The introduction of long-term contracts with mutual financial liability on a “ship-or-pay” basis between container operators and transport and logistics centers (TLCs) will be worked out by the Ministry of Transport.
The “ship-or-pay” scheme implies that the carrier is obliged to carry a certain volume of client's cargo, and the client must pay in any case, even if the cargo was not provided for shipment.
Such an instruction was given by First Deputy Prime Minister Andrey Belousov on the initiative of former Russian Railways top manager and founder of Fininvest Group Alexander Kakhidze. In his appeal to the First Deputy Prime Minister, he pointed out the risks to the profitability of projects creating a TLC network in Russia due to deteriorating macroeconomic conditions.
The press service of Russian Railways stated that they support the introduction of long-term contracts under the “ship-or-pay” scheme. A company representative noted that specific mechanisms are being developed and legislative amendments will be required.
The idea of creating a “ship-or-pay” mechanism on the railway had been discussed for several years. It was expected that from 2022 to 2024, such contracts could only be concluded by those shipping Kuzbass coal eastward for export. However, in May 2023, the Russian Government withdrew the bill providing the regulatory framework for introducing “ship-or-pay” contracts on the railway.
According to forecasts, the container cargo transportation market in Russia in 2024 will grow in physical terms within 5–10% compared to 2023. Russian Railways expects container traffic to continue growing in 2024 without specifying exact figures. This will be facilitated by expanding the network of specialized terminals and yards, container transport technology in open gondola cars, opening of a new border crossing with China (Nizhneleninskoye – Tongjiang), and other solutions.