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Transportation and Logistics Market Insights-Russia

Transportation and Logistics Market Insights-Russia

  • November 2017
  • 52 pages
  • ID: 5253702
  • Format: PDF
  • By Frost & Sullivan

Summary

Table of Contents

Technology Solutions will Accelerate, Driven by E-commerce and the Increasing Investments by Logistics Service Providers

Russia’s economic growth is primarily driven by the increasing private consumption and the improving transport infrastructure. Trade is important to the economy; the combined value of exports and imports equals 51.0% of the GDP. The FMCG market is saturated by international firms, with increasing competition from domestic producers due to the growing focus on local production and imports embargo.

A key long-term factor that will contribute to the enrichment of the Russian economy is the constructive partnership between trade unions, the government, and companies. Russia is a member of the G-20, is one of the five BRICS economies, and has multilateral and bilateral trade agreements with several countries. The government has taken initiatives to streamline regulations, promote competition, and encourage entrepreneurship to support growth.

The country is working on technology-oriented transport systems to become a key participant in smart mobility (ERA-GLONASS tracking system). Technology advancements, skilful ICT professionals, and the use of automated guided vehicles (AGVs) in warehouses are the key transformational trends.

Digitization will be the key factor driving the transportation space. The major automotive ecosystem participants are investing in infrastructure development. Tech start-up companies are launching innovative products; however, only a few companies combine the old industrial knowledge with the new IT skills.

The government supports the development of autonomous vehicles, and Russia is a prospective area for Big Data and M2M solutions. The development of the ERA-GLONASS system (technology similar to eCall in Europe and GPS in the United States) allows the monitoring of vehicle condition, fuel usage, and driving style to increase efficiency and reduce costs.

The government implemented regulations for the mandatory installation of the ERA-GLONASS system on every new vehicle sold from 2017 - this will help track vehicles on the road. S2B developed ROAD, a logistics solution that provides real-time tracking of deliveries and shipments through mobile Internet or GPS. The system is mandatory for the monitoring of FMCG products. Other logistics technologies include monitoring and identification systems like RFID chips and GPS technologies to track and check a company’s services in contract logistics, road transport, logistics of fresh products, full truck load, and intermodal transport, among others.

Scope:
The aim of this insight is to research and analyze the key developments and trends related to economy and trade and the freight, transportation, logistics, and warehousing sectors in Russia.

Objectives:
• To provide an overview of the key factors driving Russia’s economy and trade
• To analyze the role of the transport and logistics sector in driving the country’s economy
• To identify the initiatives undertaken by the government to improve efficiency and reduce logistics costs
• To furnish a detailed analysis of the advancements in digital technologies
• To provide an in-depth analysis of how the traditional value chain is being transformed as a result of technology advancements, e-Commerce growth, regulatory changes, and investment
• To identify the emerging opportunities as a result of economic and technology transformations and how they are expected to change the competitive environment

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