Airports sector

An Expert's View about Air Freight in Russia

Last updated: 26 Sep 2011

Russia is and has been experiencing growth in air traffic numbers. Many airports need serious reconstruction to cope with the demand.

Sector briefing Airports sector in Russia Why Russia? ? Post-downturn Russian economy shows good prospects for growth. ? According to official data, passenger traffic increased by an average 10 per cent a year over 2000-2010 in Russia while freight traffic doubled over the same period. It is estimated that this trend will continue in the coming years. ? According to the Federal Agency for Air Transport, Russia has a total of 329 airports, of which 71 are considered as international with the legal right to operate services to other countries. 51 of these are deemed to ? Successful international projects in the have Federal status and are granted airport sector are needed in order to put development funds from the State Russia on the right track in its pursuit of Development Programme. building highly efficient economy. ? RUR 470 billion (£9.8 billion) of federal See the UKTI website for general information budget will be allocated for modernizing of about Russia. The ?Doing business? guide civil aviation airports and upgrading the includes an overview of the economy, business unified air traffic management system, culture, potential opportunities and other including facilities in Moscow, Sochi, relevant issues. Vladikavkaz, Kazan, etc. Opportunities ? Enormous investments required in Russian infrastructure to modernise the existing and create new assets. Transportation and, in Russia is and has been experiencing growth in air particular, airports are key priorities in the traffic numbers. Many airports need serious Russian infrastructure sector. reconstruction to cope with the demand. ? Strategic need to upgrade airports is A number of airports are already undertaking huge emphasized by such large-scale events as re-construction and development which offers the Football World Cup 2018. business opportunities for the British Airport sector: ? Governmental plans to consolidate and / or privatize large airports expected to come to ? Moscow?s Sheremetyevo International life soon. Airport plans to invest RUR 1.3 billion (£27 million) by 2015 to carry out innovative projects. Specifically, the projects are aimed previously planned funds amounting to RUR at introducing new technologies, the 170 million are to be invested into development and application of new services developing the baggage handling and for the airport?s customers, increasing the security systems, as well as other projects. energy efficiency and environmental Tolmachevo Airport is located on the main friendliness of the airport?s operations, and route between Europe and Asia, near the the implementation of cutting-edge Siberian city of Novosibirsk. It is the largest management techniques. transport hub beyond the Ural Mountains. Sheremetyevo International Airport is one of three airports to serve the Russian capital ? Investments into the development of and its surrounding region. The airport is Russia?s Koltsovo International Airport are owned by the Russian government. expected to amount to RUR 15 billion (£312 million) in 2011?2015. The program ? Moscow Domodedovo Airport plan to invest comprises about 30 projects envisaging the a total of RUR 60 billion (1.25 billion) in its development of the airport?s infrastructure. development in the next 10 years. Koltsovo International Airport and state- Specifically, the airport plans to invest U.S. owned Russian Post plan to construct an on- $250 million in development in 2011. site luggage sorting centre. Investments Moscow Domodedovo Airport is one of three into the project are estimated at RUR 6 airports in the vicinity of Moscow. In 2010, billion. passenger traffic through the airport Koltsovo International Airport, the amounted to 22.253 million people. Sverdlovsk Region?s largest airport, operates in the city of Yekaterinburg and offers flights ? Investment in Moscow?s Vnukovo Airport to destinations in Europe, Asia, and North may reach RUR 12.5bn ($446.25mn, or Africa. ?311.25mn) by 2015. The airport?s upgrade programme stipulates Technologies and solutions in the following areas are launching the second stage of Terminal A or particular interest in Russian Airport sector: with a footprint area of 90,000 sq m by 1. Design/Master Planning of Airports November 2012. 2. IT inside airports Investment in the project will total RUR 2.3 3. Commercial activities in passenger terminals billion (£47.9 million). RUR 6 billion (£125 4. Passenger/Luggage handling million) will be channelled into the 5. Aviation security: construction of technical zones and airfield ? in-house security services, and RUR 3 billion ? RUR 4 billion ? liquids on board (£62.5 million ? £83.3 million) is to be ? detection of liquid chemicals 6. Airlines relations allocated for the construction of a new 7. Training and simulation at airport wrecking and parking lot for 3,500 cars. fire grounds The construction of the technical facilities 8. Economic Security will be financed by private investors, while 9. Consulting the Vnukovo shareholders will supply funds 10. Electronic ticketing and check-in for the building the airfield facilities and completing the terminal. Vnukovo Airport is one of Moscow and Moscow Region?s five main airports and Russia?s third largest in terms of passenger traffic (after Domodedovo and Sheremetyevo). ? Tolmachevo Airport has increased its 2011 investment program to RUR 300 million (£6.25 million) from the previously planned RUR 170 million (£3.54 million). The airport plans to direct the additional funds to various construction projects, including a boiler house, electric substations, covered walkways, as well as the repair and acquisition of equipment. Meanwhile, the UK Trade & Investment sector briefing: airports sector in Russia 2 ELENA PASHINA Events calendar 2011 Trade & Investment Adviser (Aerospace) nd British Embassy, Moscow 2 International Conference & Exhibition - Tel: 007 (495) 956 7229 Ground Handling Russia & CIS Email: 6 ? 7 September 2011 Moscow, Russia GALINA MOVCHAN Senior Trade & Investment Adviser (Engineering) British Consulate General, Ekaterinburg UKTI at InterAirport Trade Show Tel: 007 (343) 379 4931; 253 5622 11 ? 14 October 2011 Email: Munich, Germany ALEXANDER PETROV Senior Trade and Investment Adviser (Ports) Inward visit of Russian airport representatives British Consulate General, St-Petersburg 29 October ? 2 November 2011 Tel: 007 (812) 320 3228 London, Birmingham Email: th 40 Moscow International Airport Conference & Exhibition ? Ground Handling Next steps - how UKTI can 22 ? 24 October 2011 Sheremetievo Novotel, Russia help British companies wishing to develop their For details of events related to this country or business in the local market are advised to sector, use the events search on the UKTI undertake as much market research and website or register to receive regular updates. planning as possible in the UK. UKTI?s local New export events are added daily. team, with its wide local knowledge and experience, can provide a range of services to UKTI?s Tradeshow Access Programme (TAP) British-based companies wishing to grow their provides grant support for eligible Small & business in global markets. Medium Sized Enterprises (SMEs) to attend trade shows overseas. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential UKTI contacts customers in the local market ? Establishment of interest of such UKTI Russia, Engineering Team: contacts in working with you ? Arranging appointments OLGA MAKARCHUK ? Organise seminars or other events for Team Leader you to meet contacts and promote your British Consulate General, St-Petersburg: company in the local market Tel: 007 (812) 320 3200/23 Email: This work is available via our Overseas Market Introduction Service (OMIS) a chargeable ANASTASIA BADINA service which assists British-based companies Trade & Investment Adviser (Airports, Rail) wishing to enter or expand their business in British Embassy, Moscow overseas markets. Tel: 007 (495) 956 7389 Email: To find out more about commissioning this work, or accessing other UKTI services and SVETLANA BONDARKO specialist advice, please visit the UKTI website Senior Trade & Investment Adviser (Automotive) to find contact details for your local UKTI British Embassy, Moscow office. Tel: 007 (495) 956 7452 Email: UK Trade & Investment sector briefing: airports sector in Russia 3 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. 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Posted: 26 September 2011, last updated 26 September 2011