Thursday, April 29, 2010

DB Schenker Extend Russian Rail Freight And Logistics Links

Company Develops New Facilities
Shipping News Feature

RUSSIA – GERMANY- POLAND - BELARUS - DB Schenker have extended their already formidable presence in the Russian logistics market in the past few weeks. Formerly the group ran two separate freight operations, Schenker Russia ZAO and Schenker Ltd., which have now been amalgamated to offer their entire range of shipping services from a single source. The combined operation will now provide one centre solutions for land transportation services by road and rail, for air and ocean freight services, and for both contract logistics and supply chain management.

With 20 company locations, most of which are to be found in the country's industrial west, some 60,000 square meters of logistics space, over 500 employees and a large number of demanding logistics projects, DB Schenker is one of the country's leading providers of logistics services, which also include a national general cargo network of its own with daily departures from Moscow. Around 250 company-owned trucks are currently in service. The network extends from St. Petersburg and Moscow to Krasnodar in the south and Novosibirsk in the east.

For a new logistics project, DB Schenker has significantly increased the storage and handling capacity at its Lvovsky site, south of Moscow. The approximately 25,000 square metres of warehousing capacity for contract logistics services and a cross-docking terminal with an area of 6,000 square metres, have now been extended with the addition of a new facility. In the logistics centre, which covers an area of around 5,400 square meters, a packaging facility for parquet boards has been installed. Parquet boards from the customer's production facilities arrive as neutral commercial packages and are repacked in accordance with the customer's instructions before being delivered to recipients via DB Schenker's land transportation network.

DB Schenker are also certified customs brokers and is now bringing its clearance structures in line with the requirements of the customs union agreement between Russia, Belarus and Kazakhstan.

Spokesman Karl Nutzinger, CEO Europe Schenker AG says:

“Integrating our operations will not only allow us to strengthen and expand our competitive position in this important growth market. The new structure will also enable us to provide our air and ocean freight customers with even more comprehensive service packages from a single source. Customers will benefit from the dense global network and the consistently high quality standard of door-to-door services. In addition, distribution inside the country is to be expanded, as are contract logistics and the global supply chain management system.

“We are experiencing rapid market growth in Russia in a strong economy, the expansion of trading and manufacturing companies in Russia that we are now seeing is driving logistics outsourcing, since these companies would like to reduce their logistics costs. The demand for services with a higher level of integration and quality is increasing. The diversity of our projects also shows that we are well positioned for this market”.

In a separate announcement the company tells us that by the end of April, DB Schenker Rail Polska S.A. will have trebled the freight volume of coal transported from Brest in Belarus to Warsaw on behalf of Vattenfall S.A. The freight, which is carried in cooperation with the Russian railways (RZD) and the Belarus state railway (BC), is taken from the Russian mining district of Kuzbass to Brest, where it is transshipped and handed over to DB Schenker Rail Polska S.A. for further transport. By the end of the month, approx. 12,000 tons of coal will have been carried by rail using a total of 9 trains.

The transport is organized on behalf of OAO SUEK, a major Russian enterprise which will export around two million tons of coal to Poland this year.

"The order for the transport was not placed until February. The rapid expansion of this business is an important step to enable us to participate in the constantly growing market of bulk goods transports between Russia und Poland. Our production concept offers the customers price benefits on the Polish section and also shortens wagon turnaround times for our partner companies RZD and BC, which in turn lowers costs and boosts efficiency," comments Hans-Georg Werner, CEO of DB Schenker Rail Polska S.A. and head of Region East at DB Schenker Rail.

DB Schenker Rail Polska S.A. is the largest private rail freight operator in Poland. The company currently has a workforce of approx. 6,000 and generated revenues of approx. EUR 300 million in 2009. DB Schenker Rail Polska S.A. consists of several regionally active companies which specialize particularly in the transport of coal, chemical products and construction materials. The company also operates port facilities and container terminals in Szczecin and Swinoujscie.

Photo: Courtesy DB Schenker