DB Schenker / LLA
Aivars Taurins
Riga – Gateway to Baltics, Russia and CIS markets
Tokyo, 02.12.2009
Especially Latvia promises to be an excellent location to locate a regional distribution centre that both serves (part of) the Northern
European market as well as the Russian export market.
...we also expect that sea container transport from Germany to Latvia and Finland will increase strongly.
“EU Enlargement: European Distribution Centers on the move?” 2003
Ernst&Young survey
Transport hub of SCHENKER Latvia
LATVIA
NORTHAMERICA
KAZAKHSTAN
RUSSIA
AMERICA EUROPE
Uzbekistan
Turkmenistan
Tadzikistan
Kirgistan
ASIA
CHINA JAPAN
30 days
West Europe 3-4 days
10-20 days
10 days
20-30 days
East Europe 1-3 days
Central Europe 3-4 days
Scandinavia 1-2 days� Regular lines between Latvia
and Europe countries, CIS
� 24 hours distribution in Baltic countries
� Regional distribution warehouse
� Bonded/ regular warehouse
� Consolidation
� EU warehouse
SOUTH AMERICA
EU
� any service combinations
� regular LCL/ groupage lines for smaller cargo
� economy airfreight for urgent cargo
4-6 days
4-6 days
Ukraine
Byelorussia
2-6 days
4
Silk Way Express. Test Train
25.04.2008, 15.55
06.05.2008,
9.00
Urumqi WuXi terminal 11-th day.
Rīga-Krasta station
13-th day. Consignee’s warehouse in Hamburg
24H Baltic Distribution
� Daily Line Haul between
DB Schenker Terminals in Baltic
� 24 Hour Door Delivery within Baltics
Tallinn Jõhvi
Tartu
Riga
Liepaja
Klaipeda
Kaunas Vilnius
Parnu
Ventspils
Valmiera
Daugavpils
Aluksne
Siaulay Panevezys
Saaremaa
#1 Domestic Network in Baltics
� DB Schenker Riga Warehouse =
Central Baltic Warehouse
Container Volumes into Russia
No. Seaport/RegionContainer
traffic
1 St. Petersburg 1 710
2 Russian Far East Ports 691
3 Novorossiysk 342
4 Kotka 257
5 Other Russian 185
6 Kaliningrad 157
7 Riga 148
8 Tallinn 127
9 Hamina 62
10 Klaipeda 48
11 Helsinki 20
3 747
Seaports serving the Russian container market in 2007 (thou. TEU)
Riga
Latvian Railway’s infrastructure is a part of 1520 community
Multimodal solution for your shipments to Central Asia
Regular container train between Riga and Central Asia
(Kazakhstan, Uzbekistan, Kirgizstan, Turkmenistan)
Cargo volumes increase every year:
12
97
43
64
69
49
10
13
9
21
74
9
0
5000
10000
15000
20000
25000
2003 2004 2005 2006 2007
TEU
Y2009 more that 3000 TEU are delivered
to Termez/Hairiton (Afghanistan)
Functionality and advantages of container terminal in Riga
Loading/Unloading ofTrailers and Containers;
24 Hours (Sunday – Friday);
International and DomesticCargo Consolidation;
Shipment Sorting on Package Level (Boxes, Pallets);
Shipment Control byScanning (Bar Code System),Labeling, Palletizing
Loading of containers on/from railway platforms and trucks
Storage of containers
Klaipeda
Location of container depot and connections to main railway lines of wide gauge (1520 mm) network
Liepaja
Railway network
Moscow
Paldiski
Ventspils
Route to Kazakhstan & China
DB Schenker Logistics park
Existing railway connections
Trans - Siberian railwayCEAG
Liepaja
Klaipeda
Advantages of container transportation by rail
Armed guard
Tracking/tracing possibility
Preliminary declaration
No lines at the border
Optimization of transportation costs vs trucking
Track & Trace options
Live up-date and 3 levels of search
• Train
• Railcar
• Container
Preliminary declaration to Russian Customsat the border
Case study: Riga - Yekaterinburg
Distance: 2372 км
Тransit time: 10-12 days
Approximate tariff FOR (Euro) COC: 954 (20‘) 1472(40‘)
EU-CIS consolidation HUB solution
• collection of cargo in Riga
from all Europe &
overseas locations
• consolidation, checking,
packing
• delivery to client in Russia
other CIS countries
• Preparing draft of final
Russia customs
declaration before
shipping over the border
• EU import with VAT 0%
for goods from
Russia/CIS
! Optional
• Hub solution is working on
both directions
Consolidation options
Consolidation by Weight (1st version)
Customer receives more then one shipment per week, which needs to be sent to RU
All incoming shipments are consolidatedinto one truck
Number of customs declarations equalto the number of shipments
Consolidated by Shipment (2nd version)
Customer receives more then one shipment per week, which need to be sent to RUAll incoming shipments have one Consignee A, delivery place is DB Schenker LV warehouseConsignee A can be resident of LV, resident of EU and other company, which is the VAT payer in Latvia
Company A sends out goods to RU with one new consolidated invoice, receiver in RU – one companyEnd result is the client receives one shipment, one invoice for transportation, and one import customs
clearance in RUEU goods and non EU goods can be combined into the same shipment
Schenker LV
3 cbm from NY
2 pll from IT
1 box from NL
10 cbm from CN
Consolidation
Consignee A
2 incoming declaration
4 shipments
1 Outgoing declaration
1 shipment
9 epll
Transit to Russia by truck
EU Border
Riga
Moscow
Belarus
Before entering Russia
�On-line monitoring of lines at the border-
crossing pointshttp://www.vid.gov.lv/default.aspx?tabid=9&id=2422&hl=1
�Pre-declaration for all shipments before
entering Russia
�Pre-declared data are transferred
directly to Russia customs system that
guaranties less control during border
crossing and faster processing time at the
final customs point.
Departure from
DB Schenker Riga Terminal
Arrival in DB
Schenker
Transit
Terminal in
Moscow
2nd Delivery to the
First Client Terminal
in Moscow(DB SCHENKERdirect)
3rd Delivery to the
Second Client Terminal
in Moscow(DB SCHENKERdirect)
Thursday
19:00Tuesday Wednesday Thursday
Landtransport schedule for groupage line from Riga to Moscow
Riga Airfreight gateway to Central Asia and Caucasus (1)
Advantages:
� Air Baltic direct flightsAir Baltic direct flights
�� Different solutions in cooperation Different solutions in cooperation with carriers operating in RIX with carriers operating in RIX –– TK, TK, BT, OK, SU, and otherBT, OK, SU, and other
�� Competitive ratesCompetitive rates
�� KnowKnow--HowHow
� Spot Pricing on RequestSpot Pricing on Request
�� Security and Fuel surcharges Security and Fuel surcharges based on Gross Weightbased on Gross Weight
Riga Airfreight gateway to Central Asia and Caucasus (2)
�� BT Direct DestinationsBT Direct Destinations
�� Local TimesLocal Times
�� Other Options:Other Options:
��RFS from TBS to EVN for RFS from TBS to EVN for shipments above 1 tonshipments above 1 ton
��airfreight transit via KBP to ALA, airfreight transit via KBP to ALA, TBSTBS and GYDand GYD
AlFlNo Start End
Pattern
Orig STD STA
Dest
A/C
ALMATY
BT 746 31.Mai.2009 22.Okt.2009 ...4..7 RIX 23:00 7:10 +1 ALA 757
BAKU
BT 732 01.Apr.2009 24.Mai.2009 ..3...7 RIX 20:30 2:30 +1 GYD 737
BT 732 27.Mai.2009 24.Okt.2009 ..3..67 RIX 20:30 2:30 +1 GYD 737
TASHKENT
BT 742 02.Apr.2009 22.Okt.2009 1..4... RIX 18:35 1:35 +1 TAS 737
TBILISI
BT 722 02.Apr.2009 23.Apr.2009 .2.4... RIX 20:25 0:55 +1 TBS 737
BT 722 05.Apr.2009 18.Okt.2009 ......7 RIX 22:40 3:10 +1 TBS 737
BT 722 28.Apr.2009 23.Okt.2009 .2345.. RIX 20:25 0:55 +1 TBS 737
YEREVAN
BT 726 01.Apr.2009 02.Mai.2009 ..3..6. RIX 0:30 6:00 EVN 737
BT 726 04.Mai.2009 24.Okt.2009 1.3..6. RIX 0:30 6:00 EVN 737