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ITE Transport and Logistics

Transport & logistics in Far East Russia: freight volumes on the rise

Russia’s Far East. At times overlooked by the industry, one of the nation’s most remote regions is currently undergoing a quiet transport and logistics revolution. Trade volumes are on the rise through the Far Eastern Administrative District, making this area one of Russia’s most vital transportation markets.

Statistics detailing freight volumes reveal the region’s growing status as a vital cog in the Russian transport and logistics machine. Across 2016, Far Eastern railways and the Pacific ports experienced some encouraging upswings in cargo levels – signs of a regional surge in importance, but also strong signals recovery is returning to Russia’s logistics sector as a whole.

Rail freight expands in the Far Eastern Administrative District

Let’s start with railways. Far Eastern Railway now account for 36% of all export goods transported on the entire Russian rail network. For reference, the region’s export share 22% 10 years ago. Far Eastern Railways handled 23.8 million tons of cargo in the first half of 2016, which was a decline in real terms of 2.4% - a trend seen across Russia last year.
However, carrier DVZhD posted increases in its ton-to-kilometre volumes by 6%, reaching a ratio of 95.3 billion ton/km for fully laden carriages. And, with the ongoing development of extensive transport corridors linking Russia with China, it is expected railways will transport a larger chunk of Far Eastern cargoes in the near future.

Far Eastern maritime trade on the rise

Russia is served by a number of major ports, and smaller facilities, across the length of its Pacific coast. The maritime sites there at present handle roughly 26% of Russian port freight traffic. Due to the region’s expanding importance, momentum is growing at Russia’s Pacific ports, with many sites enjoying increased turnover during the first half of 2016.

Far East ports experienced a 9.5% rise in freight turnovers across the aforementioned period, reaching 90.88 million tons. Of this, transhipments of dry cargo accounted for 53.7 million tons, an increase of 15%, while liquid cargoes made up the remaining 37.1 million tons. This category also saw a rise in volumes, carrying 2.1% more liquid cargo compared with the same period in 2015.

More freight coming through the region means Russia’s Far Eastern ports are getting busier. The following facilities enjoyed increases in trade turnover across 2016’s first six months:

•    Votsochny – Primorsky – 33 million tons – 15% freight turnover increase
•    Vanino – Khabarvorsk – 15.2 million tons – 13.9% freight turnover increase
•    Finding -  Primorsky -  11.8 million tons – 15.7% freight turnover increase
•    Vladivostock – Primorsky – 6.9 million tons – 13.1% freight turnover increase

Vanino is a crucial maritime facility for Russia’s oil and gas trade. It is a leading oil exporting port, located at the end of the Eastern Siberia-Pacific Ocean pipeline. 

Vladivostok is also a regional powerhouse. Some 18% of the 52 companies permanently housed in its port, which has just been awarded Free Port status, specialise in transport and logistics, making the city a crucial logistics hub for Primorsky, the Far East and the entirety of Russia.

Uncover the potential of transport & logistics in Russia’s Far East at TransSiberia 2017

All of these rises in the level of freight, and the burgeoning significance of the Far East as a transportation market, are pointing towards some big opportunities for international transport and logistics firms. Want to get in touch with the Russian figures behind the Far East’s logistical development? There is only one place to be: TransSiberia 2017.

TransSiberia is a specialised exhibition for transport, logistics and infrastructure. The event is a unique platform for companies interested in the Far Easts’ transport and logistics market. Taking part in the show is your chance to get your products and services seen by a wide audience of international and regional specialists – and the perfect place to expand your Russian business operations.

If you are interested in exhibiting at TransSiberia 2017, or would like more information on the event, contact us today to learn about the participation opportunities available.


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