ERAI: the new transit market index to be presented by JSC UTLC ERA at "PRO//Motion.1520" in Sochi
Alexey Grom, the President of the JSC United Transport and Logistics Company – Eurasian Railway Alliance (UTLC ERA), will present the Eurasian Rail Alliance Index (ERAI) at the working session "PRO COOPERATION: A common effort from point A to point B is cheaper, faster and more reliable" of the International transport and logistics forum "PRO//Motion.1520", which will take place from 1st to 3rd October in the city of Sochi. The session will be attended by carriers, shippers, investors and analysts.
JSC "United Transport and Logistics Company – Eurasian Rail Alliance" (JSC UTLC ERA) together with the consulting company INFRAONE have developed the Eurasian Rail Alliance Index (ERAI), a tool which will show the indicative value of railway transit services on the 1520 mm track gauge.
"Information on the cost of container cargo shipping in the Asia-Europe-Asia deliveries and comparative analysis for different time periods are data that cargo consignors need to consider for the optimal method of delivery. The ERAI index will include this information. – Alexey Grom says. Our task is to increase the volume of rail transit traffic. In order to do so, we need, among other things, to make the price indicator for the service accessible, understandable and transparent for cargo owners and transport companies. The new index is designed to convey very important information to customers: rail transit is competitive not only in terms of delivery speed, but also in terms of the price of transportation. Today, it can be stated openly that container transit is the youngest and fastest growing segment of the rail transportation market. The volume of transit traffic in 2017 was 60% higher than in 2016 and amounted to more than 413 thousand TEU. In 2018, we expect to reach an important point in half a million containers. But the potential of the market remains colossal. More than 23 million TEU per year are delivered to Europe from the countries of the Asia-Pacific region and in the opposite direction by sea. Up to 10% of this volume could be delivered by the railways of Eurasia very efficiently."
ERAI – is a composite indicator of the cost of transit container transportations in the Eurasian railway corridor through the territory of the EEU in the China-EU and EU-China communication. The index value depends on a variety of factors, among which the tariffs for the containers transportation of JSC "Russian Railways", JSC "Kazakhstan Temir Zholy" and SC " Belarusian Railways", the cost of fitting platforms usage, the cost of terminal services, the speed and travel time, the infrastructure congestion, etc. Together with the index JSC UTLC ERA will launch subindexes, which will reflect the indicative cost of container transportation in the directions East-West (ERAI U EAST) and East-West (ERAI U WEST).
The International transport and logistics forum "PRO//Motion.1520" is a large-scale platform that brought together representatives of business, railways of different Eurasian states and federal executive bodies to discuss topical issues of rail industry development.