UNIVERSITY OF MARIBOR

FACULTY FOR TOURISM

LOGISTICS IN TOURISM OF RUSSIA

Seminar paper
Logistict in tourist system

Studenta: Anica Jovanović, Mariana Serrão, Marcelo Leitão

Mentor: Vita Petek

Brežice, april 2020.

Table of Content

1. Introduction..............................................................................................................................4
1.1. Purpose and Objectives................................................................................................................4
1.2. Transport in Russia – Purpose and Objectives.............................................................................5
1.3. Assumptions and Limitations.......................................................................................................5
1.4. Working methods used................................................................................................................6
1.5. Research questions.......................................................................................................................6
2. Traffic.......................................................................................................................................7
2.1. Logistics in Tourism....................................................................................................................7
2.2. Tourist flows................................................................................................................................8
2.3. Green logistics in tourism............................................................................................................8
3. Representation of the area.....................................................................................................9
4. Presentation of trends (In destination)...............................................................................10
5. Carriage of passengers and luggage...................................................................................12
Road transport in Russia........................................................................................................................13
Rail transport in Russia..........................................................................................................................14
Maritime transport in Russia..................................................................................................................15
Air traffic in Russia...............................................................................................................................16
5.1. SWOT analyze...........................................................................................................................16
5.2. Aeroflot – SWOT......................................................................................................................17
5.3. Poezd Ru – SWOT.....................................................................................................................18
6. Findings.................................................................................................................................20
7. Conclusion.............................................................................................................................21
List of Figures

Picture 1 Russian federal highways with insert map of Moscow and Moscow Oblast.................13
Picture 2 Map of rail transport in Russia.......................................................................................14
 1. Introduction

Transportation has played an important role, in all times and in all nations. At the present
stage, the value has increased immensely. Today, the existence of any state is unthinkable
without powerful transportation.

The twentieth century, and especially in the second half, saw major transformations in all
parts of the world and areas of human activity. Population growth, increased consumption of
material resources, urbanization, scientific and technological revolution, as well as the
natural-geographical, economic, political, social and other basic factors have led to the
transport of the world invisible development both in mass (quantitative) and qualitative
terms.

Together with the increase in the scope of the network of communication routes, traditional
models of transport have undergone fundamental reconstructions: significantly increased
fleet, many times increased its capacity, increased speed of movement. At the same time,
traffic problems came to the first place (Gromov, Panchenko, & Chudnovskiy, 1987).

These problems relate to the advantage of cities and the over – development of cars. The
hypertrophied car fleet of major cities in Europe, Asia and America causes constant traffic
congestion on the streets and deprives of the advantages of fast and maneuverable transport.
It seriously worsens the environmental situation.

Transport as a particularly dynamic system has always been one of the first consumer
achievements and discoveries of various sciences, including the fundamental ones. Moreover,
in many cases, he served a direct customer in the face of great science and fostered his own
development.

1.1. Purpose and Objectives

Transportation is part of an economic activity that is associated with increasing the degree of
satisfaction of people's needs through changing the geographical position of goods and
people. It can deliver raw materials to places where consumers can make better use of them
(Gromov, Panchenko, & Chudnovskiy, 1987).

Transport is significantly dependent on geographical conditions, especially the topographic

characteristics of mountain ranges, plains, valleys and coasts, as a means of filling the
geographical gaps between producers and consumers. Transportation aims to connect
production and the consumer and has to create the right facilities for it and in many cases acts
as a catalyst, increasing the level of economic activity and advancing flats or office crossings,
machines. It enables the expansion of production volume, connecting producers and
consumers.

The progress of human society is inseparable from the history of transport development. If
the word "transport" is to understand above all the process of displacement, it can be argued
that without the movement of weapons and objects of labor and man, neither the extraction

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(production) of food, the production of clothing and flats, nor any other appropriate activity is
impossible.

Modern transport is a unique (socioeconomic) transport system, including a powerful

network of rail, sea, river, road, air, urban and industrial communications pipelines. Moving
billions of tons of raw materials, fuels, materials, products annually, as well as many billions
of passengers with a sufficiently high level of comfort and speed, modern transportation
provide mass industrial production, deep division of labor, internal and foreign trade,
contributes to the development of culture, science and tourism.

In modern society, very few human needs can be met without the help of transportation.

1.2. Transport in Russia – Purpose and Objectives

Transportation is the leading branch of the economy that carries passengers and freight.
Transportation is the basis of the geographical division of labor and actively influences the
placement of production.

Russia is, above all, a huge space, the largest country in the world in terms of territory, which
requires constant development. To connect this space, you need to have enough transport
communications. Thanks to the transport system, Russia can maintain contact with other
areas, regions and countries. The country's economy will only be able to grow thanks to this
direction.

By nature, transport is divided into freight and passenger. By purpose, transportation is

divided into (Kochinov & Kochinova, 2014):

1. public transport, servicing the volume of goods and population;

2. transport of uninhabited use-in production, department;

3. personal transport - cars, motorcycles, bicycles, boats, yachts, etc.

By type, transportation is divided into land, water and air. A special group is pipeline
transport. Transport modes are conveyor belts, conveyors.

1.3. Assumptions and Limitations

Transportation creates the conditions for the formation of local and national markets. On the
one hand, the transport factor depends on the efficiency of the company, which in the market
conditions is directly related to sustainability, and on the other hand, the market involves the
exchange of goods and services, and therefore impossible the market itself. So transportation
is the most important part of market infrastructure.

Further advances in transportation require the use of the latest, constantly updated science
and advanced technology results. The need is growing for the development of vehicles that
can transport increased cargo and increased passenger flow, improving the design of road
infrastructure in the complicated conditions for the construction of transport lines. In

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particular, uninhabited, hard-to-reach areas are thought of. In an effort to increase the speed
of communication and the frequency of departure of transport units, the need to improve
comfort and reduce transportation costs - all this requires improving not only existing
vehicles, but also finding new ones that can fully meet the delivery requirements of
traditional modes of transportation.

1.4. Working methods used

The methodology used in this paper is primarily based on gathering general information on
the topic and analyzing all concepts related to the topic. However, the core of this paper is
based on an analysis of Russia's transport system with an emphasis on two separate
transportation companies. Situational analysis of the company includes SWOT analysis with
its internal and external factors.

The first step in developing a situational analysis is to identify strengths, weaknesses,

opportunities (threats) and threats, or to conduct a SWOT analysis, which is the most
commonly used tool that examines the internal factors of a company (strengths and
weaknesses) along with external factors (opportunities and threats) of the market
environment.

1.5. Research questions

This seminar is helping understand what Russia's transport system is, what its potentials are,
especially in comparison with other countries.

Understanding the importance of this issue, all kinds of transport systems will be studied,
whose impact in various periods of Russia's history has been crucial, both in freight and
passenger transport, namely: water (river and sea), rail, road and air transport .

This paper will look at each type of transport. The general characteristics of the transport
system, its development and improvement over time will be described. Special emphasis on
railway and air transport and two national transport companies, using SWOT analyze.

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 2. Traffic

The term traffic can be defined by the number of vehicles moving along roads, or the amount
of aircrafts, trains, or ships moving along a route (Cambridge University Press, 2020).

In our days, the traffic congestion is present in the life of many car drivers. Every morning
millions of drivers go to work and every afternoon this same people go to home. During this
period in the road the drivers get stressed, get upset with other drivers and so on. In the
congested traffic the drivers go through the phenomenon “stop-and-go” and in this period the
drivers can get late for his job causing a bad environment with the boss and with his
colleagues (Kerner, Boris S. 2004).

Transportation is one of the most important logistics functions. The purpose of the
implementation of this function is the physical movement of goods in space from one point to
another on certain conditions specified by the parties to the transport process in the contract.
It can be argued that the essence of logistics lies in transportation, since it is the
transportation process that ensures the movement of goods through the channels of
distribution of goods and turns commodity or raw materials into material flow.

2.1. Logistics in Tourism

The term “logistics”, known until recently only to a narrow circle of specialists, is widely
used today. The main reason for this phenomenon is that the concept began to be used in
economics.

Historically, logistics has evolved as a military discipline (Jomini, 1830). Here the term has
been known since the 9th century AD (Byzantium), meaning, basically, the clear, well-
coordinated work of the rear to provide the troops with everything necessary, that is, the work
that is an important component of military success.

Priority was given to logistics issues in the army of Napoleon. In Russia, in the middle of the
last century, according to the Military Encyclopedic Lexicon (Military Encyclopedia
Lexicon, 1850), logistics was understood as the art of controlling the movement of troops
both far and near the enemy, and organizing their rear support. At the turn of the century, the
term “logistics” in Russia was not widely used.

Nevertheless, the science and practice of managing material flows in the military field
continued and continues to develop. This is due to the high dependence of the effectiveness
of military operations on a well-coordinated, fast, accurate and economical provision of
troops with everything necessary.

Logistics is a part of economic science and an area of activity, the subject of which is the
organization of a rational process of promoting goods from manufacturers to consumers, the
functioning of the circulation of products, goods, services, inventory management, and the
creation of a distribution infrastructure.

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A broader definition of logistics treats it as the science of planning, managing and controlling
the movement of material, information and financial resources in various systems.

Logistics management of an organization can be considered as strategic management of

material flows in the process of procurement, supply, transportation and storage of materials,
parts and finished inventory (equipment, etc.). The concept also includes the management of
relevant information flows, as well as financial flows.

Logistics is aimed at optimizing costs and streamlining the production, marketing and related
services both within a single enterprise and for a group of enterprises.

Logistics is a view (worldview) on all business processes of an enterprise through the prism
of costs, with the aim of optimizing, controlling and managing them. In fact, the scope of
logistics is so specific and new that at the moment the specialists of this profession in the
labor market are very necessary.

Recently, there has been a tendency to apply the principles of logistics not only in economics
and finance, but also in the social field (social logistics): politics (political logistics),
municipalities (municipal logistics), pedagogy (pedagogical or educational logistics),
psychology (pedagogical psychologized logistics), medicine (medical logistics) and
demography, demographic logistics); virtual logistics, urban logistics, etc.

The main objective of logistics is to optimize internal and external material flows, as well as
related information and financial flows, to optimize business processes in order to minimize
the total cost of resources.

The essence of the classical definition of the general goals of the logistics function is that the
consumer must receive the necessary goods in quality and quantity, at the right time, in the
right place, from a reliable supplier with a good level of service (both before and after the
sale of products) and for a given level of total costs.

A tourism logistics system consists with several groups of activities that interact in different
ways to produce a tourism product acceptable for the tourism market. These subsystems are
composed with hospitality subsystem; the tourist agency subsystem; the transportation
subsystem and the subsystem of tourist attraction.

A hospitality logistics subsystem is composed with the flows of goods, information and
people and the products include food services, beverage and accommodation services. It’s
important to know that how high the quality and how low the price of the food and beverage
service will be depending on the extent of the logistics system is capable of optimizing the
flow of material, semi products and finished products needed for the end product.

An agency logistics subsystem search optimizes the flow of information in a specific area.
These subsystems capture information about the supply and demand for tourist services,
transmit that information through specific channels and approximate the supply and demand
for an agency fee (commission).

A transportation logistics system represents the transformation related with the space and the
time of flows of goods, people, information and waste for the purpose of producing a tourism
product. The optimum flows of goods are achieved with the collaboration of hospitality and
commercial subsystems.

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A tourist attraction subsystem represents the optimization of logistics flows with the intention
of offering a destinations attraction to visitors in the most efficient way. Its important to know
that the tourist attraction include national parks, nature parks, museums, cultural and
historical monuments, shopping centers, entertainment, cultural, other events and so on
(Mrnjevac & Ivanović, 2007)

2.2. Tourist flows

Consistently high rates of economic growth, increasing income and well-being of the
population, strengthening the integration and globalization of world economic processes
require new approaches to the formation of tourist flows and complexes necessary for their
service of goods and services. A tourist flow is a set of people leaving the residence to travel
in different directions on foot or transport for a period of 24 hours to one year without
performing paid activity and returning.

Today we perceive tourism as the most widespread phenomenon of the 20th century, as one
of the most striking phenomena of our time, which really penetrates into all spheres of our
life and changes the world and landscape. Tourism has become one of the most important
factors in the economy, so we see it not just as a trip or vacation. This concept is much
broader and represents the totality of relationships and the unity of the connections and
phenomena that accompany a person on travels.

High rates of tourism development, large volumes of foreign exchange earnings actively
affect various sectors of the economy, which contributes to the formation of its own tourism
industry. Thus, nowadays one cannot fail to notice the enormous impact that the tourism
industry has on the global economy.

Intensive development of international tourist relations entailed the creation of numerous

international organizations, promoting the best organization of this sphere of international
economic relations.

Since the satisfaction of vital and socio-cultural needs is inseparable from man, the tourist
flow as a collection of organized and disorganized (amateur) travelers forms the basis for the
formation of a tourist product.

Tourism flow as a dynamic component influences a number of phenomena and processes in

one area. Only static or dynamic presence of tourists in an area, respectively to the receptive
region, represents a temporary transformation. However, a dynamic presence involves the
involvement of tourists in numerous sports, recreational, cultural and entertaining and other
activities, which is directly reflected in the physiognomy of an area (Čomić, 1997)

2.3. Green logistics in tourism

Green logistics are based on protecting the environment and reducing the costs of logistic
processes. This includes all stages of the product lifecycle, including its recycling and
embodied energy that should be renewable. To achieve this, it is necessary to change the idea

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of logistics, from having the products at the lowest possible costs, to the concept of meeting
all the requirements at the lowest rate of environmental pollution (Knez & Obrecht, 2016).

Current trends in integration and globalization contribute to the active development of

enterprises, but in the pursuit of success, many forget about the environment. Modern
logistics, in order to meet the requirements of time and the development of technology, must
meet such an important requirement as environmental friendliness. A promising direction in
the development of activities in the field of supply chain management can be called green
logistics.

In recent years, increasing development has been gaining in the sphere of "green"
technologies. "Green" technologies are considered innovative solutions in the field of
recycling and recycling of materials, wastewater treatment, energy savings, air pollution
control, environmental protection, renewable energy sources. Each year in the world of
automotive equipment used in logistics activities the atmosphere a huge amount of carbon
monoxide, hydrocarbons and sulfur oxides. Carbon dioxide accumulates in the atmosphere,
the amount of oxygen decreases. Emissions fall on plants, the soil that people inhale is found
in the organisms of humans in the food consumed.

In such circumstances, there is a need to use it in the logistics of green technologies. One can
speak of the emergence of a new concept of green logistics. Green logistics (as an economic
activity) are based on environmentally safe green logistics technologies. Ecological logistics
ensures the movement of materials in all production processes until it is transformed into a
commodity product and waste, followed by maintenance of waste before disposal or safe
storage in the environment. Environmental logistics also provides for the collection and
sorting of waste resulting from the consumption of commodities, their transportation,
disposal or safe storage in the environment.

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 3. Representation of the area

Russia or the Russian Federation is one of the largest and largest in the country in the world.
Russia is huge not only territorially. It has enormous political, economic and cultural
potential. Located east of Europe and north of Asia, Russia occupies the third part of the
Eurasian mainland. The European part of the country covers the territories west of the Ural
Mountains, and the Asian part occupies huge territory and lies east of the Urals. This section
includes Siberia and the Far East.

According to the latest data, more than 145,9 million people live in Russia (Worldometer,
2020), with an area of almost 17.1 million km2 (UN Department of Economic and Social
Affairs, 2016). The capital of Russia is located in Moscow. Russian is considered to be the
national language. According to its system of government, Russia is a federal state, headed
by the Prime Minister and the Prime Minister. According to the Constitution of the Russian
Federation, it includes 83 cases: 46 regions, 21 republics, 9 borders, 2 cities of federal value,
4 autonomous regions and 1 autonomous region.

Namely, Russia has the deepest lake in the world (Baikal), the highest peak in Europe
(Elbrus), the longest river in Europe (the Volga), the largest lake in Europe (Ladoga) and the
cold hemisphere of the Northern Hemisphere (Oimiakon).

Russia has the highest figure in the countries bordering it. Total 18. This includes Norway,
Finland, Ukraine, Abkhazia, Belarus, Poland, Estonia, Georgia, Kazakhstan, China and some
other nearby countries. Russia has great ethnic and ethno-cultural diversity. Most of the
population recognizes Orthodoxy and this makes Russia the country with the most Orthodox
population in the world.

The length of the territory of Russia led to the diversity of its relief. The land is occupied by
the plains, which can be divided into two main parts: the eastern and western. In all, six
orographic parts stand out in the relief of Russia: the Eastern European and Western Siberian
Plains, the Ural Mountains, the Middle Middle Pliers, the Fennoscandia or the Kolo-Koryl
Regions, the Mountains of the South and East of Russia.

Russia is an industrial country with a dynamic economy. Adopted country currency - Russian
ruble.

Russians are considered very welcoming. They love to invite friends and acquaintances to
their home to have a party or just visiting. They fill a table with food and do everything to the
hangout go well. They value friendship very much but are also sincere and prefer a
concentrated expression around strangers, and once they gain confidence they change to a
funny and joking personality (The Ministry of Science and Higher Education of the Russian
Federation, 2020).

Russia is the largest country in the world and although it has its own culture, it borders many
countries with their own culture like China, Mongolia, Poland, Norway, and so on. This
makes people from borders have a mix of cultures and nationalities and the country itself
having endless cultural places like historic cities and buildings, natural beauty like mountains,
lakes, tundra, and countryside (Kwintessential, 2020).

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 4. Presentation of trends (In destination)

Like the country's economy, the logistics market in Russia is growing. Particularly active
growth can be seen in the segment of companies that provide comprehensive services for the
delivery of goods, warehousing services. As far as the main trends are concerned, they are, in
our opinion, the following.

First, the logistics market in the regions is becoming more civilized, which is explained by
the expanding presence in the regions of large Western companies.

Second, it should be noted that in the warehouse segment, in the construction of modern
terminals, there is a real boom in the activities of developers in Moscow and the regions.

Third, for customers of logistics companies, quality and service characteristics rather than
service costs are becoming increasingly important. And the trend is even for regions where
previously buyers were very price sensitive. Now they need a complex of additional services,
such as delivery tracking, delivery confirmation via SMS, packaging, online shipment
tracking. Moreover, more and more companies prefer to outsource logistics management to
outsourcing.

Sharing Economy

The sharing economy is defined as a peer-to-peer economic model. It’s an activity based in
providing, acquiring or sharing access to goods and services and occurs in an online platform
that connects buyers and seller. In our days, the sharing economy is growing very fast but
faces significant challenges. Since a long time, people shared their goods but with the
development of internet this process helped to create a good connection between owners and
buyers and allow the owners gain some extra money and the buyers save money. This type of
dynamic it’s known as peer-to-peer economic model (Investopedia, n.d.).

According with the official site Statista, the sharing economy in Russia has an accelerated
growth in the last years. In Russia the sharing economy is based in car sharing, carpooling,
property rental, consumer to consumer sales of goods, peer to peer rentals of goods and
online marketplaces for self-employed service providers (Statista, 2020).

Which transport is most used

In the urban areas, like Moscow and Saint Petersburg, the transport that is most used is the
metro. As you may know Moscow and St. Petersburg has a highly efficient, clean and safe
metro system and the trains leaves every 90 seconds in rush hour. Every day the train handles
up with 9 million passengers and even with those volumes, the trains are not as busy as those
in London, Tokyo and so on (Kwintessential, 2020).

The Moscow Metro, known as the People’s Palace was inaugurated in 1935 in the time of
Stalin. This largest metro connects the city center with the residential and industrial areas and
allows you to travel quickly. This metro has made up of 14 lines, 228 stations and is 393,7
kilometers long; the deepest station, at 84 meters below ground, is Victoria Park (Park
Pobedi), where you will be able to find the longest escalator at 126 meters long (Russiau,
n.d.) It’s important to say that when you are in metro you can’t take pictures and if you take
your camera can be confiscated (Kwintessential, 2020).

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 5. Carriage of passengers and luggage

Transport and carriage of passengers and luggage in all countries that are very well developed
is really good and can be leading sector of its economy. Especially as emerged part of society
in countries with emerging economy.

Russia is the worlds´ biggest country with a lot of potentials not only in gas, oil, metal but
also in terms of transport and logistics services. The creation and development of
international transport corridors are necessary not only from a commercial point of view;
they also have some economic, political and technological significance. Due to international
transport corridors, it is possible to synchronize the exchange of goods between countries,
reduce the cost of transportation, and increase the possibility of developing the transport
infrastructure. (Kuzmenko et al., 2013).

Traffic is one of the most significant development factors that has been given a driving role
when it comes to importance in the modern history of mankind. This role is based on a social
function that traffic is achieving by connecting people and exchanging experiences.

Traffic represents the link between production and consumption. It is a specific economic
activity which does not create new products but transports. Creating new value in traffic it
does not have its own value, but it is included in the value of goods cost. Traffic represents
the final stage of each production process.

According to the sector structure of human activities, traffic is classified as narrower

activities, that is, the tertiary sector. Geographically, traffic represents every form of
transportation of people, material goods and communication with each other. Transport of
people and goods is done by land, water and air and communication is by telecommunication,
postal and internet.

All types of traffic have their place and role in people's lives. Air traffic has come to
expansion and gained planetary character.

The Russian Federation is the largest country in the world, its European part accounts
important percent of the surface of Europe. Therefore, this huge country extends across a
number of areas, some of which are very important in terms of traffic in the world.

However, due to the harsh climate, the sparse population and the great closeness of Russia,
many opportunities for traffic development have not been exploited in the past. Even so,
many data on traffic in Russia are out of the ordinary.

With the stabilization of desire in the past period, rapid growth and development in all fields
began, and the transport field is one of the most important in the further reconstruction of the
country because of the great distances as an important factor for future development.

Russia has a developed rail, road, water and air network. The largest traffic hub is the capital,
Moscow, but because of the vastness of the country and the existence of strong areas and
their headquarters, important traffic nodes are: St. Petersburg, Novosibirsk, Yekaterinburg,
Nizhny Novgorod, Kazan, Rostov-on-Don, Vladivostok.

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 Road transport in Russia

Road transport - a mode of transport, transportation of goods and passengers on cars (trucks,
cars, buses, saddle vehicles and trailers). It plays an unreasonably modest role in the freight
and passenger transportation of modern Russia.

The harsh climatic conditions that cause higher than other developed countries, the cost of
building roads, operating roads and vehicles, only a partial explanation for this. After all,
even in populated, economically developed regions of Russia, motor vehicles are poorly
developed, and so far it is a major "stumbling block".

Occupying the first place in the world on the surface of its territory, Russia in the average
density of highways is inferior not only to the highly developed, but to most developing
countries. The total length of solid-coated roads in Russia at the end of 1996 was only 745
thousand km (Lavic, 2002), and in most cases, even these roads are not in line with generally
accepted international standards. Main freight and passenger transport is carried out in cities
and their immediate surroundings.

Picture 1 Russian federal highways with insert map of Moscow and Moscow Oblast

Source: Wikipedia, 2013.

In the passenger area in Russia, the role of buses leading in domestic passenger transport
plays a large role. In the largest cities of Russia, the use of a trolleybus, a tram, which
received significant development in major cities, and the tram city of Russia-St. Petersburg,
where for the first time in our country, in 1907, this mode of transport appeared (Lavic,
2002). And currently the city has the longest tram network in the world, more than half of
which are in emergency mode. There are metro in the six largest cities in Russia-Moscow, St.
Petersburg, Nizhny Novgorod, Samara, Yekaterinburg and Novosibirsk. The total operational

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length of the metro tracks in these cities is almost 390 km (Lavic, 2002), but a considerable
part of them falls in Moscow.

Rail transport in Russia

The total length of the Russian railways is about 122 thousand km (ROSSTAT, 2019). By the
total length of railways, Russia is inferior to many countries of the world.

Rail transport has a number of advantages, which also determine its predominant
development in the country. It can serve almost all sectors of the economy. Not all types of
transport can provide mass transportation of goods and people in directions several thousand
kilometers year-round. Railway transport can be carried in any climatic zones, in any weather
and at any distance, which provides a stable connection between the regions (Morozovoy,
2007).

Picture 2 Map of rail transport in Russia

Source: Wikipedia, 2009.

The industry is characterized by free placement, reliability and safety, regularity, and large
transportation capacity. It makes it possible to transport goods and passengers at high speed,
which strengthens its advantages.

Also among the advantages of rail transport is the relatively low fare. In addition, trains are
less polluting than any other mode of transport. The work of such vehicles never stops.

The disadvantages of railway transport include the need for investment and labor. In addition,
rail transport is a major consumer of metal. This also includes the bureaucratization of the

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process of transportation associated with the execution of accompanying documents, which
sometimes delays the path.

The most important railway hubs are the capitals: present-day Moscow and the former St.
Petersburg, which have several large and monumental railway stations. The rail network is
undergoing intensive renovation, and there are plans to modernize the country's oldest
railway line, Moscow - St. Petersburg, to allow high-speed trains to run on it. Due to poor
roads, rail is a very common mode of transport and runs down very long lines. Some of them
are:

 Trans-Siberian Railway
 Moscow-St Petersburg Railway
 Baikal-Amur Railway
 The North Caucasus Railroad
 October Railway.

Maritime transport in Russia

Russia is a coastal country with access to many seas, but these seas are most often
inaccessible because they have been frozen or closed by other states for most of the year,
such as the Baltic or Black Sea. The country has a large number of seaports, but there are few
important ports the global meaning, for the reasons before stated. The most important ports
are (Lavic, 2002):

In the Baltic - St. Petersburg and Kaliningrad

On the Black Sea - Novorosijsk, Sochi and Tuapse

On the Sea of Azov - Rostov-on-Don, Taganrog

In the northern seas - Murmansk, Arkhangelsk, Igarka, Dudinka, Tiksi

In the Pacific - Petropavlovsk Kamcatsky, Nahodka, Vadivostok.

Russia's internal water traffic is highly developed, as there are extraordinary conditions for
this. It is a lowland area, a large number of long rivers, the country's orientation towards
inland waterway traffic, where most of the inhabitants live. The length of roads, navigable
rivers and canals is as much as 101,000km (Lavic, 2002). Although the backbone is made up
of only Russian rivers, such as the Volga, the Don, the Kama, the Oka, the Northern Dvina.

Air traffic in Russia

Air traffic is the most expensive, which limits its use of perishable goods, the more important
it is for passenger traffic. In the far north, helicopters that carry cargo and passengers, provide
medical assistance and the like play an important role.

As Russia is a vast and sparsely populated country with many isolated cities and areas, air
traffic is of greater importance than in other countries. Some cities in the far north and far
east of the country depend solely on this type of traffic. It should be added that Russia is one

13
of the most important countries in the space exploration program and that the country
manages a few active cosmodromes.

Also, Russia has a developed aviation industry in all fields. In Russia, there are a large
number of airlines, of which the most famous and largest, the state-owned company Aeroflot,
is also one of the most important for the whole world. Most airlines are of the regional type -
usually every Russian state unit (oblast / federal republic) has its own airlines, which most
often maintains flights between major cities with Moscow, St. Petersburg or some other
million city in the country.

Officially registered airports in the country 143 are listed as IATA Airport Code (Aeroportix,
2020). The most famous and significant ones are:

 Sermetovo International Airport in Moscow. Svo

 Moscow Domodedovo International Airport - DME
 Vnukovo Airport in Moscow - VKO
 Pulkovo Airport in St. Petersburg - LED
 Tolmacevo Airport in Novosibirsk - OVB
 Kazan International Airport in Kazan - KZN
 Samara - Kurumoh International Airport - KUF
 Yekaterinburg Koleovo International Airport - SVX
 Rostov-on-Don Airport in Rostov-on-Don - ROV
 Jemeljanovo International Airport in Krasnoyarsk - KJA
 Vladivostok Artjorn International Airport - VVO
 Soca Airport to Sochi – AER

Moscow is Russia's most important aviation hub and one of the largest in the world with
three airport lifts and several smaller ones. Most other major airports are typical of large
cities. The exception is the Airport in Sochi, whose traffic relies mostly on summer tourism,
and the Pulkovo Airport in Sankteperburg.

5.1. SWOT analyze

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to

evaluate a  company's competitive position and to develop strategic planning. SWOT analysis
assesses internal and external factors, as well as current and future potential (Investopedia,
n.d.). SWOT analysis is an effective and easy way to identify the real state of your
organization, as well as the opportunities and dangers that lurk in the environment. The only
thing to do is to objectively look at all your virtues and disadvantages, and on that basis to
decide which way to go.

SWOT analysis is a realistic assessment of an enterprise and is a quick and easy tool for
determining the overall position of an enterprise. It is necessary to identify not any strengths,
weaknesses, opportunities and threats, but those related to the strategy.

The framework for research and questions when conducting a SWOT analysis is listed in the
following table. When drawing conclusions from the SWOT inventory, keep in mind some

14
features are more important, some are irrelevant, some strategic weaknesses can be of
extreme importance, some are irrelevant or easily correctable. Some opportunities are more
attractive than others.

5.2. Aeroflot – SWOT

S W
S1: Special state support because the W1: Inefficient operation of some lines,
company is owned by the state; concessions to local airlines;
S2: Leading air carrier of the Russian W2: High fares, taking into account the
Federation; consumer opportunities of Russian citizens;
S3: Increase of the company (the company W3: New luggage transportation rules,
acquired Transaero in 2015); introduced in 2018;
S4: Compliance with the highest international W4: Weak image of company on world –
security standards, the highest level of wide level;
security in Russia; W5: Weak knowledge of foreign languages of
S5: favorable geographical location (Moscow, company stuff;
Shermovo Airport), high airport throughput; W6: The need for frequent repairs and
S6: High quality and safety of services checking the technical condition of
provided; equipment;
S7: Airline with youngest fleet in Russia; W7: Management Challenges: Large
S8: Additional consumer value for brand Personnel and Lack of Unified Policy.
visibility account;
S9: Official carrier for CSKA and Manchester
United;
S10: Organizer of the FIFA 2018 FIFA World
Cup in Russia;
S11: Member of Sky Team;
S12: Great online tickets and other IT
services;
S13: Reputation of a reliable partner;
S14: Years of experience;
S15: A wide range of services;
S16: Great financial opportunities.

O T
O1: Increasing travel needs to Russia;
O2: Expanding flight geography;
O3: The presence of a developed long-haul
network;
O4: Leading position in product quality;
O5: Diversity management inside company;
O6: Employing international stuff members;
O7: Weakening competitors;
O8: Deep integration in the Eurasian transport
system;
O9: IT technology development.
T1: Covid 19 – Pandemic;
T2: Competition from Western carriers;
T3: Public dissatisfaction with the degree of
security provided and, as a result, lawsuits;
T4: Increase in the transport market of
companies providing transport services;
T5: Adoption of legislation by the Russian
Federation that in one way or another restricts
the powers of transport enterprises;
T6: Increased economic risk in times of crisis;
T7: Increase in prices of primary and supplier
materials used in the provision of transport
services.

15
Using the many years of experience of the best specialists, the company can improve the
quality of the services provided and increase the security conditions.

Although the company occupies an overwhelming share of the industry market, thanks to its
personnel, services and financial capabilities, it can only strengthen its position.

The company has an excellent opportunity to develop a scientific and technical base, thereby
simultaneously increasing its attractiveness for domestic and foreign counterparties. You can
take part in an international thematic exhibition to demonstrate your achievements, to
conduct other promotional events. To draw the attention of the authorities to the
unsatisfactory condition of the tracks and rolling stock and to resolve this issue together.

Scientific developments and their further application using the funds of the federal budget or
company IC will help significantly increase the safety of transportation. The Russian
government may initiate the creation of a centralized management structure for the company
and a clear distribution of all management functions.

For the implementation of certain projects, the company must use both its resources obtained
through the optimization of the entire internal system and scientific developments, and
whenever possible attracting funds and budgets of different levels.

5.3. Poezd Ru – SWOT

S W
S1: Access to railway infrastructure; W1: Relatively low transportation speed
S2: Low cost when transporting long (especially over short distances);
distance; W2: High cost when transporting over short
S3: Work with the widest possible range of distances;
goods, the ability to transport bulk goods; W3: Difficulty in cargo clearance;
S4: In some cases, the only alternative for the W4: Tariff regulation by the state.
transport of goods;
S5: State support for investment in
infrastructure development;.
O T
O1: The development of international trade T1: Covid 19 Pandemics;
(especially in the framework of the transport T2: Potential decline in government support
of goods from Europe to Asia and vice and investment in view of the economic
versa); crisis;
O2: Improving the competitiveness of the T3: State investment in the development of
transportation price after the introduction of the road network.
fees charged on trucks for the use of public
roads;
O3: The growth potential of export
operations of the main shippers of Russian
Railways.

16
Today, Russian Railways owns almost the entire railway network of the country, including
the railways themselves, depots, logistics centers, etc. Also, Russian Railways owns more
than 90% of all locomotives in the country. This advantage allows the company to remain a
leading operator in the railway freight market. Other companies wishing to transport their
goods by rail in the country need to pay tariffs for using the infrastructure. This situation
creates a significant competitive advantage in the freight market.

By rail, you can transport the maximum possible amount of cargo, which cannot be said
about cars. The tonnage of cars significantly exceeds the tonnage of trucks. This allows you
to transport on trains those goods that cannot be delivered using trucks. In some regions of
Russia, automobile communication is still not developed.

On the contrary, thanks to the rapid development of railway infrastructure in the 20th century,
a much larger number of subjects of the country have railway connections. In such
circumstances, sometimes the use of rail freight is the only possible alternative.

One of the parts of the State Program “Development of Transport Infrastructure” 19 is the
subprogram “Main Rail Transport”, within the framework of which it is expected that
measures will be taken to develop the railway infrastructure. Also, according to the
development program of Russian Railways Holding until 2030, several ways of state
participation in the development of infrastructure are provided: depositing funds in the
authorized capital, preferential financing of recouped investment projects, etc. Despite the
fact that state support is primarily aimed at the development of passenger transportation, the
positive effect for cargo transportation is also obvious because in many respects the
infrastructure for both directions of the Russian Railways coincides.

As it is known, Russian Railways is a company with 100% state participation. At the

moment, the Russian Federation is implementing two state subprograms of the general
program for the development of the country's transport system aimed at the development of
roads: "Road facilities"; "The development of high-speed roads on the basis of public-private
partnerships." As part of the first of them, work is underway to modernize the current
infrastructure regional and federal highways. In the framework of the second subprogram, the
company “Russian Highways” was created on the terms of a public-private partnership; The
main goal of the company is also the repair and maintenance of roads of federal significance.

17
 6. Findings

After all, when the enterprise use logistics should be required by the need to upgrade the
coherence of the work of all departments and the entire enterprise. The purpose of upgrade
the logistics system at the first stage may be to rise the reliability of the receipt of goods at
the enterprise and decided the necessary volumes of purchase, taking into account delivery by
periods.

The furnish of goods sets the rhythm of the system, as it permits you to adjust the produced
stocks at the enterprise and rightly ensure uninterrupted production of goods. The
organization of production must be part of logistics planning. The concept of “pulling”
permits to reduce as much as possible the volume of stocks along the whole path of material
flow at the enterprise (stocks of raw materials, stocks of finished goods and so on).

In rule, very attention must be paid to the level of logistic service. Wholesale and retail
enterprises can act like consumers of material flow.

Ensuring the powerful implementation of all the upward functions and the activities of the
entire enterprise as a full in the market can be achieved by generating a logistics department
at the enterprise. At the same time, the logistics systems are called upon to act as unifier of
the material and accompanying information flow of the enterprise.

All things considered, logistics is the organization of processes of different types. Is a new
scientific direction related to the development of rational methods for managing end-to-end
material and information flows in order to achieve maximum total work efficiency.

A meaningful difference between the logistics approach is a systematic review of the totality
of processes from the position of a single material- conducting chain. The integration of
single links in this chain is transported out at the technical, technological, economic and
methodological level and the minimization of time and resources is achieved by optimizing
end-to-end management of material and information flows.

The costs of the single components of logistics are nearly interconnected. For example,
savings on transportation cost can conduct to a meaningful increase in costs cause by the
increase in stocks and savings on packaging of goods, to extra costs induced by damage to
goods during delivery and so on.

Logistics is projected to supply optimal management of enterprise resources: human,

informational, means of production, material and energy. On the other hand, the main
objective of setting up logistics is to supply the enterprise with the necessary resources in a
given volume, of a required quality, in the right place by the owing date, for a fixed price.

The objective of companies and their structural divisions, managing flows from suppliers to
consumers, is to coordinate all parties involved like suppliers, purchasing agents,
manufacturers, marketers, distribution channels and buyers. The functions of these are: sales
forecasting, distribution planning, production planning, raw materials purchase, incoming
transport flows, company warehouses, acceptance, packaging, in-plant storage, shipping,
outgoing transport flows, customer orders, delivery and after-sales service. Marketing

18
logistics takes care of four main tasks: order processing (how to handle orders), warehousing
(where and how to store stocks), stock volume (how many stocks to store) and transportation
(where and how to deliver goods).

Logistics is running today as a modern competitive strategy of business entities, which runs
as the resource-saving point of entrepreneurship. This results into a systematic approach to
the movement and development of materials, information, financial and labor resources in the
categories of flows and stocks.

In this work we used SWOT methods of analysis of the external and internal environment,
which are largely used by organizations both in Russia and abroad. The SWOT analysis is
very important for any company, since it is precisely on them that the formation of the setting
of goals and strategy in the organization are based.

With this work we can see the importance of leading an analysis in an organization. Showed
how the results of various types of analysis can affect some decisions, and also emphasized
the importance of a detailed analysis of the internal structure and external environment in
shaping the organization’s strategy.

19
 7. Conclusion

Summarizing the topic logistics, the logistical approach to the formation of a tourism product
involves obtaining a synergistic effect, which is a multiplicative effect of synchronizing the
process of maintaining tourists in space and time. The concept of logistics aims at combining
the actions of all structures of the tourism industry, from obtaining travel bookings to high
quality services to tourists, to achieve economic and social impact.

The main novelty of the logistic approach to the organization of tourism industry enterprises
is to provide an organic relationship between the various structures of formation, promotion
on the market and implementation of the tourism product, as well as through the management
of material and financial flows with the help of the latest information technologies.

The essence of the concept of logistics in tourism activities is to organize economic

management based on the integration and optimization of the process of formation of tourist
flows and necessary for their maintenance of material, financial, service and information
flows. Logistics allows you to define a tourist flow as a set of processes that allow the
movement of tourists over a specified time interval and measured in absolute units.

Logistics in tourism aims to ensure the efficient formation of a tourism product based on
different flows of tourists. The logistical approach to economic management enables the
transition from discrete (intermittent) to end-to-end (integrated) planning of tourism
activities.

With the example of Russia’s transport, in more metropolitan cities like Moscow and St.
Petersburg the metro is one of the most efficient transports, serving everyday about 9 million
people and even with that numbers it doesn´t get crowded like other major cities. But with
Russia’s enormous dimensions and regions being apart from each other, the main two
transports on this case is the railway, being one of the safest and cleanest transports, with
many advantages like running on almost every climate condition, and the airways, with many
important airports dispersed around the country.

With this we were able to see that transport and logistics itself were a big influence on its
development. As Russia being the largest country in the world, the transportation was a
primarily need to connect people and materials between other cities, regions and countries.

20
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