BIN Group Creates Uber for Cargo Companies

Moscow. April 12. INTERFAX.RU - The warehouse operator Multinational Logistics Partnership (MLP) is working to create an interactive transportation management system for cargo transportation: TransSord.

As it is currently planned, carriers will be registered in the system, which will track information about the carriers, their current and future status and priorities, as well as information on relevant goods and their specific parameters, such as requirements for vehicles, delivery, etc. “With all this information, plus an intelligent algorithm for the selection process, TransCord automatically determines the optimum vehicle for transportation. Both the shipper and the carrier can keep track of the real-time location of the shipment and the order fulfillment status in their personal offices with a mobile app,” commented a representative from MLP.

According to Eriskhan Kurazov, the Director General for MLP, the company “is expecting a long-term synergetic effect thanks to the release of this new project”. “Total investment in the project is estimated at $10 million. We expect a return on investment within three years, while the operating profitability of the project will be achieved in 2017. We have formed a new company by the same name, TransCord, for the release of this project,” reported the company's top manager.

TransCord intends to add up to ten thousand transport vehicles to its system by the end of 2017, which would complete up to three thousand orders per day. It is expected that developing and implementing the technology will be completed during the second quarter of 2017, the system will achieve a critical volume of shipments in 2017-2018, and then will start adjusting its scale beginning in 2018.

As noted by Sergey Vereshchagin, the Director General of TransCord, the system will conduct many calculations, including which vehicles will be available in the shipment's city of origin on the specified date, what vehicles fit the stated requirements and parameters for the cargo, what carrier they work with, what their quality rating is, and whether this route is a priority for the carrier. “In this way, the system selects the vehicle best suited for that particular order and assigns the client's request to the carrier and vehicle,” he said.

Vereshchagin explained to Interfax that the company is using its own platform, and is funded from the company's own funds. As TransCord estimates, the market for commercial automotive transport is around one trillion rubles a year; over the course of the next few years, the company plans to engage 15-20% of the market, i.e. 150-200 billion rubles per year.