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

  • US road safety is a cause for concern
    September 6, 2021
    There is concern over a worrying trend in US road safety, while there have been steady gains in road safety in Europe
    Read More
  • STRABAG reports satisfactory financial performance
    February 22, 2016
    Construction firm STRABAG says that its performance in the 2015 financial year was ‘satisfactory’ and that its outlook for 2016 is positive. “We closed an overall satisfactory year in 2015 with a higher output volume on nearly unchanged employee levels and a lower order backlog. In 2016 we want to maintain the output volume at its high level and raise our EBIT margin to 3%. Thanks to our improved risk management and cost reductions, we are confident that we will reach this goal after having also succeeded i
    Read More
  • Construction equuipment market improves
    May 14, 2012
    The German manufacturers association, VDMA, has compiled data suggesting that following the slump in construction equipment sales in 2009, the market will recover in 2010. The VDMA reports that in 2009 German construction equipment sales fell in by some 43% to €9.5 billion. Dr Christof Kemmann, VDMA chairman said at a recent board meeting of the organisation, “...2009 has been the most difficult year ever for our industry.”
    Read More
  • Ethiopia’s challenging cement market: consumption stimulation
    January 26, 2018
    Ethiopia’s cement industry has enjoyed substantial growth in the past decade. However, challenges linked to the government’s investment policy could erode these gains, as Shem Oirere reports With nearly 16.5 million tonnes of cement capacity and 10% average growth in annual consumption, Ethiopia is among the top cement producers in sub-Saharan Africa. Only Nigeria and South Africa rival it.
    Read More

Highlighted Content