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HOW TO INCREASE THE PROFITABILITY OF ROAD TRANSPORTATION

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Presentation on theme: "HOW TO INCREASE THE PROFITABILITY OF ROAD TRANSPORTATION"— Presentation transcript:

1 HOW TO INCREASE THE PROFITABILITY OF ROAD TRANSPORTATION
май, 2008

2 The average life duration of a trucks is
Truck fleet in Kazakhstan In 2003, more than 66% of the vehicles on the country’s roads had exceeded their authorised period of exploitation. The average life duration of a trucks is 9-10 years

3 1994: Creation of the transport company « СВС»

4 How to increase profitability of road transportation?
Plan from the start and reduce costs Establish professional links and seek partners Implement new technology Include all costs in calculations Implement new logistics solutions Compensate Vat Increasing profits from road transportation

5 In 2006, the company «СВС» replaced its cargo vehicle fleet
20 IVECO roadtrains in 2006

6 Terms of leasing per country
Country Leasing rate per year Kazakstan % Ukraine % Russia % Poland %

7 Number of vehicles by Euro category in Kazakhstan as of 10/12/2007
22,2% 9,7% 48,5% 16,2% 3,4% Еuro-0 Еuro-1 Еuro-2 Еuro-3 Еuro-4

8 Structure of direct costs in the Europe-Asia transportation corridor
5 10 15 20 25 30 35 40 45 50 2004 2005 2006 2007 Travel documents Travel allowance for staff Repair Depreciation Wages Travel costs Fuel

9 Fuel prices per country
0,43 0,56 0,59 1,13 1,27 0,2 0,4 0,6 0,8 1 1,2 Евро Kazakhstan Belarus Russia Poland Germany Data as of:

10 Diesel fuel price dynamics
0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1 1,1 1,2% 2003 2004 2005 2006 2007 год Germany Poland Russia Kazakhstan

11 Shengen zone expansion
countries which joined before 2000. countries which joined during

12 Beijing Brussels Caravan (09.2005)
Today, it is possible to organise a new logistic chain from Beijing, to all the major markets, without spending one penny in infrastructure costs. This trucks caravan also demonstrated that Chinese containers could be shipped to the US, not only from one Black Sea country, but from the twelve different countries along the Black Sea, which all have different political and social advantages, and therefore highly competitive rates and excellent service in ports.

13 We invite you all to the next conference in Kazakhstan in 2009!

14 Thank you for your attention


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