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Transport and logistics centre

Transport and logistics centre

Транспортно – логистический центр
Ulyanovsk Region is conveniently situated in the centre of the European part of Russia, where east west and north south air, rail, car and river routes cross. It has an industrial, transport and business infrastructure and a developed network of roads and railways which provide a good basis for turning Ulyanovsk into a major transport and logistics hub in the Volga federal district working not only for Ulyanovsk Region's plants but the whole Volga federal district.
Транспортно – логистический центр

The centre of federal and international transport routes

  • Air, rail and car routes go through the region to all parts of Russia
  • International air routes joining the Volga region with Europe, Central Asia, the Middle East and China
Federal projects, which are being implemented in the region (development in Ulyanovsk of a special economic port zone (SEPZ) based at Ulyanovsk-Vostochny Airport, construction of a Federal centre of medical radiology in Dimitrovgrad of Ulyanovsk Region, creation of a state-of-the-art aero composite materials plant in Ulyanovsk), can not function efficiently without a well developed, quality transport infrastructure which can join production facilities in Ulyanovsk Region with potential clients in nearby regions. In addition, Ulyanovsk transport hub provides all forms of transport, apart from sea, which can serve Russian and international cargo traffic to Kazakhstan, Central and South East Asia, Europe, China and back.

For several years the RZD JSC Centre for developing terminals has been working on developing a network of rail terminals (dry ports) across Russia. The terminal is a 60 ha freight yard with a customs zone, a terminal and logistics centre and infrastructure for container traffic. The terminal is attached to an existing railway station. Minimum area 1 200x500 metres. The terminal will mainly perform loading and unloading operations of containers arriving by train. The planned capacity of the TLC is at least 300-400 thousand containers per year.
To work efficiently the terminal can be equipped with software for controlling operations related to container storage and processing, as well as for tracking their movement in real time.

To implement this idea it is necessary to create a network of such terminals. Work is currently being performed in Ulyanovsk Region on developing the technical and economic assessment for creating such a terminal. The concept is being worked on by the German company DB International, which is a consultant to international clients and develops innovative and economic solutions in the field of mobility and logistics. The company has already completed the first stage, conducted market research, forecast freight market development and given recommendations for locating the complex.

The transport and logistics centre should be seen by the project participants and potential clients as a multi-purpose facility. This feature gives it a strategic advantage over potential competitors as it will be able to attract a wider circle of clients.
Транспортно – логистический центр
The following industrial facilities could be located in the TLC:
  • Intermodal (container) terminal or "dry port";
  • Warehouse facilities;
  • Customs post and temporary storage facilities;
  • Car terminal (for outdoor car storage);
  • Production facilities;
  • Wholesale distribution centres;
  • Service centres, depots and work shops;
  • Facilities for haulage companies vehicle fleet.

It should be noted that Ulyanovsk Region has the smallest haul distance between elements of the transport and logistics cluster in the Volga federal district.

Транспортно – логистический центр
Most importantly, the region has a very advantageous economic geographic and transport geographic situation. Ulyanovsk Region is in the centre of the industrially developed and populous Volga federal district, in the centre of the European part of the Russian Federation, at the crossroads of international transport corridors No. 2, 3 Trans Siberian and No. 9 North-South. Within a radius of 500 km live more than 20 million people, and within 1,000 km more than 43 million people. Around Ulyanovsk Region there are 6 of 11 cities with more than one million inhabitants and 6 cities with between 450 thousand and 1 million inhabitants.

The main trends in the terminal and logistics services market create the necessary conditions for developing a TLC::

  • Freight volume in the region is gradually returning to its pre crisis level. The latest data shows positive growth (freight traffic grew 16.1% in January-September 2010 compared to January-September 2009), which suggests that freight traffic will return to pre crisis levels over the next few years, and in the future it will experience stable growth.
  • In the years up to 2009 there was significant growth in the volume of rail container traffic, more than 10% per year. From 2011 the economy is forecast to recover, which will lead to a sharp growth in container traffic.
  • The current proposal for processing container freight could be about 13,700 TEU (more than 125 thousand tonnes) (capacity of the freight yards of Ulyanovsk rail hub). The current demand for processing container freight could be about 7,400 TEU (or 73,500 tonnes).
  • There is currently a deficit of about 30 thousand sq. metres quality warehouse facilities for internal demand. Warehouse capacity of 250 thousand sq.m is planned to be brought into operation in the near future which will fully serve current freight traffic.
  • There are no TLCs in Ulyanovsk Region which can serve container freight traffic and provide quality services for processing it.

Developing river and air port capacity will also provide the necessary conditions for developing the transport and logistics cluster:

  • It is forecast that when formation of the SEPZ is complete, 60% of freight shipped from South East Asia to Russia should go through Ulyanovsk. 30% of the volume of freight from SEA shall be forwarded within Russia and 70% to Europe.
  • Development of river port capacity (planned terminal container capacity 4,000 TEU) will allow Ulyanovsk to process part of the sea freight traffic and serve river-sea type vessels.
It is planned that the main volume of road freight in Ulyanovsk Region will use the M-5 Ural, Ulyanovsk-Kazan, Ulyanovsk-Dimitrovgrad-Samara highways, and in the long term the Volga Transit transport corridor.
Therefore, one can say that part of the following transport flows will be served:
  • From Moscow Region, Vladimir Region, Ryazan Region and other Central Russian regions;
  • Penza Region, the Republic of Mordovia, Nizhny Novgorod Region, the Republic of Tatarstan, Samara Region, Saratov and Volgograd Regions and other regions of the Volga FD;
  • The Republic of Bashkortostan, Chelyabinsk Region and, to a lesser extent, other regions of the Ural FD.
It is suggested that in the near future the TLC may process per year:
  • 248,012.9 tonnes of container cargo;
  • 143,170.3 tonnes unitised and palletised cargo;
  • 12,655 cars (or 18,983.65 tonnes);
  • 540 lorries (or 8,096.955 tonnes);
  • 248,927.934 tonnes of oversize cargo.