Agenda: Implementing the Transport Strategy until 2030 and ten other issues
Contents:
Dmitry Medvedev’s opening address
Maxim Sokolov’s report on implementing the Transport Strategy until 2030
Transcript:
Government meeting
Dmitry Medvedev: Today we will discuss Russia’s Transport Strategy until 2030, the main document which outlines the plan for the development of the country's entire transport system, including motorways, railways, air, sea and river transport, and road infrastructure. We will review the five-year results of the implementation of the Strategy from 2009 to 2013 and the latest version of the document prepared by the Ministry of Transport. This document has been updated to specify some parametres and take into account changes in the global and Russian economies.
The objective remains the same: to make transport up-to-date, accessible and safe and to create conditions for the improvement of public mobility. This is important for economic development and will make our lives more comfortable. We can turn Russia’s challenging geography into competitive advantages by modernising the infrastructure and, of course, by improving the quality of transport services.
Since 2009, our Strategy has been implemented as part of several federal programmes, namely the Transport System Development programme, the Socioeconomic Development of the Far East and the Baikal Region, and the South of Russia development programme. A range of large projects has been realised, including the construction and renovation of railways, motorways, airports, sea and river ports, and logistics terminals.
Major events that took and will take place in this country have raised the investment appeal to the respective level. I am referring to the APEC forum, the Student Games in Kazan, and the preparations for the Olympic Games in Sochi.
Of course, we should not sit on our laurels. We must rebuild and maintain infrastructure facilities based on most modern technology, in a reasonable timespan and through an affordable process, which is particularly important for our transport. We must use the most up-to-date mechanisms for funding such projects, including private-public partnerships.
The industry is creating a demand for high-tech developments. We must also create smart transport patterns and introduce GPS and other modern telecommunications achievements.
The plans for developing the transport sector should be tailored to those for upgrading other branches – industry, agriculture, and the power economy, and take into account the requirements of the regions, including the formation of major urban agglomerations.
One of the most important tasks is to create competitive transport corridors with good parameters and a solid capacity. The development of the Northern Sea Route, especially its commercial use, has sound prospects.
Dmitry Medvedev: "One of the most important tasks is to create competitive transport corridors with good parameters and a solid capacity."
That said, we should not forget about environmental protection and we should switch transport vehicles to eco-friendly fuel and make its use more effective. This is the main issue that I would like to raise in my opening address. I would like to say a few words about the distribution of subsidies. Twenty regions will receive funds for supporting small- and medium-sized companies, notably their infrastructure; in part, this concerns the material and technical equipment of buildings with business incubators. I hope that this will be convenient for business all over the country.
In addition, we will endorse the subsidies that will help companies to comply with their commitments on investment loans for developing plant-growing and livestock breeding. These are handsome sums – about 9 billion and 29 billion roubles, respectively.
Let us discuss the first item on our agenda – the implementation of the transport strategy. Mr Sokolov has the floor.
Minister of Transport Maxim Sokolov
Maxim Sokolov (Minister of Transport): Mr Medvedev, ladies and gentlemen. Russia’s transport strategy is indeed the primary strategic national planning document that sets the development of the country’s entire transport complex. In my speech, I will present the results that we have achieved by implementing the transport strategy up until 2030, and the adjusted draft of this fundamental document for the transport industry.
Maxim Sokolov: "The macro-economic performance of the transport complex in the past few years reflects the efficiency of state support measures. For instance, the freight turnover of the transport complex has increased by 35% over the past ten years and has reached 2.7 trillion tonne/kilometres. The pre-crisis 2008 levels have been exceeded by almost 4%, and the passenger turnover has exceeded 530 billion passenger/kilometres."
The Government approved the current version in November 2008. It is aimed primarily at meeting the requirements for innovative and socially oriented economic and social development in competitive and quality transport services.
During the implementation of the strategy, purposeful work was conducted in order to sustain and support the economically active population and to modernise all key segments of the transport infrastructure.
The macro-economic performance of the transport complex in the past few years reflects the efficiency of state support measures. For instance, the freight turnover of the transport complex has increased by 35% over the past ten years and has reached 2.7 trillion tonne/kilometres. The pre-crisis 2008 levels have been exceeded by almost 4%, and the passenger turnover has exceeded 530 billion passenger/kilometres. The relevant strategy targets were met or exceeded, as reflected in the density of railway and motorway networks, the aviation mobility coefficient, transport services exports, the aggregate deadweight tonnage of Russian-controlled sea-going merchant marine fleet and a number of others.
Maxim Sokolov: "During the implementation of the strategy, we have built and reconstructed 24,000 km of federal and regional motorways, and we have resurfaced about 140,000 km of roads. We have launched construction of roads using service-life contracts."
During the implementation of the strategy, we have built and reconstructed 24,000 km of federal and regional motorways, and we have resurfaced about 140,000 km of roads. We have launched construction of roads using service-life contracts. This is very important for the road construction sector. The system of road construction funds has been reinstated, and it is continuing to develop.
As for the air transport sector, we have built and reconstructed runways at 23 airports. We have built new terminals in Vladivostok, Yakutsk, Kazan, Moscow and many other cities. We have provided state support for local and regional airports, as well as air traffic subsidies between Central Russia and Far Eastern regions and Kaliningrad. These measures have yielded substantial positive results.
Maxim Sokolov: "Prior to 2012, Russian merchant marine seaports handled 567 million tonnes of freight, or 40% more than the highest Soviet-era transshipment volumes in 1989. Russian ports methodically increase the share of national foreign trade consignments, stabilising at 85%."
Prior to 2012, Russian merchant marine seaports handled 567 million tonnes of freight, or 40% more than the highest Soviet-era transshipment volumes in 1989. Russian ports methodically increase the share of national foreign trade consignments, stabilising at 85% and leaving the remaining 15% for the three Baltic states and Ukraine. Only ten years ago, foreign ports had handled 50% of all Russian freight. The relevant infrastructure has been created, and commercial transit has been launched along the Northern Sea Route. As for inland water transport, we have focused on maintaining infrastructure facilities of inland shipping lanes and ensuring navigation safety. Work has been underway to increase the length of shipping lanes with guaranteed waterway dimensions, with lights and reflectors. As of early 2013, electronic/online maps were compiled showing 44,000 km of shipping lanes. This has allowed the inland water-transport sector to actively utilise GLONASS technologies. On the whole, navigation along almost 70,000 km of routes was ensured, making it possible to deliver consignments to Arctic regions.
The railway transport sector has continued to expand its infrastructure along all the main freight and passenger routes. Approaches for accessing major Russian ports were also upgraded. A number of major infrastructure projects were completed, including the reconstruction of the Oune – Vysokogornaya section, construction of the Novy Kuznetsovsky tunnel along the Komsomolsk-on-Amur – Sovetskaya Gavan section and the organisation of high-speed train traffic between St Petersburg and Helsinki. Construction of the Berkakit – Tommot – Yakutsk line and the Losevo – Kamennogorsk line is nearing completion.
Passenger demand for all categories of transport has increased. The air transport sector has posted the most impressive growth, with its 2012 passenger turnover exceeding 195 billion passenger/kilometres. At the same time, it should be noted that, despite considerable successes, the current national transport network does not make it possible to completely meet the demand of growing national economy segments, to ensure competitive positions on the global transport services market and to maintain adequate population mobility levels. This can be primarily explained by the fact that the current version of the transport strategy was based on global market situation indicators, which differ from current indicators. This includes the main freight traffic routes, consumer demand levels and a number of other fundamental parameters.
A number of key indicators of the transport strategy and its financing parameters were stipulated already during the pre-crisis period. The updated strategy was drafted with due consideration for the role and place of the transport network in accomplishing high priority tasks of national economic development up to 2020, and it also responds to all the main challenges facing the transport network.
The strategy was updated in the most open manner possible, with due consideration for the remarks of federal and regional executive agencies, leading specialised academic and educational institutions, major transport companies and public organisations of the transport complex.
During Transport Week in December 2012, a draft strategy was submitted to all the parties involved in the transport process and to the heads of Russian regions, as well as to transport organisations and companies and major consignors. Essential changes were discussed at various platforms, including the Ministry of Transport, the Public Chamber, the Government’s Expert Council and the Open Government. The draft document was also posted on the Ministry of Transport website and was upgraded in line with public and expert remarks.
We have updated the Transport Strategy by charting specific socioeconomic development guidelines, and have updated targets with regard to planned economic-sector demand and regional demand, as well as the consequences of Russia’s accession to the World Trade Organisation and the creation of a common economic space. The presidential executive order on the long-term economic policy instructs the Government to implement measures in order to attain a number of long-term national-development targets, and the transport network is called upon to play an important role in attaining these targets.
Maxim Sokolov: "Under either scenario, it is necessary to lower transportation costs, meet the demand for cargo shipments of basic cargo-generating industries and satisfy the requirements stemming from Russia’s WTO entry and the development of the common economic space. It is also essential to guarantee an adequate level of transport safety."
In drafting the strategy, we took into account the major provisions of documents on strategic planning, including the strategy on innovative development, the energy strategy, the strategy on transport machine-building, aircraft, shipbuilding, car-making and the coal industry, as well as the strategy for the socio-economic development of the regions and other papers on strategic planning.
Consequently, the draft of the strategy presented today is a systemic document with clear-cut targets for developing the national transport industry and the economy as a whole.
The draft federal law on national strategic planning determines long-term development goals, investment and innovation priorities, and principles and mechanisms of implementing national transport policy. They are arranged in an integrated systemic model that makes it possible to monitor the indicators and the strategy’s implementation.
The top level illustrates the state’s mission in ensuring the functioning and development of transport, as well as strategic priorities. They are followed by the development goals and the major areas of the transport strategy. The following level includes general tasks and mechanisms for the strategy’s implementation and assesses the use of financial resources and the primary results.
The draft determines that national transport policy should be aimed at ensuring reliable and predicable links between the country’s territories and the rest of the world while taking due account of accessibility, quality, safety and environmental protection standards.
The strategy presents two scenarios for the transport complex development to 2030 – a basic and an innovative. Taking into account budget restrictions, the draft strategy determines absolute priorities. Under either scenario, it is necessary to lower transportation costs, meet the demand for cargo shipments of basic cargo-generating industries and satisfy the requirements stemming from Russia’s WTO entry and the development of the common economic space. It is also essential to guarantee an adequate level of transport safety.
Finally, we must make our people more mobile, using transport links between different territories and meeting labour market requirements. We must at least double the mobility of the population by 2030 and reach the level of 15,000 passenger km per capita a year. In this context, we plan to implement ambitious breakthrough projects, such as the formation of high-speed passenger dedicated lines and the achievement of considerable progress in developing regional flights.
These two scenarios require different resources. The gap between their funding amounts to 45%.
The basic conservative scenario has been drafted in line with programme documents, primarily, the national programme for transport development up to 2020 and has certain budget restrictions. It provides for selecting a narrow list of priorities to avert the primary threats to the national economy and social sphere.
The innovative scenario envisages the intensified and balanced development of the national transport complex. Transport is being viewed as an active factor in maintaining the economic growth and competitiveness of the national economy. It acts as a catalyst for the industrial development of the regions.
I would like to emphasise that the transport strategy is a balanced document tailored to the development of regional socio-economic sectors. All funding sources will be involved in its implementation – primarily extra-budget (about half of the total) and the rest from the budget.
The funding structure is well-balanced and will remain as such if we preserve the trends in the economic development in general.
Under this key scenario, the amount of budget allocations to the transport system is becoming a prerequisite. Importantly, private investments in most cases do not replace budgetary funds, but only complement or follow them. Thus, the amount of private investment in riverboats or airports largely depends on budgetary investments in maintaining guaranteed depths or building runways and airfield infrastructure.
Now, briefly about the expected results with regard to each of the main goals. The goal is to create a single transport space. We will make progress in this area under all circumstances, and the choice of the conservative scenario implies that the solution to many pressing problems of modernisation will be put off for a longer-term perspective. First, the issue is about transitioning to a fully-fledged network structure of railways and motor roads, and, accordingly, a polycentric model of spatial development in our country. Second, building a dedicated infrastructure of high-speed rail (about 9,000 km) and high-speed long-distance rail (about 4,500 km) will enhance the mobility of the population and free up freight line reserves. The motor road complex will maintain a reasonable balance between the road network capacity and increased car ownership, especially in major cities. The most important initiative involves the increased use of inland waterways. In addition, it is proposed to upgrade the seaport infrastructure and create what’s known as layered ports on the Taman Peninsula, in Ust-Luga, Novorossiysk, and some other areas. All these measures will increase the commercial speed of deliveries by rail by 30%, inland waterways by 60%, and double the speed of deliveries by lorries.
The second goal of the strategy is to ensure the availability and high quality of transport and logistics services in the area of freight traffic. We should also be mindful that the accelerated economic development of Siberia and the Russian Far East, as well as the removal of infrastructure constraints, can be achieved only as part of an innovation-driven growth scenario.
We have already launched such important projects for the industry as building new ports on the Yamal and Taman peninsulas, designing and building a bridge across the Lena River in Yakutia, and building railway tracks to the ports of the Russian Far East and the northwestern coast of the Black Sea, to name a few. In accordance with the strategy, we plan to carry out even more ambitious projects, such as upgrading the Baikal-Amur and the Trans-Siberian railways, building high-speed rail and further developing the Northern Sea Route.
The third goal is to ensure the affordability and the quality of transport services in accordance with social standards. The revised Transport Strategy for the first time provides for regulating issues related to the operation and development of metropolitan areas. Both scenarios address traffic problems in major metropolitan areas, such as Moscow, St Petersburg, Kazan and Yekaterinburg.
The strategy provides for a major increase in improving transport accessibility across Russia and a dramatic increase in accessibility for people with disabilities and other population groups with limited mobility. Widespread deployment and use of the GLONASS satellite navigation will improve the quality of navigation and provision of information for the transport complex. Finally, the intelligent transport systems will facilitate the efficient use of resources.
As part of Goal 4 regarding integration into the global community and the implementation of Russia’s transit potential, key measures will be taken under both scenarios to make full use of Russia’s capabilities in the area of transit and export of transport services.
The next goal is to improve transport system safety. Safety is an absolute priority, so there will be no major differences under either scenario. An integrated transport security management system will be put in place and control and supervision systems will be further developed. This leads us to believe that transport risks will decrease by more than 60% by 2030 and the level of protection of transport facilities against unlawful interventions will increase.
Finally, the sixth goal is to reduce the negative impact of the transport system on the environment. Transport emissions specifically are planned to be reduced by 24% to 53%. In view of the recently adopted decisions regarding the development of the Moscow transport hub, the Baikal-Amur Railway, the Trans-Siberian Railway, the high-speed rail and the Central Ring Road, we now realise that we are moving away from a base transport system to one driven by innovation. In the future, we hope that the strategy will be carried out based on an innovation-driven approach. However, since nothing is set in stone, we propose adopting a strategy that includes both a basic scenario and an advanced, innovation-based one.
Thus, the updated transport strategy will address the needs of innovation-based and socially-centred growth, where transport can generate sustainable demand for domestic transport engineering products.
We have all the necessary approvals and have presented the project during the prospects meeting of the Open Government. Mr Medvedev, I request that you second the updated draft Transport Strategy. Thank you.
Dmitry Medvedev: Thank you.
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