This document discusses the economic challenges facing Russia and opportunities for trade through Central Asia. It notes that: 1) The value of the Russian ruble has significantly decreased against the euro and US dollar since 2013, negatively impacting business in Russia. 2) Imports have decreased and domestic production has increased as Russia focuses inward due to sanctions and low oil prices. 3) Payments have become problematic due to delays, offshore arrangements are common, and the economic situation is uncertain. 4) Thirteen countries are members of the Silk Road of the 21st Century initiative to strengthen land-based connections to Central Asia and gateway ports as an alternative to routes through Russia.

1. Robert J VERMETTEN,
Managing Director TPL
8TH Shortsea-Europe conference,
Bremen 23-24,SEPT 2015
RUSSIA : SOMETIMES SUN GOES UP IN THE WEST

2. SHIFT IN TRANSPORT TO CENTRAL ASIA
 COLLAPSE OF THE ROEBEL value of 1 new Russian RB :
 0,025 € (jan 2013) to 0,012 € (aug 2015)
 0,033 U$ (jan 2015) to 0,012 U$ (aug 2015)
 OFFICIALLY Investments ex USA stopped, while oil prices went down
 Less imports, more home production
 Payment arranged off shore because of heavy taxation
 Severe fall in business in Russie - 40%  -75% more poverty for russian people
“business is not worse than before, but economy is worse, and
you can feel each small problem much harder “( M.Y. russian buss.partner)

3. PAYMENTS BECOME PROBLEMATIC
 Payments become problematic (delays, mechanics,..)
 Offshore arrangements common to respect contracts
 R/E situation uncertain, terms of trade changing
 For import/export companies it is hard to make purchase
decision on selling / buying
 Hope for betterment in 2016 (World Championship)

5. 13 COUNTRIES ARE MEMBER OF THE SILKROAD OF 21ST CENTURY
PURPOSE : LANDBASED CONNECTION TO THIRD COUNTRIES AND ASIA
AS WELL AS GATEWAY PORTS AND AIRPORTS AS THE MAIN ENTRY AND EXIT POINT OF
COMMUNITY FOR PASSENGERS AND FREIGHT.
VIA CORRIDOR 9 : EU-CAUCASUS-ASIA COMPLEX MULTI-MODAL TRANSPORT SYSTEM IN
COUNTRIES OF THE REGION
ALSO DEVELOPMENT OF TRANSPORTATION LINKS AND TRADE RELATIONS
COMING TENDENCY OF MARITIME CARGO FLOWS FROM AND TO SE ASIA TO USE MED
PORTS DUE TO COST PRESSURE /REDUCE GREENHOUSE GAS EMISSIONS
PROVIDED CAPACITY AND SERVICE Q OF PORTS AND HINTERLAND WOULD ALLOW THIS;
TRACECA

6. TRACECA Route Attractiveness Index (TRAX)
A comparison : TRANS-RUSSIAN vs TRANS-TURKEY vs
TRANS- CAUCASUS
TRANS – RUSSIAN TRANS – TURKEY TRANS - CAUSACUS
TRAVELCOST 1 2 2
TIME COST 1 1 2
RELIABILITY 1 2 3
SAFETY/SECURITY 1 3 2
GLOBAL
ATTRACTIVENESS
1 2 2,75
(source : idea)

9.  Specify NHM code (6 figures of BTN code)
 Detailed info on specs (+ drawing needed)
 Wide choice of spec . Equipment
 Gabarit limits scheme (dets in yr hands)

10. HEAVY LIFT CARGOES
Inland railroads (larger width) eg 220
ton Trafo, ex S Korea to Poland. Local
ops via polish Bedmed logistics.
Inland waterways (mainly european
part)
Poor conditions of automobile roads
and bridges (4.1 – 4.5 m fm ground)
Lack of cargo handling in oblasts

11. CUSTOMS CLEARANCE
 Cargo details, correct info need
 Inland clearance or border clearance?
 With bonded trucks where in transit
if importduties >50000 usd.
 Never DDP , only DAP (railhead)
 Road Transport problems for LT truckers
end 2014

12. POSITIVE CHANGES AHEAD  ???
 Mr Medvedev published on 20/8/2015 a directive to simplify customs
matters…
 Cost for customs processing at RU seaports should not exceed
comparable costs at ports in other countries
 Today we see operating costs and transport tarifs rising
 Before the end of 2015, 15 new measures will be taken (including
digital declarations) we truly hope this will succeed, but no news as
yet on update??
 Possible transfer to other authorities : tax collection to tax authorities
and control part to border control und FSB control.
 Russian customs had too strong a position since long.

13. INLAND WATERWAYS / PORTS

14. INLAND WATERWAYS / PORTS :SEVERAL
WAYS TO CENTRAL ASIA
 Good feederconnections from baltic and north sea ports
 Modern port facilities (600 tm floating crane in SPT, 150 mt mobile crane)
 No draft problems anymore ACL calling directly USA to SPT
 Inland barges upto 2000 – 2500 mt can reach Astrakan
 UST-LUGA port OK but bad road connections, slowly improving now major ferry
and container lines calling.

15. VOLGA –BALT CHANNEL + VP
 Larger shipment size + oog cargoes
 Good connection from/to : Europe
/ White Sea / Baltic ports /
Black/Med sea ports / Caspian
ports
 Only Russian flag vessel on Russian
waterways
 Direct loading in Europe to avoid
transhipment in St Petersburg (often
congested)

16. ALL SHIPS DEPLOYED IN THE TRADE TO CASPIAN SEA ARE SEA RIVER TYPE
VESSELS OF 3000-5000 MT , CARRYING CAPACITY THAT MEETS THE
NEEDS OF THE MARKET;
LOW SUPERSTRUCTURE AND LOW DRAFT ALLOW THEM TO NAVIGATE IN
SHALLOW WATERS.
ALL SHIPMENT TO THE CASPIAN SEA ARE REALIZED THROUGH THE
VOLGA-DON CANAL IN THE NAVIGATION PERIOD. IT TAKES ABOUT 4
DAYS TO REACH ROSTOV FROM MARMARA PORTS, WHERE CUSTOMS
CLEARANCE PROCEDURES FOR VOLGA DON TRANSIT PASSAGE ARE
CONDUCTED.
THE VESSEL PASSES 18 LOCKS THROUGH THE VOLGA-DON CAN AND IT
TAKES ABOUT 7 DAYS TO REACH ASTRAKAN AND ABOUT 3 DAYS TO
TURKMENBASHII FROM ASTRAKHAN.
VESSEL APPROACHING VOLGA DON CANAL
1ST LOCK ON ITS WAY TO TURKMENBASHI

17.  Via TK one can handle any type of cargoes
especially project cargoes from/to DERINCE PORT
to/from any destination at CIS.
 • Our operation starts with ordering and supply of
CIS railway wagons
 • Cargo delivery from the warehouse of the shipper
to the railway station or port
 • Transhipment from trucks into wagons or marine
vessels in the ports.
 • Loading / unloading of CIS railway wagons at the
station from the truck into the wagon and vice
versa
 • Preparation of shipping documents (CIM/SMGS,
Bill of lading, etc)
 • Sea journey between Derince and Ilyichevsk ports
by railway ferry
 • Passing customs with all necessary formalities but
no any cargo transfer.
 • Further delivery of the wagons to the final point of
destination in CIS countries and Turkey

18. Thanks for you kind attention !
Any questions, I would like to hear !