Logic Be­hind Lo­gis­tics

On fac­tors hold­ing back the de­vel­op­ment of the Be­laru­sian lo­gis­tics mar­ket

Economy of Belarus - - FRONT PAGE -

If a coun­try has an ex­port-ori­ented econ­omy and high tran­sit ca­pac­ity, it will not do with­out a good lo­gis­tics sys­tem. For Be­larus lo­gis­tics is a fairly new in­dus­try. To­day, it is an in­te­gral part of trade, trans­port and pre-re­tail ser­vices. A lot has been said lately about the fa­vor­able en­vi­ron­ment cre­ated for this busi­ness in Be­larus. How­ever, it is still pre­ma­ture to say that the in­dus­try has reached its hey­day.

In­te­grated Ap­proach

The goal of lo­gis­tics op­er­a­tions is to trans­port goods from point A to point B in the fastest and most cost ef­fec­tive way pos­si­ble. In a word, lo­gis­tics is about smooth op­er­a­tion of the en­tire chain, from pro­cure­ment to de­liv­ery di­rectly to the cus­tomer. Ac­cord­ing to some es­ti­mates, prop­erly or­ga­nized lo­gis­tic ac­tiv­i­ties can save an en­ter­prise up to 15% of costs. Some coun­tries have learned to earn good money on trans­port and stor­age ser­vices. For ex­am­ple, lo­gis­tics ser­vices gen­er­ate ap­prox­i­mately 20% of GDP in Ger­many, 10% in Latvia and ap­prox­i­mately 12% in Poland.

Be­larus started ex­plor­ing the busi­ness some eight years ago. In 2008 the gov­ern­ment ap­proved the state trans­porta­tion and lo­gis­tics de­vel­op­ment pro­gram for the pe­riod till 2015. It was the first of­fi­cial doc­u­ment that called lo­gis­tics “lo­gis­tics”, set forth the ba­sic rules for the busi­ness and iden­ti­fied the strate­gic points on the tran­sit map. The coun­try al­lo­cated 50 land plots for the con­struc­tion of trans­port and lo­gis­tics cen­ters (TLCS). So far only 20 TLCS have been built. Some projects never got off the ground. In 2012 the gov­ern­ment with­drew the land plots that in­vestors found un­suit­able due to their poor location. Tak­ing into ac­count the mis­takes of the past, com­pa­nies now try to choose the places lo­cated on the way of ma­jor freight flows. The most at­trac­tive re­gions for the con­struc­tion of TLCS are Minsk Oblast (out­side the Minsk Ring Road near II and IX tran­sEuro­pean trans­port cor­ri­dors) and Brest Oblast (close to the bor­der with Poland).

Ac­cord­ing to the Trans­port and Com­mu­ni­ca­tions Min­istry, 20 mod­ern lo­gis­tics cen­ters had been opened un­der Be­larus’ trans­porta­tion and lo­gis­tics pro­gram by 1 July 2016. The largest gov­ern­ment or­ga­ni­za­tions op­er­at­ing lo­gis­tics cen­ters are Belta­mozh­servis and Belin­ter­trans, a trans­port and lo­gis­tics cen­ter of Be­laru­sian Rail­ways.

Anal­y­sis of sta­tis­ti­cal re­port­ing in lo­gis­tics im­plies that TLCS mostly serve do­mes­tic flows. The main users of lo­gis­tics ser­vices

As of 1 July 2016, there were 20 mod­ern lo­gis­tics cen­ters set up un­der Be­larus’ trans­porta­tion and lo­gis­tics pro­gram with a to­tal of 400,000m2 of A Class and B Class stor­age space. Four more TLCS are slated for com­mis­sion­ing in 2016

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