Hanjin Shipping set to enter Russian market

Hanjin Shipping is entering the Russian distribution industry, a fast-growing market.

The Russian market is regarded as 'A Land of Opportunities' by global logistics companies on account of its double-digit growth in average cargo volumes since 2011.

Owing to the potential, Hanjin Shipping will establish a foreign branch in Russia. The company has dispatched employees for a pre-inspection in Saint Petersburg.

Hanjin Shipping revealed the Saint Petersburg-based branch will be built this year. The branch's primary responsibility will be 3PL business.

Saint   Petersburg is a federal subject of Russia located on the Neva River at the head of the Gulf of Finland on the Baltic Sea. The city is not only has the second largest economy among Russian cities, but is also the largest port city in Russia.

In addition, the city is a distribution hub for Western Russia and critical for the automotive and ship building industry there. These are the reasons that Hanjin Shipping decided to establish its office in Saint Petersburg, and not in Moscow.

A representative from Hanjin Shipping explained, "We're expanding our distribution business into developed and developing countries like China and India. Through this, our business expansion into Russia is following the same plan."

He added, "Russia's government is maintaining a mood where the country will continue to increase exports of consumer goods and imports of raw materials. So not only Hanjin Shipping, but also our government should be aggressive to advance into the Russian market." < 김보람 기자 brkim@ksg.co.kr >