A congestion in the Suez Canal caused about 450 ships to stop; Total losses from blocked channels are about $ 9.6 billion a day and the world is starting to look for new routes.
|The geographical position allows Russia to become a country that has strong competitiveness with other countries in transcontinental transport.|
Russia is said to be a very competitive country because of its natural geographical position as the center of Eurasia, the crossroads of trade routes from Europe to Asia, from North to South. With a rational approach, Russia can become the largest transit hub, offering customers multiple routes at once to choose from.
Transit carriers are interested in the Trans-Siberian Railway, which connects Moscow with the largest cities of Eastern Siberia and the Far East, of Russia. The travel speed of cargo containers on this Eurasian railway averages about 1,100-1,200 km per day. This speed is much faster than by sea, and in some respects it is even comparable to air.
|Russian Trans-Siberian Railway|
Over the past year, Russian Railways has recorded an increase in demand for Transsib services on the China-Europe-China service. Container traffic increased from half a million TEUS (designated for a 20-foot container) to 1 million – a huge hit. Worth mentioning, this railway line has its own “bottlenecks” in every sense of the word, hindering its full disclosure of its potential.
Russian billionaire Oleg Deripaska recently drew attention to the problems of the Trans-Siberian Railway, who proposed to rebuild it to speed up transit. Along the entire length of the route, at least 5-6 large logistics centers should be created, where industrial exports are concentrated.
The Russian Railways and Transport Ministry have prepared a plan to accelerate modernization of Transsib and Baikal-Amur Mainline, new tracks will be built and stations expanded to enhance the capacity of the rail.
The road traffic corridor connects China
Russia is working on the construction of a large-scale road traffic corridor, connecting with a four-lane highway that passes through Russia, Northern Europe and Western China. The remainder of this route will pass through the territory of Kazakhstan and China. The new expressway will link Europe and Asia and will significantly enhance traffic connections between regions within Russia.
|The Meridian Expressway connects Europe and Asia. Photo: RT|
The “North-South” international transport corridor will connect India and Northern Europe, passing through Iran and Russia. Its total length is 7,200 km. Despite some difficulties, this project is still very promising and attractive to potential customers. For Russia, the “North-South” corridor is very important as the official operation will reduce the volume of outbound shipments through Turkey by 20%, expanding their trade channels.
This infrastructure project began to take on a completely new color after the Iranian government publicly expressed its desire to join the Eurasian Union. This will obviously strengthen transport connectivity in the unified economic space.
And North Sea Route
The northern sea route, which has been in service since the 1930s, is now used to export Russian petroleum products.
Russia has developed a strong contingent of icebreakers to safely navigate ships. However, the infrastructure of this sea route is not ready to accommodate large numbers of ships and large tonnage.
|Russia will have to spend billions of dollars on transporting the North Sea route|
But using icebreakers that consume a lot of fuel to transport fuel exports seems to be an inappropriate problem.
Carriage of goods is highly dependent on the terms of insurance, and therefore on the assessment of risk.
Transporting the Arctic carries many of the “pitfalls” associated with, in particular, securing the provision of necessary maritime services – and this is not just the risk of damage in the event of an ice collision. Require icebreakers to provide continuous support, navigation, hydrology, meteorology and navy escort.
In addition, the speed of the vessel depends on the accessibility of vehicles to access port infrastructure, pilot assistance, anchoring, and technical assistance of the port – not just loading and unloading ships. but also the ability to replenish materials, perform tunneling, repair and hire more crew members.
Hence, maritime logistics is closely tied to well-developed port infrastructure capable of providing all the necessary services, helping to minimize the risks associated with ship delays. Currently, the Northern Sea Route has only one deep-water port – Murmansk.
Observers say that Russia will need to do more to truly make the North Sea route an equivalent alternative to the Suez Canal.