Russian Railways Logistics diversifies its routes significantly. The company operates both in Russia and on international routes and due to partnership with a significant number of local and international carriers, port, terminal and warehouse owners, RZDL can offer logistics solutions to/from any continent. RZDL has already performed forwarding services to Eastern and Western Europe, South and North America, Asia, Asia-Pacific countries and the Middle East.
Internal routes serve the local customer needs. In the local market RZDL cooperates mainly with Russian Railways Holding subsidiaries such as JSC TransContainer, JSC Freight One, JSC Federal Freight and others. There is a number of operating routes such as Saint-Petersburg-Yekaterinburg, East-West and North-South directions connecting the Northern ports with the Caucasus region and the Southern ports and the Russian Far East with the European part of the country reaching ports of Kaliningrad and Baltiysk. RZDL is also engaged in freight forwarding activities towards low density regions of Siberia, which are significant support for economic and social life of the region. Russian Railways Logistics strategy in Russia is to develop its branch network and to extend the company portfolio of services.
Russian Railways Logistics has very tight business relations with CIS countries, especially Ukraine, Belarus and Kazakhstan due to common customs and border points. These countries are located on main transit routes to Europe, Central Asia and further to Middle East. One of the routes through Russia and Kazakhstan is extremely important for freight forwarding from China to Germany. To provide integrated logistics services on this route RZDL cooperates with Kazakhstan Temir Zholy (Kazakh Railways) and JSC Kedentransservis, logistics terminals owner.
On May 31, 2011 Russian Railways Logistics, Kazakhstan Temir Jholy and Belarusian Railways signed the memorandum on development of transport and logistics system of the Single Economic Zone, which envisages the creation of united transport and logistics company to control both rolling stocks and the terminal-storage facilities. On November 13, 2014 the company was registered in Moscow. The new joint venture will become a provider of the high-quality and commercially attractive transit solutions throughout the whole 1520 space linking Europe and Asia.
Asia is one more business expansion plan milestone for Russian Railways Logistics.
RZDL offers freight transportation services from Saudi Arabia, Thailand, Malaysia, China, South Korea and other terminals through Dostyk, the border crossing point in Kazakhstan. This option offers a full range of services including container provision at the port of departure, sea freight to Qingdao and Lianyungang ports, port forwarding, freight forwarding in Chinese Railways containers, customs clearance, providing hauling stock and reloading into broad-gauge railway carriage, freight forwarding in CIS countries. The service is available for both single and multiple freight transportation options.
YuXinOu (Chongqing) Co., Ltd is a Chinese Joint venture involved in forming regular block trains on the route China (Chongqing, PRC) – Europe (Duisburg, Germany) with a full range "door-to-door" logistics services. It was established in June 2012 in Chongqing (China) by Chinese, Russian, Kazakh and German companies. Russian Railways Logistics owns 16.3% of the share capital. The joint venture has already sent 16 container trains with Hewlett-Packard (HP) products on the route Chongqing - Duisburg. In addition to regular HP cargo shipment, YuXinOu in cooperation with Russian Railways Logistics sent the first train with ACER products on September 10, 2012 on the same route. In accordance with the agreements of the heads of Russian and Chinese railways RZDL agreed with the involved parties on the use of CIM/SMGS Common Consignment Note since having sent the second train with Acer products on October 30, 2012. Eventually YuXinOu will be included in RZDL sales network and will raise attractiveness of transit through the territory of Russia, Belarus and Kazakhstan.
FELB: Container train Europe-Asia is a joint project between RZD Logistics and international container transit transportation operator Far East Land Bridge, Ltd (FELB). In March 2012 RZDL started cooperation with FELB in the framework of its strategy on expansion to European and Asian cargo transportation markets, development and enhancement of the transit potential of the Russian Railways and organization of integrated services for transportation of transit cargo on the route China-Europe. FELB is a partner of a number of large companies such as BMW, LG, Samsung, and specializes in transit container rail transportation from China to Europe via Zabaykalsk, Russia. On June 2012 Russian Railways Logistics acquired 10.2% of the FELB shares from TransContainer. Currently FELB operates under the effective control of RZDL. In 9M12 FELB transportation load amounted to TEU21,000.
European projects of RZDL were developed due to mutual interest of the RZDL partner companies on providing best logistics solutions on shipment to Russia and transiting via Russia. The company goal was to create joint ventures in order to offer a wide range of intermodal transportation services and container trains. Moreover, the company invests in logistics and transportation companies, which export to Russia.
Euro Rail Trans: Latvian joint venture Euro Rail Trans, Ltd is mainly engaged in development of transit transportation through ports in Latvia and providing door-to door cargo delivery service. This project was approved by the Board of Directors of RZDL on January 18, 2012. The main goal of the project is to provide general cargo transit by RZDL by means of intermodal freight transport on the territory of Latvia with access to the ports of Riga, Ventspils. The company has already started forwarding activities on the territory of Latvia.
GEFCO: Joint project with GEFCO on spare car part transportation to PSMA Rus, the plant of French Peugeot Citroen in Vorotynsk city in Kaluga, is an ambitious and successful one. In 2011-2012 Russian Railways Logistics in cooperation with GEFCO and TransContainer forwarded more than TEU50,000 spare parts from France to the Kaluga region. Transportation of spare parts for completely knocked down assembly started in 3Q12. GEFCO carries out sea freight from Argentina to port of Riga, where Russian Railways Logistics provides customers with complete logistics services. The planned traffic volume is to be amounted to TEU400 per month or one container train per week. The project will be carried out until 2015.
ISAF: in 2012 RZDL started organization of non-military cargo delivery of NATO peacekeeping forces (ISAF - International Security Assistance Force (ISAF)) from the ports of Latvia to Afghanistan. This joint project between Russian Railways Logistics and GEFCO (GEFCO Baltic) is designed to develop and support transit potential of railways. Containers are sent by sea to the port of Riga, where later the container train is to be formed and dispatched to Afghanistan transiting through territories of Latvia, Russia, Kazakhstan and Uzbekistan. Transit time from Riga (Latvia) to Galaba (Tajikistan) is 20-22 days. The cargo on volumes of TEU429 has been already delivered. Currently RZD Logistics in cooperation with Souzvneshtrans is designing schemes for clearance of non-military NATO cargo during withdrawal of French peacekeepers from Afghanistan. One option is transportation of the loaded containers by air to Ulyanovsk city and further by rail to the ports of the Baltic States.
There are also several projects on organizing regular international container train transportation from France and Italy to Russia; however, currently they are in the development phase.
RZDL may reach any continent for its clients! To prove this statement recently the company organized shipping of cultural goods to South Africa. RZD Logistics branch in Rostov-on-Don organized transportation of packaged cargo shipped by a lecturer of Nelson Mandela Metropolitan University to Port Elizabeth, South Africa. Among the shipped goods - articles of daily use of Russian people and reproductions of Russian artists paintings for the university library. According to the shipper they will introduce the Russian culture to the university students. Russian Railways Logistics offered its client the full range of services including cargo packaging, customs clearance, temporary storage, cargo handling, trucking to the port of loading and sea forwarding to Port Elizabeth.