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Apr 17, 2019

RZD Logistics and FESCO to organize goods delivery service from Asia Pacific to Europe via Vladivostok

RZD Logistics and the FESCO Transport Group have agreed to organise a joint multimodal service for the delivery of container freight from the countries of the Asia-Pacific Region (APR) to Europe along the Trans-Siberian Railway via the Vladivostok Sea Trade Port, which is owned by FESCO.

Vyacheslav Valentik, the Managing Director of Russian Railways, and Alexander Isurin, the President of FESCO, signed an agreement to this effect at the TransRussia 2019 Exhibition.

Based on their existing experience and competence, the two parties plan to develop a system for transporting freight from the APR, primarily from Japan and the Republic of Korea, to European Union countries via the Vladivostok Sea Trade Port (VSTP) by taking advantage of FESCO’S line services and regular container trains operated by the two companies, as well as in the opposite direction. FESCO is also ready to provide its rolling stock, containers and its own terminals.

Transit multimodal services from the Asia-Pacific countries to Europe via the Far East will significantly reduce the freight transportation time compared to the traditional sea routes or transit through China.

A test run of the new service is planned for the end of April 2019. It is expected that the containers going to Central and Western Europe will carry car components, consumer goods and food.

"Japan and the Republic of Korea are among Europe’s largest trading partners in Europe, so we see opportunities to attract freight traffic which is currently using the Suez Canal to the faster routes we can offer along the Trans-Siberian Railway via the Far East. FESCO has experience in organising accelerated multimodal transport from these countries to Russia. We therefore expect that in partnership with RZD Logistics we will be able to launch a competitive transit service which will ultimately contribute to the development of transit traffic through the Russian Federation and enable us to achieve our strategic goal of two (2) million Twenty-Foot Equivalent Unit containers (TEUs) by 2024," said Alexander Isurin.

"A promising multimodal service from Japan and Korea through Vladivostok is able to offer shippers from these countries one of the most optimal routes to Europe, one that will significantly shorten transit times. RZD Logistics will be responsible for the railway component of the service. I am convinced that our joint product with FESCO will be high quality and enjoy strong future demand due to the expertise we have acquired in overland transit shipments," said RZD Logistics’ Managing Director Vyacheslav Valentik at the signing ceremony.

RZD Logistics was created on 19 November 2010 to develop the logistics side of the business at the Russian Railways Holding. The company provides a high-tech and reliable transportation, storage and freight forwarding service around the world and organises supply chains and integrated logistics services for industrial enterprises, as well as shipments of small goods.

In 2018, the company handled 63.2 million tons of cargo.

In Russia, RZD Logistics has 33 branches and separate subdivisions, five subsidiaries and joint ventures abroad.

About 1,000 people are involved in the company’s work.

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