LPC exporters are waiting for subsidies for transportation through the ports of the Northwestern Federal District

LPC exporters are waiting for subsidies for transportation through the ports of the Northwestern Federal District

Statistics on timber cargo loading on the railway network for eight months of 2026 confirm that the industry is still it cannot get out of a prolonged recession. In January–August, shipments of timber in wagons from Russian Railways stations decreased by 4.4% compared to the same period last year, to 16.4 million tons. LPC exporters expect to resume subsidizing transportation through the ports of the Northwest, which will allow for the redistribution of cargo flows from overloaded land border crossings to sea routes.

Dynamics of timber cargo loading

The fall affected most timber loading roads. ""In January–August 2026, the shipment of timber decreased:

Since May, year—on-year timber cargo loading has started to show positive dynamics, mainly due to the low base effect. In August, the volumes were equal to last year's.

TransLes calls this "stabilization" rather than sustainable growth: further dynamics will depend on domestic demand, export conditions and government support measures.

The general state of affairs in LPC

According to Rosstat data for January–July, the production of untreated wood, glued plywood and pulp has been at minimum values over the past six years. The production of lumber and fuel pellets is unstable.

The recovery is observed only in the segments:

• - chipboard and fiberboard;
• - paper and cardboard.

The government has stepped up work on measures to support the LPC following a meeting with the Deputy Prime Minister Dmitry Patrushev May 27. One of the areas discussed is reducing the transport burden on enterprises.

Offers from "Sveza":""

• - maintain targeted support for export-oriented enterprises;
• "subsidizing" logistics;
• - development of multimodal transportation;
• &nbsp"priority" of forest cargo on the railway network;
• - reduction of tariffs;
•                             - the focus of government tools on projects with export potential.
•  

The problem: the land crossings are overloaded, the ports of the Northwestern Federal District are underloaded

Now the main export channel for timber goods remains land border crossings. However, their bandwidth is already at its limit.

The ports of the Northwest, on the contrary, have significant reserves, but transportation through them is more expensive.

Solution: On behalf of the Deputy Prime Minister, the issue of resumption of subsidizing transportation of LPC products through the ports of the Northwestern Federal District is being worked out. If this measure is implemented, exports through the north-western ports will become more economically attractive. This means that cargo flows will be able to be redistributed from overloaded land routes to sea routes, where the infrastructure allows for additional volumes.

"Key indicators" of LPC logistics:

Value for the forestry industry

1. - Logistics remains a key export constraint. Congestion at land crossings and high tariffs for transportation through the ports of the Northwestern Federal District constrain the export opportunities of Russian timber producers.
2. - Subsidizing ports in the Northwestern Federal District may change the structure of export flows. The redistribution of cargo from land routes to sea routes will make it possible to unload border crossings and increase total export volumes.
3. - Low base effect. The positive dynamics of loading since May is explained not so much by the growth in demand as by the low figures of last year. A sustained recovery requires an increase in real demand.
4. - Stabilization is already progress. In the context of the ongoing decline in the production of untreated wood, plywood and pulp, the stabilization of forest cargo loading is a positive signal.

Prospects

The implementation of subsidies for transportation through the ports of the Northwestern Federal District may become one of the key factors in the recovery of LPC exports in the second half of 2026. However, sustainable growth requires:""

• - revival of domestic demand (construction, furniture production);
• - improvement of export conditions (recovery of demand in China and the Middle East);
• - further optimization of logistics.

If government support measures are implemented, the timber industry will be able not only to stabilize, but also to increase exports through the northwestern ports, which will strengthen the position of the Russian timber industry in world markets.

Tags: #LPC #export #logistics #Ports of the Eastern Federal District #subsidies #Russian Railways #timber shipments #government support

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Edited Moderator (Sept. 15, 2026 20:25:28)