|                                                                                                                                                             |  | SHIPPING INTERMODAL IN THE NIS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsPublicationsSourcesof FinanceLeadsand EventsExchangeRatesState ExportsOtherSources** |  | June 1997by Charles MannIntermodal transport--combining maritime and rail carriers --is the critical link to moving
containerized cargo to inland NIS destinations.  Ship-to-rail transfer of cargo provides shippers
with a safe and predictable means of moving cargo virtually anywhere in the NIS.  Exporters
should remember that complete, correct documentation is essential for successful intermodal
transport in the NIS, and that tariffs are lower if your shipment doesn't have to cross more than
one NIS border to reach its destination.Efficiency and Security
The NIS rail system is by far the most efficient, secure and cost-effective means of moving
containerized cargo in the NIS, since the railways reach virtually all population and industrial
centers and are less vulnerable to disruptions due to bad weather.  The rail system is also less
subject to arbitrary changes in customs regulations, since it is considered the most secure means
of customs-bonded transit by NIS customs authorities.A variety of techniques can enhance the security of your intermodal shipment.  Containers in
transit can be secured by placing them door-to-door on ships and railcars, so that they must be
moved before they can be opened.  Container doors can be welded shut at origin as a further
safeguard, as well, although they may have to be opened for customs inspection at the port of
entry.  Container cars can be accurately traced daily throughout the NIS rail systems and can be
counted on to cover roughly 350 km every day.Tariffs
The key to reducing intermodal costs is understanding NIS tariff policy.  As a general rule, it is
cheaper if you start and end your shipment in the same country (for example, use St. Petersburg
for Russian destinations, Odessa for Ukraine, etc.). Every rail tariff in the NIS is set by the
Russian Ministry of Railways, and is either domestic or international.  Domestic rail tariffs
apply for shipments that start and end in the same country.  They are paid in local currency;  are
updated every 30 days; and are generally the cheapest option.  If your shipment crosses NIS or
international borders you will have to pay the higher international  tariff (ITT).  This tariff is
calculated in Swiss Francs and is updated every quarter.Container tariffs are significantly discounted below standard rates and 20-foot NIS rail containers
are generally available in local ports for transferring or "cross-stuffing" goods from ship
containers.  The cost of cross-stuffing palletized and unitized cargo ($200-450) in the port is
significantly less than the cost of purchasing a used container.  Cargo that must be blocked and
braced is not recommended for cross-stuffing.An empty container can be placed door-to-door with one of your own for security purposes, for a
tariff equal to 50 percent that of a fully-loaded container.  You can save money, however, if you
are willing to wait for a "by-way" container--another loaded container traveling to the same
destination that will be loaded door-to-door with yours for no extra charge.Documentation
The most formidable obstacle to intermodal transit at the entry port is lack of proper
documentation and inadequate coordination with the consignee.  If all documentation is in order,
cargo can transit the port of entry into the rail system in as little as five days  The average time is
closer to 10-12 days.  Common  delays occur when information on the invoice, packing lists, and
bills of lading do not match.  The commercial invoice must contain complete information about
the shipper, a detailed list of commodities (by Harmonized Code number), pieces, unit prices,
shipping terms, and total shipment cost.Full consignee information including company name, address, phone and fax number, and contact
person is critical.  In order for the rail wagon to be released from port, the receiving rail station
must send a telex to the originating station confirming that the receiving station has the capability
to off-load the wagons.  Without accurate information, your forwarder cannot contact your
consignee in the event this telex is delayed, incorrect, or missing.  Other delays can occur when a
required sanitation or safety certificate is missing.  Since the rules governing certificates are
constantly being revised, it is best to check with your freight forwarder and the consignee to
determine the certification requirements for each commodity being shipped.A variety of container equipment is available in the NIS.  Twenty-foot railway containers are
available in all ports, while 40-foot rail containers are virtually nonexistent.  With respect to
container platforms, roughly 73 percent  are 60-foot and 13 percent are 40-foot.  Railroad or port
equipment shortages or failure are rarely the cause of significant shipping delays.  This article
expresses the views of the author, and should not be construed as a statement of U.S.
Government policy.  Visit BISNIS Online for a list of freight forwarders and shipping
companies serving the NIS, at www.mac.doc.gov/bisnis/country/shipcos.htm; for a guide to
shipping goods to Russia, at www.mac.doc.gov/bisnis/country/ruship.html; and for more
information on product certification, at www.mac.doc.gov/bisnis/bulletin/9608 cert.htm and
www.mac.doc.gov/bisnis/bulletin/9704ct.htm.Charles Mann is the NIS project manager for the Electro-Motive Division of General Motors,
and is based in Chicago.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)