"On the one hand, allowing companies from the EAEU countries to carry out cabotage road transport in the Russian Federation may have a positive impact on the market. For example, new transport and additional investments in logistics infrastructure will appear. Also, most likely, new jobs will be created for Russian citizens, since this is more economically profitable than hiring expats.
And the increase in capacity itself will reduce the burden on Russian transport companies. However, there is a flip side to the coin: competition in the freight market will increase, which will entail further "waves" of changes in prices for services, and it is not yet known whether they will be higher or lower.
Despite the annual growth in cargo transportation volumes, domestic supply still covers demand, even in the high season of November-December. That is, competition is still quite strong, this is not some new market that can be easily conquered “in one day,” says Andrey Polikashin, Marketing Director of ILC.
