Expanded Russian Logistics Infrastructure
In the bustling world of the Russian automobile industry, growth and development are the order of the day. Last year saw a significant surge in port operations for Rolf SCS, with volumes of vehicles handled increasing by an impressive 83% to reach 128,500 units.
One of the key players in the ro-ro carrier scene, Hoëgh Autoliners, has opted for a strategic approach, using short-sea transport legs for its subsidiary, Euro Marine Logistics (EML), a joint venture with Mitsui. Instead of calling at Russian ports directly via deep-sea vessels, EML operates within the country's coastline.
The shift towards local production is evident in the decisions of major carmakers such as Volkswagen and Citroën, who have noted a decreasing proportion of imports. This trend is mirrored in the overall market, with Russia's new vehicle sales expected to finish 7-10% higher than 2011, reaching around 3m units in 2012.
Key Russian seaports, including Vladivostok, St. Petersburg, and Novorossiysk, are major hubs for automotive imports and exports. These ports are crucial for vehicle handling and clearance, although specific port details were not directly cited in the search results.
Ford Sollers, a joint venture between Ford and Sollers, distributes vehicles from its plants to 120 dealerships, with a ratio of local production to imports at 85:15. Toyota, on the other hand, delivers 75% of its vehicles to dealers in Russia by truck and 25% by rail.
Konstantin Sokolov, general manager at the Commercial Sea Port of Ust-Luga, announced plans for further development, with an additional 500,000 square metres of space under construction at the port. Ust-Luga's Yug-2 terminal, run by the Commercial Sea Port of Ust-Luga, can store more than 18,200 units and allows for consolidated storage for many Original Equipment Manufacturers (OEMs).
Russia's implementation of a scrapping fee, almost equivalent in size to the duty reduction, is likely to prevent any shift in the trade balance. The proportion of locally produced new foreign brand cars has risen steadily in Russia, including from 54% in 2011 to 58% in 2012.
Ford Sollers has made strides in reducing transport damages in its Russian distribution, achieving a fourfold reduction. The average transport distance per vehicle within Russia is approximately 1,540 kilometres.
Looking ahead, Rolf SCS expects an increase of 20% to 300,000 vehicles in 2013, driven by sales growth and new customers. The company's recent joint venture with NYK Line is set to expand operations for ro-ro operations at Petrolesport and at the port of Zarubino in the Far East.
Toyota is anticipating increased imports from its Turkish plant in 2013 and is seeking one more port hub in southern Russia. Meanwhile, Citroën is currently looking for a southern Russian port in the Black Sea to reduce its transport costs.
Volkswagen distributes vehicles from the port of St Petersburg and a rail terminal in the Moscow region, with 60% of its vehicle imports coming by sea. The proportion of Toyota vehicles dispatched directly from plants to dealerships in Russia is approximately 90%.
Russian industrial policy, including Decree 166, has encouraged local vehicle manufacturing and a reduction in imports. This policy, along with the strategic decisions of major players in the industry, is shaping the future of the Russian automobile market.
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