Article citation information:
Nekhoroshkov,
V., Vakulenko, S., Kurenkov, P., Nekhoroshkov, E., Deruzhinskiy, G., Ignatenko,
A., Aroshidze, A., Astafiev, A., Seryapova, I., Solskaya, I. Optimization of
the international multimodal container transportation. Scientific Journal of Silesian University of
Technology. Series Transport. 2022, 114,
103-114. ISSN: 0209-3324. DOI: https://doi.org/10.20858/sjsutst.2022.114.9.
Vladimir NEKHOROSHKOV[1],
Sergey VAKULENKO[2],
Peter KURENKOV[3], Evgeniy NEKHOROSHKOV[4], Grigoriy DERUZHINSKIY[5],
Alexander IGNATENKO[6],
Alyona AROSHIDZE[7],
Alexey ASTAFIEV[8],
Irina SERYAPOVA[9],
Irina SOLSKAYA[10]
OPTIMIZATION OF THE INTERNATIONAL MULTIMODAL CONTAINER TRANSPORTATION
Summary. The
development of international cargo transportation has been relevant since the
emergence of the international division of labor. Billions of tons of goods of
various names, values and volumes are transported across the borders of the
Russian Federation every year. This paper examines the Eurasian Economic Union
international transportation system, its transport system integration, and the
formation of a common transport space. The authors analyzed the international
transport market state and conditions and the level of containerization.
The transport system is considered the country's economy "circulatory
system", which makes it a key link in the implementation of economic
reforms in the country. The transport industry has social significance,
which also determines the specifics of the phased market transformations. The
development of international multimodal container transportation is becoming a
new trend in the development of the transport service market.
Keywords: development,
cargo, international transportation, Eurasian Economic Union, social
significance, market transformations, international multimodal container
transportation, transport services market
1. INTRODUCTION
At each stage
of international transportation, the cargo owners have to solve several
standard tasks: the choice of the route of transportation, the transportation
method selection, the vehicle type selection, the choice of the carrier, or the
forwarder. All the above also includes signing off an international
transportation agreement, and its content with a full list of the rights and
obligations for the transport company covering a broad range of operations
– transporting, forwarding, carrying out loading and unloading
operations, as well as performing customs formalities and conducting customs
control while importing goods into the buyer's territory. Every action on the
cargo vehicle route has to be coordinated properly to ensure that the goods
arrive intact to the recipient, exactly on time and with minimal costs.
The
complications within the international cargo transportation industry are caused
by the development of transport logistics, its principles, and models, as well
as the complexity of foreign economic relations [8, 9]. The international level
of commercial relations requires special attention to documenting, its
unification, translation from foreign into the national language and the
implementation of other national and international formalities. Together with
these requirements, the range of transport services offered, their complexity
and diversity, similarly grows.
Hence, the
current trend is to use several types of transport in cargo transportation that
can be organized both sequentially and by one company under one contract of
transportation.
2. PROBLEM
There is a special part within the
international transportation system that is occupied by multimodal
international container transportation. Transport scientists note that Russia
has become an active participant in the competitive global container shipping
market since
the mid-90s of the twentieth century with an increase in foreign trade turnover
and a change in the structure of transportation in favor of their
multimodality. An extensive network of railways, highways, and an inland waterway
transport system provided all the possibilities for the above goal. Presently,
cargo flows from the countries of the Far East and the entire Asia, as well as
from the Northern, Eastern, Western and Central Europe will have to pass
through the Russian Federation territory. In addition, the system of
intra-national communication has been significantly improved, and new
conditions have been created to promote the internal economic development of
remote regions that were previously distant from the developed infrastructure
of the center of Russia [13].
At the end of the twentieth century,
at the Second Pan-European Conference held at Crete Island, there were
identified nine major international transport corridors (ITC). For Russia, the
ITC No 9 (and its further development – ITC ‘North-South’)
and the ITC No 2 (and its further development – ITC
‘East-West’), passing through the territory of Russia are
particularly important.
The main idea of the
“North-South ITC” is to create favorable conditions and opportunities
for the transportation of goods between the Middle East and the Baltic region.
From the Persian Gulf, India, and Pakistan, cargo will be delivered through
Russian ports and inland waterways transferring to the Northwest and further to
any country in Europe. The agreement on this ITC counts on the delivery of
goods from the various ports of both the Caspian and Black Seas.
Further development of the ITC 2 is
the ‘East-West’ transport corridor, which includes the
Trans-Siberian Railway (TSR), as well as railway lines to the northern ports of
Russia (Murmansk, Arkhangelsk), Baltic and other ports [18].
The EAEU integration interaction makes
it strategically important to develop these two areas of multimodal
transportation. In 2019, the state corporation, Rosatom, initiated the
development of the Northern Sea Transit Corridor project. This project will
become an international logistics service for the delivery of goods between
North-Western Europe and East Asia through the Northern Sea Route (NSR). A
joint project for cargo flows along the Northern Sea Route to and from China
was named “the Ice Silk Road”. China, seeking to diversify its
trade routes, is pursuing several options under the Belt and Road Initiative
(BRI, or B&R) or One Belt One Road (OBOR).
3. RESEARCH
In modern conditions, transport plays
a key role in the formation of new business models at the global level. The
integration of different types of transport and transport systems of individual
states allows businesses, regardless of nationality, size, and industry
specifics, to produce and sell products all over the world. It is the emergence
of high-performance and energy-efficient transport systems that have made it
possible to reduce logistics costs significantly and increase the volume of world
trade.
According to Sh. Stephenson (Sherry
Stephenson), reducing the cost of global shipping has opened new business
opportunities and drastically changed production models. The availability of
reliable and efficient transport communications allowed companies to distribute
their operations – product development, component manufacturing,
assembly, marketing, etc. – around the world, that in turn, ultimately
led to the international production chains formation, and triggered the effect
known as "global value chains" (GVC) [16]. The transformation of the
global economic model has caused an increase in trade flows of intermediate
goods, the share of which, according to some estimates, exceeds half of the
goods imported by the member countries of the Organization for Economic
Cooperation and Development (OECD), and almost three quarters of the imports of
large developing countries such as China and Brazil [20]. The 1990s last
century could be assumed as the conditional beginning of the
“flourishing” of globalization, when the rate of growth of world
trade exceeded the rate of global economic growth (Figure 1).
Currently, this trend continues, and
most economies in the coming years will not limit their production only to
domestic consumption. It is with the resumption of the growth of foreign trade
within the Group of Twenty (G20) countries in 2016, after a long period of
decline in exports and imports, that experts pin their hopes on the end of the
crisis in the global economy [7].
In the global economy, most high
value-added goods are transported by sea. These transportations have shown the
highest growth rates. In the period from 1980 to 2014, the global volume of
container traffic increased about 15 times (Figure 2) [19].
Fig. 1. Indexes of industrial
production of the countries of the Organization for Economic Cooperation and
Development (OECD), world GDP, trade in goods and the volume of shipping
(1975-2014) (base year 1990 = 100)
Source: [21]
To maintain their share in the
transcontinental transportation market, ship owners have to seek control of the
entire transport chain from senders to recipients, based on the integration of
their business processes with the operations of ports, terminal distribution
complexes, river carriers, regional railway operators, interior freight
forwarders and other supply chain participants [6]. This kind of integration
forms a "logistics monopoly" since the logistics alliances can offer
very favorable flat rates for the entire delivery route.
However, it is quite difficult for sea
routes to compete with cargo flows within the Eurasian continent since the
“cost factor” is often no longer an absolute priority in
competition within the international transport market. A global business
focused on operating with minimal stocks in the face of a dynamically changing
demand, is interested in reducing delivery times and actively exploring
alternative transportation options between Asia and Europe. For example, the
delivery time for containerized cargo from China to the EU by sea reaches 40-60
days [23], and the duration of delivery of the same cargo by railways of the
EAEU does not exceed two weeks.
Fig. 2. World volume of sea
transportation, mln. mt
Source: UNCTADStat
The EAEU countries have challenged the
global logistics "monopolies" and are beginning to increase the
volume of transit cargo between Europe and Asia. The overland Eurasian transit
corridors passing through the territory of the EAEU can already offer an
acceptable time and cost for the delivery of transit cargo between the EU
countries and East Asia. The infrastructural basis of these corridors is the
latitudinal railways of Russia, Kazakhstan and Belarus. To improve the
efficiency of transit container traffic on the Eurasian Land Bridge, the state
railway companies of Belarus, Kazakhstan and Russia created a joint stock
company named “United Transport and Logistics Company” (UTLC) back
in 2014. Due to inter-organizational coordination within the framework of a
single holding, it was possible to increase the speed of container trains by
almost 200 km per day.
The research of the features of the
functioning of the system of international transportation by various types of
transport, as well as the activities of transport companies engaged in
international container transportation of goods, showed that until now the
issues of scientific substantiation of modern innovative and effective methods
for managing the international goods transportation competitiveness have not
been fully explored.
Within the first quarter of 2021, the
container traffic in the China - Europe - China route through the
infrastructure of the Russian Railways has increased by 2.2 times compared with
the same period in 2020 and reached the level of 162.6 thousand TEU. The
transportation of loaded containers increased 2.1 times and reached the number
151.5 thousand TEU. The overall value of the transported cargo was about 1.2
million tons, with an increase of 2.7 times.
At the same time, the China to Europe
transit has grown 2.1 times since the beginning of 2021 and reached 105.8
thousand TEU, and from Europe to China – 2.3 times and up to 56.8
thousand TEU. In addition, the China-Belarus-China container traffic increased
by one third in January-March 2021, up to about 22 thousand TEU. Since the
beginning of 2021, more than 180 thousand tons have been transported [15].
The growth of transit volumes is
facilitated by the establishment of competitive pricing conditions, the
expansion of the range and improvement of the quality of services, as well as
the diversification of transit routes.
In August 2020, the Government of the
Russian Federation signed a decree on subsidizing the railway transportation
rate. One thousand dollars was allocated for one transported 40-foot container
[22].
In April 2021, a new multimodal
transit route from China to the UK via Kaliningrad was opened. The container
train passes the Chinese city of Xian through the Altynkol border crossing
Kazakhstan, heading to the terminal of the sea trade port of Kaliningrad for
reloading to feeder ships and further shipment by sea to the port of Immingham
in England.
4. GOAL AND TASKS
This study is aimed at the system of
international multimodal container transportation as the basis for the
formation of a common transport space of the Eurasian Economic Union.
To achieve this goal, the following
tasks were identified:
-
to
study the prospects for the development of the international transport
corridors "North-South" and "West-East";
-
to
determine the role of multimodal container transportation in the transport and
logistics sector of the EAEU economy;
-
to
analyze the prospects for the development of multimodal container
transportation in the world.
5. METHODS
The research methodology is based on
the works of Russian and foreign scientists, specializing in the field of
economic reform, the market systems regulation theory, assessment of the
economic and technological potential of the transport complex and its
operational efficiency. The information and empirical base of this study that
ensures the reliability and validity of the conclusions, recommendations, and
proposals, is the official data on the production and economic activities of
transport companies.
To assess the competitiveness of
transportation in this work, it is proposed to use both a structural and a
functional analysis methods combination, as well as an integrated, systematic
and process approach based on the product quality theory and modern marketing
concept within the transport industry. Management of the competitiveness of
transportation in specific market segments is based on the application of the
provisions of the market systems regulation theory, and system analysis of
economic processes in the field of transport.
6. OUTCOMES
The Russian transport system is one of
the most developed in the world. In terms of the length of railways, the
country is in third place in the world after the United States of America (USA)
and China and holds the fifth place in road transportation. The role of the transport
and logistics complex in the Russian economy is large: in 2018, the sector
provided 7% of gross value added (GVA), which is more than twice the value of
the United States (3,2%) but is comparable to Russia's BRICS partners (6,8% in
India and 8,7% in South Africa). Comparison of the Logistics performance index
(LPI) for 2018 according to the World Bank is shown in Table 1.
Tab. 1
Logistics performance (LPI) for EAEU
countries
|
|
Russian Federation |
Kazakhstan |
Belarus |
|||
|
score |
rank |
score |
rank |
score |
rank |
|
|
LPI
rank |
2,76 |
75 |
2,81 |
71 |
2,57 |
103 |
|
Customs |
2,42 |
97 |
2,66 |
65 |
2,35 |
112 |
|
Infrastructure |
2,78 |
61 |
2,55 |
81 |
2,44 |
92 |
|
International
shipments |
2,64 |
96 |
2,73 |
84 |
2,31 |
134 |
|
Logistics
competence |
2,75 |
71 |
2,58 |
90 |
2,64 |
85 |
|
Tracking
& tracing |
2,65 |
97 |
2,78 |
83 |
2,54 |
109 |
|
Timeliness |
3,31 |
66 |
3,53 |
50 |
3,18 |
78 |
Source:
The World Bank
Over the past decade, both the
transport and logistics sectors have been growing at an increased pace. Since
2016, the sector has been making a positive contribution to GDP growth (0.09 p.
in 2016, 0.01 p. in 2017 and 0.19 p. in 2018) [17].
In the first and second quarters of
2019, the contribution amounts grew to 0.21 p. and 0.19 p., respectively.
As part of the study of this issue, it
is necessary to consider Figure 3, which reflects the contribution of different
economic activities of the transport and logistics sectors to GDP growth for
the period from 2015 to 2018.
Fig. 3. Contribution to GDP growth of
economic activities of
the transport and logistics sectors, p., 2015-2018
Source: [3]
An analysis of the activities of
foreign transport companies showed that until 2025, the volume of cargo
transportation in containers would demonstrate a steady growth at the rate of
about 8% per year. Within 10 years, the volume of container traffic may
increase by 2-2.5 times. Combined road-rail traffic would also grow at around
8% per annum, well above the projected growth in conventional road and rail
traffic [14].
The main growth in the volume of
container traffic would occur due to the growing trade between the countries of
the Asia-Pacific region and European countries, and most of this traffic would
transit through Russia and other Commonwealth of Independent States (CIS)
countries when the necessary technological, regulatory, legal and tariff
conditions are created [5].
The level of containerization in the
world averages 50-60% of the total volume of dry cargo shipments, and in
several European ports, containerization exceeds 90% (Figure 4).
Fig. 4. Level of containerization of
freight traffic in the countries of the world, %
In the medium to long term planning,
container traffic between Asia and Europe is predicted to grow, driven by
economic recovery and increased demand. It was estimated that for the period
from 2014 to 2019, the increase in the volume of container traffic was
approximately 7,9% per year, in the period from 2020 to 2025, the growth rates
would decrease slightly and stay at about 6% per year (Figure 5). The flow of
containerized cargo from the countries of South Asia, ASEAN and Northeast Asia
to the CIS countries by 2025 would increase from 1,03 million to 5,5 million
(5,4 times). At the same time, the volume of container traffic from these
countries to Europe by 2025 would increase from 11,8 million TEU to 31,8 million
(2,8 times), and most of these flows would transit through the CIS countries [3].
Fig. 5. Forecast of changes in the
volume of container traffic in the world, mln. TEU
7. CONCLUSION
The research of the state of the
international transportation market showed that multimodal container
transportation is becoming a key trend in the development of the industry. The
main share of container international cargo turnover on the territory of the
EAEU falls on domestic and export-import traffic (59% and 34%, respectively),
while the share in the segment of highly profitable transit traffic is small
(7%), allowing in the future to develop the potential for a favorable
geographical position of the Union that offers the most attractive
international transport corridors [4].
The implementation of integration
processes in the transport sector is influenced by numerous factors, including
regional specifics, prospects for the development of the global economy, the
state and level of development of transport infrastructure, etc. [2]. The
transport systems of the EAEU countries have significant potentials, and their
integration will contribute to further socio-economic development union
education, improving the conditions and quality of life of the population [1].
The integration of the EAEU transport
systems, despite the differences in legal regulation, the technological
features of certain types of transport and the state of the transport
infrastructure, should contribute to the economic growth of the union states, reduce
their transport isolation, expand the intra-union and international economic
ties and increase the volume of transit traffic [11].
The priority tasks of transport
integration within the EAEU are: development of cross-border transport
infrastructure (transport corridors, multimodal transport and logistics
centers) to ensure territorial connectivity of all Union members, expand
international trade and cooperation; the formation of a common market for
transport services without exceptions and restrictions, stimulating competition
and cooperation in the industry and assuring the harmonious interaction of
different types of transport, the formation of integrated viable business
structures in the transport and logistics sector; pursuing a coordinated tariff
policy for the rational use of the transit possibilities of the Eurasian land
corridors and increasing their competitiveness.
In general, the transport integration
of the EAEU creates fundamental prerequisites for the formation of a
common transport space within the Economic Union that will be mutually
beneficial for all Eurasian countries and their development.
Creation of the logistics system, the
Northern Maritime Transit Corridor (NSTC), is a “pioneering”,
combinational and high-tech project that requires the consolidation of
scientific and technical potential and cooperation at the intersectoral level.
The following basics were chosen as
the fundamentals for the implementation of the NSTC project:
-
information
technology;
-
model-based
system engineering 2.0 (MBSE 2.0);
-
simulation
modeling;
-
digital
technologies and platform solutions;
-
a
new design paradigm based on the development and application at all stages of
the life cycle of digital twins (Digital Twin) and digital shadows (Digital
Shadow) on the digital platform CML-Bench;
-
many
other advanced technologies.
Their application will optimize costs,
minimize the project development time, field tests and help create a
competitive product based on a new type of business model, including a
cybernetic digital platform of the ecosystem being created [10].
According to the Comprehensive Plan
for the modernization and expansion of the trunk infrastructure for the period
up to 2024 [21], adopted by the Government of the Russian Federation, it is
planned to achieve the following indicators:
-
delivery
times for the transit container traffic on the North-South direction (Krasnoe,
ports and border crossings North-West - Samur) should be reduced from 2.5 days
in 2021 to 2.1 days by 2024;
-
delivery
times for the transit container traffic on the Europe – Western China
route (Krasnoe – Iletsk, Ozinki, Kartaly, Petropavlovsk) should be
reduced from 3.2 days in 2018 to 1.6 days by 2024;
-
delivery
times for the transit container traffic on the West-East direction (red, ports
and border crossings of the North-West – Naushki, Zabaikalsk, ports and
border crossings of the Far East) should be reduced from 8.9 days in 2018 to
7.0 days by 2024;
-
the
average speed of delivery of transit container traffic should grow from 810 to
1,319 km/day by 2024;
-
the
carrying capacity of the highways should grow from 12,34 million tons to 182
million tons by 2024;
-
transit
transportation of containers by rail should reach 1,656 thousand TEU.
-
will
rise from 75 to 50 in the Logistics performance (LPI) ranking.
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Sales No. E.15.II.D.6. New York and Geneva. Available at:
http://unctad.org/en/PublicationsLibrary/rmt2015_en.pdf.
Received 04.10.2021; accepted in
revised form 09.12.2021
Scientific Journal of Silesian University of Technology. Series
Transport is licensed under a Creative Commons Attribution 4.0
International License
[1]
Faculty International Business and Law, Siberian Transport University, 191,
Dusi Kovalchuk street, Novosibirsk, 630049, Russia. Email: vpnekhor@mail.ru.
ORCID: https://orcid.org/0000-0003-1276-3622
[2]
Institute of Management and Digital Technologies, Russian University of
Transport (RUT–MIIT),
9, building 9, Obraztsova street, Moscow, 127994, Russia. Email:
post-iuit@bk.ru.
ORCID: https://orcid.org/0000-0002-6471-8690
[3]
Institute of Management and Digital Technologies, Russian University of
Transport (RUT–MIIT),
9, building 9, Obraztsova street, Moscow, 127994, Russia. Email:
petrkurenkov@mail.ru.
ORCID: https://orcid.org/0000-0003-0994-8546
[4] Faculty International Business and
Law, Siberian Transport University, 191, Dusi Kovalchuk street, Novosibirsk, 630049,
Russia. Email: en@stu.ru. ORCID: https://orcid.org/0000-0002-7833-5674
[5] Faculty of Water Transport Operation
and Navigation, Admiral F. F. Ushakov State Maritime University,
93, Lenin's avenue, Novorossiysk, 353918, Russia. Email: evropa@bk.ru.
ORCID: https://orcid.org/0000-0003-4506-9549
[6] Marine Engineering Faculty, Admiral
F. F. Ushakov State Maritime University, 93, Lenin's avenue, Novorossiysk,
353918, Russia. Email: iscander@hotmail.co.uk. ORCID:
https://orcid.org/0000-0002-5259-7713
[7] Faculty International Business and
Law, Siberian Transport University, 191, Dusi Kovalchuk street, Novosibirsk,
630049, Russia. Email: aroshidzealyona@gmail.com.
ORCID: https://orcid.org/0000-0002-5330-2294
[8] Institute of Management and Digital
Technologies, Russian University of Transport (RUT–MIIT),
9, building 9, Obraztsova street, Moscow, 127994, Russia. Email:
aleks-astaf@yandex.ru.
ORCID: https://orcid.org/0000-0003-2009-1723
[9] Faculty of Economics, Logistics and
Management, Samara State University of Railway Transport,
2V, Svobody street, Samara, 443008, Russia. Email: plushka_91.62@mail.ru.
ORCID: https://orcid.org/0000-0001-6438-9340
[10] Administration, Irkutsk State
Transport University, Chernyshevskogo str., bld. 15, Irkutsk, 664074, Russia.
Email: solskaya_i@irgups.ru. ORCID: https://orcid.org/0000-0002-2294-0920