Russian Post is forecasting strong growth in parcels generated from e-commerce and distancetrading in future as a result of the country’s membership of the World Trade Organisation
(WTO).This week, Russia officially became the 156th WTO member after many years of negotiations in amove expected to generate growth in its international trade. “From the date of accession, theRussian Federation has committed to fully apply all WTO provisions, with recourse to very fewtransitional periods. On average, the Russian Federation will apply a final bound tariff for 7.8per cent for goods and has made specific commitments on 11 services sectors,” WTO stated.
Marina Goncharova, the head of postal services at Russian Post, estimates the company’s annualshipping volumes will multiply at least by 2-3 times thanks to the country’s WTO membership and theresulting growth in the distance trading market and more online shoppers.
Under the terms of its WTO membership, Russia needs to create favourable conditions forinternational players. This will result in increased competition between domestic and foreigncompanies leaving them fighting for customers.
“The latter will in turn be expressed in lower prices of products including those sold over theInternet,” Goncharova explained. Assuming e-commerce will be enhanced, this factor will contributeto rising shipping volumes within Russia.
“We are ready to accept any number of postal items, as the post is present almost in everycorner of Russia. It also stimulates us to improve the quality of services and moderniseproduction. As a result, the workload on the part of postal employees will increase, but we will doour best to effectively do the job,” she added.
The dynamic growth of export and import volumes in Russia before the global financial crisis in2008 reflects the active development of business relations in the country, according to Russianexperts. During the period from 1995-2008, the country’s sales volumes were multiplied by 5.2times, with export volumes rising by 5.7 times and imports by 4.7 times.
According to HSBC, global trade volumes will grow by 86 per cent during the next 15 years. Thebank expects Russia’s sales from international trade to increase 165 per cent by 2026, with Russiancompanies increasing their annual trade activity by 6 per cent in the next 15 years.
Meanwhile, Russian Post has signed an additional agreement with the national network operatorNis-Glonass to equip its entire vehicle fleet with Glonass GPS systems by the end of 2012. In 2010,the two companies sealed a deal equipping 10,000 mail trucks and 300 dispatch stations at RussianPost branches with the telematics terminals.
As part of the new contract, Russian Post has additionally deployed 4,000 terminals for thetruck fleet and 500 for postal trains. The expanded agreement will ensure automated control andmanagement of postal transport in real-time, Russian Post said. It is expected to increase theefficiency of its logistics network and improve services quality, especially in terms of deliverytimes.
“The results from implementing Glonass GPS systems have already shown a noticeable financialeffect. Operational expenses could thus be reduced by 10 per cent. The delivery times could be cutas well,” the company added.
