Russia and Turkey: Trade and Logistics Solutions
More and more companies on the Russian market are beginning to work intensively in trade between Turkey and Russia. This fact is connected with the simplification of trade relations between the two countries, demand for quality goods and attractive conditions of supply in comparison with the other directions.
Among the other countries Turkey holds the 6th position in terms of import to Russia and the 4th in terms of export. In this respect according to the growth rates of foreign economic activity volumes Turkey is one of the leaders among the partner countries of Russia.
Abolishment of visa regime between the two countries (from April 17, 2011), settlement of delivery terms, using traffic networks (by means of development of ferry service between 12 ports of the Black Sea) and railroads, development of sea ports, expansion of the logistics terminals network, improvement of customs procedures will contribute to the strengthening of trade relations between the two countries.
According to forecasts by researchers by 2015 the volume of foreign trade operations will DHL courier increase from 26 billion US dollars (the result of 2010) up to 100 billion US dollars. This means that the volume of cargo transportation from Turkey to Russia will also grow every year.
The most common goods purchased by Russian companies from Turkey are the following: textiles, carpets, food products (vegetables, fruit, cereals, etc.), construction materials, engineering products. This information is also confirmed with research performed by logistics companies. Thus, according to the data of TLT Group, which deals with cargo transportation between Turkey and Russia, more than 50 % of all cargo of the company are textile and ready-made clothes.
Ways of Delivery.
Goods may be delivered from Turkey by sea, air and land transport. Goods are mostly delivered by sea and land transport, seldom by air.
Transportation by air is the most expensive option. It is feasible only if the value of the cargo itself is expensive or required to arrive at destination within the shortest time possible.
90 % of all cargo on the territory of Turkey is carried by land transport; transportation of cargo by rail is poorly developed and amounts only to 5 %. Most part of cargo is sent from Turkey to other countries by sea transport.
Characteristics of Cargo Delivery from Turkey:
• The location of the country on the coast of the Black Sea allows to carry cargo from Turkey to the ports of the Black Sea of Russia or Ukraine by sea transport within the shortest time.
• A streamlined land transport corridor to Russia through the Eastern Europe: Bulgaria, Romania, Moldavia, Ukraine. It is this corridor which is used for land transportation from Turkey.
• Combined transportation is popular (by sea and land transport). There are two ways of delivery of goods by means of sea transport. The first one is the loading of a truck on a ferry in Istanbul or Izmir and its delivery to a port at Odessa or Novorossiysk. Usually the term for delivery of goods by such means of transportation is 10-12 days.
The second way is the loading of goods in a special container on a ship in Turkey, then its delivery to a Russian or Ukrainian port, and its further transshipment to a truck. The term for delivery of a container to a port is 2 weeks. The main advantage is reduction of expenses and time for border crossing related to the customs clearance.
• A special attention should be paid to shipment of less-than-truckload by land. In case of such delivery, borders of several states should be crossed and this entails certain difficulties. Special attention should be paid to the execution of documents. This method is convenient when priority is given to the cost of the transportation and speed is of lesser importance. The average term for delivery is 15 days.