Infrastructure Development Will Enhance Territorial Integrity of the Country

5 march 2019

Infrastructure development makes a positive impact on the economic growth and quality of life; it also solves the strategic objective associated with the enhancing the country's territorial integrity. This subject was discussed at the meeting of the subgroup for cluster policy and territorial-sectoral projects of the Interdepartmental Work Group on the development of a roadmap for sustainable economic growth in the non-resource economy sector.

One of the roadmap's priority sectors, "Mobility", includes the manufacture of liquefied natural gas vehicles, expansion and modernization of railway network, development of maritime transport, regional air transport, sharing programs and unmanned vehicles.

According to the authors of the document, the level of the infrastructure investments in Russia is low compared to other countries. One of the most substantiative problems is that a high portion of road surfacing does not meet international standards. At the same time, the amount of passenger and cargo turnover and the demand for vehicles depend on the infrastructure. Moreover, the sector's players face high administrative barriers, inaccessible credit resources and a serious tax burden. "The sector lacks modern equipment, and the current pricing pattern implemented by the defense companies, that power the sector, de-motivates the management to increase productivity and introduce innovations," said Anastasia Alekhnovich, Head of the Expert Center under the Presidential Commissioner for the Protection of Entrepreneurs' Rights.

Alekhnovich believes that the Integrated Plan for the Modernization and Expansion of the Main Infrastructure for the period up to 2024 should positively impact the development of the sector.

The experts suggest increasing the demand for all types of domestic transport by introducing leasing programs, setting vehicle wear and tear requirements, improving quality and capacity of infrastructure, reducing administrative barriers and balancing the state tariff policy.

The stimulating economic policy is expected to increase the transport mobility of the population by 16% by 2024, the throughput capacity of highways by 57.3%, the passenger turnover by 65%, and the cargo turnover by 25%.