Logic Behind Logistics
On factors holding back the development of the Belarusian logistics market
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.
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