Features of transport, transport problems of the CIS countries
The strongest argument in favor of the demand for the transportation of goods by road in the CIS countries is, of course, the large size of the market. Still, the CIS is a vast economic space that provides great opportunities for the sale of goods, for the development of market relations and forwarding services. The territory of the Russian Federation alone is one and a half times larger than the whole of Europe – a strong argument for the justification of work in this area. However, cargo transportation in Russia and the CIS differ in a number of both positive and negative nuances regarding cargo transportation in Europe, which we will discuss below. One of the main goals of the CIS, from the moment of its formation, is the comprehensive development of the member states within the framework of the common economic space. Everyone knows about the concept of the Common Economic Space, which implies the principle of free movement of goods, the formation of a common customs tariff and other methods, following the example of the European Union, aimed at optimizing and developing the transport space of the CIS. This is where the obstacles begin – the theory turned out to be very far from practice.
Since the collapse of the USSR, between its member countries, in fact, market relations have begun to form anew, and their basis – international transport cargo transportation – needed legal and legislative registration. Here, the young states that formed the CIS made the main mistake, the negative results of which all regional transport workers are still experiencing. Instead of following the example of the EU to unify the legislation and regulatory framework for the implementation of cargo transportation, the CIS countries have established a huge number of administrative and technical barriers that greatly complicate the transportation of goods across the territory of the CIS.
The primary problems of cargo transportation in the CIS include:
• complex customs clearance procedures
• the need to issue special “permits” for the transit of goods
• too complicated border customs control of goods, creating a congestion of borders
• consular and visa procedures
• frequently encountered mandatory “local” civil liability insurance,
• the need for a mandatory deposit when crossing the border.
• Entry fees charged, per kilometer road tolls, transit fees and other “local” charges
• Differences in permissible technical characteristics of motor vehicles (gross weight, axle loads and dimensions)
• other bureaucratic obstacles, delays and obstacles, corruption and abuse of power
Why is the cost of transportation constantly increasing?
Add to this the frankly weak infrastructure in relation to the EU countries: the unsatisfactory condition of roads and the insufficient arrangement of border crossings and the negative side of cargo transportation in the CIS countries are obvious. If we talk about Russia, the losses of auto carriers only due to downtime at the borders annually exceed 100 million dollars. By the way, the often inflated price for the transportation of goods across the CIS, which is demanded by transport companies for their services, is formed precisely because of all sorts of overlaps and additional cross-border barriers that carriers have to deal with when crossing borders. Both cargo owners, who have to work at inflated rates, and the transport companies themselves suffer because of this, because they also need to cover their costs.
The development of transport infrastructure continues, slowly but surely.
However, it would be wrong to say that nothing is being done to improve the situation in the field of transport in the CIS. The CIS Executive Committee, international associations of carriers and transport organizations, such as the International Road Transport Union (IRU) and others, work every year to improve the legal framework in the field of transport, calling for the competent and rational use of transport and transit potential.
In particular, among the priority areas of cooperation between the CIS member states in the field of transport for the period up to 2020 are: the formation of a network of international transport corridors in the CIS space, increasing the efficiency of tariff policy, removing barriers to international transportation, streamlining road and other fees and transit taxes and much more.
We should not forget about the problems of an international economic nature: the unfavorable financial and economic situation in the world in 2009 caused a reduction in export-import operations in the CIS countries, which led to a decrease in freight traffic. Be that as it may, there are prospects and a need for creating a common transport space of the CIS and, perhaps, the Customs Union, which Russia, Belarus and Kazakhstan are going to create, will become the basis for future transformations.
The advantages of transportation of the CIS countries: the consumption of goods, the turnover of goods, a large supply of vehiclesand cargo.
The undoubted advantages of cargo transportation in the CIS include a huge consumer market and constantly developing economic cooperation between the CIS countries. Hence the attractiveness of the direction for carriers and transport companies. In addition, working with the CIS, despite all the flaws and barriers described above, is much cheaper than with the EU countries. And the same conditions of cargo transportation are much easier. There is no such high requirement for vehicles: in Europe these are cars of a standard not lower than Euro 4, in the CIS it is allowed to transport goods to Euro-2 and Euro-3. Unlike entry into the EU, in the CIS countries there is no such strict technical control.
Yes, Europeans can be understood – they care about their own safety first of all, but indirectly this is what becomes the determining factor for carriers from our region who choose a less expensive, but more profitable direction of cargo transportation.
Add to this moderate fuel costs, the cost of which is several times lower than in the EU, free roads, a simpler package of documents required for cargo transportation (transport documents and a TIR carnet – Carnet TIR) and even the absence of a language barrier.
Carriers from Europe are not comfortable on the roads of the CIS.
In general, comparing two directions – cargo transportation in Europe and transportation in the CIS is not entirely correct. For transport companies from the CIS countries that are not members of the EU, it naturally turns out to be quite expensive to organize cargo transportation to Europe, in comparison with the organization of transportation in the CIS – hence the preference for this direction. However, the Europeans themselves, the EU members, have quite comfortable conditions for cargo transportation in their economic space – this is what the competent authorities and authorities involved in the development of the transport sector in the CIS should strive for: creating comfortable conditions, abolishing duties, developing infrastructure, attracting investors, aimed at sector development. Everyone will benefit from this: both transport companies and cargo owners, not to mention the national economies of the CIS member countries.
Speaking of our freight forwarding company, as one of the representatives of the transport market, we note that we manage to work successfully in both directions – to carry out cargo transportation, both in Europe and to deliver goods in the CIS. It is not difficult to make sure of this – you just need to order the delivery of cargo in our company, and we will do our work efficiently and professionally, send an application on-line.
