Report reveals Russia requires heavy road investment

A report by Goldman Sachs reveals Russia’s requirement for further infrastructure investment. The report, Russian Infrastructure and Construction, shows that investments in transport corresponded to 1.5-1.7% of GDP in 2005-2010. For Russia’s total infrastructure needs, including power networks and communications, spending equated to 3.7-4.3% of GDP. But the report shows Russia should allocate at least 3.5-4.5% of its GDP to infrastructure while maintenance of existing infrastructure should make up about 50%
May 18, 2012 Read time: 2 mins
A report by 3347 Goldman Sachs reveals Russia’s requirement for further infrastructure investment. The report, Russian Infrastructure and Construction, shows that investments in transport corresponded to 1.5-1.7% of GDP in 2005-2010. For Russia’s total infrastructure needs, including power networks and communications, spending equated to 3.7-4.3% of GDP. But the report shows Russia should allocate at least 3.5-4.5% of its GDP to infrastructure while maintenance of existing infrastructure should make up about 50%. Russia’s roads require the biggest investment. Spending on road construction has risen from US$8.31 billion in 2005 to $17.76 billion in 2011, however traffic volume is increasing at a faster pace. According to the report highways density totals 6km per 1,000 people and around 30% of roads are over-capacity. Goldman Sachs forecasts that new road funds will promote the relevant construction. Should funding sources meet plans then financing will amount to $25.9 billion in 2012, $36.7 billion in 2013, and 32.6 billion in 2014. Spending may hit some $58.66 billion by 2018.

For more information on companies in this article

Related Content

  • ITF helping to plot the future of urban transport mobility
    December 2, 2013
    The 8th APEC Transport Ministers’ Meeting in Tokyo on 4-6 Septembersaw high-level discussions on how to enhance connectivity in the Asia-Pacific region through high-quality transport. As a guest, the International Transport Forum (ITF) was also heavily involved in the event, as Guy Woodford reports A transport Connectivity Map visualising Asia-Pacific’s ideal transport network in 2020, and a Quality Transport vision for the region encompassing convenience, safety, security, and sustainability, will b
    Read More
  • EEF report calls for more UK road investment
    April 8, 2013
    Investment in roads should be the UK’s transport spending priority, according to a report by the EEF. The employers' body's Transport for Growth survey found that 80% of manufacturers see the road network as vital to their business, with 50% revealing that operating costs are increasing substantially due to the condition of the road network. Meanwhile Roger Salomone, the EEF’s head of business environment policy, noted that a mere 6% of firms regard the rail network as a priority, despite the fact investmen
    Read More
  • Liebherr posts healthy results for 2013
    December 18, 2013
    The Liebherr Group says that its results for 2013 equal that of the previous year, despite a weak economic climate. The company expects turnover to hit €9.086 billion, while its workforce has grown to 39,670. Despite the conditions, Liebherr has invested more than €800 million in its operations, taking a view that market conditions will improve in the long term and that developing the company further will lead to future gains. The overall economic situation did not improve in 2013 however and according to
    Read More
  • We need better connected transport, says OECD
    May 4, 2012
    Better connected transport will drive economic growth and better protect the environment, according to the Transport Outlook 2012 report on mobility trends produced by the International Transport Forum at the OECD (Organisation for Economic Co-operation and Development). The new influential report was launched by OECD Secretary-General Angel Gurría during the Annual Summit of Transport Ministers held in Leipzig, Germany. “Transport and technology form the backbone of global trade,” said Gurría at the summ
    Read More

Highlighted Content