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

  • ERF reveals policy priorities planned
    May 21, 2013
    The ERF has unveiled its strategic research priorities for road safety for Horizon 2020, the European Commission’s next multi-year framework programme for transport research and innovation. The ERF’s research road map identifies six priority areas that it believes can contribute towards reducing fatalities by 50% compared to 2010 levels. More specifically, it urges policy makers to devote research to key areas including adapting infrastructure to meet the challenges of 21st century traffic, developing alter
    Read More
  • States source funding for US highway improvements
    June 19, 2020
    States in the US have sourced Federal funding for highway improvements.
    Read More
  • Strong equipment exports are aiding Italian construction equipment manufacturers
    May 18, 2012
    Details from the Italian construction equipment manufacturing asscoaition, UNACEA, show that domestic machine sales are still falling, while exports keep on growing. However exports are growing at a slower rate than in 2011. Over the first quarter of 2012, 1,820 construction machines were sold on the Italian market, a drop of 22.4% from the same period in 2011. These included 1,734 earthmoving machines, a fall of 22.4% compared to the first quarter of 2011, while there were 40 road machines sold, a drop of
    Read More
  • RAC blasts UK Government's poor infrastructure investment
    May 14, 2012
    The UK’s motorists are facing increased congestion and longer delays due to a steady increase in vehicle numbers combined with reduced spending on transport infrastructure. A report by the RAC Foundation warns that there will be 4,000,000 more cars on the UK’s roads in the next 25 years, while the UK’s Government has not explained what plans it has to cope with the projected increase in traffic. The report predicts a 43% rise in traffic volume by 2035, with the biggest increase in the East Midlands. The fou
    Read More

Highlighted Content