1. Logistics in Russia: new trends
Kirill Vlasov
Chairman of the Board
STS Logistics
8th European 3PL Summit
25 November 2010

2. Russia is not only …
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3. But also …
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4. Russian logistics market most likely to return to growth in sync with GDP
Future growth scenarios
Optimistic case Base case Pessimistic case
(Council of National Strategy) (IMF) (MERT)
Market, USD bn Market, RUR bn GDP, RUR bn
RUR bn USD bn RUR bn USD bn RUR bn USD bn
CAGR 08-12 142 CAGR 08-12 CAGR 08-12
USD = - 4% 3 840 USD = - 8% USD = - 9%
142 3 520
104 93 94 96 99
113 119 96 97 100
101 106 3 520
3 520 3 220 3 340
3 620 3 180
3 420 3 100 3 130
3 260 3 080
2 990 3 020
2008 2009FC 2010FC 2011FC 2012FC 2008 2009FC 2010FC 2011FC 2012FC 2008 2009FC 2010FC 2011FC 2012FC
 Commodity prices stabilize and continue  Commodity prices remain volatile  Slow recovery of world economy due to
growing but at acceptable current levels unemployment, diminished consumer
 Government stimulus packages help  Economy loses only little momentum after spend, continuously limited credit
the economy return to stable growth expiry of governmental stimuli availability, protectionism
 Banks making credit available, favorable  Lacking efficiency of Russian  Stagnating commodity prices
fiscal and monetary policy make manufacturers makes them slow to  Lacking efficiency/competitiveness
investments affordable benefit from recovery of world economy of Russian manufacturers
If RUR shows weakness, the market may not reach 2008 levels in USD terms in the next 3 years
Note: conversions at appropriate annual avg. rates for hist. points. FC with USD/RUR = 32,20112 (YTD 08/11/2009)
Source: As indicated, STS/RLS estimates
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5. What is new in customs
Customs services
 Customs unit: Russia, Belorussia,
Kazakhstan (July 01);
 Remote electronic declaration
system (2010);
 Move customs clearance offices
(posts) to the border:
Clearance of ser and air goods in
the port / airport of arrival
(November 1, 2010);
Decision to close 70% of all
customs posts in Moscow region
(December 2, 2010: from 57 to
17);
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7. Customs: STS LOGISTICS response
Electronic declaration in Smolensk
Today:
Kashirsky customs post: Send electronic Preparation of set of
electronic declaration declaration to documents, customs
preparation Smolensk clearance.
24 hours
Kashirsky customs post:
Tomorrow:
electronic declaration Customs clearance
preparation. Electronic
declaration (ED-2)
4 - 6 hours
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8. Customs: STS LOGISTICS challenge for 2011
Work on the border – electronic declaration (ED-2)
St. Petersbourg Arkhangelsk
Moscow:
Remote electronic
declaration
Smolensk Volgograd
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9. FMCG: less volumes... Our respond: Service level.
Empty warehouses
EMPTY MHS QUALITY IN WHS
FREE TRANSOPORT LTL & FTL
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10. Service level
Quality standard
TRACE membership and certificate ISO 9001 – quaranteed service level
confirms meeting high requirements of certified by international audit
business standards concerning “clean
deals”, level of corporate culture and
correspondence of business ethics to
international standards
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11. FMCG: less volumes
Move volumes from FTL and RC to LTL (LCL) direct
FTL
LTL direct
WHS
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12. Supply chain geographical trend
Increase presence in China and Japan, Europe, USA
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13. STS LOGISTICS geography
Country City
Russia Arkhangelsk
Moscow
St. Petersburg
Vladivostok
Volgograd
Ekaterinburg
Kazan„
Nakhodka
Samara
Novorossijsk
Novosibirsk
Port Vostochny
Khabarovsk
Krasnodar
Sochi
Krasnojarerks
Rostov-on-Don
Chelyabinsk
Naberezhnye Chelny
Irrkutsk
Perm
„PortVanino
Japan Tokio
Ukrain Kiev, Odessa, Uzhgorod
Tourkmenistan Ashgabad
Uzbekistan Tashkent
China Gonkong, Shankhai, Guanchzhou, Urumch
Holland Breda
USA Seattle
Kazakhstan Almaty, Atyrau, Aktau, Ust-Kamenogorsk, Aktobe
Azerbajdzhan Baku
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14. Supply chain geographical trend
China
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15. Project logistics growing
Oversized project for state organization
Equipment supply in frames of the state program of Energetical system of Russia
reconstruction
May 13 STS LOGISTICS finished shipment of spare parts for transformator‟s equipment to 3 power stations: Atkarsk,
Podporozhje, Lebedjan‟. Total weight was 78 tons.
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16. Event logistics
Exhibition
EXPO 2010, Shanghai
Exclusive contract with VVC
Delivery of Russian stand (building
of 6000 sq.m.) to Shanghai. Total
volume: 77 containers,
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17. Event logistics
Event
Celebration of 150 years of Vladivostok city
June 2010, delivery of light, sound and water equipment to Vladivostok.
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18. Event logistics
Event
Logistics support of development in Russkij Irland, Vladivostok
Supply chain for development in Russkjy island for ATES summit
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19. Customer-fit solutions
Oil & Gas, Power generation Automotive
Event logistics FMCG & Retail
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20. E-service
Domestic FTL GPS tracking will be included into e-service
On-line tracking of
GPS tracking for domestic customer’s cargo
FTL transportation
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21. E-service
EDI communication will be included into e-service
customer’s
ERP
EDI
WMS
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22. We are open for international cooperation
Contact information
Our clients focus on their business
We take care of logistics
Kirill Vlasov
STS Logistics
Chairman of the Board
+7 (495) 775 02 02 stsmow@stslogistics.net
+7 (495) 933 00 33 kvlasov@rls.ru
+7 (985) 760 2209 (mob.) www.stslogistics.net
www.rls.ru
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