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Russia's Transportation Infrastructure Construction Market is expected to register a CAGR of more than 5% during the forecast period (2022-2027).
COVID-19 affected the transportation sector, and the impact is directly and indirectly, such as a reduction in transit services, construction slowed down by social distancing factors, affected supply chain, etc. Now the sector is recovering and focusing on developments.
Furthermore, the Russian government is focusing on the modernization of transportation infrastructure. Under a comprehensive plan, RUB 6.3 trillion was issued to revamp the country's highways, airports, railways, ports, and other transportation infrastructure. In addition, the Russian government allocated another RUB 4.8 trillion (USD 66.6 billion) to the "Safe and High-Quality Highways" project. These projects improve the road connectivity of Russia's regions.
However, by 2030, the government plans to install 6,835 miles (11,000 kilometers) of fresh railroad tracks, linking the cities of Moscow, St. Petersburg, Samara, Krasnodar, and Novosibirsk. In addition, the Russian railway network is experiencing robust growth in construction activities under the guidance of rail monopoly RZD (Russian Railways). In 2020, RZD was building 12,427 miles (20,000 kilometers) of new lines, to be completed by 2030 at an estimated cost of more than USD 61 billion.
Scope of the Report
Transportation infrastructure construction refers to a wide range of construction activities involving reforming existing constructions, building new infrastructures, and extending or demolishing projects. Furthermore, the Russia Transportation Infrastructure Construction market covers the growing trends, a complete background analysis of the transportation infrastructure construction market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and the impact of COVID – 19 on the market are covered in the report.
Russia's Transportation Infrastructure Construction Market is segmented by Mode (Roadways, Railways, Airports, Ports, and Inland Waterways) and Key Cities (Moscow, St. Petersburg, and Kazan). The report offers market size and forecasts for Russia's Transportation Infrastructure Construction Market in value (USD Billion) for all the above segments.
|Ports and Inland Waterways|
|By Key Cities|
Key Market Trends
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.
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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.
Russia’s transportation infrastructure construction market is moderately fragmented, as most of the projects are owned by major players in the industry. Small-scale players have less scope in the industry. Some of the major players include Mosproekt-3, Russian highways, Aecon Group Inc., ENKA, and AO Institute Stroyproekt.
April 2022: Stroyproekt (the Russian road sector leader in transport infrastructure design and construction supervision) completed launching the Central Bridge deck over the Ob River in Novosibirsk. The launching operation, which included 15 stages, took a year. 715 m of steel structures with a total weight of over 9000 tons were assembled. The deck was launched from the left to the right bank at over 13 m above the water using four hydraulic jacks with a total capacity of 1200 tons.
March 2022: Russian Highways SC (a leading infrastructure construction company in Russian Federation) announced the construction of 29 engineering structures at the 80th km of stage 1 of the M-12 Highway in the Vladimir Region. This project includes 24 bridges and flyovers, three cattle passes, and two pedestrian underground crossings. Works on 27 structures are currently under construction.
March 2022: Russian Highways SC (a leading infrastructure construction company in Russian Federation) announced that, in April 2022, work is planned to start on the 819-860 km section of the M-4 Don Highway in the Chertkovо District of the Rostov Region. To improve traffic safety, highway engineers will restore the road carpet in both directions, replace structures on the roadsides, construct a parking lane, surface drainage systems, etc. The work completion is scheduled for the end of 2022.
Table of Contents
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Government Regulations and Initiatives
4.3 Supply Chain/Value Chain Analysis
4.4 Technology Snapshot and Digital Trends
4.5 Insights on Modernization of the Transportation Infrastructure Sector in Russia
4.6 Insights on Major Infrastructure Development Projects in Russia
4.7 Market Dynamics
4.7.1 Market Drivers
4.7.2 Market Restraints
4.7.3 Market Opportunities
4.8 Porter's Five Forces Analysis
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Mode
5.1.4 Ports and Inland Waterways
5.2 By Key Cities
5.2.2 St. Petersburg
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.2 Russian highways
6.2.3 Aecon Group Inc.
6.2.5 AO Institute Stroyproekt
6.2.8 RZD International
6.2.10 Seaway 7*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Russia Transportation Infrastructure Construction Market market is studied from 2018 - 2027.
What is the growth rate of Russia Transportation Infrastructure Construction Market?
The Russia Transportation Infrastructure Construction Market is growing at a CAGR of >5% over the next 5 years.
Who are the key players in Russia Transportation Infrastructure Construction Market?
Mosproekt-3, Russian highways, Aecon Group Inc., ENKA , AO Institute Stroyproekt are the major companies operating in Russia Transportation Infrastructure Construction Market.