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Russia’s transit potential: new solutions for developing markets
2 June 2017

Electronic and cross-border commerce is proving to be a powerful new tool for the development of rail transit. In the first quarter alone, East—West shipments of packages by major online retailers rose by 40%. At the same time, building capacity for transporting container cargo does not require significant investment. This is not the case with freight aviation, a method which is quicker but also more capital-intensive. Along with the growth in electronic commerce, shipments by traditional industries are also on the rise, with auto components showing 20% growth and shipments of wood products expanding by a multiple of 31! Currently, rail infrastructure operators and their partners can service clients more quickly and cheaply than sea transport, with almost none of the queues clients experience with air transport. What is still lacking in the development of the Russian transit sector? What difficulties do clients face, and what conditions should be put in place to further increase freight traffic?

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