Experts discussed logistics centres placement algorithm

12 september 2018

The Analytical Center discussed the possible cooperation of stakeholders in connection to placement of logistics centers, taking into account the scheme of Russian Federation spatial development and the possible building costs optimization.

"The idea arose following the long phase of an integrated development plan design for trunk networks and energy infrastructure in the framework of implementation of the May presidential decree №204  concerning among other matters the development of a network of transport and logistics multimodal centers," said the head of the Analytical Center Vladislav Onischenko during the meeting in the Analytical Center. "With such an issue in an integrated plan it's obvious that it we need to coordinate the activities of various federal executive bodies as there are many such plans and they overlap to some extent."  For exampla among those that stated their plans are  the Ministry of Transport of the Russian Federation,  the Ministry for Agriculture of Russia, the Russian Ministry of Defense, the largest Russian infrastructure companies, such as  Russian post, Russian Railways and others.

Demand or economic growth are factors leading to creation of transport and logistics centers.  "So in some places the number of simultaneously implemented plans is quite large and thus the idea of combining some centers where possible and thereby reducing budget expenditures came up," Onishchenko explained.

According to the expert of the Analytical Center Daniil Nametkin project implementation timing is one of the main problems.  "Works completion should coincide but while some projects are well designed and ready to be implemented in 2020,  others are at the initial level and they will only be finished by 2024. Therefore, we need to work out synchronization mechanisms", the analyst said.  It is also important to specify the basic parameters:  projects capacity, need for relevant infrastructure, the expert believes.

"No plans that are being implemented should be stopped because the decree needs to be implemented while it is quite difficult to compare the timing," said Sergey Yegorshev, deputy director of the Development Programs Department of the Ministry of Transport of Russia.  In his opinion, transport and logistics centers (TLCs), which are now being implemented by the Russian Post, Russian Railways, the Russian Ministry of Defense, might be coordinated.  "These largest centers will create a basic transportation network between all logistics centers  forming the main freight supply chain.  All other projects will be developed and adjusted to this support grid. Even if some of large companies have already made up their mind about cities and they will have their own centers, the infrastructure by which the goods move will be the same as that of other users, "the expert said.

Yegorshev also believes that it is vital to set the criteria for the largest TLCs.  "The criteria were already defined in the TLC concept developed by Russian Railways six years ago. It can be taken as a basis and then adjusted ", the expert says.

According to Yuri Lakhin the Deputy Director of the Department of Economics and Finance of the Russian Ministry of Transport, those regions where different projects intersect most of all cause the greatest problems with synchronization.  For example, it is very difficult to reconcile interests of all actors in regions where there Russian Post and the Russian Ministry of Defense implement their  projects since each one has its own requirements. "The Ministry of Economic Development of the Russian Federation has to define TLCs in accordance with the May presidential decree No. 204 in order to solve this problem," the specialist is convinced According to him, a systematic approach is necessary as it is important for all participants of the process to clarify criteria, indicators, functional tasks and motivation.

As a result of the discussion it was decided to join forces and provide detailed plans for the development of the transport and logistics infrastructure from all interested parties at the earliest time possible in order to assess possible ways of optimization.  In addition, the experts agreed that Vladivostok can become a pilot project for simultaneous implementation of 5 different projects.