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WORLD OF INDUSTRIES 06/2018 (RU)

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BLG remains confident about<br />

Russia’s potential<br />

BLG Logistics has been active on the Russian market<br />

since 2008. Around ten years ago, the logistics service<br />

provider opened its first branch in St. Petersburg. Two<br />

years later, BLG entered into a strategic partnership<br />

with the Sea Port of St. Petersburg to take on port<br />

handling activities there. Initially, the logistics expert<br />

was responsible for marketing the automobile areas as<br />

well as for quality inspection.<br />

Good development in Bronka<br />

In 2017, some six years after starting up in St. Petersburg, BLG<br />

Logistics relocated its operative port activities from the city port of<br />

St. Petersburg to the newly built port of Bronka. St. Petersburg’s new<br />

deep-water port opened in January 2016. Regular line services<br />

connect Bronka with the main Northern-range ports, including the<br />

Auto-Terminal Bremerhaven run by BLG.<br />

At the beginning of 2017, BLG Logistics Automobile SPb and LLC<br />

Fenix, owner and operator of the Russian port of Bronka, signed a<br />

long-term cooperation contract for automobile handling via Bronka.<br />

It means BLG Logistics is now responsible there for port handling as<br />

LOGISTICS<br />

I<br />

n 2011, BLG Logistics added transport services to its portfolio.<br />

The next year saw the Russian automobile market boom, with<br />

some 3 million new registrations. However, uncertain political<br />

conditions in the subsequent years followed by sanctions imposed<br />

by Western countries and the collapse of the oil price led to a devaluation<br />

of the ruble, high inflation, and declining real income.<br />

The central bank reacted with two-figure interest rates, which<br />

tightened credit for companies and consumers. These<br />

developments have caused the consumer-driven automobile<br />

market to crash by more than 50 percent since 2013. In 2016, the<br />

market generated just 1.4 million vehicle registrations. This also<br />

affected BLG Logistics. Now, since the beginning of last year, the<br />

Russian automobile market has been picking up again.<br />

We want to successively expand<br />

our service portfolio in Bronka<br />

Uwe Seliger, Managing Director of<br />

BLG Automobile Logistics, Eastern<br />

Europe & Russia Business Unit<br />

well as storage of vehicles. With direct access to the bypass road as<br />

well as six berths for ocean-going ships plus direct connection to the<br />

rail network, Bronka offers ideal conditions for import and export of<br />

vehicles and other ro-ro cargo. Together with Fenix, BLG started its<br />

new business initially on a 12-hectare area with 25 truck loading and<br />

12 <strong>WORLD</strong> <strong>OF</strong> <strong>INDUSTRIES</strong> <strong>2018</strong>

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