Market Trends of Russia Transportation Infrastructure Construction Industry
This section covers the major market trends shaping the Russia Transportation Infrastructure Construction Market according to our research experts:
Increasing Large-Scale Infrastructure Projects
According to the Russian Far East Development Ministry, China Railway Construction Corporation Limited (CRCC) is considering participating in large-scale infrastructure projects in Primorye, which benefits the China traders. Despite the pandemic crisis, in the first five months of 2021, trade between the Far Eastern Federal District (Primorye) and China has increased by 14% compared to 2020, reaching USD 4.2 billion. In addition, more than USD 11.6 billion was invested in more than 58 infrastructure projects by Chinese investors in the Far East region of Russia.
Furthermore, the Russian government has released a comprehensive plan for the modernization and updating the main infrastructure projects. Under this six-year modernization plan, the government issued RUB 6.3 trillion (USD 96 billion) to revamp the country's highways, airports, railways, ports, and other transport infrastructure through 2024. This comprehensive plan aimed to enhance the connectivity of Russian regions and develop strategic routes, including the Europe-Western China transport corridor and the Northern Sea Route.
Moreover, Prime Minister had signed a Moscow-Nizhny Novgorod or Moscow-St. Petersburg, high-speed railway. This high-speed railway transports passengers Moscow-Nizhny Novgorod or Moscow-St. Petersburg, high-speed railway. Meanwhile, with a revised cost of RUB 1 trillion, the Dzhubga-Sochi highway is designed to reduce summertime traffic bottlenecks along the 170-kilometer stretch between the two Black Sea resorts by 2037.
Increasing Investments in Transportation Infrastructure Sector
In July 2021, the Russian Government invested RUB 53 billion (USD 718.5 million) in building and repairing road infrastructure. The major share of the total investment, nearly 81% used for intensifying the construction of the M-12 high-speed highway connecting Moscow, Nizhny Novgorod, and Kazan. This project is part of the Europe-West China corridor and is expected to finish by 2024. The remaining RUB 11 billion is to be distributed between 20 Russian regions and used to renovate regional, municipal, and local roads. These projects include building a part of the ring road around Yekaterinburg, a bridge in Krasnoyarsk Kray, a bridge in Leningrad Oblast, etc.
Furthermore, in earlier 2021, more than RUB 160 billion was assigned for building and repairing road infrastructure. Meanwhile, in 2020, the gross domestic product (GDP) spent on all modes of transportation infrastructures accounted for more than EUR 14.35 billion. A major portion of investments was made in road transportation with EUR 6.7 billion, followed by railways (with 46% share of total investment), airways (2.62%), inland waterways (1%), and seaways (3.3%).
Moreover, the Russian Government is investing in major infrastructure projects, such as Nizhnekamsk-Naberezhnye Chelny Bypass, Pregolya Railway Bridge, Pregolya Road Bridge, 4. Zavolzhye Aluminum Can Production Plant, etc. These projects were initiated in Q4 2021 with more than USD 1.8 billion investment and are expected to complete by Q4 2024.
