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Economy and Transport Development in the Russian Far East

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Economy and Transport Development in the Russian Far East 2016 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KHOLOSHA TRANSPORT INFRASTRUCTURE DEVELOPMENT IN THE FAR EAST OF RUSSIA AND NEW IDEAS AND PROJECTS FOR PRIMORYE Far-Eastern JOINT STOCK COMPANY “FAR-EASTERN Federal MARINE RESEARCH, DESIGN AND TECHNOLOGY District INSTITUTE”, JSC «FEMRI», VLADIVOSTOK, RUSSIA (FEFD) Dr. Mikhail Kholosha Member of the GTI Transport Expert Group and GTI Transport Corridors Study Project Team JSC «FEMRI», bld. 40, Fontannaya St., Vladivostok, 690091 Russia http://www.dniimf.ru/ Tel.: +7 423 240 26 53 E-mail: holosha@dniimf.ru Vladivostok Free Port Territories 2016 1 ECONOMY AND TRANSPORT DEVELOPMENT IN THE RUSSIAN FAR EAST (PART 1) 2 ©ERINA 2016 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KHOLOSHA GDP, millions rubles 3,000,000 2,500,000 FEFD 2,000,000 1,500,000 1,000,000 Primorsky Territory 500,000 0 GDP per capita, rubles 500,000 FEFD 450,000 400,000 Russia 350,000 300,000 Primorsky Territory 250,000 200,000 150,000 100,000 50,000 http://www.gks.ru/ 2015 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3 Investments in Capital Assets, millions rubles Foreign Trade, millions USD 1200000 45000 FEFD FEFD 1000000 40000 35000 800000 30000 25000 600000 Primorsky Territory 20000 Primorsky Territory 400000 15000 10000 200000 5000 0 0 2005 2010 2011 2012 2013 2010 2012 2013 Foreign Investments, thousands USD 14,000,000 FEFD 12,000,000 10,000,000 8,000,000 6,000,000 Primorsky Territory 4,000,000 2,000,000 0 2005 2010 2011 2012 2013 http://www.gks.ru/ 2015 4 ©ERINA 2016 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KHOLOSHA Growth Million tons/year 2014/2006 (%) 700 +47% 600 500 Shares in 2014: Baltic – 36%, Much 400 Arctic – 6%, faster! Caspian & Azov-Black Sea Basins – 32%, 300 Russia Far East Basin – 26% Far East 200 Primorye +132% 100 +123% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 5 CONTAINERS: FEFD TURNOVER STRUCTURE (TEU, %) 2013 Kamchatka Magadan 4.9% 4.1% Sakhalin 7.3% FREIGHT GROWTH (TONS) 2014/13 Khabarovsk NOMENCLATURE 2013/12 (%) 0.2% (%) Russian Far East +7.5% +12.2% Containers +18.0% +5.2% Primorye 83.6% Coal, coke +11.8% + 23.3% Vladivostok Vostochny Liquid Bulk and LNG +10.3% +6.8% + Nakhodka 52.6% 31.0% General (without TEUs)-11.0% +28.5% Timber -17,7% +3.8% GROWTH (TONS) REGION Primorye: 2013/12 (%) 2014/13 (%) Average annual growth rates = 11.6 %, 18.5% in 2013 Russian Far East +7.5% +12.2% Primorsky territory +10.2% +15.6% Khabarovsk territory +10.9% +11.4% Sakhalin ~0.0% +3.7% 6 ©ERINA 2016 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KHOLOSHA Territorial Subject Share (%) of local public roads complying with standard requirements 2007 2008 2009 2010 2011 2012 2013 2014 Russia 64.560.156.555.055.458.3 56.0 56.6 Far-Eastern Federal District (FEFD) 36.244.929.831.441.0 51.9 56.6 53.8 Primorsky territory 50.8 52.0 51.7 54.2 60.1 69.7 62.0 60.6 http://www.gks.ru/ Updated 21.12.2015 Share (%) of containerized cargoes (TEU/FEU) in total cargo amount (Russia) 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Railway transport 0.7 1.1 1.2 1.3 1.4 1.4 1.5 1.9 1.9 2.1 2.2 Sea transport ………5.54.43.43.5 3.1 7.5 9.2 8.3 Inland water transport ………0.2 0.3 0.4 0.5 0.4 0.2 0.2 0.2 http://www.gks.ru/ Updated 09.07.2015 Other (1.1%) Liquid & LNG (40.2%) Coal, coke (36.2%) CARGO TURNOVER STRUCTURE (%) (FAR EASTERN PORTS, 2014) Timber (1.7%) Containers (7.7%) General (without containers) 6.9% Share (%) of electrified tracks in public railroads (Russia) 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 47.6 50.3 50.4 50.4 50.4 50.4 50.4 50.5 50.6 50.6 50.7 http://www.gks.ru/ Updated 07.07.2015 FURTHER DEVELOPMENT AND GROWTH ARE NECESSARY 7 PORTFOLIO OF EXISTING IDEAS AND PROJECTS IN THE RUSSIAN FAR EAST INCLUDING PRIMORYE (PART 2) 8 ©ERINA 2016 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KHOLOSHA “SINGLE WINDOW” FREE PORT PROCEDURE when being cleared on the border, VLADIVOSTOK 24-hour operation of border crossing points 15 municipalities Population 1.4 million SIMPLIFIED VISA PROCEDURES Square area 28,400 km2 Issue of 8-day visa when crossing the border REDUCED INSURANCE TARIFFS 7.6% total sum of insurance premium for 10 years pa yable by residents during 3 years after adoption of th e law FREE CUSTOMS ZONE FOR 5 years exemption from profit, property RESIDENTS and land taxes Duty-free and tax-free: - Importation, storage, consumption (use) of foreign goods VAT BENEFITS - Exportation of goods (equipment) 10 days accelerated refund procedure - Importation of foreign goods (equipment) ACCELERATION IN CONSTRUCTION INDUSTRY Shorter period for obtaining capital construction permits MEASURES TO STREAMLINE AND REDUCE REGULATORY INSPECTI ONS OF BUSINESS Shorter duration of regulatory inspections, approval of inspections by the Min istry for Development of the Russian Far East and joint inspections MANAGING COMPANY HAS THE RIGHT TO FILE LAWSUITS IN FAV OR OF FREE PORT RESIDENTS SUPERVISORY BOARD – a single governing body of the free port PROCEDURE FOR OBTAINING A RESIDENT STATUS Registration of Application to the Examination of Decision whether applicant Signing of an organization or Ministry for application within may perform its activities agreement and individual Development of the 15 business days entering applicant entrepreneur Russian Far East into the list of residents 9 9 SPECIAL ADVANCED ECONOMIC DEVELOPMENT ZONES (RAPID DEVELOPMENT AREAS) Строительство свиноводческих комплексов ООО «РусАгро-Приморье» ООО «Мерси трейд» / ООО «Приморский бекон» 3885 ha ООО «Инком ДВ» - Транспортно-логистический комплекс ООО «Приморский кондитер» - Кондитерский и хлебобулочный завод ООО «Невада-Восток» - 806,7 ha Логистический комплекс и производство 10 10 ©ERINA 2016 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KHOLOSHA PRIMORYE: MAIN IDEAS & PROJECTS MAP Ideas Project + ongoing Mixed status Pogranichny RDA «Mikhaylovsky» completed Poltavka Logistic complex Primorsky (Russian Railway) RDA «Nadezhdinsky» Ussuriysk Logistic complex «Dry Port» (Aqua Resources Group) Transport & logistic complex (Inkom-DV) Logistic (warehouse) complex (Pantos Logistics) Logistic complex (Group of companies Union) Vladivostok - the Business, Scientific, Finance, Transport, Logistic and Tourist Center Port and Industrial Airport Complex «Sukhodol» RDA Idea Artyom «Russian Island» Specialized petrochemical complex, VNKhK (JSC NC Rosneft) Gambling Zone New BCP Coal Port «Vera» Rostech State Corp. Solid bulk terminal (coal) Development of port terminals in Vladivostok: (Summa Group) VMTP, VMRP, Pervomaysky terminal, Dalzavod etc. Mineral fertilizer plant with port Development of existing port terminals : (JSC National Chemical Group) Evraz NMTP, Nakhodka Fishery port etc. Nakhodka Vostochny Slavyanka Kozmino Intermodal production & logistic complex, Slavyanka (“Transit DV Group” LLC) Kraskino Industrial & logistic cluster in Slavyanka (“BERKUT” Managing Company LLC) “Greater Port Zarubino” (Summa Group) Zarubino Posiet “Trinity Bay Sea Port” modernization (“SP International Sea Port Zarubino” LLC) Khasan Project Khasan-Rajin (RZhD) Posiet Port Modernization (Mechel Group) 11 PRIMORYE: LAND BCPS Ideas Project + ongoing Mixed status PROJECTS AND IDEAS completed Ideas of new BCPs Reconstruction of Railway BCP “Pogranichny” (Lesozavodsk-Hulin) (Grodekovo): border crossing, railway station Grodekovo, container terminal, railway border crossing Road BCP “Pogranichny”: upgrading of throughput capacity to 1300 vehicles and 4000 passengers per day: 500 trucks/day, 200 buses/ day, 600 cars/day Ideas of new BCPs (along ITC Primorye-3 via Fenshuiling) Railway BCP “Makhalino”: Far Eastern Railroad Branch implements a set of measures to reinstate the infrastructure of Makhalino railway border crossing point. Road BCP “Kraskino”: construction of a multilateral border crossing point capable of handling 250 vehicles per day. Railway BCP Khasan (Project Khasan-Rajin, RZhD) 12 ©ERINA 2016 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KHOLOSHA MAIN IDEAS IN NEW AND EXISTING PROJECTS (PART 3) 13 PRIMORYE: EXISTING ROADS AND RAILWAYS PROJECTS AND IDEAS Railway Network: Ideas Project + ongoing Mixed status state border (Sukhanovka) – Zarubino (ITC Primorye-2), Pogranichny (Grodekovo) – Sukhodol, Nakhodka, Vostochny (ITC Primorye-1) and state border (Sukhanovka) – Pogranichny (Grodekovo) (ITC Network with Ring). Stage-by-stage development of Motor Road Network: infrastructure of the East railroads Road BCP Kraskino – Zarubino (ITC Primorye-2), road to Nakhodka/ network for 2013-2017 (RZhD) Vostochny: 18-148 km (ITC Primorye-1), Road BCP Kraskino – Road BCP Vladivostok- Pogranichny (ITC Ring), new option of Primorye-3 route with a bridge Pogranichny Moscow across the Amur Bay + Vladivostok Outer Ring Road. Highway Pogranichny (Grodekovo) Idea (rail) SLB within Primorsky Territory Poltavka Ussuriysk «Dry Rail Port» Project Ideas of the speed and high-speed railroads: «Dry port» Projects - from the Provinces Jilin and Heilongjiang Airport - from the Republic of Korea - local lines (Vladivostok-Ussuriysk, several options) Gambling Zone Project of a toll road Peschany "Kraskino (BCP) – Sukhodol Port Zarubino" Vladivostok Slavyanka Kraskino Makhalino Nakhodka Zarubino Vostochny Posiet Project of a toll highway segment Khasan "Vladivostok - Nakhodka -
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