Wednesday, June 1, 2011

DB Schenker and Russian Railways Discuss Logistic Cooperation

Plan to Target Russian Automotive Industry Needs
Shipping News Feature

RUSSIA – At a conference taking place in Sochi today representatives of DB Schenker Rail and TransContainer, a subsidiary of Russian Railways (RZD), have reaffirmed their intention to examine the feasibility of setting up a joint venture to provide logistics services in Russia.

In the run-up to this year's International Rail Business conference the two companies discussed the need to meet the growing demands of suppliers and carmakers in the Kaluga region of Russia for specialist logistics and supply chain services.

Dr. Karl-Friedrich Rausch, Member of the Management Board of DB Mobility Logistics AG responsible for the Transportation and Logistics Division, said:

"At DB Schenker, we have the international experience and expertise to develop and operate such a network on behalf of our customers. We have enjoyed a successful working relationship with the RZD subsidiary TransContainer in the transportation business to Kaluga for four years now. If we now focus on new market potential and expand the business, we can rely on the capabilities and substantial market knowledge provided by our Russian partners".

Russia is one of the major growth markets in the automotive sector. Since 2007, increasing numbers of car manufacturers and suppliers have set up facilities in the Kaluga region, which is located some 160 km south of Moscow, with companies such as VW, PSA Peugeot Citroen, Mitsubishi and Volvo having erected their own plants in the greater Kaluga area.

DB Schenker Rail has already clients in this field, having handled automotive shipments to Kaluga for VW/Skoda since 2007.

If the joint venture examination is positive, DB Schenker state that the joint venture company could become operational before the year is out, with increased use of multi modal transport being utilised to make the Russian plants even more efficient.