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Lognet) PROJECT CALLED “DEVELOPMENT of LOGISTICS for SUPPLIER NET MODELS” (LOGNET)

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Lognet) PROJECT CALLED “DEVELOPMENT of LOGISTICS for SUPPLIER NET MODELS” (LOGNET) LAPPEENRANTA UNIVERSITY OF TECHNOLOGY Department of Industrial Engineering and Management Kouvola Research Unit Research Report 215 Olli-Pekka Hilmola and Eugene Korovyakovsky (Editors) Final Report of Cross-Border Project Called “Development of Logistics for Supplier Net Models” FINAL REPORT OF CROSS-BORDER(Lognet) PROJECT CALLED “DEVELOPMENT OF LOGISTICS FOR SUPPLIER NET MODELS” (LOGNET) Olli-PekkaPublished Hilmola with theand FinancialEugene Korovyakovsky Support of European (Editors) Union Tacis Neighbourhood Programme Published with the Financial Support of European Union Tacis Neighbourhood Programme EUROPEAN UNION ISBN 978-952-214868-1 (paperback) LAPPEENRANNANISSN 1459-3173 LAPPEENRANTA TEKNILLINEN YLIOPISTO UNIVERSITY OF TECHNOLOGY Lappeenrannan teknillinen yliopisto TEKNISTALOUDELLINEN TIEDEKUNTA TUTKIMUSRAPORTTI 215 Digipaino 2009 TUOTANTOTALOUDEN OSASTO RESEARCH REPORT ISBN: 978-952-214868-1 (paperback) ISSN: 1459-3173 FACULTY OF TECHNOLOGY MANAGEMENT DEPARTMENT OF INDUSTRIAL MANAGEMENT LAPPEENRANTA UNIVERSITY OF TECHNOLOGY Department of Industrial Engineering and Management Kouvola Research Unit Research Report 215 Final Report of Cross-Border Project Called “Development of Logistics for Supplier Net Models” (Lognet) In the Honour of St. Petersburg Transport University’s 200 Year and Lappeenranta University of Technology’s 40 Year Celebration Olli-Pekka Hilmola and Eugene Korovyakovsky (Editors) Published with the Financial Support of European Union Tacis Neighbourhood Programme EUROPEAN UNION ISBN 978-952-214868-1 (paperback) ISSN 1459-3173 Foreword As Lognet project started roughly two years ago, we were living in entirely different world – economies were going through endless economic growth, and transportation sector was literally prospering. This could be observed through e.g. container handling numbers of the most important regional sea ports, during year 2008 St. Petersburg handled volume of 2 mill. TEU, Kotka 0.63, Helsinki 0.42 and Hamina 0.18. However, during year 2009 everything changed – handling volumes declined in St. Petersburg, Kotka and Hamina by the factor of 50-60 %, and in Helsinki 20 %. This decline is supported by other measures too: Transit car transport through Finland to Russia declined during the first six months of year 2009 by 80 %, border crossings by car in same period by 50 %, and railway traffic by 35 %. Interesting fact is that the number of Finnish metal industry companies during year 2008 interviews indicated that they do not want to optimize their transportation costs in the east direction – risk of owning transportation fleet is too high. Low cost of short-term hinders serious risk in case of demand collabse. Where we proceed from here? Similarly with Sweden, Russia has been able to increase its export activity considerably during year 2009. For example, tonnage handling volumes at St. Petersburg harbour have increased from year 2008 (during the first 9 months), and especially export groups of steel (+36 %), iron (+70 %) and coal (+39 %) have shown impressive double-digit growth. During the project execution time we were able to identify that several warehouses have also started to offer services for further processed manufactured items being exported from Russia to Europe. So, collaboration will continue in cross-border region, but possibly as future direction we have export transit besides import transit. However, based on the project results, we have been surprised from the state of warehouses in St. Petersburg region – new complexes are similar to Finnish counterparts and IT systems (with bar codes, WLAN and ERP) as well as modern management techniques such as cross-docking are in the use already. Thus, warehouses in the region will have enough cargo handling to do in the future, if new custom regulations in Russia will materialize. Another possible change is the wider use of railway transportation in transit import of Russia; during the project warehouse visits we identified that in Finnish side railway traffic is often just an option, but among Russian logistics operators it is already in some sort of use. As indicated in the title page, this publication is in the honour of PSTU’s and LUT’s celebration of their long journey as universities – as LUT has already turned 40, we are looking forward for PSTU to turn 200 years in Dec.2009. During early November 2009 we strengthened our university collaboration by executing distance learning course for logistics service providers in St. Petersburg: Altogether 12 students received certificate, and course feedback was clearly better than the average. We hold gratitude for all project staff for accomplishing this course, and also give sincere thanks for M.Sc. Milla Laisi and Dr. Juha Saranen for editing work concerning this final publication of our joint-project. Thank you! In Kouvola, Finland & St. Petersburg, Russia during November 2009, Olli-Pekka Hilmola Eugene Korovyakovsky Prof. (act.), Docent, PhD Head of Department, Dr. 2 3 Table of Contents Olli-Pekka Hilmola North European Companies and Major Eurasian Countries: How Logistics Flows Develop Over Medium-Term? 5 Pia Jämsä Logistics Relationship: A Literature Review 23 Mikhail Pimonenko Russian Customs Initiatives and Supply Chains for Saint-Petersburg 37 Yulya Panova Developing Collaboration with the European Union via Combined Railway Systems between Finland and the Russian Federation 43 Georgy Aliev Implementation of Quality Management System in JSC RZD: QMS Actually Applied by Railways of the Russian Federation 51 Vladimir V. Kostenko and Artyom V. Sugorovskiy Comparative Characteristic of Systems of High-Speed Passenger Land Transport 65 Ulughbek Toychibayev, Eugene Korovyakovskiy and Valery Bolotin Improvement of Document Circulation and Information Technology in the Field of Transportation of Large-Sized Cargoes 75 Natalia Ivanova and Olga Korobulina The Electronic Market of Innovations and Knowledge on a Railway Transport 83 Andrej Simushkov, Eugene Korovyakovsky and Milla Laisi Technical Aspects of E-learning Systems for the International Programs in the Field of Logistics 93 Andrej Simushkov Issues of Project “Common Information Area of Transport and Logistics Complex” 107 Victoria Ivanova and Oleg B. Malikov The Effect of Rear Terminal Container Processing Capacity on Seaport Throughput Capacity 117 4 Oleg B. Malikov Methods of Warehouse Stock Determination 129 Aurelija Burinskiene Warehouse Order Picking Process and Costs 147 Lauri Lättilä and Juha Saranen Evaluating Automated Storage and Retrieval Systems Using Spreadsheet Simulation 165 Milla Laisi, Olli-Pekka Hilmola and Eugene Korovyakovsky Comparison of Terminals in Finland and Russia 179 Oleg B. Malikov Types of Merchandise Storage at Warehouses 191 5 North European Companies and Major Eurasian Countries: How Logistics Flows Develop Over Medium-Term? Olli-Pekka Hilmola Lappeenranta University of Technology, Kouvola research unit, Finland Компании Северной Европы и основные Евро-Азиатские страны: как будут развиваться логистические потоки в среднесрочной перспективе? Олли-Пекка Хилмола Abstract During the previous decades container transportation volumes became first unbalanced between Asia and USA, but in recent years similar development has occurred with Asia and Europe. In this research work we analyze transportation volume development in major Finnish and Swedish companies using two times completed empirical survey (years 2006 and 2009). Findings indicate that companies are identifying medium-term volume growth of container transports in Russian and Chinese markets, and partially with India. However, most of concern is the traffic unbalance, particularly developing in unwanted direction with India and China. Interestingly, Russian market, with some exceptions, is still going to be served from European factories in the medium-term too. However, in limited amount of companies it seems that Russian factories start to serve also larger European demand. Keywords: Container transportation, Eurasia, traffic balance, Finland, Sweden Аннотация В течение последнего десятилетия объемы контейнерных перевозок постепенно стали несбалансированны между странами Азиатско-Тихоокеанского региона и США, но в последние несколько лет аналогичные тенденции происходят и между Европой и Азией. В этой работе мы анализировали изменение объемов перевозок в основных Шведских и Финляндских компаниях, используя дважды проведенный опрос (в 2006 и 2009 году). Результаты показывают, что компании обозначают рост объемов контейнерных перевозок на Российском и Китайском рынках, и частично в Индии. Однако, большим препятствием является несбалансированность направления грузопотоков, в так называемых «нежелательных» направлениях с Индией и Китаем. Интересно, что Российский рынок, с некоторыми исключениями, до сих пор ориентируется на импорт из Европы в среднесрочной перспективе. Однако, ограниченное количество Российских компаний начинают также работать на экспорт на расширяющийся Европейский спрос. Ключевые слова: Контейнерные перевозки, Евразия, баланс грузопотоков, Финляндия, Швеция 1. Introduction Most often traffic flows between regions, their respective currency valuations, and in the end economic prosperity is not equally distributed (Ohmae, 1985). This leads to the situation, where transportation traffic is seldom in balance between major economies, and currency crises affect to the transportation flows enormously. For example, United Nations (1999a) 6 estimated that South-Korean port of Busan experienced from empty container handling
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