Transport infrastructure

Transport infrastructure

Key advantages for investors:

Фото

  1. Stable demand for public transport services in a major megalopolis. About 70% of Moscow citizens use public transport. Only the Moscow metro is daily servicing about 8.8 million passengers.
  2. Stable profitability of long-term investments in the city transport (metro, intracity and suburban trains, trams).
  3. Possibility of commercializing the transport infrastructure created by the city (commercial areas at transfer hubs, in the metro, etc.).
  4. Availability of qualified staff.
  5. Support of the city government. In 2017-2020, the Moscow budget investment costs for the transport infrastructure development will amount to 1.433 tn RUB (24.1 bn USD) or more than 70% of Moscow Targeted Investment Programme budget.
Budgetary investments in Moscow transport infrastructure development in 2015-2020, bn RUB
Sources:

2015 (act) - Decree of the Moscow Government No. 413-PP dated July 12, 2016;

2016 (act) - Decree of the Moscow Government No. 404-PP dated July 4, 2017;

2017-2019 - Decree of the Moscow Government No. 748-PP dated October 10, 2017 "On Moscow Targeted Investment Programme for 2017-2020."


Key advantages for the city:
  1. Increasing the public transport accessibility, convenience and quality;
  2. Reducing a home to work travel time;
  3. Reducing a passenger transfer time at major hubs;
  4. Restricting motor traffic emissions;
  5. Introducing modern technologies for road construction, public transport management, and transport services in general;
  6. Creation of additional workplaces.
Annual volume of passenger carriage by Moscow public transport, bn passengers
Sources:
State Programme of the Moscow City “Development of the Transport System” for 2012-2016 and up to 2020”.. 
Key areas for private investment:

1. Construction of transfer hubs on lines under construction and existing stations of the Metro system, the Moscow Central Circle and municipal railway transport. The entire project will be worth over RUB940 bn. It is planned to build 271 transfer hubs, including 96 junction-type and 175 capital transfer hubs. Further detail on the project is available at this link.

Information about the transfer hubs projects put up for tender is available at this link.

2. Construction and reconstruction of the road network and transport infrastructure facilities (road junctions, bridges, vehicle overpasses, etc.). Private investment will be raised by implementing PPP projects (construction of the Northern Bypass for Kutuzovsky Prospekt). For more detail, please click here.

 

3. Development of the Metro system, including construction of new lines and stations, as well as modernisation of the existing infrastructure.

From 2011 to 2020, it is planned to build over 160 km of Metro lines and 78 new stations, 21 of which have already been opened; 1,600 new Metro carriages have been purchased. 

This will allow the burden on the existing Metro system to be reduced, while accessibility of Metro stations within walking distance will be ensured for 93% of Moscow residents. 

An attractive area for investors is participation in delivery of rolling stock as part of signing lifecycle contracts with the Moscow City Government.  

For more detail, please click here.

 

4. Creation of a fundamentally new system of municipal and suburban railway transport. In September 2016, passenger services were launched on the Moscow Central Circle (MCC).   The 54-km long railway with 31 stops is integrated into 10 stations of 9 radial directions of the suburban railway system and 17 stations of 11 Metro lines within the MCC, into overland transport and park-and-ride facilities. The integration of the MCC with other Metro lines and suburban electric trains is continuing; among other things, there are plans to develop dozens of pedestrian galleries and passes and to build capital transfer hubs. The volume of carriage is expected to reach almost 300 m passengers a year by 2020 on the MCC, while the current number of daily trips stands at 260,000. Private investment will be raised to develop the adjacent transfer hubs and provide transport services.  For more detail, please click here.

5. Modernisation of the system of overland municipal transport, including renewal of the transport fleet and overhaul of tram lines. Moscow’s overland passenger transport fleet includes approximately 9,000 equipment items, with some 6,500 buses, 1,500 trolley buses and 800 trams circulating daily. Over the past five years, Moscow’s overland transport fleet has been renewed by 65%: from 2010 to 2015, the Moscow authorities and Mosgortrans State Unitary Enterprise purchased 5014 buses, 526 trolley buses and 180 trams. There are plans to renew the overland transport fleet fully by 2020. An attractive area for investors is participation in delivery of the rolling stock as part of signing lifecycle contracts with the Moscow Government, as well as providing transport services, particularly within the framework of a new standard of commercial overland transport services (developing the system of commercial buses operating in Moscow under a state contract).

Support measures:
  • Implementing projects based on public-private partnership mechanisms (concessions and lifecycle contracts). 

Regulations:

  • Resolution by the Moscow City Government dated 4 August 2009 No. 720-PP “On the procedure for preparing concession agreements implemented in the city of Moscow”  
  • Resolution by the Moscow City Government dated 3 February 2016 No. 26-PP “On preparing  public-private partnership projects, making decisions on implementing public-private partnership projects, implementing and monitoring implementation of agreements on public-private partnership”  
  • Resolution by the Moscow City Government dated 2 September 2011 No. 408-PP “On approving the Moscow State Programme ‘Development of the Transport System’ for 2012-2016 and up to 2020”    
Investment initiatives:

If you have your own investment ideas or projects or if you want more detailed information on existing Moscow investment projects, please contact the Moscow City Investment Agency.