2nd Interactive Session: E. Soudakov

3rd IRU Euro-Asian Road Transport Conference
Beijing, 26-27 September 2005

E. Soudakov
ASMAP Vice-President; Russian Federation

Import/Export and Road Transport Transit Operations on the Asian continent

The current situation with regard to globalization is producing a gradual shift of the centre of gravity of economic activity from the Atlantic zone to the Asia-Pacific region, now considered the leading region in the worldwide business arena.
The integration of the world economy and the growth in both passenger and freight traffic dictate the need to create a qualitatively new system of international transport links and transit corridors.
It is symbolic that we are considering the prospects for developing transport between two dynamically developing world centres of economic activity - Europe and Asia - here in China.
This country is a very ancient civilization, yet one that today has attained dramatic economic achievements.
In terms of total volume of industrial production, China is 4th largest worldwide, but in terms of the number of businesses - it is 1st.
The Chinese experience is interesting, particularly for its provision for a synthesis of Western technocratic culture with Eastern spiritual tradition.
This allows the Chinese people carefully to preserve their national culture and uniqueness - an achievement worthy of our respect.
China is the largest country in terms of population size, and occupies the key geostrategic position in the Asian Pacific region.
China is Russia's neighbour, and today new horizons are opening up for commercial and economic cooperation between the two countries.
Generally, the conditions for the development of Sino-Russian economic cooperation are favourable and are largely established by the mutually complementary economics of our countries.
The volume of trade between Russia and China in recent years has been growing steadily.
The volume of trade between the two countries in 2004 was 21 billion 200 million US dollars and had increased by almost 35% in relation to 2003.
Forecasts by economists for 2005 see the volume of trade increasing by 30% in relation to the previous year.
This also entails fluctuations in the structure of the volume of trade.
While the predominant Chinese exports, previously, were textile products and household goods, the leading place is now occupied by industrial products.
The structure of Russian exports is also starting to change - Russia is now supplying China not only with raw materials, but also with high-tech products.
The volume of goods transported by road between Russia and China in 2004 increased by 22.3% in relation to 2003.
Within the structure of the volume of goods transported in 2002 and 2003 imports were predominant, at 53% and 59% respectively.
In 2004 the proportion of exports increased to 55 percent.
There are 20 road transport crossings over the Sino-Russian border.
In 2004 more than 177,500 motor vehicles passed through the active road transport border crossings, 26% more than the figure for 2003.
The busiest of the Sino-Russian border road crossings in 2004 were:
Zabaikalsk - 27.7% of the total volume of goods transported between Russia and China, and Pogranichny - 26.4%
The speed with which goods can be transported and the profitability of the business of international road transport operators are also largely dependent on border crossing activity.
In March of this year an ASMAP delegation went to Chita to discuss the problems standing in the way of development of international road transport operators.
Together with representatives of the regional authorities and road transport operators of the Chita Region we crossed the border at Zabaikalsk and discussed the capacity for improving border crossing activity with both the border guards, and the customs officials.
In Manchuria, the delegation was cordially welcomed by the representatives of Chinese transport inspection and administration headed by Mr. Lee Yui Lin.
We conducted an amicable and constructive discussion of the problems experienced by Chinese road transport operators on Russian territory and those of Russian road transport operators on Chinese territory.
I would like to think that business cooperation between ASMAP and the Chinese Association of Road Transport Operators became active following our personal meeting with the esteemed General Secretary of the Chinese Road Transport Association, Ms Wang, who took part in a historical event - the first Euro-Asian Conference, held in Irkutsk.
Our association also cooperated within the framework of the World Bank proposal regarding distance training of international road transport operators.
We hope also to cooperate in the future on development issues for international road transport operators in the interests of all concerned.
In summer of this year the President of the People's Republic of China, Hu Jintao, visited Russia.
The President of the People's Republic of China met with the President of Russia and Russian government ministers.
The main aim of the visit was to contribute to future development of a partnership with the aim of strategic cooperation between China and Russia.
In autumn of this year a meeting between the premiers of the two countries is planned.
As part of the preparation for this meeting in Beijing, a major meeting of the Sino-Russian Transport Subcommittee took place, with the participation of the Russian Minister for Transport, Mr Levitin, and the Chinese Rail Minister Ms Lyu Szhitszyung.
The ASMAP delegation, headed by first Vice President of ASMAP, Mr Vasilkov, also contributed to the work of the Subcommittee.
Under discussion were transport development issues, including road transport, rebuilding of bridges, the development of border permit posts, the agreed specifications of vehicles for operators transporting large-scale goods by road without special licence for border transportation, and an agreement was reached about opening a series of roads for the transport of passengers and goods.
For operators of regular passenger transport the Harbin-Vladivostock road is being opened.
And for goods and passengers - Tszisi - Ussuriysk and Ichung-Birobidzhan.
This allows for significant encouragement not only of the movement of goods and passengers, but also of the strengthening of business and cultural links between our countries.
The dynamics of the development of Sino-Russian economic relations once again attest to a trend towards globalization of the economy and of the development of foreign trade exchange.
60% of Russian territory falls within Siberia and the Far East. But these areas only have 10% of the operators transporting foreign trade goods by road.
The increase in international operators providing transport between Russia and countries of the Asia-Pacific region is ensuing from the increased cooperation, above all, with the neighbouring Asian countries: China, Kazakhstan, Mongolia.
Operators providing transport of goods and passengers by road between Russia and Kazakhstan or Russia and Mongolia, are developing dynamically, largely encouraged by the lack of a licensing system for transporters from Kazakhstan and the existence of the quota permit required for transport operators for Mongolia.
When considering the role of Russia in the transit system, it is essential to take account of the fact that Russia occupies over 30% of the territory of the Euro-Asian continent and has a highly developed transport system.
The geographical position of Russia makes it a unique connecting link between Europe and Asia.
The shortest transport route from Europe to Central Asia and the Asia-Pacific region passes through Russian territory.
The road transportation of transit goods via Russian territory entails a minimal number of border crossings in comparison with alternative routes, and represents a significant saving in time.
The transportation of goods from China by road via Russian territory may take place via various routes: both directly from China to Russia and beyond to the European countries, and in the context of multilateral cooperation.
The creation of the transcontinental highway, connecting the major macro regions of Europe and Asia to each other, will facilitate improvement in transport flows and will develop stable and reliable foundations for the development of international relations and links.
The idea of connecting the entire continent by overland highway was considered back at the start of the 20th century.
But it is only now that the essential elements are in place for the realization of this idea.
The creation of the transcontinental highway brings economic benefits for international trade.
Suffice to say that the number of containers running between the countries of the European Community and the Asia-Pacific Region annually is about 6 million.
According to ASMAP, the continuous improvement in the technical and technological capacity for realization of large-scale international transport projects, in the economic interests of all the participating countries, places on the agenda the issue of the practical organization of freight transportation both by motor vehicle, and in mixed traffic including road transport traffic.
A trial run between Lisbon and Vladivostok, organized by ÐœSAÐ¢ last year with the support of the Russian Ministry of Transport and including a number of national associations, clearly demonstrated the transit capabilities of Russia in implementation of road transportation of goods between Europe and Asia.
Now another trial run is to take place, overseen by ÐœSAÐ¢, on the route between Berlin and Beijing.
Our Kazakhstan colleagues tell us that the capacity of road transport operators carrying goods from central China to Europe amounts to a figure in the region of 30%.
Goods can be delivered four times faster than with use of other forms of transport.
This is indicative of the great prospects for international road transport.
The transportation of goods from China by road via Russian territory may take place via various routes: both directly from China to Russia and beyond to the European countries, and in the context of multilateral cooperation.
Currently, studies are being undertaken, looking at the capability for cooperation with the aim of implementing international road transport within the framework of the Shanghai Cooperation Organization, and also as part of the trilateral cooperation between Russia, China and Mongolia.
The creation of the transcontinental highway, connecting the major macro regions of Europe and Asia to each other, will facilitate improvement in transport flows and will develop stable and reliable foundations for the development of international relations and links.
To conclude my short speech I would like to tell you that in October 2004, the Heads of State of Russia and China approved an Action Plan for the implementation of an Agreement on good neighbourly relations, friendship and cooperation between our countries for the years 2005-2008.
According to this Plan, next year, 2006, was declared â€˜The Year of Russia in China', and 2007 is â€˜The Year of China in Russia'.
Next year a national â€˜Russia' exhibition is planned to take place in Beijing, dedicated to the commercial, financial and scientific and technical aspects of the links between Russia and China.
ASMAP intends to take part in this exhibition, and we will be glad if those of you present today decide to attend it.