RAIL TRANSPORT IN E-COMMERCE: AN OVERVIEW OF THE OPPORTUNITIES

Abstract

The e-commerce market is constantly growing and attracting new entrants, but some developing trends are controversial.

The study presents the results of a comparative analysis of logistics development strategies in the e-commerce market in the Russian Federation and the Republic of Indonesia. The analysis shows that while technological solutions are more general and they can be disseminated as best practices, the structure of transportation depends on local characteristics.

In Russia rail transport has an important place in the overall transport volume, but in order to be integrated into the e-commerce market, railway companies have to change their existing logistics significantly. This study presents an analysis of strategic documents, examining the prospects for Russian Railways to enter the e-commerce market and the challenges encountered along the way. Rail logistics is a rather conservative industry but nowadays it ready to embrace new technologies, cloud-based solutions and services, such as track and wagon sensors, intelligent video analytics and so on. In Indonesia, as an island nation, rail transport is not that important. The country faces the challenge of developing land transportation by different modes of transport.

The article not only identifies general trends in the use of logistic instruments for small-scale shipments but reveals possible obstacles and ways to improve logistics. Some recommendations are made, as E-commerce logistics systems seek improved communication, transparency in the supply chain, improved customer satisfaction, distribution and logistics optimization, cost reduction, improvement in efficiency and on-time delivery. The land transportation industry is crucial for the growth of national connectivity and contributes significantly to national development.