Comments on the updated Eurasian Rail Alliance Index Portal by Liliana Krutonog, General Director, East, CD Cargo (Czech Railways)
07.30.2020
Liliana Krutonog, General Director, East, CD Cargo (Czech Railways), talks about the capabilities of index 1520, digitization of transport systems and the influence of the COVID-19 pandemic on the logistics market.

The one who owns the information owns the world. Is the same principle applicable to logistics?

This notion is applicable not only to logistics but to all spheres of human activity. In our world of the Internet and digitization information is becoming the most expensive commodity. People who have the information are the first to make managerial decisions, including decisions on business strategy, introducing and applying cutting-edge technologies. Fast reactions in conditions of the changing market provide colossal advantages in competition, logistics industry included. For instance the new management of our 100% affiliate CD Cargo Logistics has been following digitization trends in Europe and Russia quite attentively.

What possibilities does web-portal Index1520 open, in your opinion? How do you assess productiveness and usefulness of this service?

The index as a part of the conceptual unification process for participants of the logistics market is a very interesting solution, which will allow actors on the container transportation market to find their way on the market quickly and efficiently, as well as it breaks down main development trends within the container transportation field.

Does the ERAI portal help in establishing the dialog and strengthening trust between consignors and transport companies?

I think so, yes. This online platform brings together all market participants, and not only within the 1520 space. After all, many European transportation companies, such as CD Cargo, PKP Cargo, also monitor market news and take part in many industry-wide video conferences.

Is this the right time for launching the portal? What trends can be observed on the market of cargo transportation?

Due to the COVID-19 pandemic at the moment things are changing quite fast, and the market is no exception. Many well familiar instruments of marketing and sales of transport services, such as, for instance, industrial exhibitions, are not accessible for now. This gives an advantage to online sales services and analytical online platforms, which accumulate statistics and give forecasts. The creation of the ERAI portal is seen as a very timely step, and as the pandemic persists, it is quite possible that the portal will continue developing rapidly.

What are the advantages of transparent rate-setting?

This approach allows clients and partners to understand the entire chain of transport logistics and plan their expenses in accordance with clear and understandable rate solutions. It is also quite desirable for rates to remain as long-term as possible, as this allows to build foreign trade projects with long-term effectiveness forecasts.

Digitization, electronic document flow, blockchain technologies — how can all of this influence the development of logistical services?

As we digitize transport systems, we must approach digital programs in the sphere of transport and logistics infrastructure systemically, as part of the unified regional economic integration bodies, such as the EAEU. The essence of these digital programs lies in the transfer from linear business to platform-based business, the new foundation for international cooperation and logistics in production and sales on the EAEU space, in conjunction with the trans-Eurasian project «One Belt, One Way.» This will be implemented by means of introducing logistical services at the level of integrated international multi-modal standards in the unified network of Transport Logistics Centers (TLCs) across Russia and the EAEU. Such an approach will make cargo processing and movement faster, and will lower the costs for manufacturers and consignors.

Author
Liliana Krutonog
General Manager East at ČD Cargo
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