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ITE Transport and Logistics

Germany & Russia: logistics cooperation ready to grow

Trade-wise, the Russian-German relationship is amongst the strongest in Europe – even the EU/Russian sanction tussle can’t stop freight rolling between the pair.

If the first few months of 2017 are anything to go by, both Russia and Germany are on course for an even more robust, mutually beneficial trade partnership – good news for both nation’s transportation service providers.

German-Russian trade up in 2017

Data from Germany’s Federal Statistical Office, Destatis, showed some big  increase trade turnover figures between Germany and Russia at the start of 2017.

During January-February, bilateral trade rose to $10.4 billion. Of this, German exports to Russia totalled $4.3 billion, representing a 36% year-on-year increase against 2016’s figures. On the Russian side, it exported goods worth $6.1 billion to Germany, which too was a big rise – in this case, 38%.

From the above, it’s fair to assume that truck, rail, and plane loads are getting larger. It’s also worth noting that this is during a period where both Germany and Russia have placed sanctions against key commodities entering both states.

Of these figures, Matthias Schepp, Chairman of the Russian-German Chamber of Commerce, said: “The latest figures concur with the German economy’s impression on the ground that the situation is improving.”

“For the vast majority of German companies, who weathered the downturn and stayed in Russia, their faith in a market recovery is now paying off,” added the trade organisation’s Deputy Chairman Klaus Schaefer.

Many of the goods traded by these partners are mostly industrial, although Russia’s exports to Germany are dominated by mineral fuels and energy products.
Germany, on the other hand, is a big supplier of industrial equipment. Machinery, such as boilers and nuclear reactors, electronics, and vehicles collectively represent 50% of Germany’s Russian exports.

Further transport & logistics cooperation on the horizon

With trade levels rising, and German belief in Russia’s transport and logistics market starting to strengthen once again, both nations are exploring deeper cooperation.

At TransRussia 2017, Logistics Alliance Germany (LAG), the largest transport and logistics association in Germany, presented its vision for close collaboration with Russian partners moving forward.

Two key developments are set to bring these two nations together as the new decade approaches: China’s new Silk Road and the digitisation of logistics.

China’s influence on the Russian transportation industry is growing every year, thanks to increased cross-border e-commerce and China’s huge infrastructure endeavours. Now, with the implementation of the “One Belt One Road” initiative, more cargo trains are going to be passing through Russia on their way to Germany and beyond.

Elsewhere, digitisation and automation in the logistics industry is set to provide market entry points for Germany manufacturers of robots, IT systems, and similar technological solutions.

In Russia at the moment, there is one industrial robot for every 10,000 workers – up to 70 times lower than rations seen in similarly industrialised states.
German companies such as Siemens, Kuka, and SAP have spotted this gap in the market, and are starting to supply digital options to Russia transportation firms.

Germany: Meet Russia’s transport & logistics industry at TransRussia

With bilateral freight turnover rising on the grow, and both countries deepening their transportation alliance, Russia remains one of the strongest markets for German transporters (and vice versa).
In order to meet Russia’s top logistical decision makers, suppliers of transport and logistics services, or to demonstrate your products and solutions to the Russian market, there’s one place to be – TransRussia.

The event is Russia’s biggest transport and logistics exhibition, designed to put international businesses needing transport services in touch with Russia’s logistics service providers.

Want to learn more about the show, or want to find out how you can take part? Contact our team today to get all the information you need on TransRussia.

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