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05.10.2020

The first full-length train carrying sanctioned cargo departs from Europe to China

50 containers loaded up with milk powder and cream were shipped on a single train from Poland to Kazakhstan. It's the largest consignment of sanctioned products since Russia lifted restrictions on shipments of sanctioned goods across its territory in March 2020. In total UTLC ERA has so far shipped 101 containers with goods from the list of sanctioned items.

The train carrying dairy products entered Russia from the territory of the Republic of Belarus via the Smolensk-Sortirovochny railway checkpoint. In order to track the movement of the cargo across the territory of the Russian Federation, special navigation seals of the Sealing Operator, Digital Platforms Development Center, were placed on the containers and then activated at the control point of the Federal Service for Supervision of Transport. It took a total of 1 hour to put on the navigation seals. Information about the consignment was registered in the information system of Digital Platforms Development Center. The train then travelled across the territory of Russia to Kazakhstan. It took the train 3 days to cross the territory of the Russian Federation, covering some 2,500 km en route.

“The shortest route from Europe to China and Asia is across the territory of Russia. Utilizing the transportation network of the Russian Federation reduces transportation costs by 25-30% compared to shipping consignments around Russia using overland routes. The digitization of shipments through the use of electronic navigation seals allows reducing the time it takes to complete the formalities to allow transit of goods and minimizing the amount of time and financial costs needed to arrange the transit. This allows carriers to improve the quality of service while suppliers free up working capital,” says Elena Ignatenkova, the CEO of Digital Platforms Development Center.

“Since the time the first shipment was dispatched, we've seen that the transit of sanctioned goods across Russia by rail in express container trains is a service for which there is a lot of demand from both European and Chinese companies.

Any project gets implemented in several stages: we've already completed the planning stage as well as the stage of pilot shipments. The assembly of a full-length container train carrying sanctioned goods is the beginning of the commercialization stage where European companies will be able to regularly ship their goods to consumers in China by rail with minimal delivery times.

This is naturally a great growth opportunity both for us and for our European customers. The time it takes to put on navigation seals on the containers is minimal and hardly affects the delivery time at all. We expect to see further growth in demand for shipments of these categories of goods,” comments Alexey Grom, the CEO of JSC UTLC ERA.

Transit of sanctioned goods across the territory of Russia was authorized by the President of the Russian Federation in Order No. 290 dated June 24, 2019, on condition that electronic navigation seals are used to track the shipments. All such shipments are tracked using a shipment tracking system that collects, processes, and stores data about the location and condition of the goods in real time and transmits this data to oversight and supervision authorities in automatic mode. Forwarders can also see the detailed information on the location of their cargo in their personal accounts on the Sealing Operator's website, crcp.ru.

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