Vladimir Putin chaired a meeting on transportation development
Prime Minister Vladimir Putin visited an exhibition, Russia's Transportation in 2008, which opened in Sochi on Tuesday. At a meeting on transportation development, Mr Putin said that taking into account all opinions and proposals voiced at the meeting, he would sign a directive approving a Federal Transportation Development Programme for 2010-2015. The programme, he said, would be the largest investment programme ever adopted by the Russian Government.
Address by Vladimir Putin to a meeting on transportation development:
Good afternoon,
We are here to discuss the development of the transportation system.
This subject has been dealt with many times, considering its importance for the national economy and everyday lives of ordinary people. As you may recall, I spoke about transportation when presenting the strategic development programme for Russia through 2020.
Today, Russia's transportation system is lagging behind the country's needs. What's more, the inadequacy of the transportation infrastructure is acting as a brake on the economy and holding back innovation.
Nearly one-third of all federal motorways are chronically over capacity, leading to direct economic losses and a high accident rate.
Although the Transportation Minister said the trend last year was toward fewer accidents, the death toll was still high at 30,000, while all road victims totalled 300,000.
Transportation is also essential for regional development. If we had fully developed motorways and railways, we would be better able to exploit our large mineral deposits. But with no roads, comes no development. Further, people experience too much trouble when they have to travel to neighbouring area via Moscow.
Our transportation system has not yet become one entity. Various branches are not integrated. Also, rail congestion is a problem at the approaches to our seaports, and this is a constant complaint.
Ineffective logistics schemes are the result of these conditions. Russia's transit potential remains unrealised; consequently we loose considerable profits every year. Our country now forwards only one percent of the trade between Europe and Asia, while analysts tell us the figure could be five to ten times greater.
The current state of transportation is not acceptable. It is vital that we move from transportation maintenance to the system's development. Unfortunately, even the maintenance of transportation facilities across the vastness of Russia requires enormous funds, which we have always lacked and continue to lack. But maintenance is not enough. I repeat, we should switch from simple upkeep to a qualitative improvement on the basis of advanced technologies. The growing potential of the state and domestic business can make this possible.
Today we will finalise the provisions and concepts of a Federal Programme for the Development of Russia's Transportation System for 2010 through 2015. Once completed, I will sign it into effect.
This will be the largest scale investment programme ever undertaken by the Russian Government. I wish to draw your attention to this fact not only because it is an indicator of our growing potential, but also to point out that where big money is involved, big losses are also possible and we must minimise such losses.
The programme allocations will surpass 13 trillion roubles, including 4.7 trillion roubles from the federal budget.
To keep you up to date: this year we allocated 300 billion roubles from the federal budget for these purposes, will provide another 584 billion in 2010, and plan as much as 770 billion for 2011.
Over 17,000 kilometres of federal, regional and local roads and more than 100 runways will be built or thoroughly modernised. The overall capacity of seaports will be increased by more than 400 million metric tons of cargo per year.
We also plan to build over 3,000 kilometres of new railway tracks, eliminating practically all congested segments. Additionally, a programme for high-speed passenger service is to start soon.
In order to fulfil these plans, we need to seek a fresh approach in the implementation of federal programmes and to re-orient ourselves toward state-of-the-art design methods. In other words, every investment project included in this programme should be economically sound, well-timed and well-planned. Plus, it has to be clear who will be held responsible for its fulfilment.
One important point here is to coordinate the development of various modes of transport, including the integration of programmes for territorial and branch development.
Today, when we looked at the plans, mock-ups and maps, regional leaders called our attention to this aspect of the programme. They are fully aware that we should coordinate the development of territories and industries. Only then will the whole system function effectively and with good returns. Only in this way can we build an integrated transportation system without bottlenecks.
Furthermore, private business should play a part in implementing infrastructure projects. This only makes sense because businesses display interest in these projects.
Another step is to make all forms of public-private partnership attractive and adopt long-overdue amendments to the Law on Concessive Agreements. Business should receive full support from all institutions concerned with development, including the Investment Fund.
Also, employers, private employers in this case, could act as partners of the state in training skilled personnel for a given sector.
We have met with scientists and education professionals, who said nothing about the role of private business in staff training, yet business is interested in playing a role.
The programme provides for extensive subsidies for the regions: federal authorities are to contribute a total of 440 billion roubles to road construction, for example.
Incidentally, during the meeting on farming yesterday, some regional officials asked us to increase federal contributions to the maintenance and construction of rural roads.
The programme provides for certain co-financing. They have asked us to increase it. I think this can be done if we recalculate and review the costs involved, remembering that regions and municipalities should bear the main burden.
Federal financing should be combined with territorial commitments from regional and local budgets.
Important as new construction is, we should not neglect the current transport infrastructure. Unfortunately, the sums involved in maintaining it are too vast and we cannot afford it now or in the foreseeable future. But beginning in 2011, maintenance of federal motorways will be financed in full, as stipulated by legislation.
We must also set up a specialised, state-owned company for the construction and operation of federal roads. It must be a modern organisation, market-oriented and effective.
In conclusion, I would like to repeat that the development of the transportation infrastructure is not only an economic, but also a social and political task. We should act accordingly.
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Closing remarks by Vladimir Putin at a meeting on transportation development:
Summing up, I would like to say the following: we have been working on this programme for a long time. It has not been easy, and involved a lot of debates and discussions on crucial points, not just technicalities. But we understand that its implementation bears strongly on the future of the Russian economy, because no modern economy is possible without an infrastructure. This especially concerns our mineral resources, whose production may be severely handicapped unless we improve infrastructure. Because of remote locations, and there are many rich deposits, we cannot reach them by road or by air. We understand that without developing the infrastructure, we cannot develop our economy. But that's not all. Lack of infrastructure means the country will have no future. It means we will continue suffering losses, including victims of transportation accidents. If we fail to develop infrastructure, we will have no future to speak of. Infrastructure development is a key goal of the state. In other industries we can simply support business and hope for success. For a modern infrastructure this is not enough. This is a direct responsibility of the state.
It is worth repeating: The development of Russia as a whole will depend on how effective we are in this field. The quality of life in Russia including living standards, incomes, social climate, and health all depend on our efficiency here.
I hope this programme will be followed through. I shall sign it before the day ends.
In conclusion, I would like to say the following: if we focus on something and work hard at it, we always succeed.
Recently we had the opportunity to congratulate our ice hockey players on their convincing win at the world hockey championships in Canada. That's a big success not only for the players, but also for their coaches. Still, this is primarily the team's success. Their talent and courage helped them to score this victory. In some respects this victory is the result of the attention the country has paid to sports generally in recent years.
Yesterday, a Sukhoi Superjet became air-borne, the first mass-produced modern civil airliner in twenty years.
For the first time in twenty years! The Il-96 has not entered production yet; however, the Superjet is a modern plane built with modern technology.
We have more than 100 orders placed for it not only by Russian airlines but also by European carriers. This means we have a product of European quality.
I repeat: This is the first time in twenty years that such an aircraft has taken to the air. I am sure that if we work hard in all sectors, we will achieve feasible results in every one of them.
Thank you.
