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Development of a large Russian transport hub

Situation

  • As part of the subprogram to develop the export of transportation services, incorporated under the Federal program for ‘Modernization of Transport Systems in Russia (2002-2010), an open tender was announced on 9 October 2006 for a state contract to develop the investment feasibility study for a project to ingrate the development of Murmansk as a transportation hub
  • On 23 November, the consortium ‘Pro-Invest Special Projects’ won the tender to develop the investment rationale for the project to develop an integrated transportation hub in Murmansk

Goal

  • To develop a rationale for investment in the construction of transport infrastructure assets in the Murmansk transport hub; assess the socio-economic and financial feasibility of realizing the project (taking into account ecological requirements), and guaranteeing an efficient investment. As part of the investment rationale to justify and clarify the project’s structure, develop a financial Public-Private Partnership model that will distribute the project participant’s risks

Our approach

  • Conducted analysis of the economic, scientific, technological and labour potential in Murmansk region
  • Developed the idea for and concept behind the transport hub
  • Prepared forecasts of goods flows through the transport hub
  • Listed the assets needing to be built or restored to become part of Murmansk Transportation Hub
  • Investment in the development of Murmansk Transportation Hub was based on the financial modelling for construction and reconstruction projects concerning transport facilities and port infrastructure
  • Prepared application to go to the Investment Fund of the Russian Federation in order to finance construction of the rail links

Results

  • Developed and approved the conceptual basis for Murmansk Transport Hub as a deep-water international logistics hub, with this being adopted on 7 May 2007 by the Russian Federation’s Presidium of the State Council and Maritime Collegium
  • Prepared and approved Murmansk Transport Hub goods processing forecasts through to 2020
  • Secured investment in the development of the Murmansk Transportation Hub and prepared an application to the Russian Federation’s Investment Fund for financing of the construction phase of the rail lines

 

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