Russian Car Market Sparks Into Life, and Heads for Another Logistics Problem

ST PETERSBURG, Russia, May 20, 2010 - Russia car sales are back on the rise but the logistics challenges of a
huge country with a poor road system remain. In fact for the delivery of
finished vehicles, there may be a need for as much as 50% more capacity.

The car market has sparked into life since the introduction of a
scrappage scheme in March 2010. Sales in April were 20% higher than the same
month in 2009 and, with continuing high tariff walls against importing new
cars, look set to keep boosting local production. Both OEMs and logistics
providers are planning for better times ahead.

"The system is not currently under pressure," says Jean-Philippe
Jouandin, supply chain director for Renault Russia. But since an improving
market means more sales in far-flung cities other than Moscow and St
Petersburg, there will be a consequent increase in the average delivery
times. Jouandin predicts a requirement for some 50% more capacity for
outbound logistics.

"Since this…increase will arrive at the same time as a market increase,
it will [lead to] some difficult challenges for the global finished vehicles
transportation market," he says.

These challenges and more will be the subject of intense discussions at
this year's Automotive Logistics Russia conference, to be held in St
Petersburg from 22-24 June 2010. The fifth in the annual series, the event
anticipates the challenges ahead with the theme: 'Growth through Logistics:
Controlling quality, processes, price and delivery in today's Russia.'

Speakers at the event include Jouandin, Ivan Karasev, head of logistics
for Russian OEM Sollers (which has a joint venture with Fiat), Jan Bures,
head of group service for Volkswagen Rus, and Dmitry Federov, logistics and
dealer support manager for Nissan Rus.

They will be joined by other OEMs and a wide range of logistics service
providers, reviewing the supply chain and transport options which include
roads, rail, ocean & short sea, and ports & terminals.

There will also be expert contributions from legal firms which help the
industry tackle the increasingly onerous customs and taxation system.

"The main problem faced in importing cars is a high rate of customs
payments and the high cost of car deliveries," notes Alexander Zhuravlev,
chief executive of transport provider Major Auto Trans.

Meanwhile capacity in the market continues to be added, with a new
General Motors assembly plant on stream in 2010, and new logistics solutions
including the use of trans-continental rail to move Japanese cars via the Far
Eastern port of Vladivostock.

The Automotive Logistics Russia conference draws wide attendance from
across the Russian automotive industry, and is supported by Gold sponsors
Gefco, a full-service LSP, and by Major Auto Trans and by Rolf SCS, both
providers of finished vehicle transport.

The conference is part of a worldwide series of Automotive Logistics
events, which is supported by Global sponsor Wallenius Wilhelmsen Logistics.

Silver sponsors for the Russia conference are BLG Logistics, Finnlines,
Priority Freight, Schoeller Arca and Selsystem.

More information and register to
attend:www.automotivelogisticsrussia.com

Contacts:

Marketing Manager Elisabeth Quesseveur:
elisabeth.quesseveur@ultimamedia.com +44-208-987-0902

Automotive Logistics Russia conference chairman Louis Yiakoumi:
louis.yiakoumi@ultimamedia.com +44(0)208-987-0944

Automotive Logistics magazine Editor Chris Ludwig:
christopher.ludwig@ultimamedia.com +44(0)208-987-0968

All these activities are from Ultima Media Ltd, a provider of information
in print, online and at events dedicated to the global business-to-business
automotive industry. www.ultimamedia.com

Contacts: Marketing Manager Elisabeth Quesseveur: elisabeth.quesseveur at ultimamedia.com, +44-208-987-0902, Automotive Logistics Russia conference chairman, Louis Yiakoumi: louis.yiakoumi at ultimamedia.com, +44(0)208-987-0944, Automotive Logistics magazine Editor, Chris Ludwig: christopher.ludwig at ultimamedia.com +44(0)208-987-0968