KPMG on Russia’s road infrastructure market prospects

Research by KPMG has revealed that the Russian road infrastructure market is growing by an average ten per cent per year. The market may total US$43.62 billion by 2020, compared with US$9.9 billion in 2007. According to analysts, only large federal road construction companies are able to achieve the highest profitability. However, such companies will have to reduce costs because contracts are becoming bigger and more complex and include construction of artificial structures, for example. Consolidation of co
December 5, 2013 Read time: 1 min
Research by 1981 KPMG has revealed that the Russian road infrastructure market is growing by an average ten per cent per year. The market may total US$43.62 billion by 2020, compared with US$9.9 billion in 2007. According to analysts, only large federal road construction companies are able to achieve the highest profitability. However, such companies will have to reduce costs because contracts are becoming bigger and more complex and include construction of artificial structures, for example. Consolidation of companies by means of mergers and acquisitions in order to expand geographic reach or to boost a market share is one of the main trends of the market.

According to KPMG, an average road construction tender value amounted to US$90 billion in 2012 against US$81 billion in 2011.

For more information on companies in this article

Related Content

  • Driverless vehicles will cause changes in society
    May 31, 2013
    Paul Godsmark gives his views on what the advent of autonomous vehicles would mean for the wider society. Further to your article ‘Driver not required…’ in the Jan/Feb edition of ITS International which gave some great background to autonomous road vehicle (ARVs), I feel that the bigger picture is needed to aid understanding. There is a ‘technology freight train’ heading our way that is going to transform our roadways but we don’t seem to be aware of it and, therefore, are in no hurry to react.
    Read More
  • Canada’s infrastructure sector set to be one of the best performing
    November 20, 2013
    In their latest findings on Canada’s infrastructure sector, Business Monitor has revised down their outlook for the overall construction industry in Canada for 2013 to 2.2 per cent. This is being driven by a sharper than expected contraction in industry value creation from the residential and non-residential building segment. Despite this, they anticipate a slight pick-up in the second half of the year will ensure that subsector maintains positive growth. On the other hand, infrastructure will post another
    Read More
  • Speed cameras yield long-term safety benefits, IIHS study shows
    September 2, 2015
    A speed-camera program in a large community near Washington, DC, has led to long-term changes in driver behaviour and substantial reductions in deaths and injuries, a study by the Insurance Institute for Highway Safety (IIHS) shows. Automated speed enforcement is gradually becoming more common around the country but remains relatively rare, with only 138 jurisdictions operating such programs as of last month. According to IIHS, if all US communities had speed-camera programs like the one IIHS studied in
    Read More
  • Russia invests in roads
    October 28, 2013
    Russian company Permdorstroy has won a tender for the reconstruction of the 8.4 kilometre road section from the Mulyanka river to Bolshoye Savino Airport, in a contract worth US$53.43 million. The project provides for construction of a multi-lane road, eight elevated pedestrian crossings at bus stops and lighting installation. The project is due to be completed by October 2015.
    Read More

Highlighted Content