Container Transport on the CIS Railway Network

REPORTS

Jana Pieriegud Container Transport on the CIS Railway Network CIS The second “container revolution” is In many regions of the world the just beginning market of container transport is cur- The development of the container rently assessed by experts as having transport in the contemporary world good prospects and as dynamically is associated mainly with a maritime developing. The CIS region is no ex- transport. World container shipping in ception here. the recent years has experienced the Looking back at the history, the idea Jana Pieriegud, Ph.D., graduated biggest boom in the history of this in- of using large boxes in the transport of from the Belarusian University of dustry. Today, approx. 90% of general cargo firstly occurred to Russian trans- Transport in Gomel, wrote her cargo worldwide moves by container port specialists in 1889. At Russian Ph.D. thesis in 2001 on the War- ships. The level of the containerisation train stations on the Western borders, saw School of Economics. Since is not already showing level of inno- cargo had to be hand unloaded from 2001, she works as a researcher vativeness of the technologies used in cars on the wide gauge Russian tracks and an academic teacher at the transport but also in the whole econo- and reloaded into those on the stan- Department of Transport at Warsaw mies. Besides, intermodal container dard European rails. In order to speed School of Economics. Author and transportation plays an important role this operation, a boxcar was devel- co-author of more than 60 papers in creating of international supply oped with removable halves, which and books. Participated in many chains. In the discussions about con- could be transferred between trains. research projects, expertís analysis tainer transportation almost nobody These were the first Russian freight as well as numerous conferences, remembers, that the idea of the using containers. In 1932 the first standard- workshops and seminars. Cooper- different types of boxes for carrying ized wooden container was devel- ates with the Railway Market Maga- of goods, dates back to the 19th cen- oped with a two-ton capacity. Three zine (e-mail: [email protected] or tury and was developed firstly by the years later a national standard for con- [email protected]). railways on several continents. There tainers was adopted, covering capaci- were small containers, with a simple ties ranging from 3/8th-ton to 5-ton. By construction, that did not resemble 1950 the number of 2.5-ton contain- of door-to-door delivery started back contemporary containers. Using con- ers had grown to 150,000, and metal in the second half of the 20th century. tainers in a land transport until 1960s constructions began to find use1. The number of container points in had rather national than international The extensive development of the former USSR increased within feature. containerisation as an efficient way a decade from 134 in 1950 to nearly 1000 in 1960. Almost all of these points were located at railway stations and sidings. Already in the early 1960s the network of container terminals in the USSR was nearly fully developed2. Towards the end of the 1970s, daily loadings of containers on all modes of transport amount to 44,000. The yearly volume of general cargo carried in universal containers is approaching 30 million tons, more than twice the amount carried by all major nations of Western Europe together. Ten years later it was already more than 80 million tons. About 95% of these volumes were moved by rail. The record levels of transit transport via the so-called Trans-Siberian Container Bridge were Figure 1. The growth dynamics of container transport worldwide (1990=100) reached in the early 1980s, and the

8 Railway Market - CEE Review No. 2 2007 REPORTS

travel time of fast container trains from CIS. In some of these countries, com- sit) and the transport within the country. the Nakhodka Seaport in the Rus- panies were separated out of the In the case of export, Russian ports and sian Far East to Chop Station on the structure of state railway enterprises railway border crossings are the main Ukraine-Hungary border was short- to organize container transport. Also directions of freight transport. The mar- ened to 11 days3. new operators with their own fleet en- ket is practically shaped by and divided The potential of the container trans- tered the market. The current growth between forwarders. The situation is port system, created in the former rate of rail container transport (5.7% different with regard to transit–espe- USSR up to the beginning of 1990s, in 2006) is higher than the overall cially with transport by the Trans-Sibe- could not be maintained or devel- railways dynamics (4.2%). More than rian Railway–which changes to a great oped in the subsequent decades for a 5,700 containers are loaded every extent with the level of railway tariffs number of reasons. When this system day on the CIS railway network (only and freight charges for sea transport was arisen and developed, the level of 42% of them are large containers). between Asia and Europe. CIS technical and technological progress The number of container block trains Despite these difficulties, container in transport significantly differed from increases from year to year, along with transport in Russia is developing faster the contemporary. For example, the improved quality of service. In spite of than other types of transport. The driv- container fleet belongs to MPS (former many difficulties that face the market ing force of container transport is the Railway Ministry) comprised low-load participants, a continuous increase in growing Russian foreign trade turnover, capacity units, whereas the largest sea railway container transport is forecast- above all import of industrial products vessels could take as many as 2600- ed. The “second container revolution” (e.g., machines and appliances, elec- 3000 containers. Because a develop- has only just started here. tronic equipment, consumer goods), ment of containerisation in a railway whose structure, unlike that of export, transport then was ahead of container Changes in the Russian container is suitable for container transport. The sea shipping, an equipment of railway transport market containerised goods rate in the case of stations (outside ports) were generally Since 1999, a steady increase in con- import reaches 30% as against an aver- limited for handling only small and tainer transport has been noted on Rus- age network rate of 2–3% and approx. middle containers. However, up to sian Railways. In the period from 2000 6% in export. Among the goods ex- now an access to equipment for 20- to 2006, RŽD’s containerised freight ported in containers are mainly paper, feet and 40-feet sea containers is in- movement almost doubled. Whereas metals, chemicals and chemical sufficient. It should be borne in mind between 2000 and 2003 the growth products. that the soviet container system built rate remained at the level of about 20% By 2011–2012, RŽD container trans- in conditions of a planned economy a year, in the following years it gradually port will have doubled. To ensure such was inherently inefficient. slowed down to 14% (2004) and 11% growth dynamics it is necessary to: In the early 1990s, the MPS system (2005). Last year, 21,300,000 tons or • create transparent principles of op- operated over 160,000 containers 1,720,000 TEU were transported (only eration in the container market, (mainly low-load containers of up to 5 3% more than in the previous year). A • tighten cooperation between differ- tons), and another 150,000 containers high dynamics (8–9% per year) is main- ent modes of transport, among oth- belonged to shipping companies. The tained in international transport. ers between the railway and seaport container fleet of MPS was divided be- In the Russian market of container authorities, tween the 15 railway administrations transport there is a clear division be- • develop modern terminal infra- of the former soviet republics. The tween the stream of freight of Russian structure–both in sea ports and dissolution of the USSR and the deep foreign trade (export, import and tran- railways, economic crisis of the first years of transformation in most of these coun- 2000 1737 1798 tries had a negative impact on both 1563 the volume and quality of rail freight 1600 transport, among others in terms of 1367 time and safety of transhipment. The 1157 situation worsened with the introduc- 1200 tion of customs procedures between 971 the members of CIS and with the rise 814 of railway tariffs. Consequently, the 800 volume of container transport on the CIS network dropped by nearly one 400 half in the period 1992–1996. Adap- tation to the new market conditions required time and change in the pat- 0 terns of behaviour of the railway mar- 2000 2001 2002 2003 2004 2005 2006 ket participants. The beginning of the 21st century Figure 2. The volume of container* transport in the Russian railway network (in thousand TEU) marked a new stage in the develop- *20-feet and 40-feet only. ment of container transport within Source: Based on RŽD and TransContainer data.

Railway Market - CEE Review No. 2 2007 9 REPORTS

• purchase new rolling stock by private operators, • increase the number of routes and the frequency of regular container trains, • initiate cooperation of entities organizing container transport, • develop new efficient organization- al variants of container transport, in line with contemporary supply chain concepts. CIS The largest operator in the railway container market in Russia is Trans- Photo: JSCTransContainer Container. Other significant operators in this market are: Russkaya Troyka, stock and containers, modernize the transport on the East-West and North- EvroSib, SunGate, Incotec-Trans-Ser- reloading terminals and equipment as South axes: the Baltic countries, Be- wis, F.E.Trans, DVTG, TIS, Modul com- well as introduce a single IT system. larus, Ukraine, Central Asia, Western panies, and Sojuzvneshtrans concern. TransContainer is planning to spend Europe and South-Eastern Asia. At present, most of them working to approx. $192 million for this purpose The automotive sector has become expand their own fleet of wagons and in 2007. one of the directions of development containers. For instance, Russkaya Implementing its strategy of com- of the company’s container transport. Troyka increased its rolling stock to pany development and forming the So far the company has transported more than 1,000 flat cars last year. partner network on the global trans- shipments of car subassemblies from The experts of this company have cal- port market, towards the end of 2006 Korea (Hyundai, Daewoo) and China culated that, in order to ensure their TransContainer formed a joint venture to Russia and Uzbekistan. In the first optimal operation on the market, the with the Finnish Railways (VR) and two months of 2007, several new con- company needs 2,300–2,500 flat cars. signed an agreement on the joint uses tracts were obtained in the automo- Incotec-Trans-Serwis has 1,620 flat of containers with a fast procedure of tive industry: cars, including 377 of their own. Sun- train customs service with the Chinese • At the end of January a demon- Gate is planning to buy at least 600 company SSTS, which is the national stration run of two container trains flat cars by the end of 2008. DVTG operator for container transport. The was organized on the Novorossi- in turn is going to invest approx. $38 first joint container train is planned to ysk – Naberezhnye Chelny route, million in the development of the con- be launched on the Beĳing – Moscow which carried components for as- tainer business in the next three years. route. sembling FIAT vehicles (to the fac- EvroSib received an IFC loan of $120 In December 2006, an agreement tory of SeverstalAvto Group). A total million to build four container termi- on the development of transit con- of 224 TEU was transported. As a nals with a joint loading capacity of tainer transport between the Russian joint enterprise of Novorossiysk Port 240,000 TEU. Railways (RŽD) and the Kazakhstan Authority and the TransContainer About three fourths of the railway Railway (KTZ) was concluded. Also company, these trains will travel container transport on the domestic a memorandum was signed with the regularly. market is carried out in containers Latvian Railway (LDZ) on cooperation • On 9 February 2007, a memoran- owned by RŽD S.A., and since Janu- in organizing international container dum on cooperation with IzhAvto ary 1, 2006, in those belonging to its transport via those two countries. A for delivering car components for subsidiary, JSC TransContainer The network of representatives is being the assembly of KIA Spectra, KIA main business activity of the compa- created in countries of significance Rio JB and KIA Sorento cars in the ny is to provide comprehensive serv- for the development of container Izhevsk plant was signed. The con- ices related to organizing container transport, including: monitoring fleet operations, improving the quality of services, organizing the maintenance of containers, and transport-forwarding services. The company has 45,000 containers at its disposal (mainly 20- feet), 23,000 flat cars of different types and 49 reloading terminals located across Russia. In July–December 2006, the company shipped 605,000 TEU, an 8% more than in the same period of 2005. To guarantee the planned increase rate of 10% annually, it will be necessary to invest in new rolling

10 Railway Market - CEE Review No. 2 2007 Fesco containers in Moscow. Photo: RZD Partner REPORTS

tainers are to be delivered by sea container transport within the DVT were shipped. The main transport di- from the Korean seaport of Pusan Group. In 2003, DVTG launched the rections provided by TIS are: Baltic to the Russian seaport of Eastern first container train Eastern Nakhodka Sea ports – Central Asia; Russian sea Nakhodka and then transported – Almaty. Regular container train serv- ports – Central Asia; Europe – Russia/ by container trains (on average, 75 ices via the Trans-Siberian Railway are Central Asia; China – Siberia – Ural – TEU each). The trains are expected being constantly developed. Also the Central Russia – Central Asia; South- to travel five times a week. It is rolling stock comprising containers and Eastern – Europe. The TIS is the op- noteworthy that in early February a 80-feet flat wagons for their transport erator of the “Baltic-Transit” train similar contract (20,000 TEU a year) is growing, and the construction of a (106 sets in 2006) and Eastern Na- was signed with the FESCO compa- terminal on the Russia-China border is khodka – Central Asia train (32 sets). ny, which runs two trains a week. almost finished. The company widens a geographical The necessity to launch additional Russkaya Troyka was founded in range of activities and opens new CIS trains resulted from the anticipated November 2004 by RŽD and DVMP branches in Russia as well as abroad increase in the quantity of compo- (Far Eastern Shipping Company PLC, (Germany, China, Kazakhstan). Scale nents delivered to the factory this known as FESCO) in order to offer and quality of services are also im- year by approx. 240% as compared railway-sea services in the intermodal proving, and new intermodal projects to 2006, which is supposed to reach transport market. A strategic line in are launched4. the level of 60,000 TEU. A major the company’s development is East- The major problems in the condition for this project to be suc- West transport on the Trans-Siberian development of railway container cessful is to ensure speedy loading Railway. Last year, the FESCO Group, transport in Russia are: of containers in the port and ex- which intends to control half of the • an untransparent tariff system, change of information between all Russian market of container transport • obsolete rolling stock of containers the project participants. by 2010, invested over $300 million and wagons, • In cooperation between the Trans- in railway transport assets. • a deficit of dedicated rolling stock Container and the German, Czech Russkaya Troyka started its operation for container transport, and Belarusian Railways, in the sec- in March 2005 and the first train for • a shortage of technical facilities for ond half of this year it is planned transporting containers with Hyundai the maintenance and servicing of to launch container trains on the vehicle components to the IzhAvto wagons owned by private opera- Germany/Czech Republic – Poland Taganrog plant was launched in April. tors. – Belarus – Russia route, which are The hundredth train left Nakhodka to The general deficit of flat wagons to deliver parts and components to Taganrog in January 2007. By the end for container transport is estimated the newly built Volkswagen plant in of January, over 14,400 TEU had been at 17,000 units. The leading Russian Kaluga. A short delivery time is to shipped on this route. In two years the manufacturers of rolling stock for con- be ensured due to a single bill of Russkaya Troyka company transported tainer transport are5: lading. 65,700 TEU. The company uses more • Abakanvagonmash – producing 40’ One of the largest Russian shipping than 1,000 dedicated flat cars. Regu- (13-9015 type) and 60’ flat cars (13- and freight forwarding companies is lar container trains now run on three 9004, 13-9004-1, 13-9009 types). Far Eastern Transport Group (DVTG), routes: Nakhodka – Taganrog (Hy- • Altaivagon (Kemerovo branch) – 40’ which was founded in 2001 as a result undai project), Nakhodka – Moscow, (13-2114K, 13-2108, 13-2116, 13- of a merger of about a dozen transport Nakhodka – Izhevsk (KIA Motors Cor- 2116-01 types) and 80’ (13-2118 and forwarding companies. Today it is poration project). type). In 2005, they produced 250 one of the largest players on the Rus- The leader among the private for- flat cars of 13-2126 type and 100 of sian transport market, with an extensive warding companies operating in the 13-2118 type. In January of the this network of branches across Russia, CIS Russian container market is for many year they produced 84 flat wagons, and China. The Vostoktranscompany years the Transsiberian Intermodal including 24 units of 13-2116 and deals with the development of railway Service (TIS). In 2006, 78,400 TEU 13-2116-01 type, and 10 units of 13-2118 type. • Bryansk Engineering Plant which belongs to Transmashholding – 40’ (13-3103-01, 13-3110 types) as well as 13-3124 model for double- stack cars and 80’ (13-3115-01). • Transmash (Engelsk Plant) – 40’ (13- 9744 type) and 80’ (13-9743 and 13-9751 types). • Ruzhimmash – 40’ (13-1282 type), 60’ (13-1223 type) and 80’ (13- 1281, 13-281-01 models). • Armavir Heavy Industry Plant (which belong to the Ukrainian AzovMash Holding) – 80’ (13-1796 model).

Railway Market - CEE Review No. 2 2007 11 Container transport by Belarusian Railway REPORTS

All the Russian manufacturers are at Table 1. Container trains on the RŽD network* the moment modernizing the existing Travel time types of wagons as well as designing, Train no. Connection testing, certifying and starting mass (in days) production of new models. The chal- Domestic communication lenge they are facing is increasing the 1214 Moscow – Novosibirsk 3,5 max. load capacity of the wagons from 1220 St. Petersburg – Sverdlovsk 3,5 69–71 tons to 72–73 tons with a max. 1222 Eastern Nakhodka – Shushary 10,2 axle load of 25 tons (a bogie produced 1236 Moscow – Khabarovsk – Pervaya Rechka 9,9 by Uralvagonzavod is being tested). 1250 Kutsevo–2 – Sverdlovsk – Kleschiha 3,4 The Bryansk plant has started produc-

CIS 1266 Moscow – Sverdlovsk – Novosibirsk 3,9 ing the 13-3124 flat cars for double- stack containerisation. 1270 Moscow – Khabarovsk 9,3 However, in conditions of dynamic 1280 Moscow – Novosibirsk 3,5 development of container transport in 1261 Krasnoyarsk – New Port 4,7 Russia, the production capacities of International communication/Export these plants cannot meet the demand 1205/1206 St. Petersburg – Nigozero 0,8 for dedicated rolling stock. In 2005, 1207/1208 St. Petersburg – Segeza – St. Petersburg 1,0 the total volume of flat car production 1209/1210 St. Petersburg – Koyty – St. Petersburg 1,9 in the Russian plants did not satisfy even a quarter of the market demand. 1234/1233 Ust’–Ilimsk – Nakhodka, Vladivostok – Ust’–Ilimsk 4,5 In this situation some of the private 1238/1237 Bratsk – Vladivostok – Bratsk 4,5 operators on the market buy contain- 1255/1256 Nizovka – St. Petersburg – Nizovka 1,7 ers and flat car for their transport from 1257/1258 St. Petersburg/Avtovo/New Port – Solikamsk 2,3 Chinese manufacturers. The Russian 1283/1284 Pravdinsk – Novorossiysk 2,7 plants also buy from the well-known 1421/1422 St. Petersburg – Pravdinsk – St. Petersburg 1,7 Ukrainian plants, such as AzovMash, 1434/1433 Shushary – Srednevolzhskaya – Shushary 2,9 Kryukov Plant, Stakhanov Wagon 1445/1446 Solikamsk – Novorossiysk 4,0 Plant, and DneproVagonMash. The largest fleet of containers are 1453/1454 St. Petersburg – Koshta – St. Petersburg 1,5 owned by TransContainer, DWTG, 1459/1460 St. Petersburg – Lynchagi – St. Petersburg 0,3 UralKontener, Balt-Plus, Evrosib-Ter- 1465/1466 Nigozero – Novorossiysk 3,4 minal, SunGate, and Zapsibtransblok. International communication/Import There are only several plants produc- 1203/1204 Beĳing – Moscow – Beĳing 8,5 ing universal containers both in Russia 1205/1206 Budapest – Moscow – Budapest („Chardash”) 3,5 and the whole former Soviet territory, 1207/1208 Berlin – Moscow – Berlin („Ost Wind”) 4,5 e.g., Abakanvagonmash (in Abakan), 1297/1298 Eastern Nakhodka – Moscow 10,3 offering universal 20‘ and 40’ containers as well as some types of special- 1259/1260 Buslovskaya – Moscow (“Severnoye Siyanie”) 1,0 ised containers, and the BaltContainer 1271/1272 Odessa – Moscow – Odessa (”Odessa”) 3,5 in St. Petersburg. In March 2004, the 1439 Eastern Nakhodka – Martsevo 11,2 first large container was produced in 1403/1404 Beĳing – Moscow – Beĳing 8,2 the Osipoviche Wagon Plant in Bela- International communication/Transit rus. The situation is even worse with Eastern Nakhodka – Buslovskaya – Eastern 1201/1202 11,0 respect to specialised containers. Nakhodka As 20’ containers dominate both in 1211/1212 Zabaykalsk – Buslovskaya 8,3 the transport structure of all the CIS Eastern Nakhodka – Buslovskaya – Eastern 1285/1286 10,9 and the Russian market, flat wagons Nakhodka for transporting 20’ and 40’ contain- Eastern Nakhodka – Buslovskaya – Eastern 1287/1288 10,8 ers are going to be most in demand, Nakhodka that is, 60’ and 80’ flat wagons and 1229/1230 Eastern Nakhodka – Brest – Eastern Nakhodka 11,3 also wagons for the transport of intermodal containers, swap bodies, or 1251 Eastern Nakhodka – Lokoc 8,2 whole truck trailers. The second larg- 1276 Brest – Iletsk 2,9 est sales market of this type of pro- 1405/1406 Brest – Naushki 7,8 duction among the CIS countries is 1215/1216 Kaliningrad/Klaipeda – Moscow 2,3 Kazakhstan. However, the market de- 1409/1410 Muuga – Moscow 1,8 mand will largely depend on the de- 1418 Baltic countries – Kazakhstan (“Baltic–Transit”) 4,3 velopment of international as well as intermodal trains in the CIS, such as * Based on TransContainer timetable until the end of May 2007 “Viking”, “Yaroslav” etc. http://www.trcont.ru/index.php?id=18

12 Railway Market - CEE Review No. 2 2007 REPORTS Transit 40 thous. TEU 9% Container block train services on in transit container transport on the the CIS rail network Trans-Siberian Railway was caused by The number of regular container the rise of transit tariffs both for loaded trains in the CIS is increasing from year Export and empty containers. to year. The transport of containerised 176 thous. TEU One of the most quickly developing goods in block trains as compared to 42% destinations of containerised goods is the technology of carrying single wag- China, where there has been an in- ons or wagon groups allows to offer crease by about a dozen percent in better quality services to railway cus- Import the volume of transport. The develop- tomers, among others: 208 thous. TEU ment of trade exchange between Rus- • significant (even by one half) short- 49% sia and China fosters the opening of CIS ening of transport time, especially Figure 4. Foreign cargo transport structure new container services between these in the case of international trans- on the Trans-Siberian Railway countries. port, among others thanks to using Source: Based on RŽD and TransContainer 156 simplified customs procedures at data. the borders, 132 • guaranteeing fixed timetables, 117 • ensuring continuous tracking & trac- ing, and a higher level of security, • offering attractive transport tariffs. 71 The “Viking”, “Ost Wind”, “Ka- 56 zakh Vector”, and “Baltic-Transit” are 47 40 among the best-developing international container trains in the CIS.

Russia Last year on the Russian railway net- 2000 2001 2002 2003 2004 2005 2006 work 201,400 TEU were transported in 2,300 container trains. Every fifth In total By container trains container is moved in block trains, and in the case of transit shipments this rate Figure 5. Transit transport via the Trans-Siberian Railway in 2000–2006 (in thousand TEU) amounts to approx. 77%. The current Source: Based on RŽD and TransContainer data. timetable provides the possibility of nearly 70 regular container trains (two Belarus years ago the number of such connec- Organizing transport of goods by tions was smaller by a half). 34937 high-speed container trains is impor- The largest volume of containerised 35906 tant for the Belarusian Railway (BC) cargoes is transported on the routes because of their strategic location on running in the Eurasian land trans- 35798 the main East-West and North-South port corridors: Trans-Siberian (part of 17864 31184 transit routes. In 2006, 767 block which is the Pan-European Corridor II) 25697 trains ran over the BC network, trans- and North-South (Pan-European Cor- 65079 porting 43,700 TEU. It was 30% more ridor IX). 36257 54029 than a year before. In international services, 424,000 The first container train launched TEU were transported over the Trans- in the autumn of 1995 was the “Ost Siberian Railway in 2006 (8% more Wind”. Over a decade from its run- than the year before). Despite the 2003 2004 2005 ning, the number of trains between 70 Berlin and Moscow has remained import export trans it relatively stable. In 2006, a total of 119 trains transported 4,281 TEU, in- Figure 6. Volume of container transport cluding 1,737 of 20-feet and 1,272 of between Russia and China (in TEU) 40-feet containers. That amounted to 30 Source: Based on RŽD and TransContainer 10% more than in the previous year. data. 15 However, the highest cargo volumes are transported by the intermodal “Vi- overall upward tendency, there have king” train, on the Odessa – Klaipeda been significant changes in the struc- route as part of Pan-European Corri- 1999 2005 2007 ture of this transport. A dramatic de- dor IX. The train was launched thanks crease of transit cargo volume was to the cooperation of three railways: Figure 3. Number of regular container trains accompanied by a high increase in UZ, BC and LG, along with forwarding on the RŽD network import and export. The decrease companies.

Railway Market - CEE Review No. 2 2007 13 REPORTS

Table 2. International container trains with BC participation

Travel frequency Railway Train name Connection Train route (according to network timetable) Grossbeeren-Frankfurt Oder/Rzepin DB, PKP, BC, Ost Wind Berlin – Moscow – Małaszewicze/Brest-Osinovka/ Krasnoye 3 times a week RŽD – Bekasovo Rotterdam/Bremerhaven – Frankfurt Oder/ NS, DB, PKP, Sodruzhestvo Rotterdam – Moscow Rzepin - Małaszewicze/Brest – Osinovka/ as ready BC, RŽD Krasnoye – Bekasovo

CIS Brest – Osinovka/Krasnoye – Kanisay/Iletsk-1 Kazakh Vector Brest – Aktobe twice a week BC, RŽD, KZH – Aktobe Mongol Wind Brest – Ulaan-Baatar Brest – Osinovka/Krasnoye – Naushki – Ulaan- BC, RŽD, (Mongol Wind twice a month (Ulaan-Baatar – Brest) Baatar – ZamynUude – (Hohhot) MTZ, (CR) – Zhul) Odessa/Ilyichevsk – Zhmerinka – Korosten – Berezest’-Slovechno – Zhlobin – Osipoviche Viking Odessa – Klaipeda 3 times a week UZ, BC, LG – Kolyadiche – Gudogai – Kena – Vayjdotay – Radviliskis – Klaipeda Kaliningrad/Klaipeda Kaliningrad/Klaipeda – Gudogai – Minsk Mercury once a week LG, BC, RŽD – Moscow – Krasnoye – Kuntsevo-2 Nakhodka – Krasnoye/Osinovka – Brest/ Nakhodka – Brest Nakhodka – Brest as ready RŽD, BC Małaszewicze

The intermodal trains carrying both than a year before). The number of “Kazakh Wind” is servicing the Brest containers and truck trailers in “piggy- containers shipped in comparison – Aktobe route. The containers car- back” service, on specialised flat cars. with 2005 doubled and amounted to ried by this train have their destina- Special tariffs, competitive with road 32,200 TEU. tions in countries of Central Asia (Ka- transport, foster the growth of traffic The “Sodruzhestvo” train has been zakhstan, Uzbekistan, Turkmenistan, on this route. Belintertrans and Min- running on the Rotterdam Bremer- Tadzhikistan and Kirghizstan). In 2006, skZhelDorTrans are the train operators haven – Brest – Smolensk route since the total volume of containers carried on the Belarusian side. In 2006, 481 February 2001. Next, from August by “Kazakh Wind” increased by 19%. trains were launched (80 sets more 2002, a block container train called With the contribution of the Belaru- sian Railway, a container service was launched 481 (32198) Viking in March 2002 on the 401 (21370) Brest – Naushki – Ul- 119 (4281) aan-Baatar route un- Os t Wind 96 (3910) der the name “Mongol Wind”. The containers 105 (4854) reach Brest either by rail Kazakh Vector 107 (4090) or road. In March 2005, this train ran for the first 28 (1194) S odruzhes tvo time on the route China 28 (1768) – Mongolia – Russia 24 (468) – Belarus – Germany (as Mongol Wind 24 (457) “Mongol Wind – Zhul”). Belintertrans is the train 0 (0) operator on the Bela- Mongol Wind ZhuI 5 (586) rusian side. Only five trains have run on this 10 (768) Mercury route so far. 24 (1457) It is planned to open 2006 a high-speed container 0 (0) Nakhodka - Bres t 2005 train service from Urum- 6 (652) chi in China via the Ka- zakh and Russian rail- Figure 7. Container block trains on the BC network in 2005 and 2006 (in TEU) way network to Brest. Source: Based on BC data.

14 Railway Market - CEE Review No. 2 2007 REPORTS

Berlin and Moscow via Iletsk to Chengeldy Station, • “Kazakh Wind” travels from Brest via Iletsk to Aktobe, • “Baltic-Transit” carries containerised cargoes from the Baltic Sea ports of Kaliningrad, Riga, Tallinn, Muuga, and Klaipeda across Russia to Kazakhstan. Since the first train was launched in May 2003, there were 106 block trains dispatched until December Figure 8. Increase of container shipments carried by the “Baltic-Transit” train (in TEU) 2006. The number of containers CIS Source: Based on LDZ data. transported on this train is increasing from year to year. In 2006, it was in- Ukraine tariffs this link became unattractive creased by 30% to 10,139 TEU. In 2000–2004, the volume of the to Ukrainian carriers. Together with China, from the point of view of the container transport by Ukrainian Rail- Polish Railways and the train operator Central Asian countries, is the most way (UZ) was growing on average by Mirtrans, attempts have been made promising direction of the container 50% every year, while during the last to start container transport between transport development. In the end of two years a growth rate has slowed the seaports of Odessa and Gdansk, September 2006, the first container down. To organize the container trans- within the Black–Baltic Sea Transport trains were launched on the Urumchi port on the UZ network the Ukrain- Corridor. – Dostyk – Aksaraysk – Novorossiysk ian State Centre for Transport Service route. KazTransServis organized the „Liski” has been founded. Kazakhstan transportation together with China Rail- One of the first container block Since 1999, KazTransServis, which way International Freight Agency. For trains launched in 1998 across the is the state railway operator of KZH several years, there have been projects UZ network was “Chardash” running and the owner of container pool and to launch a container train on the China between Budapest and Moscow. Con- specialised rolling stock, provides com- – Kazakhstan – Russia – Ukraine – Po- tainer transport from the seaport of prehensive range of container services land route with an extension to Western Odessa to Moscow has been effected on the Kazakh railway network. The Europe (known as “New Silk Road”). since 1999 by the “Odessa” container partners of KazTransServis are: Sovfra- Moreover, Azerbaĳan and Georgia train. In domestic transport, contain- kht from Russia, Intercontainer-Interf- together with KZT are interested in erised goods are carried from the sea- rigo from Switzerland, and China Rail- launching a regular container train on ports of Ilyichevsk and Odessa to large ways International Freight Agency. the Almaty – Aktau – Baku – Poti route. Ukrainian industrial centres such as In cooperation with other railway A pilot transport on this route took place Kiev, Dnepropetrovsk and Khmelnyt- administrations and forwarders, Kaz- already in late 2005. skyi by the block trains “Kreschatik”, TransServis organizes high-speed con- “Dneprovec”, and “Podolye”. tainer trains across Kazakhstan on fol- The increase of a number of new The potential for transit transport lowing routes: container block trains on the CIS net- between the Baltic and Black Sea re- • Nakhodka – Lokoč – Almaty – work is expected within the next years. gions fostered the launching of the Tashkent, However, only those projects will suc- intermodal trains “Viking”, linking Ili- • Lianyungang – Almaty / Almaty – Li- ceed, that are based on a stable flows ychevsk and Klaipeda, and “Yaroslav”, anyungang, of goods, and that bring economic between Kiev and Slawków in the • Almaty – Urumchi, benefits to all participants. Undertak- south of Poland. In 2003-2004, the • Almaty – Iletsk, ings forced by political decisions usu- latter transported 3,500 road trucks. • Tianjin – Almaty, ally finish after promotion runs. In 2005, it was planned to launch • “Ost Wind” is an extension of the one more train, but due to increased container train operated between Footnotes 1 J. Barrie, The Russian Institute and Odessa container terminal the Soviet Container Threat, 19 June 1973, http://web.mac.com/jeffreybar- rie/iWeb/Russia/Me/Me.html 2 M.D. Sitnik (ed.), Konteynernye perevozki, Moscow 1970, pp. 3, 47. 3 Container Business, No. 3, 2006, p. 20 and No. 4, 2006, p. 18. 4 Based on the TIS company data. 5 RZD-Partner. Container, No. 3, 2006, pp. 4-8, and Container Busi- ness, No. 2, 2006, pp. 90-96 (Journals are published in Russian language).

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