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WORLD OF INDUSTRIES 4/2019

WORLD OF INDUSTRIES 4/2019

CeMAT Russia: fuelling

CeMAT Russia: fuelling growth in Russia’s logistics and transport sector NEWS AND MARKETS Russia’s transport and logistics sector is fertile ground for foreign companies. Opportunities are plentiful across the length and breadth of the country. Investors and companies should certainly look to the world’s biggest nation as their next market for investment or expansion. Stretching across 17 million sq. kilometers, Russia is world’s largest country by size. It’s so huge that it’s geography is both a blessing and curse. It’s very size demands an extensive transport and logistics network. In order to cater to its 145 million inhabitants with all the goods and services, air, sea, road and rail logistics are in high demand. With over 86,000 kilometers in rail track, a road network over 1.4 million kilometers, plus numerous airports and seaports, Russia has a well-established intermodal network hub. Despite existing transport links, Russia ranks 85 out of 167 countries in the world bank’s logistics performance index. One of the reasons for this lackluster performance has been the bleeding of Russian economy mainly due to sanctions imposed by western countries and declining oil prices. But since 2016, Russian economy has been recovering at a steady pace so has been the transport and logistics sector. Country’s current logistics performance, however, Author: Sushen Doshi, International Correspondent for World of Industries points towards major opportunities for investment, as Russia is in need of modern technologies and scientific attitude when it comes to logistics. Domestic suppliers are competing with international companies to provide comprehensive services, but increasing participation from international companies will truly help this sector overcome its challenges. Considering the infrastructure and logistics competence there is room for Russia to improve and expand. The Russian transport and logistics market potential is estimated to be around $ 150 billion. Warehouses equipped with new technologies, modernized cargo handling facilities at ports, new airports, railway hubs and logistics centers are needed to satisfy the country’s rising demand. Foreign firms are positioned better than domestic ones to play a major role in development of Russia’s logistics sector. Due to a lack of competitiveness in domestic operators, foreign logistics businesses have already been invited for investment – often in the form of tieups, joint ventures or operational co-operation. Overseas investors and companies with interest, experience and skills are injecting large amounts into transport and logistics sector. For example, Dubai’s DP World, global port infrastructure and management specialists, inked a deal with the Russia Direct Investment Fund. The $ 2 billion investment is mainly targeted at enhancing Russia’s port infrastructure networks. Other foreign firms, such as DHL or Finnish company Itella Russia, are already well established in the market. Technological advantages, plus efficient operations and experience, puts international brands at a significant advantage. Russian government has welcomed these dynamic, cost-effective transport and logistics solutions, so international operators should look at the bigger opportunities present in Russia. 12 WORLD OF INDUSTRIES 4/2019

01 At Cemat, visitors can find latest products and technologies, exchange ideas and get clarity in-order to make sound decisions Moscow’s prestigious Crocus Expo hosts the 10th edition of CeMAT Russia - the international exhibition for materials handling, warehousing equipment and logistic. This 3 day event is set be held from 24th to 26th September 2019, and is an ideal platform to interact and engage with leading companies from Russia’s logistics sector. CeMAT Russia provides a exceptional prospect to create new potential customers as industry professionals and managers from small and medium-sized enterprises to large corporations attend this event. CeMAT also assists in cultivating new relationships, creating new networks and catching up existing customers to gain insight and stay updated with the latest developments and requirements of end users. Interest in the event among Russian organizations has been steadily increasing with number of visitors increasing from 4,500 to 5,500 within two years. A large chunk of visitors were from the retail and wholesale segment, followed by cargo transportation and warehousing services, warehousing equipment, industrial goods production, consumer goods production including food, beverages, pharmaceuticals etc. Taking a look at the numbers of past years, most of the visitors placed their interest in lifting and handling equipment, rack and storage systems, warehouse management and automation equipment, packaging and order picking equipment, conveyors, lifting and handling equipment etc. The event, organized by one of the world leaders in exhibition industry – Germany’s Deutsche Messe RUS, is supported by various industry associations and the state as well as federal government of Russia. Deutsche Messe’s extensive market and industry knowledge along with international experience makes this business event of a truly global standard. Every year at the fairgrounds, organizers host a series interactive sessions which involves exchange of ideas, in depth discussions on important issues faced by the industry and understanding the upcoming trends in the market. Just like the manufacturing industry, the future of transportation and logistics also has new driving forces like digitalization, tectonic shifts in international trade, emergence of software driven and machine driven processes etc. Many decision makers and managers are concerned about how exactly will these changes affect them, what will be level of investment and which products and systems to choose for their operations, queries about integration of new systems with existing ones, all these questions will be answered on the floor of CeMAT, by interacting with experts, professionals, and manufacturers in Moscow. In 2017 and 2018, the forum discussions included topics like digital transformation of logistics; hardware or software?, rise of big data, drones, IoT, cloud technologies, AI, AR in logistics and intralogistics, developing successful strategies in the e-commerce era, warehouses of the future: design or reconstruction? etc. Product categories at CeMAT Russia CeMAT Russia 2019 At CeMAT Russia, you can find the products with emphasis on functionality and innovative technologies in the movement and lifting of goods area, products that offer the right combination of cost-effectiveness, maximum usability and smooth movement and handling of materials. The Move & Lift section of the trade fair has on display industrial trucks, forklifts and its accessories, vertical lifting equipment and platforms, scissor lifts, escalators, cranes, hoists, mechanical handling equipment, monorails, remotely operated transportation systems, shelf storage & retrieval equipment, power and drive technology components, hydraulics, pneumatics and conveyor systems, complete supply chain management solutions, complete robotic handling systems and port related logistics equipment. The Store & Load section of the trade fair features automated systems designed to increase productivity, and reach maximum capacity. Visitors can find automated guided vehicles, conveyor systems that require extremely low drive energy, apps for storage planning, storage shelf systems, factory and workshop equipments, pallets, bins and containers, industrial doors & gates, cleaning facilities for warehouses, loading bridges and ramps, transfer bridges, loading systems for bulk goods and containers, and complete logistics service packages. The Manage & Service section of the trade fair will give you an excellent overview of all the logistics services now available for managing today’s challenges. This includes transport financing models, logistics planning, traffic control systems, integrated traffic systems, real estate & sites for logistics operations. Logistics IT is the technology zone dedicated to professional logistics software and systems. The focus here is on innovative IT solutions for production logistics, commercial logistics, cloud computing and mobile logistics applications in the warehouse. This section of Ce- MAT Russia features e-logistics services, intralogistics systems & software, computer & control systems, control technology & sensors, identification technology, Auto ID/RFID etc. In 2017, Russian e-commerce sector was valued at $ 16 billion and is set reach $ 25 billion in the coming few years. E-commerce in Russia is only set to keep expanding. At CeMAT Russia, the Pick & Pack exhibition area focuses on latest packaging technology for warehouses, packaging and order picking systems, labelling and identification systems, measuring and dispensing units, and various kinds of packaging materials. Photographs: Lead Photo Fotolia, Deutsche Messe AG www.cemat-russia.ru/en WORLD OF OF INDUSTRIES 4/2019 13

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