Trade.Information

Toyota Tests the Feasibility of using of Trans-Siberian Rail to Ship Parts

Toyota Motor Corp. has tested the feasibility of using the Trans-Siberian Railway for freight by shipping precision-processed auto parts from the Pacific port of Vladivostok to Moscow.

Japan's top automaker carried out the experiment to check whether it can safely ship precision parts to the western part of Russia, including St. Petersburg, where it will start assembling automobiles in late December.

The latest experiment was the third of its kind, following tests in July 2006 and January this year.

A Toyota official said transport of auto parts by rail would allow Toyota to flexibly manage its output volume in Russia, because the number of days needed for shipment is less than required by sea.

But the official noted that Toyota will continue to transport auto parts to its Russian plant by ship while it assesses the extent of damage caused during the rail shipment.

Toyota also needs to assess the problem of cost, as rail freight is more expensive than by ship, the official said.

Earlier this month, the governments and private sectors of Japan and Russia agreed to cooperate in improving the Trans-Siberian Railway, with the aim of increasing the transportation of goods from Japan to western Russia.

About Trans-Siberian Railway
The Trans-Siberian Railway or Trans-Siberian Railroad (Транссибирская магистраль, Транссиб in Russian, or Transsibirskaya magistral', Transsib) is a network of railways connecting Moscow and European Russia with the Russian Far East provinces, Mongolia, China and the Sea of Japan.

Original plans and funding for construction of Trans-Siberian railway to connect the capital, St. Petersburg, with the Pacific Ocean port of Vladivistok, were approved by the Czar Alexander II in St. Petersburg. His son, the Czar Alexander III supervised the construction; the Czar personally appointed Sergei Witte Director of Railway Affairs in 1889. In 1891 the Czar Alexander III officially blessed the construction of the Far Eastern segment of the railway in Vladivistok and the first Siberian segment from Chelyabinsk to Omsk. Imperial State Budget spent 1 billion 455 million rubles from 1891 to 1913 on the railway construction, a record, which was surpassed only by the military budget in World War I.

Note for Freight
Freight is a term used to classify the transportation of cargo and is typically a commercial process. Items are usually organized into various shipment categories before they are transported. This is dependent on several factors:

The type of item being carried, i.e. a kettle could fit into the category 'household goods'.
How large the shipment is, both in terms of item size and quantity.
How long the item for delivery will be in transit.
Shipments are typically categorized as household goods, express, parcel, and freight shipments.

Furniture, art, or similar items are usually classified as “household goods” (HHG).

Very small business or personal items like envelopes are considered “overnight express” or “express letter” shipments. These shipments are rarely over a few pounds, and almost always travel in the carrier’s own packaging. Service levels are variable, depending on the shipper’s choice. Express shipments almost always travel some distance by air. An envelope may go USA coast to USA coast overnight or it may take several days, depending on the service options and prices chosen.

About Toyota Motor Corporation
Toyota Motor Corporation or Toyota in short, is a Japanese automaker. It is the world's second largest automaker behind General Motors; however it ranks first in net worth, revenue and profit. It is also the only car manufacturer to appear in the top 10 of the BrandZ ranking.

The company was founded in 1937 by Kiichiro Toyoda as a spinoff from his father (Sakichi Toyoda)'s company Toyota Industries to create automobiles. In 1934, while still a department of Toyota Industries, it created its first product Type A engine and its first passenger car (the Toyota AA) in 1936. It is headquartered in Toyota, Aichi and Bunkyo Tokyo, Japan. It also provides financial services through its division Toyota Financial Services and also creates robots besides automobiles. The company along with the original Toyota Industries form bulk of the Toyota Group.