Extended term for transport development

Summary of the report made by RF Minister of Transport Igor Levitin at the meeting of the RF Government on 24 April 2008

“About the development of Russia’s transport system in 2010 – 2015”

The development of Russia’s transport system in 2010-2015 will be carried out according to the major strategic document of transport industry – Transport strategy of the Russian Federation till 2020.

The main instrument to achieve the targets set up by the strategy is the federal target program (FTP) Modernization of Russia’s Transport System in 2010-2010. Its implementation enabled us to stop the decrease of passenger turnover, to ensure the growth of transport mobility of the population, to reach the forecasted growth of total throughput (all types of transport) by 40%.

Nevertheless, a number of tasks could not be achieved under current conditions, mainly due to insufficient financing, including:
- Regional imbalance of transport infrastructure development;
- Infrastructure issues limiting the growth;
- Cumulative wear of fixed assets;
- Low share of private capital in investment projects aimed at development of transport infrastructure

Considering this, at the State Council Presidium of November 13, RF President Putin set a number of tasks on introduction of changes into the current FTP for its completion a year above the schedule (in 2009) and on revision of the program for extension of its term till 2015 with a change of its name to the Development of Russia’s Transport System in 2010-2015. Thus, in the nearest future, a transition is necessary from the country’s transport system modernization to the stage of development based on the principle of availability, safety and efficiency.

In 2010-2015, the Transport Strategy envisages implementation of a number of measures. For example, the development of transport infrastructure implies achievement of the following key goals:
- to expand capacity of railway sectors, to form lines for increased weight and axial load, to build railway lines in the regions within the development of new territories;
- to extend federal highways corresponding to regulatory requirements;
- to get rid of sectors limiting the capacity of the unified deep-water system of Russia’s European part,
- to develop the network of Russia’s internal hub airports.

Besides, transport infrastructure development includes implementation of high-technology project aimed at development of transport routes and the projects of integrated development of transport hubs servicing major interregional links. Of course, among the most important parameters determining the population’s life quality and the level of economic development is the availability of transport services.

Subsiding of socially important air services is an important issue of air transport development. State should support the development of both airports and air carriers. Similar measures should be undertaken in the sphere of passenger transportation to the Far East by railway.

To improve the competitiveness of Russia’s transport system and to use transit potential it is necessary to solve the tasks aimed at development of international transport corridors, transport-and-technology infrastructure, modernization of the transport fleet. For that purpose, the Ministry of Transport proposes to focus its financial and organizational efforts on the development of the existing transport corridors and creation of alternative routes for speeding up the flow of cargo ad passengers. It is also necessary to develop our national seaports. The largest ports ensuring major volume of foreign trade and transit cargo are Murmansk, St. Petersburg, Ust-Luga, Primorsk, Novorossiysk, Vostochny, Vanino. The development of river ports located at major international transport corridors (Rostov, Azov, Olya, Blagoveshchensk) will make it possible to improve competitiveness and transit potential of Russia’s inland waterways.

The development of air transportation will be related to creation of a network of distribution centers being formed on the base of Moscow air hub as well as the airports in St. Petersburg, Kaliningrad, Rostov, Ekaterinburg, Novosibirsk, Krasnoyarsk and Khabarovsk.

Total value of the Program makes RUR 13.9 trillion including RUR 4.651 trillion (33.4%) from the federal budget, RUR 615.6 billion – budgets of the RF constituent entities (4.4%), 8.630.3 trillion – non-budget sources (62.1%) provided that investment component is included into railway tariffs.

The main instrument for implementation of Russia’s Transport Strategy in 2010-2015 will be the revised FTP to be named the Development of Russia’s Transport System with extension of its term till 2015.

It is necessary to complete the reform of railway transport, to carry out comprehensive specialization of commercial seaports, to develop a mechanism for improvement of inland waterways management system.

As for civil aviation, the main task is consolidation of companies, forming of an institute of airdrome network operators, sole holder of the property not subject to privatization, public enterprises for operation of airports located within the Far North region and related territories.

In the sphere of automobile transport and roads, the priority is establishment of a state company on development of highways and transition to maintenance of automobile roads according to norms and latest technologies.

To ensure dynamic development of the branch the Ministry of Transport proposes also some other forms of state support aimed at improvement of investment potential and attractiveness of transport industry including:
- state guarantees within the framework of large investment projects;
- participation of development institutes in authorized capitals of Russia infrastructure companies;
- exemption from taxes on land and property of airports, sea and river ports;
- opportunity to provide the resources of Investfund for implementation of projects within the framework of a Law on concession agreements.

Implementation of the FTP Development of Russia’s Transport System in 2010 - 2015 will make it possible:

to concentrate the resources on solving the priority tasks of transport system development and on implementation of comprehensive project, which in its turn will ensure favorable transport-and-communications conditions for social and economic development of our country;

to promote implementation of large transport project based on PPP principle, which is to serve a signal for business and to improve investment attractiveness of the industry;

to ensure correlated development of complex transport hubs, which is to facilitate the development of regional «points of growth» and to contribute to improvement of competitveness of the RF constituent entities;

to raise efficiency of measures and the use of budget resources.

The above plans are to be drought into life within the framework of a unified federal executive authority in transport sphere under close cooperation with interested federal and regional authorities, scientific, business and social structures.