Prioritizing the East

The transportation market has been witnessing an increase in cooperation agreements. More than 15 agreements were signed by the largest Russian and foreign companies during the 27^th TransRussia exhibition. Never before have the Russian market representatives and their partners of the Asian-Pacific cooperated so closely.

Due to the geopolitical situation most logistics chains drifted eastward where Russian exporters found new markets for their goods. Thus, most agreements have been concluded by Russian business represented by large logistics operators with Chinese and Asian companies. For example, TransContainer (a part of Delo Group) signed agreements with Heilongjiang Dragonlink International Logistics Company (a subsidiary of Heilongjiang Transportation Investment Group) and China Railway Materials Co. Both documents imply joint organization of China-Russian railway, sea and automobile routes. The parties will also explore investment opportunities in joint rail and maritime services.

Ruscon (a part of Delo Group) also signed two agreements on transportation and logistics services with Chinese (SWIFT Group) and Korean (UNICO Logistics Co.) partners.

Russian exporters are negotiating with logistics companies that are eager to transport cargo to new locations. For example, Lesofond and PhosAgro have agreed with TransContainer to develop multimodal services. Lenta Russian hypermarket chain and FESCO Transportation Group have signed a similar agreement.

Apart from that, pulp and paper goods manufacturer Solikamskbumprom Co. agreed on cooperation with TransContainer to ship paper products bound for ports of Nava-Sheva, Mundra and Chennai in India, as well as for railway stations of PRC. Also, Solikamskbumprom together with FESCO will start to develop multimodal transportation to Turkey. The cargoes will go in accelerated container trains from Solikamsk station (Perm Krai) to the port of Novorossiysk with transloading onto ships to the ports of Turkey.

Agreements with Russian machinery manufacturers can be singled out separately. Thus, United Wagon Company (UWC) has agreed to supply 1 thousand grain hoppers to foodstuffs and food ingredients producer ASTON Group and to railway operator MosRegionTrans (MRT). A batch of 700 hoppers will be delivered to MRT, and the remaining 300 will have been delivered to ASTON's fleet park by the end of 2024. In addition, UWC will also supply 3,000 oil and petroleum product tankers for railroad operator Western Petroleum Transportation starting from 2024.

Alexander Solyanik