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ITE Transport and Logistics

Transport & Logistics in Russia’s Far East: Your infrastructure update

Thanks to its strategic location, Russia’s Far East is quickly emerging as one of the nation’s key transport and logistics markets. The government’s is keenly fixed on to the region, with an impressive catalogue of infrastructure-related projects it is ready to implement.

Russian Far Eastern transport corridors under development

The Far Eastern reaches of Russia are an important destination for both exports and imports, offering access to China, the ASEAN Economic Community and North America. So does Russia’s government. It is developing a brace of transport corridors in the Far East - mainly in the Primorsky region. 

Primorye-1 and Primorye-2 corridors will provide essential transport routes to and from Northern China. China is one of Russia’s biggest trading partners. Trade turnover between the two neighbours exceeds $100 billion annually. Both nations have pledge to double this figure by 2020 – hence the drive to develop Russia’s Far Eastern transport and logistics networks.

The first trade route will connect the ports of Vladivostok, Nakhodka and Vostochny in Primorsky to Harbin, capital of Heilongjiang province, in North China. Primorye-2’s route will join Zarubino and Posiet to Hunchun, another Northern Chinese city, just over the border.

It is estimated that their implementation could add an additional 45 million tons to the Far East’s freight volumes by 2030. Approximately 23 million tons of agricultural produce, such as soybeans and corn, would be transported via these corridors. The remaining 22 million tons would take the form of container cargo.

Construction of a number of new facilities is in the pipeline along both Primorye corridors, conjoined with a programme devoted to upgrading existing sites. The Port of Zarubino, for example, will be expanded, under the guise of the “Big Zarubino” project. $3.5 billion is going to be invested in the port in order to  prepare it for shipments to Hunchun as well as destinations Eastern and Southern China.

There is even talk of a developing a Hyperloop-like ultrafast transport system between Zarubino and mainland China. The Chinese Transport Ministry is apparently receptive to the idea, which means Russia’s Far Eastern transport and logistics sector harbours hi-tech ambitions.

Road infrastructure gets a boost in Russia’s Far East

Roads in Russia’s Far East are to be subject to a far reaching programme of upgrades in the coming months and years. Again, the focus is firmly on making China as accessible to Russian goods as possible. Doing so will make transporting goods through China and Russia, and beyond, an easier, cheaper prospect.

SO what is on the agenda? It is mainly construction of new road bridges across the Amur river. The river itself is a natural border between the Far East and Northern China, so establishing road routes across it will prove a major boon for road transport firms operating in the region. 

The first planned road bridge up for construction is set to connect the port of Nizhneleninskoye in Russia’s Jewish Autonmous Region with Tongjiang in the province of Heilongjiang. China has already built its own road bridge here, while Russia’s contribution is expected to be completed by the end of 2018. Mainly iron ores and minerals will be transported to and from each nation via this route. 

Elsewhere, a highway bridge connecting Blagoveschenk in the Amur region to China’s Heihe is to be constructed. By 2019, when the bridge is predicted to be fully built, it is expected to be another strong logistical aid, and will be allow trade to greatly develop between these two connected cities.

Other transport & logistics facilities under construction in Far Eastern Russia

Some Pacific ports are to be awarded Free Port status, with some sites already enjoying the perks such a position brings. Vladivostok, for example, was made a Free Port some years ago and is quickly developing in order to accommodate increased transportation activities. 18% of companies permanently attached to the port are transport and logistics specialists, for example.

Other ports soon to receive Free Port status include:

•    Vanino – Khabarovsk
•    Korsakov – Sakhalin
•    Petropavlosk - Kamchatka 

Vanino is already seeing some big investment. 15 companies have registered their interested in becoming full time residents at the port, bringing with them $70 billion.

The Nadezhindskaya multi-modal transport hub is also planned for construction in the Primorsky region. It is designed to serve the proposed Primorye-1 corridor, and includes construction of the $139 million Primorsky Southern Cargo Terminal. Additionally, plans are afoot to build a 51.7 hectare logistical park in the Khabarovsk region – further strengthening the transport and logistics facilities, networks, and environment throughout one of Russia’s most remote regions.

Discover the potential of transport & logistics in Russia’s Far East at TransSiberia 2017

Want to get in touch with the Russian figures behind the Far East’s logistical development? There is only one place to be: TransSiberia 2017.

TransSiberia is a specialised exhibition for transport, logistics and infrastructure. The event is a unique platform for companies interested in the Far Easts’ transport and logistics market. Taking part in the show is your chance to get your products and services seen by a wide audience of international and regional specialists – and the perfect place to expand your Russian business operations.

If you are interested in exhibiting at TransSiberia 2017, or would like more information on the event, contact us today to learn about the participation opportunities available.

Image: © Moshe Potz via Flickr


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