DIPLOM Gritsuta (1196053), страница 14
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The most important geopolitical and geo-economical aim for Russia is a development of the transit potential and strengthening of the positions on the international markets. Inner coherence of the country’s transport system and integration of the Far Eastern transport system into the general country’s transport system will lead to the widening of the mutually profitable economic cooperation of Russia and Pacific-Rim countries.
The second chapter of the graduation paper dwells on the existing problems of the development of the Far Eastern international transport corridors based on the example of the business entity’s activity. It helps picturing the current conditions of the Far Eastern transport complex, its role in transit shipments through the international transport corridors and how it impacts the quality of rendered transport services and international cooperation of the Far East and Pacific-Rim countries. The analyzed business entity is a transport-and-logistics company which is a part of the forming region’s transport-and-logistics system.
Transport Company “Transit Ltd” was selected for analysis as a business enterprise. “Transit Ltd” conducts business in the sphere of transport services rendering and cargo transportation services. Transport Company “Transit” successfully conducts business on the international and national market of cargo transportation. Nowadays company render to its clients full complex of transport-and-logistics services including highway, railway, marine and air cargo transportation, multimodal and intermodal transportations, also company render services for intra-port forwarding, customs registration, delivery of the consolidated cargoes and its insurance. “Transit Ltd” is a 3PL-provider; it means that the company renders to its clients complex services in the sphere of logistics: transportation, forwarding, warehousing, cargo-handling operations, insurance, customs registration and so on.
“Transit Ltd” has three branches in Russia: Moscow, St. Petersburg, Nakhodka (Vostochny seaport), also it has branches in China (Shanghai) and in Republic of Korea (Pusan), but the head office “Transit Ltd” is situated in Vladivostok.
Transport companies that play an important role in cooperation of the Far Eastern Federal District and Pacific-Rim countries have to conduct business under conditions of the imperfect transport complex. In such conditions in spite of all difficulties, companies try to form the most rational ways of cargo transportation and create competitive routes, which will allow company to reach their economic top, in addition offering cargo owners the most profitable for them terms of cargo transportation.
In order to analyze the efficiency of the main cargo transportation from the Pacific-Rim countries routes offered by “Transit Ltd”, it is necessary to collect information about routes and put the received data into a Table 1. Also during the analysis “bottlenecks” spots of all chosen routes will be found out.
Table 1 – Characteristics of the five cargo transportation routes from Pacific-Rim countries offered by “Transit Ltd”
| Number of route | Route (point of departure –point of destination) | Mileage, km. | Used means of transport | Time of delivery, days | Cost of the transportation for a freight unit | Related regulatory documents |
| Route №1 | Shanghai (China) – Moscow 20’ | 10,990 | Marine+ Railway+ Highway | 30 | 700 USD+70,000 RUB+12,500 RUB = 700USD + 82,500 RUB | Consignment, Bill of Entry (BE), Transport agreement |
| Route №2 | Shenzhen (China) – Moscow 40’ | 12,309 | Marine+ Railway+ Highway | 35 | 1,250 USD +112,000 RUB +14,500 RUB = 1,250 USD + 126,500 RUB | |
| Route №3 | Tianjin (China) – Novosibirsk 40’ | 8,158 | Marine+ Railway+ Highway | 28 | 900 USD +108,000 RUB +14,500 RUB = 900 USD + 122,500 RUB | |
| Route №4 | Guangzhou (China) – Khabarovsk 20’ | 3,977 | Marine+ Highway | 35 | 1,200 USD +70,000 RUB | |
| Route №5 | Xiamen (China) – Moscow 40’ | 11,775 | Marine+ Railway+ Highway | 32 | 950 USD +112,000 RUB +14,500 RUB = 950 USD + 126,500 RUB |
Table 1 gives 5 main routes that “Transit Ltd” offers to its clients for the cargo transportation from China. Generally cargoes are transported in 20-foot and 40-foot containers, shipments are made from five different China seaports; Commercial Port of Vladivostok is always a point of destination. Highway and railway transport is used further on the route: upon arrival to the Vladivostok seaport cargo transshipment from a marine vessel to a truck is carried, then truck moves to the parcel railway station Vladivostok where takes place loading of the container on the railway truck float body which in a wagonage of a pick-up cargo train moves to the destination station. On the destination station “Transit Ltd” also render services involving unloading of containers or delivery of cargo by the highway transport to the cargo receiver notified address.
In studies were arranged alternative routes of cargo transportation from China to Russia on the basis of international transport corridors bypassing Russia and also on the basis of railway and highway border crossing points between Russia and China.
Having analyzed the network of international transport corridors submitted in first chapter of work was chosen an ITC “The New Silk Way” for arrangement of alternative routes. Biggest part of this ITC passes through the territory of China, then crosses Kazakhstan and meets the “Transsib”. The Far Eastern ITCs “Primorie-1” and “Primorie-2”, border crossings Hailar (China) – Zabaykalsk (Russia) and Sukhabaatar (Mongolia) – Kyakhta (Russia) also drew attention. The biggest part of the alternative routes will cross the territory of China so its arrangement will be based on the functioning of the railway network of this country. China takes the second place in the world for the mileage of railway lines giving a way to the USA and outrunning Russia. Also there is an important fact that the average speed which features train’s speed of service taking into account standing time on the route (except the time on the departure and destination stations) in Russia is practically about 15 km/h against 50-60 km/h in China. Using the Chinese railway network it is planned to contract the time of the cargo delivery to the territory of Russia in comparison with the marine delivery.
Eventually were arranged seven alternative routes which transport characteristics are given in the Table 2.
Table 2 – Main characteristics of the transport infrastructure of the alternative routes
| Alternative route | Used ITC | Crossed countries | Mileage, km | Railway speed, km/h | Approximate delivery time, days | Railway gauge, mm | Number of crossed borders |
| to Moscow | China, Kazakhstan, the Russian Federation | 8,724 | the Russian Federation: 15 km/h, China: 60 km/h, Kazakhstan: 40 km/h, Mongolia: 30 km/h. | 20 | the Russian Federation: 1520 mm, China: 1435 mm, Kazakhstan: 1520 mm, Mongolia: 1520 mm. | 2 | |
| №1 | “The New Silk Way” + “Transsib” | ||||||
| №2 | 9,770 | 19 | |||||
| to Novosibirsk | China, Mongolia, the Russian Federation | 4,329 | 16 | 2 | |||
| №3 | Trans-Mongolian Railway + “Transsib” | ||||||
| №4 | “Transsib” | China, the Russian Federation | 5,496 | 18 | 1 | ||
| №5 | “The New Silk Way” + “Transsib” | China, Kazakhstan, the Russian Federation | 5,625 | 16 | 2 | ||
| to Khabarovsk | China, the Russian Federation | 4,591 | 9 | 1 | |||
| №6 | Chinese Eastern Railway (CER) + «Primorie-1» | ||||||
| №7 | CER + «Primorie-2» | China, the Russian Federation | 4,493 | 8 | |||
Also in the work was given a list of advantages and disadvantages of the alternative routes and routes offered by the “Transit Ltd” (Table 3). Given advantages and disadvantages allow the company to make well-founded choice in a decision-making process about a use of alternative routes.
Table 3 – Advantages and disadvantages of all the routes analyzed in the work
| Advantages | Disadvantages | |
| Routes of “Transit Ltd” | ||
| 1. Routes have been used for a long time, so all the possible problems are eliminated; 2. Time of arrival for one mean of transport is fitted to the time of arrival for another mean of transport; 3. Relatively low cost of the transportation in comparison with business rivals; | 1. Usage of several means of transport means the loss of time on the transshipment because of the shortage of technical means for handling operations; 2. Usage of the shipment by sea increases the time of delivery; 3. Long terms of the delivery; | |
| End of the table 3 | ||
| Advantages | Disadvantages | |
| Routes of “Transit Ltd” | ||
| 4. Wide variety of departure points in China; 5. Routes are arranged on the basis of factors which influence the demand; 6. High indexes of the cargo safety; 7. High level of the transportations made at a stated time. | 4. Possibility of ITC use is not taken into consideration; 5. Attempts to avoid “bottlenecks” are not taken; 6. The necessity to use complicated technical means for handling operations; 7. Low average speed on the “Transsib”; 8. Weather states play an important role in the sea shipment and can influence on the terms of delivery and on realization of the handling operations. | |
| Alternative routes | ||
| 1. Reduction of the delivery terms; 2. Reduction of the routes’ mileage; 3. Usage of modernize Chinese transport infrastructure; 4. Integration of the company’s business into the network of international transport corridors; 5. Relatively low losses of time and money on the railway transport ; 6. Lowering of shipment cost by 20% ; 7. Opportunity to transport different kinds of cargoes by the railway transport; 8. Usage of less means of transport what makes the realization of the handling operations easier; 9. Fast track proceedings of the state border between Kazakhstan and the Russian Federation due to the creation of the Customs Union. | 1. Difference of the railway gauge between China and Russia/Mongolia/Kazakhstan; 2. The number of the necessary documents is bigger because there are more crossed state borders; 3. Usage of the Mongolian railway infrastructure; 4. Lower indexes of the cargo safety in comparison with “Transit Ltd”; 5. Customs pay hike because of the increase in number of crossed state borders. | |
Table 3 shows that the transport routes offered by “Transit Ltd” have more disadvantages and fewer advantages in comparison with alternative routes. Also it is true that putting into operation the alternative routes may bring both new advantages proving the correctness of the decision to use them and disadvantages challenging their use. Usage of offered alternative routes can be started with a use of the route Tianjin (China) – Novosibirsk. Such choice is made due to the fact that the check of the Chinese railroad infrastructure efficiency is necessary to start from the little section, because 60% of this route passes through the territory of the Russian Federation. It is better to start from the less to ensure in the quality of the rendered transport services of China, compare delivery time-to-plan with areal time of delivery to the state borders of Russia and get acquainted with an order of work of the China Railway representatives. If the functioning of the railway facilities satisfies the company by any definition it can start using more long-distanced routes, for example, routes with a destination point Khabarovsk.
Conducted analyses shows that the integration of the transport company into the system of international transport corridors make a positive impact on its activity: alternative routes arranged on the basis of ITC’ network significantly fasten the process of cargo transportation from the departure point to the destination point, also the cost of the transportation cheapens. One of the top-priority problems of the “Transit Ltd” functioning should be permanent improvement of the rendered services by an optimization of the transport routes and by strengthening of the competitive positions at the international transport services market. One of the main ways of solving this problem is a usage of international transport corridors. Also should be carried out a widening of cooperation with foreign partners in the sphere of rendering transport-and-logistics services and a realization of the common projects on integration of the Far Eastern Federal District transport network into the international transport system. Also international cooperation of companies influences favorably on the relationships of countries in general – it strengthen international interoperability.
As a result, all the assigned tasks for the graduation paper have been accomplished and the main objective of the work has been achieved. Modern conditions of the international transport corridor system running throughout the territory of the Far Eastern Federal District of the Russian Federation keep the region out of full integration into the international system of transport corridors. For that reason nowadays it is more profitable to conduct transport-and-logistics business through the outline of the ITC system as a main way of the transport company efficiency improvement.
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