INTERNATIONAL FREIGHT FORWARDER'S   DAY 2009.

During the seven years already, Odessa has been holding “International Freight Forwarder’s Day” - a transport forum for freight forwarders and logistic operators. International Federation of Freight Forwarders Associations (FIATA), “PLASKE” JSC in association with Association of International Freight Forwarders of Ukraine (AIFFU) and Association of Freight Forwarding Organizations of Ukraine (“Ukrvneshtrans”) are traditional organizers of the event. The main objective of “International Freight Forwarder’s Day” is search for interaction between customers, freight forwarders, railways, ports and other parties involved to enhance attractiveness of rail-maritime routes, financial viability of rail and port infrastructure, sustainable development of transport potential of the region and to improve vocational training for transport operators for the benefit of transport services.

"International Freight Forwarder's Day 2009" provided the following issues for discussion:

Despite the global downturn, “International Freight Forwarder’s Day 2009” joined more than 150 participants from the 70 world states – from CIS, Europe, Middle East and Asia.

«Money was, money will be, but there is no money now», said Mr. Ivan Liptuga, Vice President of “Plaske” JSC and the Head of south branch of European Business Association (EBA). Actually, he cited the words of famous Russian oligarch and media tycoon Boris Berezovsky. The annual international conference for freight forwarders started with discussion of financial crisis and its impacts on transport field. However, the majority of overseas delegates hold the optimistic view that Odessa was not affected by the slump.

Nevertheless, Mr. Igor Urbansky, Deputy Minister of Transport, said that financial depression actually affected Ukrainian economy. Today Ukraine experiences stabilization stage, there is even the growth of freight transport. According to Mr. Urbansky the volume of freight has fallen 32%. Due to increase of tariff rates last year, the situation was under control. Today after the top downturn, it is possible to say about the “cautious optimism”. If “great” states are well, then Ukraine will be well too. Today Ukraine is quite competitive state as regards to multimodal transport. It is necessary to construct container terminals equipped with state-of-the-art facilities for container handling. During the pre-crisis period, there was a trend of intensive container freight building. In 2003-2008 container volumes handled in Ukrainian ports increased fourfold and in 2008 exceeded 1 million TEU. 99,8% of this volume was handled by Odessa and Illichivsk ports. Amid the global crisis, container-handling level has dropped 62% during five months of 2009. It is vital to increase competitiveness of national ports in international maritime container market (it concerns ports of Novorossiysk and Constanta). It is also necessary to improve technologies in port and facilitate customs procedures at checkpoints.

Mr. Mikhail Kostiuk, Director General of Ukrainian Railways, presented a report about amendments to regulatory documents facilitating border procedures. He said that State Customs Service’s documents should comply with Law of Ukraine “On Transit of Freight” as regards to transit under transport document (consignment note). He also mentioned the status of customs carrier for Ukrainian railways. Mr. Kostiuk emphasized the need in amendments to phytosanitary and vet documents concerning recognition of authorizing documents necessary for transit of certain cargo issued by country of origin. List of goods adopted by the Cabinet of Ministers Decree as of 20.06.95 №440 should comply with Law of Ukraine “On Dangerous Goods Transport”. Facilitation of regulatory documents will help to resist the world crisis. Despite the pessimistic forecasts and lack of investments, Ukrainian railways will continue to develop priority directions of transit, modernization of rail infrastructure and stage-by-stage move towards electric traction introducing advanced container technologies and creating container parks and terminals. These measures can bring Ukrainian transport system to the level of European ones.

Today transport as the system facilitating trade was affected by the world crisis. Downturn in trade and manufacture led to volume decrease. According to Mr. Illya Levitskiy, Head of Odessa Railways, during 9 months of 2008 Odessa Railways handled 125 million goods with the surplus of 13% (+ 14,0 m.t.), but in the fourth quarter the volume of freight decreased 19% (- 7,7 m.t.). The decrease is conditioned by 37% of inner freight decrease and 35% of import fall. In 2008 Odessa Railways’ growth made up 4% against the previous year (+ 6,3 m.t.). However, during the 4 month of 2009 they transported 23% less than in 2008 (- 12,7 m.t.).

Financial crisis caused growth rate and transcontinental freight decrease (including South-Eastern Asia). It affected rail freight of heavy containers. During 5 months of 2009 the decrease made up 53% against the same period of the previous year (18,5 th. – 10,1 th.).
Container trains for prompt delivery also face hard times. “Viking” train freight fell 80% from 1599 containers (2008) to 288 (this year). Total decrease of container trains within Ukrainian railways makes up 92% (from 67,5 th. to 0,5 th.). It was also noted that 2008 became the year of recognition and demand of “Viking”.

During the first quarter of 2009 the loading of “Viking” increased 4%. The turnover (Illichivsk/Odessa port – Belarus – Klaipeda) made up 10,086 th. TEU, i.e. +4% against the previous year, reported Mr. Stasys Gudvalis., Deputy Director General of “Lithuanian Railways”. Last year witnessed the increase of container freight (73,5%, 59 th. TEUs). It was mainly organic chemistry products (34%), textile (13%), transport facilities and spare parts (12%) and ferrous metals (9%). Belarus-Lithuania direction prevailed (98%). Through port-to-port transport (Ukraine-Lithuania) made up just 2%. The volumes allotted only to Lithuania-Ukraine direction.

Ministers of Transport of Ukraine, Belarus and Lithuania discussed the ways to improve technologies and efficiency. As a result, they signed “Agreement on development of freight between Baltic and Black sea”. Ukraine, Belarus and Lithuania agreed on measures to decrease delivery time, establishment of competitive rates of transit and facilitation of border procedures. The parties extended the “Viking’s” geography and asked Turkey, Azerbaijan, Greece and other interested states within TRACECA corridor (Kazakhstan, Azerbaijan, Georgia) to join them. Joining of Turkey means future prospects of joining the other states that use Turkish ports for transit: Iran, Iraq, Turkmenistan and Azerbaijan.

Great emphasis was put on New Computerized Transit System (NCTS). Ms. Anastasia Leukhina from US Department of Justice (International Criminal Investigative Assistance Program) presented this system to the participants. It is unique because it allows EU nonmember states to access NCTS for European Community and give preliminary information to customs about goods and vehicles moving to EU. Introduction of NCTS in Ukraine will increase efficiency of Ukrainian customs and will solve the problem of smuggling.

Mr. Vitaliy Lipovskiy, President of Ukrainian Road Transport and Logistics Union, reported that introduction of preliminary e-declaration for export goods to EU under TIR carnet (in force from 1 January 2009) forced carriers of Ukraine, Russia and Belarus to shift to common transit procedure where there is no need to summit preliminary documents. Realizing that the accession process cannot be so prompt, the Union offered the following: to develop and adopt Convention on transit on the base of COTIF and Convention on a common transit procedure for harmonization of freight by several modes. It will facilitate document procedures and speed up road and rail transport decreasing control on the borders. Accession of Ukraine to Convention on a common transit procedure will fasten integration of Ukraine to EU. Joining of future MS to transeuropean transport network is the basis for further development of economy, environmentally-friendly transport and single economic area.

At the end of “International Freight Forwarder’s Day 2009” Polish Railways, Kazakhstan Railways and “PLASKE” JSC signed Protocol of Intentions aimed at search of new measures to restart “Silk Road” between Europe and Asia. As Mr. Oleg Platonov, President of “PLASKE” JSC mentioned, this project is interesting for Far East, China and Europe. He also said that “PLASKE” JSC together with Kazakhstan Railways, “Liski” and Odessa and Illichivsk ports are working on rules for container train Odessa – Samara – Astana. Direct rail route (3 th. km) will link 6 states: Ukraine, Russia, Kazakhstan, Tadzhikistan, Kyrgyzstan and China. Route connection between these states will give the possibility to define the delivery time from South-Eastern Asia, Mediterranean states, Europe and US to southeastern regions of Russia and Kazakhstan. Single competitive rate will make the freight more beneficial and attract cargo owners. The next stage will be the extension of route to Turkey and Georgia via ferry service Illichivsk – Deringe. To facilitate customs procedures on the borders of Turkey, Russia and Kazakhstan it is possible to use CIM/SMGS consignment note.

The next meeting of freight forwarders will be held in September 2009 in Geneva, Switzerland at FIATA World Congress. Global crisis will not prevent it, said Mr. William Gottlieb, FIATA President. At the Congress, the agreements made in Odessa will be discussed: future development of Tolyatti/Samara – Odessa/Illichivsk transport corridor; protocol on renewal of “Silk Road” Europe-Asia concluded by Polish Railways, Kazakhstan Railways and “PLASKE” JSC; development of international transport corridors. It is not a full list of issues envisaged for FIATA World Congress.

 


Organizers:

With the support of:

Ministry of Transport and Communications of Ukraine