Russian infrastructure modernisation

05 October 2010

The Adler Ring overpass being built in Sochi, Russia, seen from below

The Adler Ring overpass being built in Sochi, Russia, seen from below

The transport infrastructure market in Russia currently represents about 15% of the whole construction industry in the country, and increased nearly 5% in 2009 despite a decrease in the overall construction market of nearly 16%, according to the AMOST Foundation - the Russian association of bridge building companies.

AMOST said that the Federal Transport Programme (FTP) for the modernisation of the Russian transport system put the total market for roads and bridges at RUB 474 billion (€ 11,3 billion) in 2009, including VAT but excluding research and development (R&D).

Of this, it said 60% was spent on new construction, and 40% on repairs and maintenance. The biggest investment in terms of construction and reconstruction of federal roads was in Moscow, Moscow Oblast (region) and Yaroslavl, 250 km north east of Moscow.

Sergey Mozalev, executive director of AMOST, said, "Bridges are crucial for the modernisation and expansion of federal highways and railways, and represent one of the largest and fastest-growing segments of the construction sector, with high profitability and a high reliance on intellectual expertise and industrial know-how."

AMOST said that figures from Rosstat, the state statistics service, suggested that the length of bridge construction grew from 25779 running metres in 2008, to 30018 in 2009.

The FTP estimated that the total rail market was worth about RUB 135 billion (€ 3,2 billion) including VAT but not R&D. About 50% of this was spent on non-infrastructure related expenditure and about 12% on costs directly related to bridge building.

Mr Mozalev said that in addition to the ongoing infrastructure modernisation and expansion works, the industry was implementing strategic programmes with secured financing, including the FTP on construction of Olympic venues and development of Sochi city as a mountain climatic resort.

Another FTP for the development of the far east and Zabaykalye includes projects relating to the 2012 APEC (Asia-Pacific Economic Co-operation) summit in Vladivostock. There are also projects preparing for the 2013 Kazan Universiade (world university games).

In addition, a number of public-private partnerships are being implemented in Russia, including rail construction (Naryn-Lugokan and Ulak-Elga railways), road construction (Federal motorway M-1 Belarus Moscow-Minsk), and airport construction and modernisation (Pulkovo airport in St Petersburg).

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