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RUSSIA/EASTERN EUROPE\\\


There is a continued improve- ment in import and export trade in Eastern Europe, says Michael Gregory, group development director at forwarder, Rhenus UK.


Ukraine, Romania and Bulgaria are all markets where we are currently operating services and they continue to develop as we see a great potential.” Ukraine’s growth though may be halted by Russia’s intervention in the proposed EU- Ukraine agreement. Red tape and bureaucracy


are always uppermost in traders’ minds when dealing with Russia, including the Russian customs service’s recent threats to cancel the TIR truck transit system. However, Gregory plays


Rhenus Logistics UK is based in Manchester, with ten other facilities in the UK. Its Vilnius branch consolidates traffic from the UK and Europe onto direct services to Russian main areas, including Moscow, St Petersburg, Nizhniy Novgorod, Ekaterinburg and Samara/Togliatti) where there is a Rhenus presence to control customs clearance issues and final delivery. “We have much to be optimistic


about,” Gregory continues. “The Russian economy is doing well and this is translated into the increasing number of requests for rates. However, there is still a long way to go, because exporters are unduly concerned about doing business in Russia or the CIS.


this down: “We will maintain a watch over the situation. Russia temporarily suspended the action until 1 December 2013, but has since confirmed an extension to the original date of July 2014. The disagreement concerning TIR has not been of great concern to us as we could consider using Russian hauliers. The red tape or bureaucracy has to be accepted as part of the Russian way of business but it is exaggerated; however, because we have our own presence in Russia, we are able to overcome any obstacles quickly.” The Russians are well equipped


to cope with adverse weather conditions


and prepare well


in advance to ensure border crossings and the main highways into the commercial cities are kept open. Traffic congestion


Second Russian warehouse for Yusen


Yusen Logistics is to open a


24,000sq m warehouse in Pokrov, near Moscow, in January 2014. With growing demand for consumer goods, especially large electrical appliances, warehouse capacity has become tight. The warehouse is 20km south


of Moscow and will be the second facility in Russia, the other being a 10,000sq m warehouse in St. Petersburg. Services at the new facility


will include warehousing and inventory management, as well as inland transportation services.


In September, Yusen opened


an office in St. Petersburg airport to support its growing air freight forwarding business. It also recently launched an ocean freight forwarding service from the Black Sea, with a hub at Novorossiysk, where it is the only Japanese forwarder to own a base, as well as a service via the Trans-Siberian Railway. Yusen Logistics also provides


ocean freight forwarding services from the Russian ports of Saint Petersburg, Novorossiysk and Nakhodka Vostochny.


though is a different concern and Moscow is regarded as one of the most congested cities in the world. However, there has been a continued closure of Customs Houses in Moscow (except for air and sea ports) to help alleviate this problem by keeping trucks out of Moscow, controlling customs clearance nearer the state border. Sister company Rhenus


Issue 1 2014 - FBJ


More opportunities than threats 25 DSV advert_FBJ 2013_250x178 28/06/2013 16:43 Page 1


Revival is one of the first logistics companies to have moved its branches to the border, Gregory adds. “Rhenus customs broker (RTB) has started very successfully with customs clearance in Smolensk; a bonded warehouse facility of 2,200 sq m offering assistance and professional support at all stages of customs representation with a multi-lingual


staff. This complements their other customs bonded facility for road vehicles at Sergei Posad, 70km north of Moscow. Therefore we can ensure fast and reliable customs services and clearances. We use the most effective route, but we are in contact with drivers constantly and if we believe there are delays at any particular border, we can divert to a less congested border


crossing.” The opportunities for UK


exporters are huge, he concludes. “While most of the rest of Europe struggles, growth in Russia has been so fast that it now has the ninth largest GDP in the world, with an economy worth US$1.884 trillion. Even in 2011, GDP grew by 4.2%, the third highest growth rate in the world. ”


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