THE USSR AND EASTERN EUROPE BELATEDLY RECOGNIZE THE CONTAINER REVOLUTION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01098A000100010001-4
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 50
• Document Creation Date: November 16, 2016
• Document Release Date: February 28, 2000
• Sequence Number: 1
• Content Type: REPORT

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The USSR and Eastern Europe Belatedly
Recognize the Container Revolution
Summary
1. Although broadly employed in the West since
1966, modern standardized container transport only
recently has been introduced in the USSR and Eastern
Europe. Advances in industrial technology and trade
in countries of the Council for Mutual Economic
Assistance (CEMA) have generated a need for a safer,
faster transport system to handle a variety of spe-
cialized high-cost goods. Accordingly, the CEMA
countries have committed themselves to a coordinated
policy for the expansion of containerized trans-
portation from its present rudimentary base.
2. Installation of basic rail and port terminal
facilities is under way. Additional container ships,
railcars, and trucks are provided for in current
five-year plans or are on order from Western sup-
pliers. The necessary bureaucratic bodies are being
organized and expanded. By 1975 the skeleton of a
CEMA network should be formed, with regular service
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intensive nature of containerization programs.
one container ship, for example, costs as much as
$25 million, each container about $2,500, and port
installations and related facilities perhaps $20
million per berth, including cranes costing more
than $1 million each. The New York - New Jersey
Container Terminal at Elizabeth, New Jersey, has
invested more than $143 million alone in seven
fully equipped container berths and extensive
back-up facilities. As a result, Elizabeth handled
nearly 6.5 million tons of containerized cargo in
1971 and nearly 4 million tons in the first six
months of 1972 -- more than any other port in the
world. The economy of. container ship operations,
however, as demonstrated in Table 1, more than off-
sets the large investment.
Space Costs for Four Kinds of Ships
US $ per Cubic Meter
Conventional
Ship
Pallet
Ship
Container
Ship
Barge
Ship
Total
6.11
5.38
4.97
4.09
Capital cost
2.30
2.22
2.50
2.48
Operational
cost
3.81
3.16
2.47
1.61
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Office of Economic Research
THE USSR AND EASTERN EUROPE BELATEDLY
RECOGNIZE THE CONTAINER REVOLUTION
ER RP 73-1
RETURN TU ARCHIVES 1 WW1 ""' E May 19 7 3
IMMEUTATEIY AFTER USE
/
RU Copy No.
Joe
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The USSR and Eastern Europe Belatedly
Recognize the Container Revolution
Summar
1. Although broadly employed in the West since
1966, modern standardized container transport only
recently has been introduced in the USSR and Eastern
Europe. Advances in industrial technology and trade
in countries of the Council for Mutual Economic
Assistance (CEMA) have generated a need for a safer,
faster transport system to handle a variety of spe-
cialized high-cost goods. Accordingly, the CEMA
countries have committed themselves to a coordinated
policy for the expansion of containerized trans-
portation from its present rudimentary base.
2. Installation of basic rail and port terminal
facilities is under way. Additional container ships,
railcars, and trucks are provided for in current
five-year plans or are on order from Western sup-
pliers. The necessary bureaucratic bodies are being
organized and expanded. By 1975 the skeleton of a
CEMA network should be formed, with regular service
Note: Comments and questions regarding
be directed
's
aper
are welcomed. They may
Code
ch
143,
,
of the Office of Economic Resear
Extension 7884.
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Figure 1
Typical Standardized Container Transportation System
Containerization is a system used by all modes of transportation wherein goods are packed and
shipped in containers using standard sizes. Standards agreed on by about 50 member countries
of the International Standardization Organization (ISO) are shown in the Appendix.
A total container transportation system
begins at the shipper's loading platform.
Here the cargo is stowed in a container
and loaded on a trailer.
Wi~
The container is then hauled
either over the road .. .
The vessel, loaded above and below deck with
containers, sails for its port of destination. All containers
Upon arrival at the terminal, the are waterproof to protect the cargo on the high seas.
container is driven to dockside where
it is lifted from its chassis by a gantry crane
and stored in a shaft-like steel hold aboard
a containership.
Again, the container is hauled
either over the road... .
Upon arrival, the container is lifted off
the ship and placed on a waiting chassis.
At the consignee's receiving dock,
the cargo is unloaded.
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between 19 CEMA cities and ports from Moscow in the
east to Rostock in the west. Containerized service
to Japan via the Trans-Siberian Railroad will be
systematically built up in this period to provide
a Soviet "Land Bridge" as an alternative interna-
tional freight route. Western suppliers of equip-
ment for container transport systems should find
an expanding market in the USSR and Eastern Europe.
Sophisticated loading and unloading equipment,
systems technology, container leases and purchases,
and even some ships and rolling equipment will be
on the Communist shopping list for several years
at least.
3. The developing CEMA capabilities in con-
tainerized transport will effect important economies
and speed up the movement of Soviet military sup-
plies. This is true both for the transfer of
freight between different railroad gauges at the
Soviet borders and for intermodal transfer of sup-
plies destined for military and civilian units in
remote areas of the USSR. Furthermore, container-
ization is essential to the Soviet policy of playing
an increasingly important role in international
shipping.
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Discussion
The Container Revolution
4. As early as 1966, governments and private
firms in the industrialized West were aggressively
pushing containerization as the means to meet
burgeoning transport requirements. Using 10- and
20-foot containers developed by the United States
in World War II, maritime shipping companies by
1967 were operating 60 special container ships
between the United States and Europe. In the fol-
lowing year, operations were extended to rail,
inland water, and highway transportation and the
"container revolution" was in full swing. At the
start of 1973, Western fleets were operating 580
full-container and 300 partial-container vessels
with a combined capacity of more than 343,000 stand-
ard 20-foot containers representing a payload of
3 million to 4 million tons.
5. In contrast to these dynamic developments,
the USSR and East European countries have lagged
in broad implementation of modern container trans-
port technology. This lag is a major illustration
of the inability of the CEMA countries to translate
known technology expeditiously into successful
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day-to-day operation. Basic economic factors,--
such as the growing complexity of industrial out-
put and trade within the CEMA areal and the aspira-
tions of the USSR as a major maritime power --
have forced Moscow to take action. Therefore, the
USSR is investing substantial domestic resources
and is actively seeking technical aid and equipment
from developed Western countries to spur its con-
tainerization program.
CEMA and the Communist Effort
6. CEMA has long been the forum for resolving
problems and coordinating actions on the develop-
ment and operation of the transport systems of the
USSR and the East European Communist countries.
The USSR has dominated the organization since its
inception in 1949. Following the worldwide trend
to containerization and the experimentation in
various applications by some member countries since
1967, a CEMA-wide program for development of a net-
work of container terminals and transshipment sta-
tions was finally adopted at Bucharest in mid-1971.
7. In the CEMA program, member countries are
to be linked by 1975 by a network of container-
handling ports and terminals integrated with rail
1. This complexity is, of course, a much greater
incentive in highly developed Western countries
but is nevertheless of concern to the CEMA coun-
tries at their current stage of development.
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Figure 2. Transloading Large Containers from
Ships Directly to Rail Cars in Zhdanov Port, USSR
Sea-Land's SL-180 Container Ship
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and highway transport facilities2
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GDYNIA
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New CEMA container network will link 19 terminals
by 1975. Heavy lines indicate routes scheduled
for opening on or before 1 January 1974. Broken
lines indicate routes to be opened on or before
1 January 1975. Squares show eventual locations
of CEMA's major port and rail container terminals.
At the same time, the number of container terminals
is to increase to 120 from the 25 available in 1971,
with container traffic accounting for about 7% of
the 350 million tons of freight scheduled to move
Transport facilities in the CEMA countries,
especially the railroads, are being gradually up-
graded, including changeover to modern diesel or
electric traction and the improvement of ancillary
facilities to realize the inherent advantages of
the new traction.
(see Figure 3).
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internationally within the region. An increase in
the inventory of standardized containers to 130,000
from the 7,000 on hand in 1971 is also envisioned.
Accordingly, a coordinating council was established
to allocate production responsibilities for con-,
tainers and specialized container-handling equip-
ment among CEMA members.
8. Total investment in the system probably
will be more than US $2 billion, somewhat less
than 5% of estimated total public transportation
investment during the current Five-Year Plan
(1971-75). Among member countries, Soviet invest-
ment is to top $1 billion, followed by Czechoslo-
vakia and Romania with $280 million and $200 mil-
lion, respectively. Data are lacking on the East
German, Polish, and Bulgarian shares of this in-
vestment package.
9. The CEMA program is small in comparison
with the long-run task. The 7% share of traffic
targeted for 1975 contrasts with estimates that
70% to 80% of freight moving between CEMA countries
is containerizable. As to the planned 1975 con-
tainer inventory of 130,000, two US container
leasing and operating companies alone own more than
110,000 units. Finally, the projected investment
expenditures are low, given the highly capital
6
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intensive nature of containerization programs.
One container ship, for example, costs as much as
$25 million, each container about $2,500, and port
installations and related facilities perhaps $20
million per berth, including cranes costing more
than $1 million each. The New York - New Jersey
Container Terminal at Elizabeth, New Jersey, has
invested more than $143 million alone in seven
fully equipped container berths and extensive
back-up facilities. As a result, Elizabeth handled
nearly 6.5 million tons of containerized cargo in
1971 and nearly 4 million tons in the first six
months of 1972 -- more than any other port in the
world. The economy of container ship operations,
however, as demonstrated in Table 1, more than off-
sets the large investment.
Space Costs for Four Kinds of Shipsl
US $ per Cubic Meter
Conventional
Ship
Pallet
Ship
Container
Ship
Barge
Ship
Total
6.11
5.38
4.97
4.09
Capital cost
2.30
2.22
2.50
2.48
Operational
cost
3.81
3.16
2.47
1.61
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Developments in the USSR
On the Rail System
10. The USSR has used small cargo containers
domestically since 1948. This system was developed
to handle small cargo lots over the rail system,
and most of the containers are not suitable for
maritime or international shipments. Lack of a
well-developed road network and enough suitable
truck transport in the USSR will continue to limit
most movement of large containers to the railroads
for some years to come. Inland waterways are
closed for two to six months of the year and facil-
ities are inadequately equipped to handle large
containers. Many important shippers and consignees
are not served by water or by intercity truck
transport.
11. There are about 1 million containers in
the Soviet inventory, 80% of which are rated 3 tons
or less with most of the rest 5 tons. A survey
of the Soviet container inventory late in 1971 in-
dicated that 40% were defective.
12. By 1968, containerized shipments in the
Soviet Union had reached 28 million tons, mostly
by rail. In 1970, Soviet railroads began handling
the larger 10- and 20-foot international standard
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containers on an experimental basis on a few routes.
Organization was tightened in July 1972, when the
responsibility for the organization, development,
and control of internal container transport by all
modes was centralized in the newly created all-
union association, Soyuztranskonteyner, an auton-
omous unit within the Ministry of Railroads. By
March 1973, Moscow and nine other cities were
served on a regular basis (see Table 2), and
attempts were under way to establish international
service to Japan (see Figure 4) via the Trans-
Siberian Railroad and to Berlin, Prague, Budapest,
and Sofia. All-container express trains are to be
started in 1973, the first such services to be
inaugurated between Moscow and Leningrad, between
Moscow and Brest (for through service to Eastern
Europe), and along the Trans-Siberian route. By
the end of 1972, container traffic accounted for
only about 1% (33 million tons) of the total
volume of rail traffic, but this amount represented
20% of the total value of rail traffic. Plans
call for the Soviet railway system to handle 74
million tons of containerized cargo in 1975. As
the volume grows, however, lack of automatic con-
trol systems for the movement of containers will
9
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USSR: International Standard
Container Routes and Stations
in Regular Servicel
March 1973
Leningrad Moscow (2 stations)
Riga Leningrad
Kharkov Riga
Tashkent Khar'kov
Odessa Tashkent
Berlin Minsk
Budapest Odessa
Sofia Ungeny
Prague Brest
Irkutsk
Khabarovsk
Nakhodka
Vladivostok
1. Frequency of service on most routes is only about once a
week.
hamper the efficiency of container operations.
Lack of widespread internal handling facilities
will tend to limit the large containers mostly to
international railroad transit routes.
Seaborne
13. The first official commitment to Soviet use
of modern seaborne containerized transport'came in
October 1969, when Nikolai Bykov, member of the
Collegium of the Ministry of the Maritime Fleet,
announced that ships with a capacity of 500 to
10
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Japan-Europe Container Service
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600 containers were to be acquired by the USSR
during 1971-75. This commitment was expanded in
the 1971-75 Five-Year Plan, which called for
(a) seaborne containerized cargo to reach 5 million
to 6 million tons by 1975, (b) purchase of at least
20 container ships (mostly 39- to 300-container
capacity), (c) construction of modern container
port facilities3 (see Figure 5), and (d) upgrading
of the merchant fleet inventory of international
standard containers to 23,000 units. The new:
vessels will be used on major international routes
between the USSR and Europe, Cuba, Japan, and the
Middle East.
14. When the 1971-75 Five-Year Plan was being
drafted, experimental use of international con-
tainers was carried out by adapting existing ships,
rolling stock, and cargo-handling equipment. By
the end of 1970 a few Soviet international shipping
I. Most of the port facilities are new or recon-
structed areas at existing ports. One or two
berths have been adapted on a temporary basis, with
adequate cranes, not specifically designed, however,
to handle containers until the new facility is com-
pleted. The current volume of container traffic
at Soviet ports is small. Leningrad, probably the
leading Soviet container port, processed only 600
containers in June 1972 -- indicating an annual
rate of 7,200 containers (perhaps about 70,000
tons). The leading non-Communist port, New York,
was already handling about 6.5 million tons of con-
tainerized cargo in 1971.
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Major Container Ports of the USSR: Status as of 1 January 1973
? Murmansk
Klaipeda ? *Ventspils
Riga* ?Leningrad
? Arkhangel'sk
I l'iehevsk
NOdessa
? Zhdanov
11 agayevo?
Petropavlovsk-0
Kamohatskiy
Vladivostok *Nakhodka
Wrangel Bay
Status
Arkhangel'sk Facilities adapted in 1971 for loading 20-ton containers
with small electric loaders. Plans for expansion include
1 quay for containers. Small amounts of additional
container handling equipment acquired during 1972.
Baku Agreement in 1972 with Iran for container shipments
from Baku to Iranian ports.
Il'iehevsk Began regular service in 1971 to Bulgaria on the V.
Kocher (container ship). Container section net up in
one cargo area (one wharf and warehouse assigned).
20- and 30-ton cranes used. Rear storage area available
for 8 000 20-ft. containers. Specialized container ter-
minal to be constructed in the near future. Automatic
crane to be installed with productivity of 30 to 40
containers per hour. Extensive warehousing and facili-
ties for motor and rail transfer to be included. A total
of only 3,529 containers (53,000 tons) handled during
June-December, 1971.
Klaipeda Some containerized cargo being accepted from ships
drawing no more than 8.5 meters (capacity up to 300
containers). Depths to be increased to handle ships
holding up to 750 containers and a specialized container
area is to be constructed.
Leningrad Some 20- and 40-foot containers handled on conven-
tional cargo ships Leningrad-Europe beginning May
1970. Regular handling of containers began in 1971
with use of adapted timber carrier Ivan Chernykh,
Leningrad-London. Container-handling cranes ordered
from Finland to equip 2 berths at the new terminal
probably to be delivered about August 1973. Port in
mid 1972 was processing 600 containers per month;
,888 large containers in 1971.
processed 4,8811)
Murmansk Container terminal under construction.
Nakhodka One 100 containers operating pr dsince ay. Secondlcontainer sbe berth being
to fitted out is expected to handle more than 500,000 tons
(perhaps 42,000 containers) annually.
? Operating with expansion under way
? Under construction
Status
Wrangel Bay Container terminal with a capacity of from 120,000
to 140,000 containers a year under construction with
Japanese aid. Completion is planned by 1975.
Nagayevo Container operations underway and volume expected to
increase. 500 large internatiopal standard containers
arrived at Nakhodka in mid-1972 for Nakhodka-
Nagayevo service. A specialized container complex
planned.
Odessa Odessa- Varna -Alexandria route in service since 1971.
Limited operations at one wharf equipped with 10- to
30-ton portal cranes. Larger container terminal under
construction; to be equipped with 40-ton cranes for
handling of ships carrying up'to 2,000 containers.
Petropavlovsk- Refitted container ship Zabaykalsk operating container
Kamohatekiy service to Petropavlovsk from Vladivostok and Na-
khodka by late 1971. New facilities for the handling of
heavy containers are to be operating before the end
of 1975.
Riga One wharf adapted and the first container ship Fritsis
mer
t
e in sum
Gaylis assigned to the Riga-Liverpool rou
1971. Container route Riga Rostock also initiated in
1971. Plans to program loading up to 30-ton containers
using Minsk-32 computer. Larger container terminal
under construction.
Port equipment adapted for some container handling.
Experimentation and expansion underway. Containers
shipped to England on Fritsis Gaylis.
Vladivostok Container terminal under construction, A large consign-
ment of specialized equipment for handling containers
has been delivered. One 30-ton crane installed and two
others to be installed soon at the container pier. First
container ship departed in July 1972.
Zhdanov 20-ft. containers being handled on the route to Italy.
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lines were carrying small amounts of containerized
cargo on converted cargo ships. Some of the con-
tainers were small Soviet railway containers of
5 tons or less, whereas others were 20- and 40-foot
containers leased from foreign shippers and con-
forming to international standards. These larger
units were carried on the decks of conventional
cargo ships on international routes moving between
Il'ichevsk and Egypt, Black Sea ports and Bulgaria,
Baltic ports and the United Kingdom and East Germany,
and Far Eastern ports and Japan.
15. The first Soviet-flag full container ships --
two small East German-built Boltenhagen-class
vessels (39 containers) -- were delivered in:June
1971. The lead ship of the first class of full
container ships to be built in the USSR --
Sestroretsk (218 containers) -- was delivered to
the Soviet Baltic Steamship Co. in March 1972.
The Soviet merchant fleet now has at least four
ships of the Sestroretsk class and perhaps five of
the Boltenhagen class.4 In addition, at least 12
dry cargo ships have been converted to handle con-
tainers. Other ships of the Sestroretsk and
Boltenhagen.classes will be delivered by 1975 along
Later versions carry 56 containers and are some-
times referred to as Warin-class. .
12
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with new classes, including as many as 15 ships with
a capacity of more than 700 containers. In addition,
a total of 74 partial-container ships are to be de-
livered by-East European shipyards by 1975, along
with two large roll-on, roll-off (RO-RO) ships from
Finland, with a capacity of 1,300 containers and
six smaller RO-RO ships from France. The RO-RO
ships with their built-in unloading system are
uniquely suited for operations to ports in less
developed countries where there is insufficient
sophisticated shore-based gear to handle large
unitized cargo. Table 3 gives data on container
ships on order by the USSR.
16. Soviet international container lines, in-
cluding those serving the Soviet Land Bridge, cur-
rently operate out of Baltic, Black Sea, and Far
Eastern ports. Services that have now operated
for more than a year include Leningrad-London.,
Riga-Liverpool, Il'ichevsk (near Odessa) - Varna,
and Nakhodka-Japan. Services recently introduced
include Leningrad-Hamburg-Rotterdam, Riga - Le Havre,
Il'ichevsk-Alexandria, Zhdanov (Black Sea Basin) -
Italy, and Nakhodka - Hong Kong. Services were
established recently between the Black Sea and
Canada and between the Soviet Far East and the
13
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USSR: Container Ships on Order
as of March 1973
Country
of Construction Class or Type of Ship
Remarks
East Germany Mercur (13,314 deadweight Full-container ship with 774-con-
tons -- DWT) tainer capacity. As many as 15
to be delivered by 1975.
East Germany Mercator (12,050 DWT) Partial-container ship, 368-con-
tainer capacity. Fifteen to be
delivered by 1975.
Romania "Universal" type Probably a multi-purpose dry
(2,150 DWT) cargo with partial-container
capacity. Twenty-four ships to
be delivered by 1975,
Finlandl Roll-on, roll-off type 1,300-container capacity. Total
(21,000 DWT) order for five, with two to be
delivered by 1975. Ships are to
be strengthened for ice
navigation and a 30-ton axle load
on the deck.
France Roll-on, roll-off type Six to be delivered during
(4,200 DWT) 1974-75.
USSR Aleksandr Fadeyev 300-container capacity. Speed of
(5,000 DWT) 17 knots, range up to 10,000
miles. At least five are to be built
at Kherson with the first to be
delivered early in 1973.
USSR Berezan (12,000 DWT) Partial-container ship with
300-container capacity; eight
ordered, with some probably
delivered by 1975.
Poland "B46" (7,500 DWT) Partial-container ship. Speed 17
knots. Thirty-five to be delivered
during 1973-75.
1. Except for the two large roll-on, roll-off vessels to be delivered by Finland, container ships
of more than 800-container capacity are not expected until after 1975.
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west coast of the United States. At present all
these routes are operated solely by the Soviet
merchant fleet, but the Varna service eventually
will be worked in conjunction with the Bulgarian
Merchant Fleet, and Japanese shipowners are pressing
to enter the Nakhodka-Japan service.
The Soviet Land Bridge
17. The Soviet Land Bridge is a key element in
the Soviet development of an intermodal intera-
tional containerized transport system. This unique
trade route between Japan and Europe was established
in 1967 by Soviet, Japanese, and European trans-
portation companies and freight forwarders and soon
came into use for experimental shipments of small
lots of international containers between Japan and
Europe. Conventional dry cargo ships were modified
to carry containers between Japan and Nakhodka,
where at least one wharf has been designated to
give priority to the transfer of containers to rail-
road cars for transit of the USSR via the Trans-
Siberian Railroad. Some of the containers from
Japan 5 are delivered to Europe via sea from Lenin-
grad, by truck from Moscow, or via rail or truck
Service was expanded in May 1972 to include a
Hong Kong - Nakhodka link. Some containers have
since been delivered [footnote continued on p. 16]
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from the western borders of the USSR. Transit
times are reported to be from 24 to 45 days,
roughly on a par with all-sea movement. Rates are
as much as,20% lower than all-sea routing.6
18. Traffic via the Soviet Land Bridge has been
light but increasing. Currently less than 300,000
tons a year, traffic may jump with the installation
of new facilities. These facilities include a new
port under construction at Wrangel Bay near
Nakhodka with a planned 1975 capacity of 120,000
to 140,000 containers (perhaps 1.5 million tons)
per year.7 Improved coordination and regular opera-
tion of all-container express trains carrying up
to 100 standard 20-foot containers per trip may
reduce the total transit time between Japan and
Europe to perhaps 20-25 days. The successful
development of the Soviet Land Bridge depends on
from West Germany to Hong Kong in as little as
days via the Soviet Land Bridge route, comparing
favorably with an all-sea voyage of 23 to 30 days.
6. The USSR may revise the tariff, boosting rates
4% to 5% for Japan-to-Europe traffic and reducing
rates 7% to 10% on Europe-to-Japan traffic in an
attempt to rectify the imbalance in container loads.
Only 300 to 500 containers a month are moving from
Japan. Some US shippers are considering use of the
light Europe-to-Japan direction on the Trans-Siberian
route for movement of empty containers to reload in
Japan. is roughly
7. Planned 1975 capacity at Wrangel Bay comparable with the volume
handled at Bremen/
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whether the new generation of large, fast con-
tainer ships already being assigned to the Europe -
Far East runs will capture this traffic first.;
Some container ships already make the trip in
23-30 days, and shippers may be reluctant or find
it impractical to switch routes. Volume via the
Land Bridge route now amounts to only about 1% of
the seaborne volume.
19. Competition for Japan-Europe traffic may
also develop from the embryonic North American
Land Bridge. In spite of first-class facilities,
this land bridge has not yet been able to attract
any substantial volume because of problems with
intermodal cooperation, government regulation,
and uncompetitive rates. The Seatrain Company of
the United States has finally engineered a break-
through by concluding agreements with several rail-
road companies in 1972 that permit the initiation
of through North American Land Bridge service
between Japan and Europe or intermediate points
in the United States. Rates are the same as all-
water routes, and delivery times are as much as
six or seven days less. A transit time of 21 days
from Tokyo to Rotterdam already has been demon-
strated. New 33-knot container ships due in service
q 17
gg..i~.pp
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in 1973 could further reduce time in transit by
perhaps another five days. The superior service
plus good freight-forwarding connections are likely
to attract, substantial traffic to the North American
Land Bridge -- perhaps partly at the expense Of the
Soviet Land Bridge service. Certainly the North
American facilities are far more developed and
capable of greater volume than those of the USSR.
Assistance from the Developed West
20. The USSR is actively seeking technical aid
and equipment from the developed Western countries
to expedite the establishment and expansion of
containerized transport systems. A compilation of
requirements described by the maritime fleet, rail,
and river ministries shows that the minimum total
demand through 1975 will be 32,000 10- and 20-foot
containers. None of these containers, or the equip-
ment capable of handling them, is yet produced in
appreciable quantities by the USSR.
21. Moscow has made overtures since at least
1970 for the purchase of containers and handling
equipment from the West. A huge container,exposi-
tion, billed as "Container-72," was held at Lenin-
grad in 1972. Containers as well as all types of
vehicles and handling equipment for all modes, of
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transport were on display. Manufacturers from all
over the world, including the United States, were
invited to participate. The largest contracts
signed at the exhibition were reportedly with
firms in East Germany, Bulgaria, Finland, and.the
United Kingdom. After the Leningrad exposition,
the Soviets also arranged two large contracts to
lease containers from Western firms. Container.
Transport International (CTI), a wholly-owned sub-
sidiary of the Leasco Corp. of the United States,
signed a contract with Sovfracht in October 1972
to lease 1,500 containers to the Soviets, and Sea-
Containers, a US-registered international container
leasing company, contracted in January 1973 to
supply the USSR with 1,000 20-foot UK-built con-
tainers. More of these contracts may be expected
because the USSR probably will not reach its annual
domestic production target of 16,000 containers
for several years.
Developments in East European Countries
22. East Germany has led the East European
countries in the introduction and operation of con-
tainer transport services. Elsewhere in Eastern
Europe, the establishment of containerized trans-
port is only beginning. More rapid development can
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be expected over the next few years with the Coor-
dinated expansion of a CEMA network.
East Germany
23. Containerized transport has. been under in-
tensive development in East Germany since 1968.
In June of that year, the first container trains
were put into regularly scheduled operations
between Rostock, Berlin, and Dresden and in November
a container ship service to the British port of
Tilbury (near London) was started.
24. Rail container services in East Germany
have increased from 21 trains a week in 1968-69
to more than 340 in 1971-72. About 18 container
terminals in East Germany now serve about 1,600
towns and more than 700 enterprises. By 1975, 45
terminals are to be in operation. Regular inter-
national rail service to Czechoslovakia was estab-
lished in September 1971, and trial runs have been
made to Poland, Bulgaria, Hungary, and the USSR.
25. Seaborne container traffic is small because
container facilities at Rostock will not be com-
pleted until 1974. Services are currently'open to
Tilbury, with Hamburg and Riga as ports of call.
In 1971, Rostock handled 10,000 to 15,000 containers;
a volume of 60,000 to 70,000 is expected by 1975.
20
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As part of the Rostock complex, an additional ter-
minal capable of handling 100,000 containers by
1975 is under construction.
26. Total containerized traffic in East Germany
has mushroomed since 1968. In 1969, a year after
service was started, 23,000 containers carried
some 160,000 tons. Two years later, service had
expanded to 175,000 containers equal to 1.3 million
tons -- still less than 1% of overall transport
volume. All of this growth has occurred in land
or seaborne trade; container service by air is not
available, and none is planned until after 1975.
27. East Germany's container inventory should
also show large increases by 1975. In 1968, 6,000
containers -- all less than 5 tons -- were avail-
able; by 1971, 12,000 were in the inventory.' One-
half of these were the newer international standard
containers of the 10- and 20-foot variety. By 1975,
the total inventory is expected to increase to
40,000 units, nearly all of which will be the
larger international standard containers.
Hungary
28. Hungarian experience with containerized
transportation dates back to 1967, when the Hun-
garian State Railway (MAV) became the first CEMA
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member to join the International Container Trans-
portation Co. This firm is a commercial agent for
the national railroads of 21 European countries
and is involved in marketing international con-
tainer services. Since 1967, however, Hungary's
use of containers has not grown rapidly. Current
services consist of rail shipments to Hamburg and
Bremerhaven under the auspices of the Hungarian
General Shipping Enterprise (MASPED).
29. Hungarian plans call for a gradual expan-
sion in the network of container centers andserv-
ices. By 1985, about 3%-4% of all rail freight is
to be containerized, almost all of it on interna-
tional trunk lines. Planned minimum container re-
quirements and traffic levels compared with those
in 1970 follow:
Volume of
Containerized
Shipments
(Thousand Tons)'
Container
Requirements
(20-foot
Units)
Rail Loadings
(Number of
Containers)
1970
200
10,000
1975
700
50,000
1980
2,000
150,000
22
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30. Twelve rail terminals throughout the coun-
try also are being developed, three of which are
at Budapest, Hungary's principal container cen-
ter.8 Meanwhile, Hungary is negotiating to extend
the present Rostock-Dresden-Prague all-container
train service between East Germany and Czechoslo-
vakia to Budapest, and is participating with the
USSR and Czechoslovakia in construction of a con-
tainer transloading center in the Chop-Zahony
border complex.
31. Hungary's production of international stan-
dard containers has moved ahead rapidly, and some
have been exported to Western Europe. About 2,000
containers -- mostly of the 20-foot variety --
were produced during 1971, and production is ex-
pected to increase to 8,000 to 12,000 by 1975.
The Hungarians are also gearing up for production
of special heavy cranes for handling containers and
special flat cars. Hungarian shipyards have begun
to build multi-purpose ships of 3,000 DWT suitable
for carrying up to 100 20-foot containers, and
K. In addition to the three at Budapest, other
terminals are being developed at Miskolc, Gyor,
Debrecen, Pecs, Szeged, Szombathely, Nagykoros,
Nyiregyhaza, and Sopron.
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construction of full-container ships lies just over
the horizon.
Poland
32. Poland, like most East European countries,
is in the early stages of developing a container
transport system. Containerized rail service has
been limited to experimental runs on the Berlin-
Warsaw-Moscow route since 1970, with regular serv-
ice to begin sometime in 1973. Seaborne trade
started in 1969 when service to the United States
was inaugurated using dry cargo ships adapted to
carry several containers on deck. This service
was followed shortly by adoption of a route to the
United Kingdom. Inadequate rail and highway
clearances and rudimentary facilities at the port
of Gdynia have served to restrict the volume of
this trade. Also, the limited road clearances
throughout Poland have kept inland movement of
containers to a minimum.
33. Rapid expansion of Poland's small con-
tainerized service may be expected during the next
few years. Most of the emphasis will be placed on
rail and seaborne trade. By 1975 an initial build-
up to 1 million tons of containerized freight is
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forecast.9 The expansion is to accelerate after
1975 -- 20 million tons forecast by the planners
for 1980 and 70 million for 1985.
34. The Polish railroad system, which will
handle most of the planned increases in tonnage,
is charged with implementing plans for the national
containerized transport system. Initial once-a-
week service began between a few stations in
January 1973. By 1975 there are to be seven rail
container stations in Poland -- at least five of
which (Poznan, Warsaw, Sosnowiec, Katowice, and
Gdynia) are either completed or will be by the end
of 1973, when they will be served by direct con-
tainer trains. The railroad system already has
imported 160 international standard containers
from East Germany to get service under way. Poland
and the USSR also are constructing container trans-
loading facilities along their border. Because
Poland stands between East Germany and the USSR and
is establishing ocean container terminals at Gdynia
and Swinoujscie, its future role as a transit area
for East European container trade is most promising.
Eac o at least eight non-Communist ports
already handle more than twice the. volume expected
in Poland by 1975.
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35. Expansion of Polish seaborne container
trade rests primarily on the development of the
port facilities at Gdynia. One wharf was remodeled
for containers in 1971-72, and a new container com-
plex is under construction in early 1973. Capacity
for container traffic at Gdynia at the beginning
of 1972 was about 350,000 tons a year, with the 1975
level expected to increase to about 1.3 million
tons a year. Only 6,500 containers with about
56,700 tons of cargo actually were shipped through
Gdynia in 1972.
36. Poland has already built a few small
partial-container ships for export and is to de-
liver several with 700-container capacity to. Polish
Ocean Lines (PLO) during 1973-75. PLO received
60 large containers from East Germany in 1972 and
began pick-up service to some locations in PLO-
owned trucks. Domestic production of international
standard containers began in 1972, and about 3,500
are planned for 1975. Most of these will be the
larger 20-foot models. Also, a few railroad cars
and special trucks for handling the 20-foot con-
tainers are being produced and tested domestically.
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Czechoslovakia
37. Containerized transportation in Czechoslo-
vakia is in its infancy, lagging behind even other
Communist countries. Current services include a
regularly scheduled twice-a-week rail route to
Rostock, East Germany, and river transport to
Hamburg for transshipment overseas. Freight moved
in container services is a negligible share of
total tonnage.
38. Czechoslovakia has scheduled a step-by-
step introduction of containerized services that
is to proceed at an accelerated pace after 1975.
A special Department of Containerization was,
established in the Federal Ministry of Transporta-
tion to foster the development of containerized
transportation. Total investment is expected to
grow from $280 million by 1975 to nearly $2 billion
by 1980, with annual volume expanding from 2 million
tons in 1975 to 8 million in 1980. Five major rail
terminals are planned for completion by 1978 with
another 20 expected to be completed later. More-
over, the Czech inventory of containers is, expected
to grow rapidly from 50 in 1971 to 10,000 by 1975,
most of which will be produced domestically. The
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Czechs also are participating in the joint develop-
ment of the Chop/Zahony container transloading com-
plex on the Soviet border.
Romania
39. Much of Romania's experience with contain-
erized transport is in the planning stages with
some experimental services and construction of
facilities just beginning. Current services are
limited to a few all-container trains operating on
five main lines and carrying 10-foot containers.
Use of 20-foot containers reportedly started in
1972.
40. By 1975, Romania plans to invest $200 mil-
lion to establish a standard container transport
system. A basic network of rail services,
radiating from Bucharest and integrated with high-
way facilities, is planned. Five rail terminals
are currently under construction at Bucharest,
Brasov, Sibiu, Arad, and Timisoara, and contain-
erized services are planned to Constanta, Timisoara,
and Iasi. Timisoara is near the border with: Hungary
and Yugoslavia, and Iasi is near the Soviet border.
Both are key transfer points for any integrated
CEMA-wide container system. Except for improving
the container handling capability of Constanta, the
28
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current plan makes no mention of seaborne contain-
erized shipping, most of the emphasis being on in-
land developments.
Bulgaria
41. Containerized transportation in Bulgaria
is little more than a dream in the planner's eye.
Bulgaria's only current involvement with containers
began in 1971 when the port of Varna began handling
small shipments from a Soviet container ship
carrying 20-foot containers on a regular Varna-
Il'ichevsk route.
42. Future plans include port expansion
Varna, establishment of 12 rail stations equipped
to handle large containers, and domestic manufacture
of small container ships, standard containers,
specialized rail cars, and trucks. By 1975, Bul-
garia plans to haul more than 7 million tons of
freight in 10-, 20-, and 30-foot containers and to
manufacture 6,000 containers.
Military Advantages to CEMA
43. A growing proportion of modern military
freight traffic is handled more expeditiously and
safely in its own special containers. In some
respects, military traffic has been at the fore-
front of the worldwide container revolution.
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the instance of the USSR and Eastern Europe, the
expansion of fixed facilities, rolling stock, and
bureaucratic bodies necessary for containerization
of freight traffic is part of a steady improvement
in the military transportation network in the CEMA
area. Of great value from the military point of
view is the potential speed-up in east-west move-
ment of military supplies. Containerization; is
particularly important for the reduction of transit
time across the change-of-gauge rail points at the
Soviet border. Finally, containerized international
transport enhances the ability to support military
or economic activity in the Far East or other remote
areas of the USSR.
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External Dimensions and Maximum
Gross Wei hts of Containers
Agreed on by the International
Standardization Organization
Maximum
Gross
Container Weight
Designation Length Widthl Height (Tons2)
1A
1B
1C
1D
1E
1F
2A
2B
2C
3A
3B
3C
40' 0" 8' 0" 8' 0,93
29'11?" 8' 0" 8' 0"
19'103'2" 8 ' 0 8 ' 0
91 93/411 8' 0" 8' Oil
6' 52 8' 0 8' 0"
4' 92" Be 0" 8' 0"
9' 7" 7' 62" 6'102
7'102" 6'102" 6'102"
4' 9" 7' 62" 6'102"
6'102" 8' 8" 7'102"
6'102" 4' 4" 7'102"
6'102" 4' 4" 7'102"
30.0
25.0
20.0
10.0
7.0
5.0
7.0
7.0
7.0
5.0
5.0
2.5
Certain European countries would like a stan-
dard container width of 2.5 meters (8 feet 2/
inches) to be adopted, primarily because the stan-
dard width of road vehicles on the continent of
Europe is 2.5 meters. In certain other countries,
including the United States, it is 2.44 meters
(8 feet), and such containers would be effectively
excluded.
2. One ton equals 2,240 pounds. Net loads of
these containers vary widely according to the com-
modities carried. Containers rated at a maximum
gross weight of 20 tons, for example, usually
average a load of about 8 to 12 tons for a large
volume of mixed freight.
3. Forty-foot containers with a height of 8 feet
6 inches have also been approved.
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FOR OFFICIAL USE ONLY
 Analyst: , IN/ 11
(Project 34. 6473)
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CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION STATINTL
DISSEM: 15-May 73 NO ELITE
SERIES NUMBER
ER RP 73-1
CLASSIFICATION OF REPORT
FOUO
DISTRIBUTION TO RC
50
DATE OF DOCUMENT
May 1973
NUMBER OF COPIES
150
NUMBER IN RC
COPY
DATE
NO.(S)
RECIPIENT
SENT
RETURNED
1
D/OER
15 May 73
16 May 73
2
DD/OER.
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15 May 73
3
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14 May 73
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17
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18
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Ret'd & destroyed
17 Ma 73
19
St/CS
15 May 73
20
a CRS/ADD Release
16 May 73
21
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22
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Steve Strasberg, Maritime Systems iv.
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15 May 73
34 Naval Intelligence Support
Road
4301 Suit] d
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_____
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FORM 2353 Approved For Release 2000/05/15 : CIA-RDP79TO1098A000100010001-4 (13)
 DATE
COPY
NO. (S)
RECIPIENT
SENT
RETURNED
68
63
DIA, DI-3-C,
15 Ma 73
-
Rm. 2058, B Bldg., AHS
STATINTL
69, 70
Ronald C. Rasmus, Maritime Admin.
rr
Special Assist. to the Dep. Assist.
Sec of Commerce for Maritime Affairs
Rm. 3898, Main Commerce Bldg.
71 _72
Ronald Webb, State, Dir. , Office of
Maritime Affairs, Rm. 2830, NS
73 74
1 ~3
75-77
R:!
78, 79
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80, 81
82
D/N
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15 May 73
16 May 73
83
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16 Ma 7
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86
Edward F. Hawkins, Chief, Office of
17 Ma 7
A reements Federal Maritime
Commission, Rm. 1022, 1405 I St., N.
87
Henr T. Snowden, State, Office of
Economic Research and Analysis,
Bur. of Intelli ence & Research
2
88
1B4004 H .
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93-99
Filed in St P
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100
Archives file
15 May 73
101 -150
Records Center for supplemental
91
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6111 73
73 STATINTL
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STATINTL STATINTL
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 -Approved or Release 2000/05/15 : CIA-RDP79TO1098A000100010001-4
CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION
SERIES NUMB
P 3'l
CLASSIFICATION OF REPORT
/--!'uO
DISTRIBUTION TO RC
DA . OF DOCUMENT
)22?~ 19 7_3
NUMBER OF COPIES
NUMBER IN RC
DATE
COPY
NO,(S)
RECIPIENT
SENT
RETURNED
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FORM 2353 Approved For Release 2000/05/15 : CIA-RDP79TO1098A000100010001-4
2.65
 Approved For Release 2000/05/15 : CIA-RDP79T01098A000100010001-4
COPY
NO. (S)
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1
 SECRET
When Filled In
n.,.,..,...,..J C.... Release
RECORD OF REVIEW OF OER PUBLICATIONS FOR SECURITY SANITIZATION APPROVAL
R 73-/
F fS, d 7 kS, CA (MM2~0)
25X1C
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Excluded from automatic
downgrading and declossifcation
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Approved For Release 2000/05/15 : CIA-RDP79T01098A000100010001-4
 - RANSMITTAL OF'4BR leis,IEP6F a eR 5Alk: A]6tF~WIJP1
j. I
TO : Chief ,
THRU: Chief, ST/P/C
TITLE, OR SUBJECT, OF REPORT
The USSR and Eastern Europe Belatedly
Recognize the Container Revolution
p98A000100010001-4
I 34.6473
W/ mw~
ATTACHMENTS: ORIGINAL AND TWO COPIES
I
RECOMMENDED PUBLICATION CATEGORY
I 28 March 1973
* Cartography's only copies of the grapnics accumpaiiy Wi%-_ uyay~. - ------
use care and return intact.
1. Facts and analysis in this project may be published unclassified.
Classified sources were only used for background or convenient
collation of unclassified data.
2. This report is to be coordinated with OSR. Copies of this d;aft
have been furnished to SF/L and SF/N.
3. The Office of Facilitation, Department of Transportation has been
furnished 2 copies of this draft and invited to comment.
4. Potential for wide dissemination probably merits publication as an
IR. Known government consumers include:
a.
b.
c. Department of Transportation (especially the Office of Facilita
tion and the Federal Railroad Administration)
d. Department of Commerce (especially the Maritime Administration)
e. Department of State
f. Defense Intelligence Agency
g. US Maritime Commission
h. Several branches of OER, OSR and DD/P
:vR~I 1 722 0 350E FIVE PREV 0 US
lease 20UUM115: f yP79T01098~6; .t f 001-4
 P -93 -
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PUBLICATIONS SOURCE SURVEY
USE OF INFORMATION FROM COLLECTION PROGRAMS IN FINISHED INTELLIGENCE
GENERAL INSTRUCTIONS
Rating forms will be completed for each finished intelligence publication prepared by the DD/I and DDS&T. This is a
machine-supported system and infor
ti
ma
on must be gathered in a formatted fashion. Therefore, each analyst will complete
the NON-SHADED parts of section I and II of this form
Pl
t
.
ease
ype or print legibly. Questions should be directed to
IRS/HRG, Room 2G 40, x1431 (red) or x4273 (bl?ack).
_ __SECTION I - PUBLICATION TITLE AND CONTENT
NAME AND TELEPHONE NUMBER OF RA - `~ -- -
~j x7884 25X1A
CARD X
_ --~
X
V~/ /\XX X
XY
~ irIhA
RECORD
,
SURVEY NO. TYPE DATE PUBLISHED PUBLICATION NUMBER FOR OONLY
(13-23) CIB PUBLICATION DATE
MO YR - - ~1. -18
Q 7 I_ =-7 MO UAY A~ ~
TITLE
(24-80)
4
_ The USSR and Eastern Europe Belatedl Reco nine the s2
5
3
80
Container Revolution
CARD 2 XXXXXXXXXXXXXXXXXXf~X/~XXX I~
Xl~ AXXIIA
/
XXXX
XXXXXX
A
~
A
XX
XXX XXXYXX
RECORD OFFICE (9
-10)
SURVEY NO. TYPE -----
01 OCI
i 03 OSR 06 SRS 07 OSI
6) (7-8) x 02 OER 04 OBGI - ---
- 08 CRS 08 FMSAC
2 JOINT OFFICE (specify):
TtJPiCA(ATEGORY GEOGRAPHIC AREA CATEGORY
Domestic Politics
X_ USSR
F
_
x
Relations X Eastern Europe
x Economics
Communist China
Military
Lather Far East
Science & Technology
Near East
Geography
South Asia
a
Biography
Africa
Latin America
Western Europe
LIST SPECIFIC COUNTRIES: _USSR ,-Bulgaria-_ zechoslovakja East_Germany,.
Hungary, Poland, Rumania. The US and other P'W industrialized
for perspective and comparison.
AREA
(11:12) (13-16)
FORM 492
SECRET E 2&3 IMF1XT CL BY 007622
Approved For Release 2000/05/15 : CIA-RDP79T01098A000100010001-4
 Approved For Release 2000/05/15 : CIA-RDP79T01098A000100010001-4
_ _ SECRET
ECT16N' Ilm - SOURCE RATINGS
For each collection program contributing information to the publication, check only the highest rating that is applicable.
More than one collection program may be rated as Key, Supplemental, or Incidental for each publication. If the source did not
provide any reporting useful in the publication, check the box labeled Not Applicable.
If a single publication treats more than one geographic area and/or topical category and the source mix for each varied
then additional forms must be completed; e.g. India--economics--State and Japan--economics----CS.
Rati,;g categories are defined as follows:
Key-information from a particular collection program was of such importance that basic conclusions of the finished
intelligence item could not have been reached without it.
Supplemental-Information from a particular collection program was important but not essential to basic conclusions of
--?..~-.---.-............ eds.. l:...:,.L _.t ._._ e!e __ _ ..
Incidental--Information from a particular collection program was useful or interesting primarily as background but was
used onl
in
i
t
ll
.i. th
X!ni-L - -! ' .
y
c
en
a
y
e
(25) 5. RADINT
(37) 11. FBIS PRESS, RADIO & TV REPORTS
i ransiarion of Foreign Long, document
(39)* 12. by FBIS, JPRS, etc.
(40)
(41)* 13. Non-USIB Agency Rpts. (USIA, AID, other
such reports)_ _
(43)* 14. Open Literature (professional journals,
_ US wire ser., items, etc.)
(45)* 15. OTHER
*For Items No. 1 2, 1 3, 14, and 15 specify source of reporting used.
156-60)
TRANSLATIONS: Soviet and E.European general and technical press
NON-USIB ACA CY(S): Commerce (MARAD) and DOT studies and
- -------statis-t ica1----repo
r-ts
DOCUMENT TYPE (61-62)
03 GM
04 IM
05 M 07 IR
06 GR_- _ 17-408- R p
CLASSIFICATION CONTROLS: None
List CS Information Reports that were key or supplemental information sources:
NOTE: This space also should be used to list specific reports, other than CS, that were of exceptional value.
.
PENI BRAT ZEShipping&Trade News, Journal of Commerce, Lloyd's,
at ~.c Inx d~Int~rnati.sznaJ 8~. .w y ournal-,Faixp..l y 1~
(?ping Journal, etc.
Approved For Release 2000/05/15 : CIA-RDP79TO1098A000100010001-4
 Approved For Release 2000/05/15 : CIA-RDP79T01098A000100010001-4
Approved For Release 2000/05/15 : CIA-RDP79T01098A000100010001-4