- RQ1: What effects do legislative changes have on the business environment between Finland and Russia?
- RQ2: What types of new business models are enabled by the changing environment?
- RQ2.1: How are innovation and new technologies enabling these business models?
2. Sustainable Business Models in Logistics
3. Materials and Methods
4. Case Study Findings
4.1. Previous Findings from Manufacturing and Transportation Companies
4.1.1. Semi-Structured Interview Results
4.1.2. Survey Results
4.2. Findings from Transportation Companies of South Finland through A Second Survey
Conflicts of Interest
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|Finnish Interviewees||Russian Interviewees|
|General remarks on the international logistics industry||Share of railway freight is growing between Finland and Russia.|
Railway connection from Finland to China has challenges in the intermediary border crossings.
International operations target CIS countries, Mongolia and China.
The Russian market has fragmented from a few large customers to numerous smaller ones.
The Imatra–Svetogorsk border crossing point could be used to relieve pressure from other points.
|The Northern Sea Route alongside supporting infrastructure is being developed.|
High importance of a Russian railway corridor between West Russia and the Far East as an alternative to the conventional sea routes.
Containerization rate is still low in comparison to Europe.
Balance of imports and exports is offset by decreasing imports and stagnant exports.
Local ports are increasingly favored over transit countries.
|National logistics infrastructure and competition||Ongoing and planned development of infrastructure.|
Some disagreements on the emphasis of development.
There is demand for new entrants in the railway industry to create more flexible supply networks.
Competition on railways is fierce; few actors handling bulk material are realistically competing.
Role of the state in stimulating competition on railways.
Subcontracting and other supporting services.
|Infrastructure in Central and East Russia is not optimal, but it is being developed.|
Russian railways (RZD) remains as a focal actor in the industry.
Political and economic uncertainty is a challenge, but there is development and growth potential.
|Innovation in the logistics industry||Research and development activities emphasize environmental sustainability.|
Blockchain technology could improve communication between separate actors, information exchange and tracking of shipments, and cut costs by reducing unnecessary slack within the logistics operations.
|Common platform to unify separate actors is being developed.|
Academy and businesses show interest toward Blockchain technology.
The environmental sustainability of logistics industry is not being actively developed.
|International road transport has lower volumes of cargo than before.||The renewed highway E18 on the Finnish side is a safe and working road.|
|The border formalities have become stricter and therefore take more time, which disrupts the traffic flows.||Transport business between Finland and Russia is volatile, thus not very appealing for Finnish companies.|
|Road use taxation sets challenges for international operations.||Demand for services targeted to the professional users of road E18.|
|The Russian side of E18 (Scandinavia road) only has one lane near the border; 2–3 lanes would allow for a smoother flow of road traffic and enhance safety.||Russian companies handle most of the international road transports between Finland and Russia.|
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