1. TransBaltic project dispute 29 of April 2010, Saint-Petersburg Dr. Pimonenko Mikhail, Director North-West Russia Logistics Development Center

2. TRENDS, INTERACTING LOGISTICS DEVELOPMENT 1.Consolidation of both the supplier and the customer base in changing the balance of power. 2.The continued fragmentation of consumer markets and the demand for customized solutions. 3.“On-demand” becomes the norm, but customers expect a lower price. 4. The impact of demographic changes on demand patterns and product flows. 5. The impact that “peak oil” will have on transport costs and hence on sourcing and manufacturing location decisions. Martin Christopher, UK

3. SOME IMPORTANT RUSSIAN EVENTS Varandey oil transportation logistics chain Port Ust-Luga Ocean line South America – Saint-Petersburg Custom’s reorganization Yachting

4. VARANDEY LOGISTICS

5. Custom points close to border “ the aim of Concept – to make sure economic security of Russian Federation by improvement of Custom’s procedures in conditions of near border regions infrastructure development necessity and diminish in Russian big cities the transport charge, enforced by growing international trade.”

6. Aftermaths for Saint-Petersburg 1 Concept realization will lead to reduce of custom procedures places, so will decrease the competitiveness ( and as a result a period of pay off) for terminal-warehouse facilities, whose business-models were partly oriented to possible custom cleaning at this terminal. It will “help” to make crisis a little deeper. Saint-Petersburg terminal-logistics infrastructure will lose some share of cargo flow.

7. Aftermaths for Saint-Petersburg 2 Investors, who already participate in construction of terminals with bond warehouses in central part of Russia, will lose there profit; It is unknown now, what would be with export from Russia. In Concept is said nothing, that it is only for import. Russian market actors exporting raw materials can get into difficult situation.

8. Main features of “free market”, administrative market and logistics chains ( market models) «Free market» AdministrativeLogistics chains Legislation (Normative Base) Privacy right, Juridicaly supported contracts Hire relations Relations of mutual obligations Communication measures Prices Administrative procedures Established practice Conflict Resolution Methods Court or Criminal Structures Administrative Negotiations (Mostly Unformal) Flexibility Average Low High Level of mutual obligations HighLow Average

9. In Russia most distinctly in vision is foggy perspective.

10. Thank You for Your Attention ! North-West Russia Logistics Development Center “ILOT” Ph. +7 812 274 0713; +7 921 943 7687 E-mail: pimw@wnet.ru