Strategy and perspectives of railway sector in Estonia: access to 300 million consumers IBS-Conference Riga, April 7th, 2016
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1 Strategy and perspectives of railway sector in Estonia: access to 300 million consumers IBS-Conference Riga, April 7th, 2016 Janek Ojamäe Commercial Director EVR CARGO
2 Estonia gateway to a market of 300 consumers Distances from Tallinn: Helsinki 85 km, Riga 307 km, St Petersburg 395 km, Stockholm 405 km, Vilnius 605 km Flight times: Helsinki 35 min, Stockholm 1 h, Copenhagen 1 h 30 min, Moscow 1 h 40 min, Amsterdam 2 h 20 min, London 2 h 45 min, Istanbul 3 h 20 min
3 Estonia - a paradise for your business Memberships: EU, NATO, OECD, WTO, Schengen area Currency: Euro Foreign and domestic investments in Estonia are treated equally Estonia has transparent governance and a low corruption level 55% of the workforce is fluent in more than one language (Russian, English, Finnish, German, Swedish) Ranks 7th in the world in ease of cross-border trading
4 Estonia - a paradise for your business Companies registered in Estonia do not have to pay income tax on reinvested profits. The Estonian banking sector is very IT-advanced, quick and flexible. It is possible to affix a digital signature that is legally equal to a normal signature by the aid of an ID-card. E-residency is also available for nonresidents. More information No legal restrictions apply to foreigners wishing to establish a company in Estonia
5 Regular cargo shipping lines All major seahubs in Europe Rail links east-west and road links north-south Potential in future north-south rail corridor
6 Advantages of Estonian ports Post-Panamax size vessels are welcome Infrastructure is modern Ice-free ports Freezones near the ports Deepest port in the Baltic Sea Closest port to Russia in EU Intermodal connections Safe and secure Fast operations Land availability
7 Key facts about EVR Cargo Ministry of Economic Affairs and Communication 100% 100% Estonian Railways EVR Cargo Key figures in 2015: Total cargo: 11,6 million tons Market share: 68% Containers: TEU Turnover: 65 million EUR Employees: 735
8 Railway infrastructure is part of the 1520 mm railway network Estonian Railway s infrastructure 1320 km Same 1520 mm gauge with CIS, Baltics, Finland, Mongolia Unified regulations for documentation (SMGS etc) and other standards; common wagon pool etc Common interest for development through central coordination
9 Majority of EVR Cargo volume is transit 2015 tons (mln) and % of total Transit: mainly from Russia - oil and chemical products; fertilizers. Transit to Russia and CIS - containers, machinery, general cargo Domestic: oil shale; forest; scrap metal Import/export: fertilizers, metals, general
10 In general, times are challenging in Estonia s railway sector Decrease in volumes due to Russia s transport policy to use own ports. Main impact from oil transit Last year(s) also the economical and currency issues in Russia/Central Asia have had some influence Free capacity to handle new volumes with high quality!
11 Container volumes are influenced by weaker demand in Russia The growth of container volumes was replaced by a 42% drop in 2015 Containers arrive to Estonian ports (Muuga, Paldiski, Sillamäe) by ferry and are delivered by rail to Russia and Central Asia Majority of the volume goes to Moscow and to Kaluga
12 Block-trains offer regularity and excellent delivery times To Moscow delivery time 2.5 days, up to 2-3 departures a week To Kaluga delivery time 3 days, 2 departures a week To Kiev and Dnepropetrovsk delivery time 7 days (currently not regular) To Jekaterinburg delivery time 4 days, seasonally operated Note: Single or groupage shipments can be transported all across the 1520 mm network To Central Asia, delivery time 10 days, project-based
13 Moscow Express Container Block Train Has been operational since 2007 Destination station in Moscow: Hovrino Regularly 2 weekly departures as a minimum from Muuga, even in the low season periods Empty containers are returned to Muuga or dropped off in Moscow Average wagon circulation time (Muuga- Moscow-Muuga) is 6 days
14 Transport of machinery and heavy cargo another fast growing sector Regular cargo flows of mining, agricultural equipment to Russia, Central Asia Heavy (over 100 tons) and long (over 50 meters) shipments Safe and secure
15 Variety of wagons for different type of cargo Nearly 3000 own wagons - box, half-board, thermo, platforms, tank wagons. Reefer-sets can be arranged Own maintenance facilities for both locomotives and wagons (Tapa Depot)
16 In close cooperation with major ports Three main ports in Estonia for rail cargo handling: Port of Muuga (Tallinn): Bulk (oil, fertilizers, coal, grain) Containers Port of Paldiski: Bulk (oil products; forest) Machinery and equipment Port of Sillamäe Bulk (oil products, dry and liquid fertilizers); Containers (starting)
17 Strategy and perspective of EVR Cargo: to offer reliable rail service through Estonia and cope with challenging environment Develop bulk volumes (oil, coal, fertilizers) and containers both on east-west and west-east route, and Develop north-south corridor, take maximum of the Rail Baltic Develop New silk road China Kazakhstan Estonia Scandinavia/Europe
18 Strategy and perspective of EVR Cargo: to offer reliable rail service through Estonia and cope with challenging environment Our strengths: Free capacity on rail infrastructure and terminals (oil, fertilizers, coal, containers) Efficient and reliable locomotive fleet Own wagon fleet both for rental and usage Best experience in the region to run container block-trains (since 2007) Supportive economical and legal environment
19 EVR Cargo key member of the Estonian Logistics Cluster The Estonian Logistics Cluster is a joint initiative dedicated to the international marketing of the members services, introduction of the logistic advantages of Estonia at the target markets, research and development, and logistics education. 17 partners: 14 enterprises+2 Universities+1 Association + Support from Tallinn Enterprise Board 5 programs Joint Marketing Product development Communication in Estonia and within the sector ICT development Development of professional and higher education More information
20 Thank You! Additional information: Phone
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