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Some issues of transport-logistics business in Saint-Petersburg
Mikhail PimonenkoNorth-West Russia Logistics Development Center
Rail Baltica Growth Corridor – First Transnational Roundtable Conference
Vilnius, Lithuania, 24 November 2011
1.Recent Saint-Petersburg railway news (high lights)
2. Top Saint-Petersburg railway business companies.
3. Crisis challenges and logistic approach opportunities in business
Basic events at governance level
1. Transport Coordination council:
- April 2011 foundation
- Ministry of transport, SPb and LO Government.
2. Meeting with JSC “RZD”
- November 2011
- agenda “General Scheme of Spb Railway Node
Development”
3. Project “General Scheme…”
- customer JSC “RZD”
- cost 120 mln Rub ( RZD – 60; RF budget – 30;
SPb budget – 24; LO budget – 6)
4
First turn fields of development
Transport connections development at SPb-LO borders according to demand
Design and construction of 2-nd Ring Road
Northern direction
Eastern direction
Southern direction
Station “Avtovo”Station “Avtovo”
JSC “PKT”
JSC “Petrolesport”
Station “Predportovaya”Station “Predportovaya”
Station “Shushary”Station “Shushary” “Modul” Ltd.
Ring road “block-train”
“Voskhod” Ltd.
“block-train”
“Logistica Terminal” Ltd.
Station “Zanevsky post”Station “Zanevsky post”
“Logistics park “Yanino” Ltd
Usage of “block-train” technology
TRANSPORT & LOGISTICS TEAM, 360 EMPLOYEES
TAKE COMMAND OF
Railway transportation & freight forwarding
Inland hubsContainer door-to-door
Freight forwardingLogistics solutions
Inland hub for combined traffic in Saint-Petersburg
Bonded container terminalFeatures:- 6 km to the St. Petersburg Sea Port- total area — 4,9 hectares- storage capacity (at a time) — 1 500 TEU - terminal-port Shuttle block trains
Bonded warehouse class “A”Features:
- Space 4500 m²- Storage capacity 6 900 pallets- Permanent temperature control
$200 mln. inland hub projects in Russia biggest cities
Direct agreements with the railway companies of:
Russia, Ukraine, Belarus, Lithuania, Kazakhstan, Finland, Estonia, China
Freight forwarding:CIS import, export and transit by rail, road and sea
25 branch offices in Russia and abroadAgents at all Russian border crossings
FREIGHT FORWARDING, LOGISTICS
MODUL Company Ltd. 1/3
Cargo turnover: containers - 200 000 TEU per year
general - 500 000 tons per year
MODUL Company Ltd. 2/3General area -12 hect ( Container term. area – 7,2 hect )
Container sorage capacity: empty – 800 boxes, filled -1100, ref – 120
Indoor warehouse: 2500 sq. m
Local railways – 6 lines, total length – 2500m
Three entrance gates for trucks.
MODUL Company Ltd. 3/3
Equipment: Containers - rich-stackers 45 ton – 2; 30 ton – 2;
General: mobile crane – 50 ton; loaders – 32; 22; 10;7;4;2,5;1,5 t
Traditional Delivery Technology
8500 types of perfumery goods
BORDER
SUPPLIERS
CUSTOM
VAT
FEES & DUTIES
40% of price
DELIVERY
CUSTOMERS
Crisis challenges
Beginning of financial crisis in 2008 led to:• sharp drop of loan sizes in Russian banks;• double price of loan;• transfer to partly prepayment; • decrease of deferment time till 30 days;• requirement of economy drive;• growth of quality requirements
Delivery Technology after Reengineering
SUPPLIERS
12
Types of goods 2500
BORDERConsolidating warehouse Riga
CUSTOM
LOGISICS PROVIDER
CUSTOMERS
Before After
1. Warehouse inventory, days 45–60 25–35
2. Time of capital circulation 25%
3. Total warehousing costs 20%
4. Custom and other costs per goods unit 10%
5. Share of fulfilled orders, 96% 96%
6. Ratio of covered demand, group A 85% 96%
7. Sales volume (2008–2010 гг.) 60% growth
REENGINEERING RESULTS