Exports should pull the Netherlands out of recession by the end of 2012

Export

Exports are expected to pull the Netherlands out of recession by the end of 2012, according to EU economists in their spring forecast. For example, to Russia. Exports to that country are expected to rise by six percent this year. Neele-Vat in Rotterdam wants to grow along with this trend and therefore plans to expand its shipments to Russia in the coming years.

The land of matryoshkas is crying out for merchandise, for example semi-finished goods for the automotive industry. In the first half of 2011, demand for cars increased by half a million over 2010. There is also an urgent need for agricultural machinery to work the vast farmlands beyond Moscow, the Urals and far beyond.

This presents significant opportunities for Dutch companies in logistics and transportation. However, exporting to Russia requires patience and thorough preparation, says Peter Vinke, director of Neele-Vat: “A single misplaced semicolon or a spelling error can be enough to keep a shipment stuck at the border for days.”

To get started, you have to do research, taking into account the changing laws and regulations, the different way of doing business and the technical possibilities, he explains. "Russia not only has different regulations, but also a different rail system, for example.

Network

A good network with partners and relations in Russia and neighboring countries is crucial in this regard, Vinke said. 'The favor factor is huge; it's initially about gaining trust from the buying party. Ultimately, the lion's share is decided in Russia.'

After the preparation phase, you’ll choose a gateway. “Finland is usually the short-sea route for high-value goods. In addition to St. Petersburg, of course, the Baltic states are often used for bulk cargo and containers. Another option is Rail freight via Poland and Belarus. Next, you’ll need to consider which modes of transport to choose, taking into account transshipment and storage facilities and, of course, the customer’s preferences.”

Russia's membership in the World Trade Organization and the Customs Union should make everything a little easier. 'In theory, at least. There is also resistance, from within,' the Rotterdam native knows. 'You don't change the Russian bureaucracy overnight.'

Rotterdam

Neele-Vat in Rotterdam—with 230 employees, six European branches, and 130 million in revenue—sends seven trucks to the Moscow region every day. This accounts for approximately three million euros in annual revenue.

Things aren’t moving as fast as desired yet, but there is clear growth. “We’ve been at this for four and a half years now and want to generate even greater returns from our exports to Russia in the coming period.” And that will certainly happen; the director of Neele-Vat is convinced of it.

Want to learn more about logistics and Russia? June 26, Window to Russia is organizing a one-day course on this topic in The Hague. This will include a focus on the logistical advantages of the Customs Union between Russia, Belarus and Kazakhstan.

A more comprehensive orientation is possible during Russia Week from June 12 to 15. Two one-afternoon seminars and a two-day symposium that week will focus on investing in Russia (June 12, Bilderberg Garden Hotel, Amsterdam), entrepreneurship in Russia (June 13 and 14, Golden Tulip Hotel, Doorwerth) and educational innovation with Russia (June 15, KPC Groep, Den Bosch).

For years, the Brabant-based organization Window to Russia has functioned as an extension of semi-governmental organizations as a successful matchmaker for Dutch and Russian companies, educational institutions, governments and NGOs. More information about Window to Russia, the seminars, course and symposium can be found at: www.vensternaarrusland.nl.