time the train seat availability, the arrival time to the next station, have an opportunity to request a lamp repair, sell a seat class upgrade or, for example, give information about hotels or car rental to the passengers,” said Javier.
Similar technology was recently introduced by Deutsche Bahn. Using the Touch & Travel option passengers may identify their location through a smartphone and get a ticket with a bar-code, which will be scanned by the conductor on the train. “Currently, the systems cannot sometimes “talk to each other”. Standardisation of interfaces can make the sale of rail tickets much easier, “says the head of project and programme management passenger transportation at Deutsche Bahn Rutger Fenkes. “Unfortunately, in many cases it is still more efficient for a travel agent to sell an airline ticket than to sell a rail journey, especially if it involves multiple operators without interlining or code share agreements”, he said.
There is fierce competition not only between the various modes of transport, but also between the various carriers. But the most important factor for a passenger remains lowest cost. According to the report by the EU called “Competition”, that accounts for 43% percent, but in recent times such criterion as “effective logistics” (20%) was also taken into account. Thus, providing the mobility using IT solutions opens new perspectives for rail.
By Kristina Alexandrova

[~DETAIL_TEXT] =>

Looking for Common Standards

British mobile phone operator O2 has recently conducted a study and found that poor communication with customers and failed digi­tal solutions can cost the British transport industry £1,2 billion (approximately US $1.5 billion) a year. According to the research, about two thirds of all rail tickets sales depend on intelligent technologies.
From this point of view, the most significant experience is that of India, where last March a record was set – more than 500,000 tickets were sold in one day through their online service. In comparison, in Russia only 17 million e-tickets for long-distance trains were sold in 2012 (averaging just over 46,000 tickets per day).
Indian Railways are going to go even further and improve their service in such a way as to be able to sell more than 7 million tickets per minute. To speed up this process the company plans to integrate sales of travel documents and its identification database, which contains biometric information about citizens.
There are many solutions for maintaining communication with the passenger in the field of railways. But, according to Scheherazade Zekri-Chevallet, Commercial Director of the company Thalys (operator of the CPA on the route Paris-Brussels-Cologne-Amsterdam), their implementation is complicated by the lack of common standards, such as, for example, air carriers have. The airlines have created effective ticketing instruments - e-tickets, online registration and booking of additional services (transfers by car, catering, etc.). All of which can be relevant to the railway industry.
According to experts at the Terrapin Company, it is possible to highlight 30 innovative services, which today really attract passengers to the railway. Among them are the standard ones: catering, WiFi, shops in the stations, online ticket purchasing, etc. The most important is the introduction of modern intelligent systems, for example CRM-customer relationship. In Russia this is partly done through the introduction of the loyalty program “Russian Railways Bonus”.
In addition to loyalty programs, you can also refer to CRM messaging with customers, call centers and the development of mobile applications that provide real-time train scheduling information. Incidentally, CRM technologies promise increased profitability of services by 200-800% over two to three years.
Another innovation, which passenger carriers in Europe have bet on, is the contactless smart card, which can be used by passengers for ticket payments for any transport mode, making it easy to connect to another line or another transport mode. Such cards are used in London, Hong Kong and Tokyo. But, as promised by the developers of the technology of electronic tickets Oyster, which is used in London, these cards will not be needed, they will be replaced by mobile phones.

Creation of Loyalty


The most promising technology of today is Big Data, which also includes CRM tools. There is no exact definition of this technology among European carriers now, as it is not widespread today in logistics. In general, Big Data consists of several segments. In addition to various systems for controlling train movements, this technology is data mining, which, by the way, is often criticised for violating the confidentiality of personal information. In fact, it is the collection of all information about the passenger, allowing you to analyse their behavior and preferences in order to improve the quality of services. However, such systems are only just beginning to be created.
In his speech at the last Conference of the American Transport Association expert Lyndon Henry described an example of such a system – the Bay Area Rapid Transit (BART), which is a network of high-speed trains operating in the San Francisco Bay area.
A team of engineers and analysts gathers all the data about the movement of trains. One of the main goals is scheduling the flow of passengers, avoiding, for example, empty electric trains. Also information that is read from the tickets is used for counting the number of people passing through the gate in the station in certain time periods.
However, the legality of the use of such data is still in question. In Seattle, for example, the system of unified regional travel cards (ORCA) is very popular. These cards are usually given to employees at work. The information about the passage of persons through the Big System Data can come directly to the employer.
Another controversial question is about how railway companies “collect the mood” of passengers, for which the railway companies can monitor the personal correspondence of the passenger and his accounts in social networks. Last summer a Japanese railway company JR East, which has accumulated a huge database about its customers by collecting information from their transport cards, illegally sold the data to third parties.
But Big Data, as experts believe, can bring companies and their clients benefits, for example through the creation of a large-scale B2C system based on the preferences and the needs of passengers and increase the level of security. For this purpose the technology has already been introduced by the International Air Transport Association. The airlines exchange information on passengers, which then is also sent to border control (while in the program only Canada and Australia are involved). Due to the fact that the data comes from different sources, it can be used not only to capture fugitive criminals, but also to improve the quality of the service.
In the rail industry Big Data, although promising, has so far been difficult to implement and has not been a profitable way to increase the loyalty of the passengers, so major carriers rely on other technologies.

In Need of Intermodality


European railway companies believe that today a passenger can be attracted only by offering “door-to-door” transportation. “Intermo­dality is crucial for the client. This means that it is now necessary to links with other modes of transport, such as air,” says Scheherazade Zekri-Chevallet. So the com­pany Thalys has an agreement with Jet Airways and Brussels Airlines on passenger transportation by rail between airports in Paris and Brussels.
According to Javier Gonzalez Marcos, Director of Information Systems at Renfe (the national railway network company of Spain), the development of intermodali­ty inevitably entails the need to improve the technology, because passengers must be able to effectively plan their trip. “Passengers will need to use different transport modes in a coordinated way to complete the trip. They will need to know the timetables of the transport they use and the waiting times (customs, check-in, etc) to plan the whole trip,” he said.
Another priority, he believes, is to increase mobility. “This needs to be re-engineered to be accessible through a tablet or a smartphone. It means that the on-board personnel will be able to know in real-time the train seat availability, the arrival time to the next station, have an opportunity to request a lamp repair, sell a seat class upgrade or, for example, give information about hotels or car rental to the passengers,” said Javier.
Similar technology was recently introduced by Deutsche Bahn. Using the Touch & Travel option passengers may identify their location through a smartphone and get a ticket with a bar-code, which will be scanned by the conductor on the train. “Currently, the systems cannot sometimes “talk to each other”. Standardisation of interfaces can make the sale of rail tickets much easier, “says the head of project and programme management passenger transportation at Deutsche Bahn Rutger Fenkes. “Unfortunately, in many cases it is still more efficient for a travel agent to sell an airline ticket than to sell a rail journey, especially if it involves multiple operators without interlining or code share agreements”, he said.
There is fierce competition not only between the various modes of transport, but also between the various carriers. But the most important factor for a passenger remains lowest cost. According to the report by the EU called “Competition”, that accounts for 43% percent, but in recent times such criterion as “effective logistics” (20%) was also taken into account. Thus, providing the mobility using IT solutions opens new perspectives for rail.
By Kristina Alexandrova

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It is well known that attracting a new customer costs five times more than keeping an existing one. This principle is followed by most passenger carriers, which offer new IT solutions to their target audience. What future technologies and what strategies will lead railway companies to success?

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It is well known that attracting a new customer costs five times more than keeping an existing one. This principle is followed by most passenger carriers, which offer new IT solutions to their target audience. What future technologies and what strategies will lead railway companies to success?

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РЖД-Партнер

News

Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.

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Baltic Railway Council Launched
Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.
According to participants in the meeting, fluctuation of supply and demand for the volume of foreign trade transportationand significant changes in the structure of cargo flows has convinced them to revise investment programmes for the development of railway infrastructure in the Baltic region. Simultaneously, railways have to compete with road transporters. Therefore, new ways are needed to coordinate the work of railway administrations.
The members of the Council are representatives of railways of Russia, Finland, Belarus, Estonia, and Latvia. Lithuanian Railways preferred to have observer status. Viktor Stepov, Head of Oktyabrskaya Railway, was elected as the Head of the Council.

Moscow – Vladimir Section of HSR Project Is Approved
The State Expert Assessment Department approved the development of a high-speed railway line linking Moscow and Vladimir, which will later be a part of the Moscow – Kazan high-speed railway, thus, making a start on the development of HSR in Russia.
Meanwhile, the final decision will be made by the RF Government this spring. The justification of investment in the Moscow – Kazan HSR made by the Lengiprotrans institute and the Centre of Strategic Developments was confirmed by independent auditors. The Ministry for Economy agreed with the project cost estimation.

Reconstruction of Serbian Railway Infrastructure will Begin in March 2014
RZD International LLC (a subsidiary of RZD) began the movement of its personnel and machinery to Serbia to carry out the construction of railway infrastructure and to supply diesel trains paid for by the export loan.
The contract, worth $941.2 million ($800 million is the state export loan provided by Russia) was adjusted for funding by the RF Ministry of Finance on December 18, 2013. According to the contract, Russian railwaymen are to repair 370 kilometres of railway tracks in Serbia. Works will begin in March 2014.

China Begins Construction of a Deep-Water Port for a New Transport Corridor
The construction of a giant deep-water port began in Lianyungang (China). It will become an important part of the new transport corridor linking Europe and Asia via Russia and Central Asia.
The total investment in the project is estimated at more than $3 billion. The sea harbor will be able to handle over 200 million tons of freight, including crude oil and petrochemicals, bulk cargo, containers, and service 300,000 ton dwt vessels. An enormous transport and logistics hub will be created there. Its size will amount to approximately 74 sq.km.
The construction of the port is carried out as part of the strategic concept of “the Silk Road Economic Belt”, according to which the port will be the starting point of the trans-continental transport corridor linking the Chinese cities of Хi’an and Urumqi, Dostyk in Kazakhstan, Russia, Belarus, and Europe. Later, due to an expansion of the railway network in Central Asia, all countries in the region as well as Iran and Afghanistan can link to the transport corridor.

RZD May Extend Broad-Gauge Rail Line to Italy
Italian railways offered RZD to extend the broad-gauge railway line, which will lead through Slovakia to Vienna as far as Italy, said Vladimir Yakunin, President of Russian Railways JSC.
“I received a letter from my colleague - the head of the Italian railways - who proposed an extension of this corridor. According to him, Italy is interested in the use of rail transport in foreign economic relations with Russia,” he said.
Costs for the construction of the rail line to Vienna are estimated at € 6.25 billion, another €240 million will be invested in building of terminals and €130 million in the purchase of rolling stock.

Express Railway to Link Samara and Tolyatti by FIFA 2018 World Cup
Samara and Tolyatti to be linked by an express railway. According to Mikhail Babich, the RF President Plenipotentiary to the Volga Federal District, it will make the trip from one city to the other shorter and increase the availability of the Kurumoch airport.
“Four regions of the federal district – Tatarstan, Mordovia, the Nizhny Novgorod and Samara regions – will host this event. It is necessary to provide convenient routes for the participants and guests of the FIFA World Cup to travel from one city to another,” he said. “To link the cities and airports is especially important, because they are turning into state-of-the-art logistics transport hubs,” believes M. Babich. He mentioned Kazan as an example. The city is linked to the airport by a railway line, and it is possible to get from the airport to the centre of the city in 15-20 minutes. “A similar express railway should be built in Samara,” said M. Babich. In his words, this decision has already been raised with Maxim Sokolov, the RF Transport Minister.

Construction of Transport Infrastructure Facilities in Sochi
The lion’s share of expenses on the Olympics in Sochi was spent on infrastructure projects.
According to Dmitry Medvedev, the RF Prime Minister, only $6.4 billion of the $50 billion was spent on preparing for the Olym­pics. The rest of the funds were invested in the infrastructure of the city, especially the construction and repair of motorways, bridges, and tunnels.
RZD took part in the construction of transport infrastructure in Sochi in accordance with the programme for the construction of Olympic facilities and the development of the city as an alpine resort, approved by the RF Government (Decree №991 dated December 29, 2007).
In Sochi, RZD put into operation a whole complex of huge transport infrastructure facilities: the combined Adler–Alpika Service road and rail line, the second continuous railway line between Sochi–Adler–Olympic Park (Veseloe), additional sections on the Tuapse–Adler railway line, the new Sochi–Adler–Sochi Airport rail link. Also, the company built a new multimodal terminal station in Adler, thus creating a transport interchange hub combining all types of passenger transport: rail, air and sea. Its capacity is 15,000 people per hour. Additionally, passenger terminals for the Dagomys, Sochi, Matsesta, and Khosta railway stations were reconstructed to adapt them for people with disabilities.
In the words of Vladimir Yakunin, President of RZD, the company completed the construction of the infrastructure facilities in an unprecedently short term and fulfilled the investementprogramme on the North-Caucasian railway. “The quality of these works was highly commended by experts from the Olympic Committee and professionals,” added V. Yakunin.

RZD Allocates RUB 76.1 Billion to Purchase New Locomotives in 2014

According to RZD’s 2014 investment programme, RUB 76.1 billion is allocated to buy locomotives.
RZD is going to purchase 629 new locomotives, of which 352 will be electric locomotives and 277 diesel locomotives. In particu­lar, the company’s fleet will be supplemented by 40 direct current electric freight locomotives with the 2ES10 Granite asynchronous traction drive, 110 direct current electric freight locomotives 2ES6 Sinara, 121 alternating current electric freight locomotives 3ES5K Yermak , eight diesel freight locomotives with 2TE25A Vityaz asynchronous traction drive, 40 units of 2TE116UD with diesel by General Electric , and one main line gas turbine locomotive GT1h fuelled by liquefied natural gas.In 2013 RZD bought 804 locomotives for RUB 83.5 billion. Currently, the company’s locomotive fleet exceeds 20,000 locomotives.

PriceWaterHouseCoopers Will Provide Consulting Services for the Taman DCD Project
PricewaterhouseCoopers Russia B.V. has won the tender to provide consulting services on the development of corporate, management and financial models for the project known as “Creation of the new dry cargo district of port Taman”.
According to the contents of the tender, announced by RMP-Taman LLC, the company undertakes to fulfill the services for RUB 39,530,000. The project for creation of the new dry cargo district of port Taman implies the construction of facilities at the Taman peninsula (Krasnodar Territory) capable of handling 94 million tons of dry cargo per year.
The project implementation has been factored into all strategic programmes and budget planning documents from 2008: the Transport Strategy of the Russian Federation until 2030; the Strategy for the development of seaport infrastructure until 2030; and the federal special-purpose programme Development of Russia’s Transport System (2010-2020). The project is being implemented through the private-public partnership (PPP).

Moody’s Affirms Russian Railways’ Baa1 Rating
Moody’s Investors Service has affirmed the Baa1 senior unsecured issuer rating for Russian Railways Joint Stock Company, and the Baa1 senior unsecured rating for RZD Capital PLC, which is the issuer of loan participation notes for the sole purpose of financing loans to Russian Railways.
The components of Russian Railways’ senior unsecured issuer rating based on Moody’s designation of the company as a government-related issuer (GRI), namely Russian Railways’ baseline credit assessment (BCA) – which is a measure of standalone financial strength – of baa3, ‘high’ dependence and ‘high’ implied state support, remain unchanged. The outlook on all ratings remains stable.
Aeroexpress to Put Double-Deck Trains into Operation on Its Routes in June 2015
Aeroexpress plans to begin the commercial operation of the first double-deck train in June 2015, while the last – 25th train of the delivery – is expected to enter service in June 2016.
Stadler Rail Group successfully manufactured the first aluminiumcarbody of the fleet of 25 double-deck trains ordered by airport express operator Aeroexpress. The aluminium carriage was examined and accepted by the technical experts of Aeroexpress on February 3–5 in Altenrhein, Switzerland. With the acceptance of the first carbody, the project reached its first significant milestone in accordance with the timing of the preliminary agreed production schedule. The first train will be delivered to Russia for authority certification and engineering testing in October this year.
According to the production plan, the first three trains are to be produced completely in Altenrhein, which is the competence centre of Stadler in Switzerland for the production of double-deck trains. Stadler has also recently built a new factory in Minsk, Belarus, which is going to join the production of Aeroexpress trains from the fourth vehicle by performing carbody welding, painting, assembling and commissioning.

Transmashholding to Deliver 20 TEM TMH Shunting Locomotives to Lithuanian Railways
TMH B CJSC (TMH representatives in the Baltics, Poland and Finland) have entered into an agreement with Lithuanian Railways JSC (LG) to supply twenty TEM TMH shunting locomotives.
Delivery of the TEM TMH locomotives commenced at the end of January this year, and the customer will get one locomotive each month. The Russian company will transfer TEM TMH diesel locomotive sets to the Vilnius locomotive repair depot for final assembly as per the agreement. Shunting locomotives will be built on the well-proven and reliable running gear of TEM18DM diesel locomotives and equipped with Caterpillar diesel engines that satisfy UIC Stage IIIA requirements.
Currently, 51 TEM TMH locomotives are running on Lithuanian Railways. LG’s operation has demonstrated fuel savings of up to 37% on shunting locomotives and up to 45% for freight operations versus diesel locos from earlier series. TEM TMH locomotives can replace 2 previous generation machines in terms of technical performance.
TEM TMH shunting locomotives have been supplied to the Baltic countries since 2009 and operated both in Lithuania and Estonia (port of Sillamae). It is expected another four diesel locomotives of this series will be put into operation on the Estonian railway in the coming months.

EVRAZ Launches Mass Production of 25-Metre Rails
EVRAZ has now started the mass production of head-hardened R65 DT-350 rails, with the first large delivery –
10 thousand tons of 25-meter rails – shipped to Russian Railways. These new EVRAZ-produced rails will be usedby Oktyabrskaya, Gorkovskaya, and Severnaya Railways (affiliates of RZD).
In November the Federal Railway Transport Certification Registry issued EVRAZ with a compliance certificate for R65
DT-350 head-hardened rails with lengths of up to 100 meters, thus authorising the company to start the production of products that are unique in the Russian market.
25-meter head-hardened rails produced by EVRAZ ZSMK have an extended life cycle, reducing the number of repairs required. This facilitates the smooth operation of railways utilising this product, which in turn fosters improvements in the transport infrastructure.

UVZ and EMD Sign a MOU to Consider Opportunities for Mainline Locomotives
On December 25, 2013, UralVagonZavod OJSC (UVZ), a leading railway industry manufacturing corporation, signed a Memorandum of Understanding with Electro-Motive Diesel, Inc. (EMD), a leading manufacturer of diesel-electric locomotives, to examine potential opportunities for the development and building of mainline locomotives in Russia. Per the MOU, the companies anticipate having demonstration units in Russia for performance and certification testing in 2014.
The MOU also addressed the consideration of a joint engineering team to potentially develop a mainline locomotive model of 4500 BHP using an EMD AC transmission system, EMD 16-710 engine and other EMD service proven components, technologies and designs.  EMD and UVZ will also examine adopting a goal to achieve 50 percent local content in Russia for the locomotive build program.
The manufacture of modern, mainline freight locomotives on Russian territory would bring opportunities to incorporate the latest EMD natural gas technologies.
EMD locomotives operate globally on railways in all climate zones, with proven reliability and relatively low lifecycle costs. The companies are working toward signing a definitive agreement in the coming months.

Ukrzaliznytsia Creates New Corridor for International Transportation of Containers
The Ukrainian Railway Administration (Ukrzaliznytsia) has formed tariffs for the new regular container route from the ports of the Odessa region to Russia.
The route begins in the standard container ports of Ukraine (Odessa and Ilyichevsk), crosses the Zernovo border crossing, and its final point is the Vorsino station (Moscow Railway, an affiliate of RZD). A container train for the Freight Village logistics centre will operate on this route.
On this route, the tariff commission of Ukrzaliznytsia set rates similar to tariffs on container transportation via the Russian Far Eastern ports and further to attract cargo to the Ukrainian ports. Rates for loaded containers carried via the new route vary from $178 (20-foot box on own/rented flat wagon) to $396 (40-foot box on the public flat wagon).
According to Ukrzaliznytsia, an advantage of the new container route is the opportunity for additional loading at the interim point – the Kiev transport hub. It is planned to make the loading volume carried via the route balanced (due to attraction of backload to the Ukrainian ports). Another advantage of the new route will be the high speed of the delivery – the route speed of the new train on the area of Ukraine will amount to 1,300 km per day.

Throughput of Ports of the Baltic States Fell 4% in 2013

Last year, the amount of freight handled in the ports of the Baltic States fell by 4% in comparison with 2012 to 155.73 million tons, according to the Ministry of Transport of Latvia.
In 2013, 45.3% of the total throughput was handled in Latvian ports, 27.2% - in Lithuanian ones, and 27.5% - in Estonian harbours.
The throughput of Latvian ports was 70.48 million tons (-6.3% in comparison with 2012); Lithuanian ports handled 42.38 million tons (-3.1%), and Estonian ports – 42.871 million tons (-1.1%).
The leader among the ports of the Baltic States was the port of Riga with 35.46 million tons (-1.6%). The Klaipeda port was second with 33.4 million tons (-5.2%), and the Ventspils port that handled 28.76 million tons (-5.2%) was third.
The port of Tallinn handled 28.24 million tons (-5.2%).

30 Million Ton Port Capacities Were Put into Operation in Russia in 2013
New 30 million ton port capacities were put into operation in the Russian Federation in 2013, said Maxim Sokolov, Mini­s­ter of Transport, at his meeting with Vladimir Putin, the RF President.
“As for the port infrastructure, the plan was fulfilled, and 30 million ton port capacities were put into operation. First of all, these were in the ports of Novorossiysk, Ust-Luga, Kaliningrad, and Taman,” said M. Sokolov.
In his words, the construction of the new cruise passenger port in Sochi was completed, and seven port terminals were put into operation for sea transportation in summer. The Transport Minister said that the Federal Target Programme to 2020 envisages that over RUB 80 billion is to be invested in the creation of new infrastructure and the reconstruction of the hub near Krasnodar, a passing loop round Krasnodar in the Volgograd direction. This will contribute to a 70 million ton increase in carrying capacity.

First Container Train Departs from China to Nakhodka-East Station via Suifenhe-Grodekovo Border Crossing
A pilot container train consisting of forty wagons of transit cargo left for the first time from the People’s Republic of China for the southern ports of China and the Republic of Korea via the Vladivostok section of the Far Eastern Main Line.
A special timetable was developed specifically for this trip. Total travel time was 10 hours and 40 minutes.
This corridor is an alternative to the traditional route via the Chinese port of Dalian, which is now significantly overloaded. Rail transportation allows the shipment of goods in commercial quantities in the shortest possible time.
The project to develop an international rail connection between Suifenhe in China and Grodekovo in Russia was implemented within the framework of the decisions adopted by the Working Group of the Greater Tumangan Initiative (GTI) in October 2013. The regular dispatch of transit containers on this route will optimise the transport and logistics supply chain of goods from China’s northern provinces and in the opposite direction by using the infrastructure of stevedoring companies from the Far East and Russian Railways.

[~DETAIL_TEXT] =>

Baltic Railway Council Launched
Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.
According to participants in the meeting, fluctuation of supply and demand for the volume of foreign trade transportationand significant changes in the structure of cargo flows has convinced them to revise investment programmes for the development of railway infrastructure in the Baltic region. Simultaneously, railways have to compete with road transporters. Therefore, new ways are needed to coordinate the work of railway administrations.
The members of the Council are representatives of railways of Russia, Finland, Belarus, Estonia, and Latvia. Lithuanian Railways preferred to have observer status. Viktor Stepov, Head of Oktyabrskaya Railway, was elected as the Head of the Council.

Moscow – Vladimir Section of HSR Project Is Approved
The State Expert Assessment Department approved the development of a high-speed railway line linking Moscow and Vladimir, which will later be a part of the Moscow – Kazan high-speed railway, thus, making a start on the development of HSR in Russia.
Meanwhile, the final decision will be made by the RF Government this spring. The justification of investment in the Moscow – Kazan HSR made by the Lengiprotrans institute and the Centre of Strategic Developments was confirmed by independent auditors. The Ministry for Economy agreed with the project cost estimation.

Reconstruction of Serbian Railway Infrastructure will Begin in March 2014
RZD International LLC (a subsidiary of RZD) began the movement of its personnel and machinery to Serbia to carry out the construction of railway infrastructure and to supply diesel trains paid for by the export loan.
The contract, worth $941.2 million ($800 million is the state export loan provided by Russia) was adjusted for funding by the RF Ministry of Finance on December 18, 2013. According to the contract, Russian railwaymen are to repair 370 kilometres of railway tracks in Serbia. Works will begin in March 2014.

China Begins Construction of a Deep-Water Port for a New Transport Corridor
The construction of a giant deep-water port began in Lianyungang (China). It will become an important part of the new transport corridor linking Europe and Asia via Russia and Central Asia.
The total investment in the project is estimated at more than $3 billion. The sea harbor will be able to handle over 200 million tons of freight, including crude oil and petrochemicals, bulk cargo, containers, and service 300,000 ton dwt vessels. An enormous transport and logistics hub will be created there. Its size will amount to approximately 74 sq.km.
The construction of the port is carried out as part of the strategic concept of “the Silk Road Economic Belt”, according to which the port will be the starting point of the trans-continental transport corridor linking the Chinese cities of Хi’an and Urumqi, Dostyk in Kazakhstan, Russia, Belarus, and Europe. Later, due to an expansion of the railway network in Central Asia, all countries in the region as well as Iran and Afghanistan can link to the transport corridor.

RZD May Extend Broad-Gauge Rail Line to Italy
Italian railways offered RZD to extend the broad-gauge railway line, which will lead through Slovakia to Vienna as far as Italy, said Vladimir Yakunin, President of Russian Railways JSC.
“I received a letter from my colleague - the head of the Italian railways - who proposed an extension of this corridor. According to him, Italy is interested in the use of rail transport in foreign economic relations with Russia,” he said.
Costs for the construction of the rail line to Vienna are estimated at € 6.25 billion, another €240 million will be invested in building of terminals and €130 million in the purchase of rolling stock.

Express Railway to Link Samara and Tolyatti by FIFA 2018 World Cup
Samara and Tolyatti to be linked by an express railway. According to Mikhail Babich, the RF President Plenipotentiary to the Volga Federal District, it will make the trip from one city to the other shorter and increase the availability of the Kurumoch airport.
“Four regions of the federal district – Tatarstan, Mordovia, the Nizhny Novgorod and Samara regions – will host this event. It is necessary to provide convenient routes for the participants and guests of the FIFA World Cup to travel from one city to another,” he said. “To link the cities and airports is especially important, because they are turning into state-of-the-art logistics transport hubs,” believes M. Babich. He mentioned Kazan as an example. The city is linked to the airport by a railway line, and it is possible to get from the airport to the centre of the city in 15-20 minutes. “A similar express railway should be built in Samara,” said M. Babich. In his words, this decision has already been raised with Maxim Sokolov, the RF Transport Minister.

Construction of Transport Infrastructure Facilities in Sochi
The lion’s share of expenses on the Olympics in Sochi was spent on infrastructure projects.
According to Dmitry Medvedev, the RF Prime Minister, only $6.4 billion of the $50 billion was spent on preparing for the Olym­pics. The rest of the funds were invested in the infrastructure of the city, especially the construction and repair of motorways, bridges, and tunnels.
RZD took part in the construction of transport infrastructure in Sochi in accordance with the programme for the construction of Olympic facilities and the development of the city as an alpine resort, approved by the RF Government (Decree №991 dated December 29, 2007).
In Sochi, RZD put into operation a whole complex of huge transport infrastructure facilities: the combined Adler–Alpika Service road and rail line, the second continuous railway line between Sochi–Adler–Olympic Park (Veseloe), additional sections on the Tuapse–Adler railway line, the new Sochi–Adler–Sochi Airport rail link. Also, the company built a new multimodal terminal station in Adler, thus creating a transport interchange hub combining all types of passenger transport: rail, air and sea. Its capacity is 15,000 people per hour. Additionally, passenger terminals for the Dagomys, Sochi, Matsesta, and Khosta railway stations were reconstructed to adapt them for people with disabilities.
In the words of Vladimir Yakunin, President of RZD, the company completed the construction of the infrastructure facilities in an unprecedently short term and fulfilled the investementprogramme on the North-Caucasian railway. “The quality of these works was highly commended by experts from the Olympic Committee and professionals,” added V. Yakunin.

RZD Allocates RUB 76.1 Billion to Purchase New Locomotives in 2014

According to RZD’s 2014 investment programme, RUB 76.1 billion is allocated to buy locomotives.
RZD is going to purchase 629 new locomotives, of which 352 will be electric locomotives and 277 diesel locomotives. In particu­lar, the company’s fleet will be supplemented by 40 direct current electric freight locomotives with the 2ES10 Granite asynchronous traction drive, 110 direct current electric freight locomotives 2ES6 Sinara, 121 alternating current electric freight locomotives 3ES5K Yermak , eight diesel freight locomotives with 2TE25A Vityaz asynchronous traction drive, 40 units of 2TE116UD with diesel by General Electric , and one main line gas turbine locomotive GT1h fuelled by liquefied natural gas.In 2013 RZD bought 804 locomotives for RUB 83.5 billion. Currently, the company’s locomotive fleet exceeds 20,000 locomotives.

PriceWaterHouseCoopers Will Provide Consulting Services for the Taman DCD Project
PricewaterhouseCoopers Russia B.V. has won the tender to provide consulting services on the development of corporate, management and financial models for the project known as “Creation of the new dry cargo district of port Taman”.
According to the contents of the tender, announced by RMP-Taman LLC, the company undertakes to fulfill the services for RUB 39,530,000. The project for creation of the new dry cargo district of port Taman implies the construction of facilities at the Taman peninsula (Krasnodar Territory) capable of handling 94 million tons of dry cargo per year.
The project implementation has been factored into all strategic programmes and budget planning documents from 2008: the Transport Strategy of the Russian Federation until 2030; the Strategy for the development of seaport infrastructure until 2030; and the federal special-purpose programme Development of Russia’s Transport System (2010-2020). The project is being implemented through the private-public partnership (PPP).

Moody’s Affirms Russian Railways’ Baa1 Rating
Moody’s Investors Service has affirmed the Baa1 senior unsecured issuer rating for Russian Railways Joint Stock Company, and the Baa1 senior unsecured rating for RZD Capital PLC, which is the issuer of loan participation notes for the sole purpose of financing loans to Russian Railways.
The components of Russian Railways’ senior unsecured issuer rating based on Moody’s designation of the company as a government-related issuer (GRI), namely Russian Railways’ baseline credit assessment (BCA) – which is a measure of standalone financial strength – of baa3, ‘high’ dependence and ‘high’ implied state support, remain unchanged. The outlook on all ratings remains stable.
Aeroexpress to Put Double-Deck Trains into Operation on Its Routes in June 2015
Aeroexpress plans to begin the commercial operation of the first double-deck train in June 2015, while the last – 25th train of the delivery – is expected to enter service in June 2016.
Stadler Rail Group successfully manufactured the first aluminiumcarbody of the fleet of 25 double-deck trains ordered by airport express operator Aeroexpress. The aluminium carriage was examined and accepted by the technical experts of Aeroexpress on February 3–5 in Altenrhein, Switzerland. With the acceptance of the first carbody, the project reached its first significant milestone in accordance with the timing of the preliminary agreed production schedule. The first train will be delivered to Russia for authority certification and engineering testing in October this year.
According to the production plan, the first three trains are to be produced completely in Altenrhein, which is the competence centre of Stadler in Switzerland for the production of double-deck trains. Stadler has also recently built a new factory in Minsk, Belarus, which is going to join the production of Aeroexpress trains from the fourth vehicle by performing carbody welding, painting, assembling and commissioning.

Transmashholding to Deliver 20 TEM TMH Shunting Locomotives to Lithuanian Railways
TMH B CJSC (TMH representatives in the Baltics, Poland and Finland) have entered into an agreement with Lithuanian Railways JSC (LG) to supply twenty TEM TMH shunting locomotives.
Delivery of the TEM TMH locomotives commenced at the end of January this year, and the customer will get one locomotive each month. The Russian company will transfer TEM TMH diesel locomotive sets to the Vilnius locomotive repair depot for final assembly as per the agreement. Shunting locomotives will be built on the well-proven and reliable running gear of TEM18DM diesel locomotives and equipped with Caterpillar diesel engines that satisfy UIC Stage IIIA requirements.
Currently, 51 TEM TMH locomotives are running on Lithuanian Railways. LG’s operation has demonstrated fuel savings of up to 37% on shunting locomotives and up to 45% for freight operations versus diesel locos from earlier series. TEM TMH locomotives can replace 2 previous generation machines in terms of technical performance.
TEM TMH shunting locomotives have been supplied to the Baltic countries since 2009 and operated both in Lithuania and Estonia (port of Sillamae). It is expected another four diesel locomotives of this series will be put into operation on the Estonian railway in the coming months.

EVRAZ Launches Mass Production of 25-Metre Rails
EVRAZ has now started the mass production of head-hardened R65 DT-350 rails, with the first large delivery –
10 thousand tons of 25-meter rails – shipped to Russian Railways. These new EVRAZ-produced rails will be usedby Oktyabrskaya, Gorkovskaya, and Severnaya Railways (affiliates of RZD).
In November the Federal Railway Transport Certification Registry issued EVRAZ with a compliance certificate for R65
DT-350 head-hardened rails with lengths of up to 100 meters, thus authorising the company to start the production of products that are unique in the Russian market.
25-meter head-hardened rails produced by EVRAZ ZSMK have an extended life cycle, reducing the number of repairs required. This facilitates the smooth operation of railways utilising this product, which in turn fosters improvements in the transport infrastructure.

UVZ and EMD Sign a MOU to Consider Opportunities for Mainline Locomotives
On December 25, 2013, UralVagonZavod OJSC (UVZ), a leading railway industry manufacturing corporation, signed a Memorandum of Understanding with Electro-Motive Diesel, Inc. (EMD), a leading manufacturer of diesel-electric locomotives, to examine potential opportunities for the development and building of mainline locomotives in Russia. Per the MOU, the companies anticipate having demonstration units in Russia for performance and certification testing in 2014.
The MOU also addressed the consideration of a joint engineering team to potentially develop a mainline locomotive model of 4500 BHP using an EMD AC transmission system, EMD 16-710 engine and other EMD service proven components, technologies and designs.  EMD and UVZ will also examine adopting a goal to achieve 50 percent local content in Russia for the locomotive build program.
The manufacture of modern, mainline freight locomotives on Russian territory would bring opportunities to incorporate the latest EMD natural gas technologies.
EMD locomotives operate globally on railways in all climate zones, with proven reliability and relatively low lifecycle costs. The companies are working toward signing a definitive agreement in the coming months.

Ukrzaliznytsia Creates New Corridor for International Transportation of Containers
The Ukrainian Railway Administration (Ukrzaliznytsia) has formed tariffs for the new regular container route from the ports of the Odessa region to Russia.
The route begins in the standard container ports of Ukraine (Odessa and Ilyichevsk), crosses the Zernovo border crossing, and its final point is the Vorsino station (Moscow Railway, an affiliate of RZD). A container train for the Freight Village logistics centre will operate on this route.
On this route, the tariff commission of Ukrzaliznytsia set rates similar to tariffs on container transportation via the Russian Far Eastern ports and further to attract cargo to the Ukrainian ports. Rates for loaded containers carried via the new route vary from $178 (20-foot box on own/rented flat wagon) to $396 (40-foot box on the public flat wagon).
According to Ukrzaliznytsia, an advantage of the new container route is the opportunity for additional loading at the interim point – the Kiev transport hub. It is planned to make the loading volume carried via the route balanced (due to attraction of backload to the Ukrainian ports). Another advantage of the new route will be the high speed of the delivery – the route speed of the new train on the area of Ukraine will amount to 1,300 km per day.

Throughput of Ports of the Baltic States Fell 4% in 2013

Last year, the amount of freight handled in the ports of the Baltic States fell by 4% in comparison with 2012 to 155.73 million tons, according to the Ministry of Transport of Latvia.
In 2013, 45.3% of the total throughput was handled in Latvian ports, 27.2% - in Lithuanian ones, and 27.5% - in Estonian harbours.
The throughput of Latvian ports was 70.48 million tons (-6.3% in comparison with 2012); Lithuanian ports handled 42.38 million tons (-3.1%), and Estonian ports – 42.871 million tons (-1.1%).
The leader among the ports of the Baltic States was the port of Riga with 35.46 million tons (-1.6%). The Klaipeda port was second with 33.4 million tons (-5.2%), and the Ventspils port that handled 28.76 million tons (-5.2%) was third.
The port of Tallinn handled 28.24 million tons (-5.2%).

30 Million Ton Port Capacities Were Put into Operation in Russia in 2013
New 30 million ton port capacities were put into operation in the Russian Federation in 2013, said Maxim Sokolov, Mini­s­ter of Transport, at his meeting with Vladimir Putin, the RF President.
“As for the port infrastructure, the plan was fulfilled, and 30 million ton port capacities were put into operation. First of all, these were in the ports of Novorossiysk, Ust-Luga, Kaliningrad, and Taman,” said M. Sokolov.
In his words, the construction of the new cruise passenger port in Sochi was completed, and seven port terminals were put into operation for sea transportation in summer. The Transport Minister said that the Federal Target Programme to 2020 envisages that over RUB 80 billion is to be invested in the creation of new infrastructure and the reconstruction of the hub near Krasnodar, a passing loop round Krasnodar in the Volgograd direction. This will contribute to a 70 million ton increase in carrying capacity.

First Container Train Departs from China to Nakhodka-East Station via Suifenhe-Grodekovo Border Crossing
A pilot container train consisting of forty wagons of transit cargo left for the first time from the People’s Republic of China for the southern ports of China and the Republic of Korea via the Vladivostok section of the Far Eastern Main Line.
A special timetable was developed specifically for this trip. Total travel time was 10 hours and 40 minutes.
This corridor is an alternative to the traditional route via the Chinese port of Dalian, which is now significantly overloaded. Rail transportation allows the shipment of goods in commercial quantities in the shortest possible time.
The project to develop an international rail connection between Suifenhe in China and Grodekovo in Russia was implemented within the framework of the decisions adopted by the Working Group of the Greater Tumangan Initiative (GTI) in October 2013. The regular dispatch of transit containers on this route will optimise the transport and logistics supply chain of goods from China’s northern provinces and in the opposite direction by using the infrastructure of stevedoring companies from the Far East and Russian Railways.

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Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.

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Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.

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Baltic Railway Council Launched
Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.
According to participants in the meeting, fluctuation of supply and demand for the volume of foreign trade transportationand significant changes in the structure of cargo flows has convinced them to revise investment programmes for the development of railway infrastructure in the Baltic region. Simultaneously, railways have to compete with road transporters. Therefore, new ways are needed to coordinate the work of railway administrations.
The members of the Council are representatives of railways of Russia, Finland, Belarus, Estonia, and Latvia. Lithuanian Railways preferred to have observer status. Viktor Stepov, Head of Oktyabrskaya Railway, was elected as the Head of the Council.

Moscow – Vladimir Section of HSR Project Is Approved
The State Expert Assessment Department approved the development of a high-speed railway line linking Moscow and Vladimir, which will later be a part of the Moscow – Kazan high-speed railway, thus, making a start on the development of HSR in Russia.
Meanwhile, the final decision will be made by the RF Government this spring. The justification of investment in the Moscow – Kazan HSR made by the Lengiprotrans institute and the Centre of Strategic Developments was confirmed by independent auditors. The Ministry for Economy agreed with the project cost estimation.

Reconstruction of Serbian Railway Infrastructure will Begin in March 2014
RZD International LLC (a subsidiary of RZD) began the movement of its personnel and machinery to Serbia to carry out the construction of railway infrastructure and to supply diesel trains paid for by the export loan.
The contract, worth $941.2 million ($800 million is the state export loan provided by Russia) was adjusted for funding by the RF Ministry of Finance on December 18, 2013. According to the contract, Russian railwaymen are to repair 370 kilometres of railway tracks in Serbia. Works will begin in March 2014.

China Begins Construction of a Deep-Water Port for a New Transport Corridor
The construction of a giant deep-water port began in Lianyungang (China). It will become an important part of the new transport corridor linking Europe and Asia via Russia and Central Asia.
The total investment in the project is estimated at more than $3 billion. The sea harbor will be able to handle over 200 million tons of freight, including crude oil and petrochemicals, bulk cargo, containers, and service 300,000 ton dwt vessels. An enormous transport and logistics hub will be created there. Its size will amount to approximately 74 sq.km.
The construction of the port is carried out as part of the strategic concept of “the Silk Road Economic Belt”, according to which the port will be the starting point of the trans-continental transport corridor linking the Chinese cities of Хi’an and Urumqi, Dostyk in Kazakhstan, Russia, Belarus, and Europe. Later, due to an expansion of the railway network in Central Asia, all countries in the region as well as Iran and Afghanistan can link to the transport corridor.

RZD May Extend Broad-Gauge Rail Line to Italy
Italian railways offered RZD to extend the broad-gauge railway line, which will lead through Slovakia to Vienna as far as Italy, said Vladimir Yakunin, President of Russian Railways JSC.
“I received a letter from my colleague - the head of the Italian railways - who proposed an extension of this corridor. According to him, Italy is interested in the use of rail transport in foreign economic relations with Russia,” he said.
Costs for the construction of the rail line to Vienna are estimated at € 6.25 billion, another €240 million will be invested in building of terminals and €130 million in the purchase of rolling stock.

Express Railway to Link Samara and Tolyatti by FIFA 2018 World Cup
Samara and Tolyatti to be linked by an express railway. According to Mikhail Babich, the RF President Plenipotentiary to the Volga Federal District, it will make the trip from one city to the other shorter and increase the availability of the Kurumoch airport.
“Four regions of the federal district – Tatarstan, Mordovia, the Nizhny Novgorod and Samara regions – will host this event. It is necessary to provide convenient routes for the participants and guests of the FIFA World Cup to travel from one city to another,” he said. “To link the cities and airports is especially important, because they are turning into state-of-the-art logistics transport hubs,” believes M. Babich. He mentioned Kazan as an example. The city is linked to the airport by a railway line, and it is possible to get from the airport to the centre of the city in 15-20 minutes. “A similar express railway should be built in Samara,” said M. Babich. In his words, this decision has already been raised with Maxim Sokolov, the RF Transport Minister.

Construction of Transport Infrastructure Facilities in Sochi
The lion’s share of expenses on the Olympics in Sochi was spent on infrastructure projects.
According to Dmitry Medvedev, the RF Prime Minister, only $6.4 billion of the $50 billion was spent on preparing for the Olym­pics. The rest of the funds were invested in the infrastructure of the city, especially the construction and repair of motorways, bridges, and tunnels.
RZD took part in the construction of transport infrastructure in Sochi in accordance with the programme for the construction of Olympic facilities and the development of the city as an alpine resort, approved by the RF Government (Decree №991 dated December 29, 2007).
In Sochi, RZD put into operation a whole complex of huge transport infrastructure facilities: the combined Adler–Alpika Service road and rail line, the second continuous railway line between Sochi–Adler–Olympic Park (Veseloe), additional sections on the Tuapse–Adler railway line, the new Sochi–Adler–Sochi Airport rail link. Also, the company built a new multimodal terminal station in Adler, thus creating a transport interchange hub combining all types of passenger transport: rail, air and sea. Its capacity is 15,000 people per hour. Additionally, passenger terminals for the Dagomys, Sochi, Matsesta, and Khosta railway stations were reconstructed to adapt them for people with disabilities.
In the words of Vladimir Yakunin, President of RZD, the company completed the construction of the infrastructure facilities in an unprecedently short term and fulfilled the investementprogramme on the North-Caucasian railway. “The quality of these works was highly commended by experts from the Olympic Committee and professionals,” added V. Yakunin.

RZD Allocates RUB 76.1 Billion to Purchase New Locomotives in 2014

According to RZD’s 2014 investment programme, RUB 76.1 billion is allocated to buy locomotives.
RZD is going to purchase 629 new locomotives, of which 352 will be electric locomotives and 277 diesel locomotives. In particu­lar, the company’s fleet will be supplemented by 40 direct current electric freight locomotives with the 2ES10 Granite asynchronous traction drive, 110 direct current electric freight locomotives 2ES6 Sinara, 121 alternating current electric freight locomotives 3ES5K Yermak , eight diesel freight locomotives with 2TE25A Vityaz asynchronous traction drive, 40 units of 2TE116UD with diesel by General Electric , and one main line gas turbine locomotive GT1h fuelled by liquefied natural gas.In 2013 RZD bought 804 locomotives for RUB 83.5 billion. Currently, the company’s locomotive fleet exceeds 20,000 locomotives.

PriceWaterHouseCoopers Will Provide Consulting Services for the Taman DCD Project
PricewaterhouseCoopers Russia B.V. has won the tender to provide consulting services on the development of corporate, management and financial models for the project known as “Creation of the new dry cargo district of port Taman”.
According to the contents of the tender, announced by RMP-Taman LLC, the company undertakes to fulfill the services for RUB 39,530,000. The project for creation of the new dry cargo district of port Taman implies the construction of facilities at the Taman peninsula (Krasnodar Territory) capable of handling 94 million tons of dry cargo per year.
The project implementation has been factored into all strategic programmes and budget planning documents from 2008: the Transport Strategy of the Russian Federation until 2030; the Strategy for the development of seaport infrastructure until 2030; and the federal special-purpose programme Development of Russia’s Transport System (2010-2020). The project is being implemented through the private-public partnership (PPP).

Moody’s Affirms Russian Railways’ Baa1 Rating
Moody’s Investors Service has affirmed the Baa1 senior unsecured issuer rating for Russian Railways Joint Stock Company, and the Baa1 senior unsecured rating for RZD Capital PLC, which is the issuer of loan participation notes for the sole purpose of financing loans to Russian Railways.
The components of Russian Railways’ senior unsecured issuer rating based on Moody’s designation of the company as a government-related issuer (GRI), namely Russian Railways’ baseline credit assessment (BCA) – which is a measure of standalone financial strength – of baa3, ‘high’ dependence and ‘high’ implied state support, remain unchanged. The outlook on all ratings remains stable.
Aeroexpress to Put Double-Deck Trains into Operation on Its Routes in June 2015
Aeroexpress plans to begin the commercial operation of the first double-deck train in June 2015, while the last – 25th train of the delivery – is expected to enter service in June 2016.
Stadler Rail Group successfully manufactured the first aluminiumcarbody of the fleet of 25 double-deck trains ordered by airport express operator Aeroexpress. The aluminium carriage was examined and accepted by the technical experts of Aeroexpress on February 3–5 in Altenrhein, Switzerland. With the acceptance of the first carbody, the project reached its first significant milestone in accordance with the timing of the preliminary agreed production schedule. The first train will be delivered to Russia for authority certification and engineering testing in October this year.
According to the production plan, the first three trains are to be produced completely in Altenrhein, which is the competence centre of Stadler in Switzerland for the production of double-deck trains. Stadler has also recently built a new factory in Minsk, Belarus, which is going to join the production of Aeroexpress trains from the fourth vehicle by performing carbody welding, painting, assembling and commissioning.

Transmashholding to Deliver 20 TEM TMH Shunting Locomotives to Lithuanian Railways
TMH B CJSC (TMH representatives in the Baltics, Poland and Finland) have entered into an agreement with Lithuanian Railways JSC (LG) to supply twenty TEM TMH shunting locomotives.
Delivery of the TEM TMH locomotives commenced at the end of January this year, and the customer will get one locomotive each month. The Russian company will transfer TEM TMH diesel locomotive sets to the Vilnius locomotive repair depot for final assembly as per the agreement. Shunting locomotives will be built on the well-proven and reliable running gear of TEM18DM diesel locomotives and equipped with Caterpillar diesel engines that satisfy UIC Stage IIIA requirements.
Currently, 51 TEM TMH locomotives are running on Lithuanian Railways. LG’s operation has demonstrated fuel savings of up to 37% on shunting locomotives and up to 45% for freight operations versus diesel locos from earlier series. TEM TMH locomotives can replace 2 previous generation machines in terms of technical performance.
TEM TMH shunting locomotives have been supplied to the Baltic countries since 2009 and operated both in Lithuania and Estonia (port of Sillamae). It is expected another four diesel locomotives of this series will be put into operation on the Estonian railway in the coming months.

EVRAZ Launches Mass Production of 25-Metre Rails
EVRAZ has now started the mass production of head-hardened R65 DT-350 rails, with the first large delivery –
10 thousand tons of 25-meter rails – shipped to Russian Railways. These new EVRAZ-produced rails will be usedby Oktyabrskaya, Gorkovskaya, and Severnaya Railways (affiliates of RZD).
In November the Federal Railway Transport Certification Registry issued EVRAZ with a compliance certificate for R65
DT-350 head-hardened rails with lengths of up to 100 meters, thus authorising the company to start the production of products that are unique in the Russian market.
25-meter head-hardened rails produced by EVRAZ ZSMK have an extended life cycle, reducing the number of repairs required. This facilitates the smooth operation of railways utilising this product, which in turn fosters improvements in the transport infrastructure.

UVZ and EMD Sign a MOU to Consider Opportunities for Mainline Locomotives
On December 25, 2013, UralVagonZavod OJSC (UVZ), a leading railway industry manufacturing corporation, signed a Memorandum of Understanding with Electro-Motive Diesel, Inc. (EMD), a leading manufacturer of diesel-electric locomotives, to examine potential opportunities for the development and building of mainline locomotives in Russia. Per the MOU, the companies anticipate having demonstration units in Russia for performance and certification testing in 2014.
The MOU also addressed the consideration of a joint engineering team to potentially develop a mainline locomotive model of 4500 BHP using an EMD AC transmission system, EMD 16-710 engine and other EMD service proven components, technologies and designs.  EMD and UVZ will also examine adopting a goal to achieve 50 percent local content in Russia for the locomotive build program.
The manufacture of modern, mainline freight locomotives on Russian territory would bring opportunities to incorporate the latest EMD natural gas technologies.
EMD locomotives operate globally on railways in all climate zones, with proven reliability and relatively low lifecycle costs. The companies are working toward signing a definitive agreement in the coming months.

Ukrzaliznytsia Creates New Corridor for International Transportation of Containers
The Ukrainian Railway Administration (Ukrzaliznytsia) has formed tariffs for the new regular container route from the ports of the Odessa region to Russia.
The route begins in the standard container ports of Ukraine (Odessa and Ilyichevsk), crosses the Zernovo border crossing, and its final point is the Vorsino station (Moscow Railway, an affiliate of RZD). A container train for the Freight Village logistics centre will operate on this route.
On this route, the tariff commission of Ukrzaliznytsia set rates similar to tariffs on container transportation via the Russian Far Eastern ports and further to attract cargo to the Ukrainian ports. Rates for loaded containers carried via the new route vary from $178 (20-foot box on own/rented flat wagon) to $396 (40-foot box on the public flat wagon).
According to Ukrzaliznytsia, an advantage of the new container route is the opportunity for additional loading at the interim point – the Kiev transport hub. It is planned to make the loading volume carried via the route balanced (due to attraction of backload to the Ukrainian ports). Another advantage of the new route will be the high speed of the delivery – the route speed of the new train on the area of Ukraine will amount to 1,300 km per day.

Throughput of Ports of the Baltic States Fell 4% in 2013

Last year, the amount of freight handled in the ports of the Baltic States fell by 4% in comparison with 2012 to 155.73 million tons, according to the Ministry of Transport of Latvia.
In 2013, 45.3% of the total throughput was handled in Latvian ports, 27.2% - in Lithuanian ones, and 27.5% - in Estonian harbours.
The throughput of Latvian ports was 70.48 million tons (-6.3% in comparison with 2012); Lithuanian ports handled 42.38 million tons (-3.1%), and Estonian ports – 42.871 million tons (-1.1%).
The leader among the ports of the Baltic States was the port of Riga with 35.46 million tons (-1.6%). The Klaipeda port was second with 33.4 million tons (-5.2%), and the Ventspils port that handled 28.76 million tons (-5.2%) was third.
The port of Tallinn handled 28.24 million tons (-5.2%).

30 Million Ton Port Capacities Were Put into Operation in Russia in 2013
New 30 million ton port capacities were put into operation in the Russian Federation in 2013, said Maxim Sokolov, Mini­s­ter of Transport, at his meeting with Vladimir Putin, the RF President.
“As for the port infrastructure, the plan was fulfilled, and 30 million ton port capacities were put into operation. First of all, these were in the ports of Novorossiysk, Ust-Luga, Kaliningrad, and Taman,” said M. Sokolov.
In his words, the construction of the new cruise passenger port in Sochi was completed, and seven port terminals were put into operation for sea transportation in summer. The Transport Minister said that the Federal Target Programme to 2020 envisages that over RUB 80 billion is to be invested in the creation of new infrastructure and the reconstruction of the hub near Krasnodar, a passing loop round Krasnodar in the Volgograd direction. This will contribute to a 70 million ton increase in carrying capacity.

First Container Train Departs from China to Nakhodka-East Station via Suifenhe-Grodekovo Border Crossing
A pilot container train consisting of forty wagons of transit cargo left for the first time from the People’s Republic of China for the southern ports of China and the Republic of Korea via the Vladivostok section of the Far Eastern Main Line.
A special timetable was developed specifically for this trip. Total travel time was 10 hours and 40 minutes.
This corridor is an alternative to the traditional route via the Chinese port of Dalian, which is now significantly overloaded. Rail transportation allows the shipment of goods in commercial quantities in the shortest possible time.
The project to develop an international rail connection between Suifenhe in China and Grodekovo in Russia was implemented within the framework of the decisions adopted by the Working Group of the Greater Tumangan Initiative (GTI) in October 2013. The regular dispatch of transit containers on this route will optimise the transport and logistics supply chain of goods from China’s northern provinces and in the opposite direction by using the infrastructure of stevedoring companies from the Far East and Russian Railways.

[~DETAIL_TEXT] =>

Baltic Railway Council Launched
Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.
According to participants in the meeting, fluctuation of supply and demand for the volume of foreign trade transportationand significant changes in the structure of cargo flows has convinced them to revise investment programmes for the development of railway infrastructure in the Baltic region. Simultaneously, railways have to compete with road transporters. Therefore, new ways are needed to coordinate the work of railway administrations.
The members of the Council are representatives of railways of Russia, Finland, Belarus, Estonia, and Latvia. Lithuanian Railways preferred to have observer status. Viktor Stepov, Head of Oktyabrskaya Railway, was elected as the Head of the Council.

Moscow – Vladimir Section of HSR Project Is Approved
The State Expert Assessment Department approved the development of a high-speed railway line linking Moscow and Vladimir, which will later be a part of the Moscow – Kazan high-speed railway, thus, making a start on the development of HSR in Russia.
Meanwhile, the final decision will be made by the RF Government this spring. The justification of investment in the Moscow – Kazan HSR made by the Lengiprotrans institute and the Centre of Strategic Developments was confirmed by independent auditors. The Ministry for Economy agreed with the project cost estimation.

Reconstruction of Serbian Railway Infrastructure will Begin in March 2014
RZD International LLC (a subsidiary of RZD) began the movement of its personnel and machinery to Serbia to carry out the construction of railway infrastructure and to supply diesel trains paid for by the export loan.
The contract, worth $941.2 million ($800 million is the state export loan provided by Russia) was adjusted for funding by the RF Ministry of Finance on December 18, 2013. According to the contract, Russian railwaymen are to repair 370 kilometres of railway tracks in Serbia. Works will begin in March 2014.

China Begins Construction of a Deep-Water Port for a New Transport Corridor
The construction of a giant deep-water port began in Lianyungang (China). It will become an important part of the new transport corridor linking Europe and Asia via Russia and Central Asia.
The total investment in the project is estimated at more than $3 billion. The sea harbor will be able to handle over 200 million tons of freight, including crude oil and petrochemicals, bulk cargo, containers, and service 300,000 ton dwt vessels. An enormous transport and logistics hub will be created there. Its size will amount to approximately 74 sq.km.
The construction of the port is carried out as part of the strategic concept of “the Silk Road Economic Belt”, according to which the port will be the starting point of the trans-continental transport corridor linking the Chinese cities of Хi’an and Urumqi, Dostyk in Kazakhstan, Russia, Belarus, and Europe. Later, due to an expansion of the railway network in Central Asia, all countries in the region as well as Iran and Afghanistan can link to the transport corridor.

RZD May Extend Broad-Gauge Rail Line to Italy
Italian railways offered RZD to extend the broad-gauge railway line, which will lead through Slovakia to Vienna as far as Italy, said Vladimir Yakunin, President of Russian Railways JSC.
“I received a letter from my colleague - the head of the Italian railways - who proposed an extension of this corridor. According to him, Italy is interested in the use of rail transport in foreign economic relations with Russia,” he said.
Costs for the construction of the rail line to Vienna are estimated at € 6.25 billion, another €240 million will be invested in building of terminals and €130 million in the purchase of rolling stock.

Express Railway to Link Samara and Tolyatti by FIFA 2018 World Cup
Samara and Tolyatti to be linked by an express railway. According to Mikhail Babich, the RF President Plenipotentiary to the Volga Federal District, it will make the trip from one city to the other shorter and increase the availability of the Kurumoch airport.
“Four regions of the federal district – Tatarstan, Mordovia, the Nizhny Novgorod and Samara regions – will host this event. It is necessary to provide convenient routes for the participants and guests of the FIFA World Cup to travel from one city to another,” he said. “To link the cities and airports is especially important, because they are turning into state-of-the-art logistics transport hubs,” believes M. Babich. He mentioned Kazan as an example. The city is linked to the airport by a railway line, and it is possible to get from the airport to the centre of the city in 15-20 minutes. “A similar express railway should be built in Samara,” said M. Babich. In his words, this decision has already been raised with Maxim Sokolov, the RF Transport Minister.

Construction of Transport Infrastructure Facilities in Sochi
The lion’s share of expenses on the Olympics in Sochi was spent on infrastructure projects.
According to Dmitry Medvedev, the RF Prime Minister, only $6.4 billion of the $50 billion was spent on preparing for the Olym­pics. The rest of the funds were invested in the infrastructure of the city, especially the construction and repair of motorways, bridges, and tunnels.
RZD took part in the construction of transport infrastructure in Sochi in accordance with the programme for the construction of Olympic facilities and the development of the city as an alpine resort, approved by the RF Government (Decree №991 dated December 29, 2007).
In Sochi, RZD put into operation a whole complex of huge transport infrastructure facilities: the combined Adler–Alpika Service road and rail line, the second continuous railway line between Sochi–Adler–Olympic Park (Veseloe), additional sections on the Tuapse–Adler railway line, the new Sochi–Adler–Sochi Airport rail link. Also, the company built a new multimodal terminal station in Adler, thus creating a transport interchange hub combining all types of passenger transport: rail, air and sea. Its capacity is 15,000 people per hour. Additionally, passenger terminals for the Dagomys, Sochi, Matsesta, and Khosta railway stations were reconstructed to adapt them for people with disabilities.
In the words of Vladimir Yakunin, President of RZD, the company completed the construction of the infrastructure facilities in an unprecedently short term and fulfilled the investementprogramme on the North-Caucasian railway. “The quality of these works was highly commended by experts from the Olympic Committee and professionals,” added V. Yakunin.

RZD Allocates RUB 76.1 Billion to Purchase New Locomotives in 2014

According to RZD’s 2014 investment programme, RUB 76.1 billion is allocated to buy locomotives.
RZD is going to purchase 629 new locomotives, of which 352 will be electric locomotives and 277 diesel locomotives. In particu­lar, the company’s fleet will be supplemented by 40 direct current electric freight locomotives with the 2ES10 Granite asynchronous traction drive, 110 direct current electric freight locomotives 2ES6 Sinara, 121 alternating current electric freight locomotives 3ES5K Yermak , eight diesel freight locomotives with 2TE25A Vityaz asynchronous traction drive, 40 units of 2TE116UD with diesel by General Electric , and one main line gas turbine locomotive GT1h fuelled by liquefied natural gas.In 2013 RZD bought 804 locomotives for RUB 83.5 billion. Currently, the company’s locomotive fleet exceeds 20,000 locomotives.

PriceWaterHouseCoopers Will Provide Consulting Services for the Taman DCD Project
PricewaterhouseCoopers Russia B.V. has won the tender to provide consulting services on the development of corporate, management and financial models for the project known as “Creation of the new dry cargo district of port Taman”.
According to the contents of the tender, announced by RMP-Taman LLC, the company undertakes to fulfill the services for RUB 39,530,000. The project for creation of the new dry cargo district of port Taman implies the construction of facilities at the Taman peninsula (Krasnodar Territory) capable of handling 94 million tons of dry cargo per year.
The project implementation has been factored into all strategic programmes and budget planning documents from 2008: the Transport Strategy of the Russian Federation until 2030; the Strategy for the development of seaport infrastructure until 2030; and the federal special-purpose programme Development of Russia’s Transport System (2010-2020). The project is being implemented through the private-public partnership (PPP).

Moody’s Affirms Russian Railways’ Baa1 Rating
Moody’s Investors Service has affirmed the Baa1 senior unsecured issuer rating for Russian Railways Joint Stock Company, and the Baa1 senior unsecured rating for RZD Capital PLC, which is the issuer of loan participation notes for the sole purpose of financing loans to Russian Railways.
The components of Russian Railways’ senior unsecured issuer rating based on Moody’s designation of the company as a government-related issuer (GRI), namely Russian Railways’ baseline credit assessment (BCA) – which is a measure of standalone financial strength – of baa3, ‘high’ dependence and ‘high’ implied state support, remain unchanged. The outlook on all ratings remains stable.
Aeroexpress to Put Double-Deck Trains into Operation on Its Routes in June 2015
Aeroexpress plans to begin the commercial operation of the first double-deck train in June 2015, while the last – 25th train of the delivery – is expected to enter service in June 2016.
Stadler Rail Group successfully manufactured the first aluminiumcarbody of the fleet of 25 double-deck trains ordered by airport express operator Aeroexpress. The aluminium carriage was examined and accepted by the technical experts of Aeroexpress on February 3–5 in Altenrhein, Switzerland. With the acceptance of the first carbody, the project reached its first significant milestone in accordance with the timing of the preliminary agreed production schedule. The first train will be delivered to Russia for authority certification and engineering testing in October this year.
According to the production plan, the first three trains are to be produced completely in Altenrhein, which is the competence centre of Stadler in Switzerland for the production of double-deck trains. Stadler has also recently built a new factory in Minsk, Belarus, which is going to join the production of Aeroexpress trains from the fourth vehicle by performing carbody welding, painting, assembling and commissioning.

Transmashholding to Deliver 20 TEM TMH Shunting Locomotives to Lithuanian Railways
TMH B CJSC (TMH representatives in the Baltics, Poland and Finland) have entered into an agreement with Lithuanian Railways JSC (LG) to supply twenty TEM TMH shunting locomotives.
Delivery of the TEM TMH locomotives commenced at the end of January this year, and the customer will get one locomotive each month. The Russian company will transfer TEM TMH diesel locomotive sets to the Vilnius locomotive repair depot for final assembly as per the agreement. Shunting locomotives will be built on the well-proven and reliable running gear of TEM18DM diesel locomotives and equipped with Caterpillar diesel engines that satisfy UIC Stage IIIA requirements.
Currently, 51 TEM TMH locomotives are running on Lithuanian Railways. LG’s operation has demonstrated fuel savings of up to 37% on shunting locomotives and up to 45% for freight operations versus diesel locos from earlier series. TEM TMH locomotives can replace 2 previous generation machines in terms of technical performance.
TEM TMH shunting locomotives have been supplied to the Baltic countries since 2009 and operated both in Lithuania and Estonia (port of Sillamae). It is expected another four diesel locomotives of this series will be put into operation on the Estonian railway in the coming months.

EVRAZ Launches Mass Production of 25-Metre Rails
EVRAZ has now started the mass production of head-hardened R65 DT-350 rails, with the first large delivery –
10 thousand tons of 25-meter rails – shipped to Russian Railways. These new EVRAZ-produced rails will be usedby Oktyabrskaya, Gorkovskaya, and Severnaya Railways (affiliates of RZD).
In November the Federal Railway Transport Certification Registry issued EVRAZ with a compliance certificate for R65
DT-350 head-hardened rails with lengths of up to 100 meters, thus authorising the company to start the production of products that are unique in the Russian market.
25-meter head-hardened rails produced by EVRAZ ZSMK have an extended life cycle, reducing the number of repairs required. This facilitates the smooth operation of railways utilising this product, which in turn fosters improvements in the transport infrastructure.

UVZ and EMD Sign a MOU to Consider Opportunities for Mainline Locomotives
On December 25, 2013, UralVagonZavod OJSC (UVZ), a leading railway industry manufacturing corporation, signed a Memorandum of Understanding with Electro-Motive Diesel, Inc. (EMD), a leading manufacturer of diesel-electric locomotives, to examine potential opportunities for the development and building of mainline locomotives in Russia. Per the MOU, the companies anticipate having demonstration units in Russia for performance and certification testing in 2014.
The MOU also addressed the consideration of a joint engineering team to potentially develop a mainline locomotive model of 4500 BHP using an EMD AC transmission system, EMD 16-710 engine and other EMD service proven components, technologies and designs.  EMD and UVZ will also examine adopting a goal to achieve 50 percent local content in Russia for the locomotive build program.
The manufacture of modern, mainline freight locomotives on Russian territory would bring opportunities to incorporate the latest EMD natural gas technologies.
EMD locomotives operate globally on railways in all climate zones, with proven reliability and relatively low lifecycle costs. The companies are working toward signing a definitive agreement in the coming months.

Ukrzaliznytsia Creates New Corridor for International Transportation of Containers
The Ukrainian Railway Administration (Ukrzaliznytsia) has formed tariffs for the new regular container route from the ports of the Odessa region to Russia.
The route begins in the standard container ports of Ukraine (Odessa and Ilyichevsk), crosses the Zernovo border crossing, and its final point is the Vorsino station (Moscow Railway, an affiliate of RZD). A container train for the Freight Village logistics centre will operate on this route.
On this route, the tariff commission of Ukrzaliznytsia set rates similar to tariffs on container transportation via the Russian Far Eastern ports and further to attract cargo to the Ukrainian ports. Rates for loaded containers carried via the new route vary from $178 (20-foot box on own/rented flat wagon) to $396 (40-foot box on the public flat wagon).
According to Ukrzaliznytsia, an advantage of the new container route is the opportunity for additional loading at the interim point – the Kiev transport hub. It is planned to make the loading volume carried via the route balanced (due to attraction of backload to the Ukrainian ports). Another advantage of the new route will be the high speed of the delivery – the route speed of the new train on the area of Ukraine will amount to 1,300 km per day.

Throughput of Ports of the Baltic States Fell 4% in 2013

Last year, the amount of freight handled in the ports of the Baltic States fell by 4% in comparison with 2012 to 155.73 million tons, according to the Ministry of Transport of Latvia.
In 2013, 45.3% of the total throughput was handled in Latvian ports, 27.2% - in Lithuanian ones, and 27.5% - in Estonian harbours.
The throughput of Latvian ports was 70.48 million tons (-6.3% in comparison with 2012); Lithuanian ports handled 42.38 million tons (-3.1%), and Estonian ports – 42.871 million tons (-1.1%).
The leader among the ports of the Baltic States was the port of Riga with 35.46 million tons (-1.6%). The Klaipeda port was second with 33.4 million tons (-5.2%), and the Ventspils port that handled 28.76 million tons (-5.2%) was third.
The port of Tallinn handled 28.24 million tons (-5.2%).

30 Million Ton Port Capacities Were Put into Operation in Russia in 2013
New 30 million ton port capacities were put into operation in the Russian Federation in 2013, said Maxim Sokolov, Mini­s­ter of Transport, at his meeting with Vladimir Putin, the RF President.
“As for the port infrastructure, the plan was fulfilled, and 30 million ton port capacities were put into operation. First of all, these were in the ports of Novorossiysk, Ust-Luga, Kaliningrad, and Taman,” said M. Sokolov.
In his words, the construction of the new cruise passenger port in Sochi was completed, and seven port terminals were put into operation for sea transportation in summer. The Transport Minister said that the Federal Target Programme to 2020 envisages that over RUB 80 billion is to be invested in the creation of new infrastructure and the reconstruction of the hub near Krasnodar, a passing loop round Krasnodar in the Volgograd direction. This will contribute to a 70 million ton increase in carrying capacity.

First Container Train Departs from China to Nakhodka-East Station via Suifenhe-Grodekovo Border Crossing
A pilot container train consisting of forty wagons of transit cargo left for the first time from the People’s Republic of China for the southern ports of China and the Republic of Korea via the Vladivostok section of the Far Eastern Main Line.
A special timetable was developed specifically for this trip. Total travel time was 10 hours and 40 minutes.
This corridor is an alternative to the traditional route via the Chinese port of Dalian, which is now significantly overloaded. Rail transportation allows the shipment of goods in commercial quantities in the shortest possible time.
The project to develop an international rail connection between Suifenhe in China and Grodekovo in Russia was implemented within the framework of the decisions adopted by the Working Group of the Greater Tumangan Initiative (GTI) in October 2013. The regular dispatch of transit containers on this route will optimise the transport and logistics supply chain of goods from China’s northern provinces and in the opposite direction by using the infrastructure of stevedoring companies from the Far East and Russian Railways.

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Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.

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Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.

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The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. Viktor Stepov, Head of Oktyabrskaya Railway (an affiliate of RZD), said that the planned remit of the new organisation is to look at options for optimising technologies for freight and passenger trains at border crossings.</p> [ELEMENT_META_TITLE] => News [ELEMENT_META_KEYWORDS] => news [ELEMENT_META_DESCRIPTION] => <p>Railways of Russia and the Baltic states are going to expand cooperation in cross-border transportation in the North-West to increase their competitiveness in the transport services market. The Baltic Railway Council has been launched to achieve this objective. At its first meeting in St Petersburg in early February the Memorandum and the Agreement about border coope­ration were signed. 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РЖД-Партнер

Main International Projects Started by RZD in 2013

RZD plans to expand its portfolio of international infrastructure projects, one of the company’s main objectives is to continue carrying out the current projects, many of which started last year.

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1. Reconstruction of the Transport Infrastructure in Serbia
In accordance with agreements reached at a summit meeting between Russia and Serbia, the Russian Railways holding company is developing projects for the reconstruction of Serbia’s transport infrastructure as part of the Russian government’s state export credit of up to $800 million to the Government of Serbia.
Alexander Saltanov, Vice President for International Activity, RZD: “We signed a protocol setting out the next steps. As a result of these, we will count on concluding bilateral contracts for other facilities: Belgrade –
centre, the Serbian section of the Belgrade – Bar railway, reconstruction of the technical station in Zemun (a district of Belgrade).”

2. Reconstruction of the Khasan – Rason Railway Line
At the end of September, the Khasan (the RF) – Rason (China) railway section was put into ope­ration. The capacity of the new railway line is 14 train pairs per day, therefore, providing freight transportation via the Rason port, the current capacity of which is four million tons per annum. RZD and a consortium of South Korean companies have also agreed on the further reconstruction of the Trans-Korean Mainline.
Vladimir Putin, President of Russia: “I hope, this project will be completed. If South and North Koreas, overcoming certain political difficulties, could agree to reconstruct the Trans-Korean Railway, if South Korean companies chose to join the development of rail transport infrastructure, including port facilities in the Democratic People’s Republic of Korea, this would be an important contribution to the realisation of the programme.”

3. Launch of Integrated Transport and Logistics Company (OTLK)

Russia, Kazakhstan, and Belarus signed an agreement about the launch and basic principles of the operation of the Integrated Transport and Logistics Company (OTLK), which will be engaged in transportation of containerised freight within the Common Economic Space. According to experts, the railway cargo turnover on the China – Europe route will increase 35-40-fold by 2020. In this case, the transportation volume of OTLK will reach 4.2 million TEU, and the revenue of railway companies from infrastructure operation –
$1.6 billion.
Salman Babayev, Vice President for Commercial Activities, RZD: “Large industrial clusters are located in the north-west of China. Computer hardware, automobiles, and other expensive goods are produced there. To attract this cargo, we need to define a single set of rules for its transportation via this route. OTLK is needed to co-ordinate the efforts of the parties involved.”

4. Stage Two of the Project to Expand Broad Gauge to Vienna
Russia in cooperation with Austria, Slovakia, and Ukraine began the second stage of the project for a new Eurasian transport corridor linking the Far East and central Europe (Bratislava and Vienna) and announced in September 2013 a tender for an expanded feasibility study. The mainline will be electrified, so it will meet high environmental standards. The new route will reduce the freight transportation time from Asia to Europe and back to 15 days, or by 50%.
 Vladimir Yakunin, President of RZD: “The consulting company, which won the tender for the development of the business plan, has begun work this year. Later it will be discussed with representatives of interested countries, and perhaps not only with the four which carry out the project. I think, we will have the result of the consulting company’s work in the fourth quarter. As for the stage of realisation, it is a difficult project, and it cannot be financially formalised until there is the business plan.”

Other projects:
1. Signing documents about cooperation with Ecuador, Ethiopia, and Vietnam
2. The launch of the Makhalino – Khunchun border crossing
3. Development of the project of container transportation between Chongqing and Europe
4. An agreement with Finland about the development of paperless technologies
5. An agreement with Vietnamese Railways about the development of infrastructure ®

[~DETAIL_TEXT] =>

1. Reconstruction of the Transport Infrastructure in Serbia
In accordance with agreements reached at a summit meeting between Russia and Serbia, the Russian Railways holding company is developing projects for the reconstruction of Serbia’s transport infrastructure as part of the Russian government’s state export credit of up to $800 million to the Government of Serbia.
Alexander Saltanov, Vice President for International Activity, RZD: “We signed a protocol setting out the next steps. As a result of these, we will count on concluding bilateral contracts for other facilities: Belgrade –
centre, the Serbian section of the Belgrade – Bar railway, reconstruction of the technical station in Zemun (a district of Belgrade).”

2. Reconstruction of the Khasan – Rason Railway Line
At the end of September, the Khasan (the RF) – Rason (China) railway section was put into ope­ration. The capacity of the new railway line is 14 train pairs per day, therefore, providing freight transportation via the Rason port, the current capacity of which is four million tons per annum. RZD and a consortium of South Korean companies have also agreed on the further reconstruction of the Trans-Korean Mainline.
Vladimir Putin, President of Russia: “I hope, this project will be completed. If South and North Koreas, overcoming certain political difficulties, could agree to reconstruct the Trans-Korean Railway, if South Korean companies chose to join the development of rail transport infrastructure, including port facilities in the Democratic People’s Republic of Korea, this would be an important contribution to the realisation of the programme.”

3. Launch of Integrated Transport and Logistics Company (OTLK)

Russia, Kazakhstan, and Belarus signed an agreement about the launch and basic principles of the operation of the Integrated Transport and Logistics Company (OTLK), which will be engaged in transportation of containerised freight within the Common Economic Space. According to experts, the railway cargo turnover on the China – Europe route will increase 35-40-fold by 2020. In this case, the transportation volume of OTLK will reach 4.2 million TEU, and the revenue of railway companies from infrastructure operation –
$1.6 billion.
Salman Babayev, Vice President for Commercial Activities, RZD: “Large industrial clusters are located in the north-west of China. Computer hardware, automobiles, and other expensive goods are produced there. To attract this cargo, we need to define a single set of rules for its transportation via this route. OTLK is needed to co-ordinate the efforts of the parties involved.”

4. Stage Two of the Project to Expand Broad Gauge to Vienna
Russia in cooperation with Austria, Slovakia, and Ukraine began the second stage of the project for a new Eurasian transport corridor linking the Far East and central Europe (Bratislava and Vienna) and announced in September 2013 a tender for an expanded feasibility study. The mainline will be electrified, so it will meet high environmental standards. The new route will reduce the freight transportation time from Asia to Europe and back to 15 days, or by 50%.
 Vladimir Yakunin, President of RZD: “The consulting company, which won the tender for the development of the business plan, has begun work this year. Later it will be discussed with representatives of interested countries, and perhaps not only with the four which carry out the project. I think, we will have the result of the consulting company’s work in the fourth quarter. As for the stage of realisation, it is a difficult project, and it cannot be financially formalised until there is the business plan.”

Other projects:
1. Signing documents about cooperation with Ecuador, Ethiopia, and Vietnam
2. The launch of the Makhalino – Khunchun border crossing
3. Development of the project of container transportation between Chongqing and Europe
4. An agreement with Finland about the development of paperless technologies
5. An agreement with Vietnamese Railways about the development of infrastructure ®

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RZD plans to expand its portfolio of international infrastructure projects, one of the company’s main objectives is to continue carrying out the current projects, many of which started last year.

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RZD plans to expand its portfolio of international infrastructure projects, one of the company’s main objectives is to continue carrying out the current projects, many of which started last year.

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1. Reconstruction of the Transport Infrastructure in Serbia
In accordance with agreements reached at a summit meeting between Russia and Serbia, the Russian Railways holding company is developing projects for the reconstruction of Serbia’s transport infrastructure as part of the Russian government’s state export credit of up to $800 million to the Government of Serbia.
Alexander Saltanov, Vice President for International Activity, RZD: “We signed a protocol setting out the next steps. As a result of these, we will count on concluding bilateral contracts for other facilities: Belgrade –
centre, the Serbian section of the Belgrade – Bar railway, reconstruction of the technical station in Zemun (a district of Belgrade).”

2. Reconstruction of the Khasan – Rason Railway Line
At the end of September, the Khasan (the RF) – Rason (China) railway section was put into ope­ration. The capacity of the new railway line is 14 train pairs per day, therefore, providing freight transportation via the Rason port, the current capacity of which is four million tons per annum. RZD and a consortium of South Korean companies have also agreed on the further reconstruction of the Trans-Korean Mainline.
Vladimir Putin, President of Russia: “I hope, this project will be completed. If South and North Koreas, overcoming certain political difficulties, could agree to reconstruct the Trans-Korean Railway, if South Korean companies chose to join the development of rail transport infrastructure, including port facilities in the Democratic People’s Republic of Korea, this would be an important contribution to the realisation of the programme.”

3. Launch of Integrated Transport and Logistics Company (OTLK)

Russia, Kazakhstan, and Belarus signed an agreement about the launch and basic principles of the operation of the Integrated Transport and Logistics Company (OTLK), which will be engaged in transportation of containerised freight within the Common Economic Space. According to experts, the railway cargo turnover on the China – Europe route will increase 35-40-fold by 2020. In this case, the transportation volume of OTLK will reach 4.2 million TEU, and the revenue of railway companies from infrastructure operation –
$1.6 billion.
Salman Babayev, Vice President for Commercial Activities, RZD: “Large industrial clusters are located in the north-west of China. Computer hardware, automobiles, and other expensive goods are produced there. To attract this cargo, we need to define a single set of rules for its transportation via this route. OTLK is needed to co-ordinate the efforts of the parties involved.”

4. Stage Two of the Project to Expand Broad Gauge to Vienna
Russia in cooperation with Austria, Slovakia, and Ukraine began the second stage of the project for a new Eurasian transport corridor linking the Far East and central Europe (Bratislava and Vienna) and announced in September 2013 a tender for an expanded feasibility study. The mainline will be electrified, so it will meet high environmental standards. The new route will reduce the freight transportation time from Asia to Europe and back to 15 days, or by 50%.
 Vladimir Yakunin, President of RZD: “The consulting company, which won the tender for the development of the business plan, has begun work this year. Later it will be discussed with representatives of interested countries, and perhaps not only with the four which carry out the project. I think, we will have the result of the consulting company’s work in the fourth quarter. As for the stage of realisation, it is a difficult project, and it cannot be financially formalised until there is the business plan.”

Other projects:
1. Signing documents about cooperation with Ecuador, Ethiopia, and Vietnam
2. The launch of the Makhalino – Khunchun border crossing
3. Development of the project of container transportation between Chongqing and Europe
4. An agreement with Finland about the development of paperless technologies
5. An agreement with Vietnamese Railways about the development of infrastructure ®

[~DETAIL_TEXT] =>

1. Reconstruction of the Transport Infrastructure in Serbia
In accordance with agreements reached at a summit meeting between Russia and Serbia, the Russian Railways holding company is developing projects for the reconstruction of Serbia’s transport infrastructure as part of the Russian government’s state export credit of up to $800 million to the Government of Serbia.
Alexander Saltanov, Vice President for International Activity, RZD: “We signed a protocol setting out the next steps. As a result of these, we will count on concluding bilateral contracts for other facilities: Belgrade –
centre, the Serbian section of the Belgrade – Bar railway, reconstruction of the technical station in Zemun (a district of Belgrade).”

2. Reconstruction of the Khasan – Rason Railway Line
At the end of September, the Khasan (the RF) – Rason (China) railway section was put into ope­ration. The capacity of the new railway line is 14 train pairs per day, therefore, providing freight transportation via the Rason port, the current capacity of which is four million tons per annum. RZD and a consortium of South Korean companies have also agreed on the further reconstruction of the Trans-Korean Mainline.
Vladimir Putin, President of Russia: “I hope, this project will be completed. If South and North Koreas, overcoming certain political difficulties, could agree to reconstruct the Trans-Korean Railway, if South Korean companies chose to join the development of rail transport infrastructure, including port facilities in the Democratic People’s Republic of Korea, this would be an important contribution to the realisation of the programme.”

3. Launch of Integrated Transport and Logistics Company (OTLK)

Russia, Kazakhstan, and Belarus signed an agreement about the launch and basic principles of the operation of the Integrated Transport and Logistics Company (OTLK), which will be engaged in transportation of containerised freight within the Common Economic Space. According to experts, the railway cargo turnover on the China – Europe route will increase 35-40-fold by 2020. In this case, the transportation volume of OTLK will reach 4.2 million TEU, and the revenue of railway companies from infrastructure operation –
$1.6 billion.
Salman Babayev, Vice President for Commercial Activities, RZD: “Large industrial clusters are located in the north-west of China. Computer hardware, automobiles, and other expensive goods are produced there. To attract this cargo, we need to define a single set of rules for its transportation via this route. OTLK is needed to co-ordinate the efforts of the parties involved.”

4. Stage Two of the Project to Expand Broad Gauge to Vienna
Russia in cooperation with Austria, Slovakia, and Ukraine began the second stage of the project for a new Eurasian transport corridor linking the Far East and central Europe (Bratislava and Vienna) and announced in September 2013 a tender for an expanded feasibility study. The mainline will be electrified, so it will meet high environmental standards. The new route will reduce the freight transportation time from Asia to Europe and back to 15 days, or by 50%.
 Vladimir Yakunin, President of RZD: “The consulting company, which won the tender for the development of the business plan, has begun work this year. Later it will be discussed with representatives of interested countries, and perhaps not only with the four which carry out the project. I think, we will have the result of the consulting company’s work in the fourth quarter. As for the stage of realisation, it is a difficult project, and it cannot be financially formalised until there is the business plan.”

Other projects:
1. Signing documents about cooperation with Ecuador, Ethiopia, and Vietnam
2. The launch of the Makhalino – Khunchun border crossing
3. Development of the project of container transportation between Chongqing and Europe
4. An agreement with Finland about the development of paperless technologies
5. An agreement with Vietnamese Railways about the development of infrastructure ®

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RZD plans to expand its portfolio of international infrastructure projects, one of the company’s main objectives is to continue carrying out the current projects, many of which started last year.

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RZD plans to expand its portfolio of international infrastructure projects, one of the company’s main objectives is to continue carrying out the current projects, many of which started last year.

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