RUSSIA/EASTERN EUROPE\\\ Russian growth – we’ll drink to that
TPC Freight Management may not be the biggest logistics firm in the world but it is a Russian, CIS and Baltic specialist and it had, by mid- November moved the equivalent of 3,400teu to Moscow in 2012, says executive chairman, Grant Stupart. “It’s grown considerably,” he told FBJ. “We now have an office in St Petersburg and we’re in talks about setting up our own office in Moscow. And we also have our own office in Estonia and a close partnership in Riga in Latvia.” TPC is Scottish-based and the
Russians are renowned drinkers, so it’s hardly surprising that whisky is one of the main main commodities handled. The company can apply the ‘strip stamps’ and Russian language labelling required before the goods can be released onto the market. “The regulations say that the stamps must be applied (and paid for) before they reach the Russian Federation,” Stupart explains. “It’s to prevent tax avoidance.” For the same reason, wines imported from Chile into Russia go
through Riga where the bottles are stamped before being moved over the border into Russia. Unlike still economically shaky
western and southern Europe, “Russia is a growing market. There’s plenty of opportunities in distribution within the Russian Federation and there’s also the Sochi winter Olympics, for which they’ll be gearing up heavily in 2013. We’re in discussions with a main supplier there.” Grant Stupart is conscious of
the fact that TPC is “a David up against a Goliath” but being a Russian specialist is an advantage. “In a recent tender, we were the only company capable of quoting for every aspect of a distribution job in Russia. Our expertise is the challenging stuff putting a supply chain in place that will really work.” The big multinational forwarders may claim to have widespread organisations in the country, but the reality on the ground doesn’t always match the rhetoric, he says. Russia is still a specialist
market, but it has changed a lot in the past 30 years. “Most of the ‘brown envelopes have gone,” says Stupart. Security need not be an issue, or no more so than any other part of the world, provided you take sensible and appropriate precautions. Trucks and drivers are vetted before being appointed – but that is good practice in any part of the world. There’s also
a growing
realisation among international business people that Russia isn’t just Moscow and St Petersburg, and the hinterland of this vast country is beginning to open up. A company met recently is considering using Kazhakstan as a staging-post
to serve the
east of Russia, for example. “The opportunities are vast. Moscow is really a European capital, and it’s very different to, say St Petersburg or Vladivostok.” The regional differences
manifest themselves in many ways, including the local customs services. There have been many attempts to reform
Russian customs, and the service is getting more efficient and predictable, but it still pays to do your homework in advance, says Stupart. “It’s important to talk to Russian customs before you move the goods; for instance, you shouldn’t let them leave the depot in the Baltics before you have got everything approved. And it’s very much a question of having a bespoke approach.” Some goods can successfully be shipped direct into St Petersburg, but while this works well for some categories, it isn’t
appropriate for bonded
goods. The company has also approached the customs service at the new port of Ust Luga six months ago, but at the time of writing hadn’t had any response; sometimes the wheels of bureaucracy grind very slowly. Customs regulations do still
change frequently and it is important to keep on top of the situation – one of the reasons why TPC has a Russian national on its staff in the UK.
JSC
Issue 1 2013
27 Exports to India – by rail
Russian Railways Logistics has started moving finished goods produced by synthetic rubber maker
Synthez-Kauchuk
for export, with the first 30 containers shipped at the end of December 2012 to India, Indonesia and South-East Asia. Russian
Railways’ Logistics
branch in St. Petersburg provided the service including sending trucks to the plant, transportation of the cargo to logistic terminal in St. Petersburg, Russia, cargo containerization at the terminal, delivery of loaded containers to the port, port forwarding and sea freight.
Third 747-8F for ABC
AirBridgeCargo Airlines has taken delivery of its third Boeing 747-8 Freighter from Boeing in the US. It will be used on
ABC’s existing route network linking Europe, Asia and the US with AirBridgeCargo’s hubs in Moscow.
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