Questionnaire on “Port Investment _Private Investment_” by chenboying



Brisbane, Australia 23 – 27 September 2002






Nowadays when the global competence in transport market is getting stronger, Russia has an absolute monopoly in Trans Euro Asian Transportation Corridors. Attempts of some states to organize transportation corridors disregarding interests of the Russian Federation fail ever to be realized. As these corridors usually pass in the zones of political instability, armed conflicts, through a great number of frontiers and involve various kinds of transport. We suppose that Trans Siberian route is destined to make the most significant contribution to the process of worldwide economy globalization. Trans Siberian route has already been functioning for more than 30 years and handled more than 2 million TEU. It has initial points in Japan, South Korea, China and terminates in the states of Scandinavia, Central Europe, Central Asia and the Middle East, taking the second place in transportation from Asia-Pacific countries. Trans Siberian Railway is a key part of this route. It is the most high-capacity two-way electrified railway line extending for about 10 000 kilometers. Sophisticated technical equipment of Trans Siberian Railway provides the possibility of transportation of up to 100 million tons of cargo per year. The joining Trans Siberian Railway to the global net of international communications has created a real basis for twenty-four-hour service provided in the Northern hemisphere. United Nations Economic and Social Commission for Asia and the Pacific has included Trans Siberian Railway in the global system of international transportation corridors as priority route in Euro-Asian route. It is pleasant to note that Japan was the first country, which has started using of Trans Siberian Railway in the Far East haul. This fact proves the long-continued and productive history of cooperation in transit potential of the Russia Federation.

It is hard to measure the future of Trans Siberian Railway as the land bridge between Europe and South East Asia! And such two megapolises as China and South Korea would give as great impulse in the transhipment as never been before for last 100 years. It is quite clear that political decisions solely are not enough to solve this task. It is important to solve commercial matters. The International Coordinating Council for Trans Siberian Transportation established in 1993 performs its activity to achieve just this aim and to realise present and prospective potential of Trans Siberian Railway. It consists of 86 collective members, including the Ministry of Communications of the Russian Federation, the Ministry of Transport of the Russian Federation, State Customs Committee of the Russian Federation, rail roads of Ukraine, Byelorussia, Kazakhstan, Finland, Germany, Poland, Hungary, Slovakia, Mongolia, Lithuania, Latvia, Estonia, some Russian and foreign shipping companies and ports, forwarders associations of Europe, Japan, South Korea, Russian operators and forwarding agents. Minister of Communications of the Russian Federation is appointed the chairman on continuing basis of the Council, the first deputy of the chairman is the First Deputy Minister of Communications and the co-chairman is the First Deputy Minister of Transport of the Russian Federation. The President of the Europe Association of Expeditors, the President of the TransSiberian Intermodal Operations Association of Japan and the Vice-President of the Korean International Freight Forwarders Association are appointed deputies Chairman. This authoritative level of the governing body ensures the decisions taken by the Coordinating Council to be put into effect. The principal object of the Council is the increase of traffic volumes of cargo via Trans Siberian Route on the basis of coordinating the activity of all participants of cargo traffic on the international level, developing of coordinated conditions and principles for mutual activity of operators, forwarders and operators. The reduction of transportation expenses on the world market is defined as the primary goal to be solved by the Coordinating Council of TST.

The shortest transit time and quite competitive rates are the main incontestable advantages of Trans Siberian Corridor in comparison with other alternative transportation routes. Thanks to the fact that railway roads of the country carry out the implementation of the system of technical and technological measures, a transit time from pacific port Vostochny to main frontier points with Finland is 11 days, with Poland – 12,5 days, to Berlin – 14,5 days and to the frontier of Ukraine with Hungary is 16 days. Besides, this is the most inexpensive kind of transportation. Finland which is our transit partner holds the lead in the transportation via TRS. It is Finland that has recently started playing a special role in transit via Trans Siberian Railway, as now about tree-quarter of transit container transportation is carried out between Far Eastern ports and ports of Finland. Our partners, which are competent delegations of the Union of Consigners from Japan and South Korea held a thorough monitoring of technical condition and transportation management all along the Trans Siberian Railway from Vladivostok to Warsaw in 1999, 2000 and highly estimated the state of the transportation corridor and the level of transportation management. 95 thousand TEU containers including 22 thousand transit containers were handled via TRS in 1999. For the last two years it was succeeded to achieve sound growth trend of transportation. In 2000 it was handled 110 thousand containers with 39,5 thousand transit containers among them that makes 30% more then in the previous year. In 2001 the total containers transportation volume via Trans Siberian Route made up 122 thousand containers, including 48,8 thousand transit containers. This tendency is kept in the current year. At the same time the Ministry of Railway Communications provides for the modernization of several main railway line sections and the solution of matters concerning on further increasing of traffic speed, enforcing of container terminals, supplying with computer appliances and communication equipment. We are advised of those well-known factors that restrain the increase of cargo turnover via Trans Siberian Route mainly from Japan. These factors are an economic

recession from the beginning of 2001 in Japan, South Korea and in some other AsiaPacific region countries (excluding China); high freight rates for foreign trade cargo transportation via the marine part of TRS that involve the noncompetitiveness of through rates of cargo transportation for Europe and Central Asia in comparison with alternative routes. Japanese consignors are not satisfied with only one ship call in fifteen days at port Vostochny perfomed by shipping companies of Japan at present. The Coordinating Council concentrates its attention and focuses efforts on solving above mentioned and other related problems referring to the modernisation of transportation via Trans Siberian Railway. The Coordinating Council in coordination with the Ministry of Railway Communications, the Ministry of Transport and other agencies of the Russian Federation have developed a Policy Paper of Further Transportation Improvement and Cargo Attraction via TRS in 2002 and for the coming years, which is now being put into effect. Much attention is being paid to cutting the delivery time of transit cargoes on Russian railways. Schedules for rapid container railway carriages traffics on the TRS are quarterly drawn up with the usage of vessels movement quarterly schedules for the traffic lines Japan-Russia and South Korea-Russia. This schedule provides railway carriages departure from Nakhodka-Vostochnaya Station on the next day after vessel’s arrival and containers discharging in port Vostochny. For the up-to-date information of consignors a through schedule is provided in the Internet. Delivery time of transit containers in block trains from Nakhodka-Vostochnaya Station in certain directions. Simplified procedure has been introduced with regard to filling out a customs declaration for cargoes transported in containers via TRS. This made it possible to reduce substantially container demurrage at the port and at frontier stations. An extra copy of the railway bill is used as a customs declaration. It is not obligatory to submit an invoice, or indicate in other transportation documents the cost of the goods with compulsory detailed description of the goods, which allows identifying the goods for customs needs. New implemented procedure has reduced container demurrage from 3-5 days up to some hours.

The simplified customs procedure and monitoring of transit goods transported in containers on the Trans Siberian line are applied for containers with destination to the third world countries in all directions. To reduce cargo demurrage at frontier and port station, the Ministry of Railways of the Russian Federation implemented a new system of cargo transportation payment confirmation, that provides the direct transmission of confirming telegrams for payment of carrying expenses by electronic transfer to a departure station. The transit time for containers delivery from Asia-Pacific countries to Europe via Trans Siberian Line is 15-17 days shorter than of deep sea route. The basic principle of tariff policy of the Ministry of Railways of the Russian Federation in the field of container transportation is setting up of competitive tariff through rates providing for cargo delivery in container in compliance with “house/house” principle as compared to motor or maritime transport. In order to attract transit cargoes to the Trans Siberian line the Ministry of Railways of the Russian Federation has provided special tariffs. For the period of 2001-2002 the effect of the reducing coefficient 0.9 to the rates of the Tariff Policy of Railways in Russia is prolonged for cargo and container transit transportation from the third world countries to the third world countries via the Russian Railway, for the transit via the Far Eastern ports and for the transit to Mongolia, Korea, Vietnam, China via Zabaikalsk, Hasan, Grodekovo and Naushki frontier stations. A special rate of transit containers transportation by route trains, single container transportation via the route Nakhodka-Vostochnaya-Krasnoe (Moscow Railway) and astern is prolonged. The Ministry of Railways of the Russian Federation has fixed special rates for cargo transportation by container train “Beijing-Moscow” in the direction of ZabaikalskMoscow, by container trains Germany-China-Germany in the direction ZabaikalskKrasnoe and by container trains Finland-China-Finland in the direction ZabaikalskBuslovskaya.

Average tariff through rates of foreign trade cargo container transportation from Japan, South Korea, China to Finland, Germany, Moscow, ports of Europe (via port of Saint-Petersburg) are coordinated by Railways of Russia, Byelorussia, Poland, Germany and Finland, marine shipping companies, port operators, forwarding agencies which are the participants of Trans Siberian Container Service. The Ministry of Railways of the Russian Federation has taken appropriate measures to ensure the security of transit cargo carried via Trans Siberian line. Each container block train running on the Trans Siberian line is accompanied by an armed guard. For the period from 1997 there was not a single case of transit cargo getting robbed or lost. Tracing of transit containers on the Russian Railways is carried out on a real time mode. It makes possible to provide complete up-to-date information to a consignor of the cargo transit over Russia territory. According to an agreement with the Ministry of Construction and Transportation of South Korea, the Ministry of Railway Communications of the Russian Federation in coordination with the International Coordinating Council for Trans Siberian Transportation held the Presentation on the subject of “Trans Siberian Mainline in the XXI century. Trends in the development of Korean-Russian cooperation in the field of railway transport ” from 12 to 13 February 2001, which was intended for advising cargo owners, operators and forwarders in South Korea of current service provided on Trans Siberian line. Officials of the Ministry of Construction and Transport and of national transport organizations, representatives of more than twenty trade and production companies, major forwarding agencies of Korea participated in the Presentation. Photo-information exhibition “ Trans Siberian Mainline in the XXI century” became the feature of the Presentation. The Seminar of Trans Siberian Service was held in Cologne on 30 August 2001 for representatives of trade and production companies accredited in Germany.

The 10th Plenary Session of the International Coordinating Council for Trans Siberian Transportation was held on 6-7 September 2001. 178 delegates from 23 countries, including general manager and representatives of railways, shipping companies, ports, forwarders associations and firms participated in the Session. The delegation of the Ministry of Railways of South Korea took part in the Session. Specific arrangements of further improvement of Trans Siberian service, attraction of cargoes to the Trans Siberian Line, which all members of the Coordinating Council for Trans Siberian Transportation are trying to put into effect, were outlined at the Plenary Session. The Ministry of Railways of the Russian Federation with the participation of the International Coordinating Council for Trans Siberian Transportation, the Trans Siberian Intermodal Operators Association in Japan with the assistance of the Embassy of Russian Federation and the Trade Embassy of the Russian Federation in Japan held an presentation-exhibition “Russian Railways: the Key Link between Transport Systems of Europe and Asia” on 18-19 December 2001 in Tokyo. Representatives of all major production and trade companies and forwarding agencies of Japan, as a whole 204 participants from Japan part, took part in the Presentation. The participants of the Presentation from Japan were impressed by a videoselector conference, that is the evidence of considerable achievements of the Ministry of Railways of the Russian Federation in setting up of the most sophisticated telecommunication and transportation management system. Participants from Japan reveal rather great interest to the cargo transportation arrangement to Afghanistan via frontier point Galaba-Khairaton. As a consequence of this Presentation a trial consignment of containers transportation from Japan to Finland was successfully arranged in January-February 2002. The demonstration consignment of containers from Japan to Belgium is planned to be transported in October 2002.

Trans Siberian transportation management for the recent four years admittedly has significantly improved and now it conforms to the high international level. Trans Siberian service has become more competitive in such activities as transit time, security of the cargo, through rates, monitoring of container transportation and information provision to clients compared to maritime route. A considerable increase of container transportation from West Europe to Russia and further to the states of the Commonwealth of Independent States was ensured in 2001. According to data provided by the operators of container transportation, the volume of container transportation in these directions has grown in 30% in comparison to the past year. It is a satisfaction fact, as these transportations are directly performed with the usage of the parts of Trans Siberian Mainline. The quantity of international traffic of containers groups and single containers demonstration runs has remarkably grown via Trans Siberian Line in 2001. West Europe net operators, as “Intercontainer Interfrigo”, has successfully organized demonstration runs from Japan to Europe. It took 22 days to deliver the trial consignment of containers (for example, from Japan to Duisburg, West Germany). It is quite a positive result, as an ordinary assorted train was used to realize this demonstration runs. Container express trains would remarkably shorten this traffic time, as judging by the demonstration train run from Nakhodka to Brest, the transportation would take 9 days. The company “Multymodal Transport Equipment GmbH.” was successfully performing the cargo transportation from China to West Europe via Trans Siberian route. It is remarkable that such well-known international forwarding logistics concern as “Küne & Nagel” has started using Trans Siberian route for its cargo transportation, regarding Trans Siberian Mainline as the strategic route for further rail transportation development. The tendency to the cooperation between consignors and forwarders/operators promotes the arrangement of united transportation services system including regular traffics between the Far East and West Europe via Trans

Siberian Mainline. The first drafts of this regular service solutions are likely expected to be provided to our clients in 2002. In order to ensure the development of container transportation and maximum capacity of Trans Siberian Railway, it is essential further development of such Far Eastern ports as Vladivostok, Vostochny, Vanino. Port Vostochny has perfect conditions for container cargoes transportation, as it is situated in deep water ice-free bay. Now the project of containers delivery by big ocean vessels to port Vostochny from which they would be transported to the neighboring countries by small vessels, is worked out. But even now Port Vostochny is the initial point of Trans Siberian Mainline. And now the general director of Vostochny International Container Terminal JSC Michal Frydrych would like to say a few words about port’s activity and resources.

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