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BISNIS is the U.S. Government's primary market information center for U.S. companies exploring business opportunities in Eurasia. A part of the U.S. Commercial Service, BISNIS disseminates information electronically and through consultations by its staff of trade specialists. Questions or comments? |
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Additional resources that provide general information about international shipping/logistics, export documentation and basic export/import requirements
Also provided in these reports are valuable overviews of the countries’ transport infrastructure and availability of services in the logistics, warehousing and distribution categories. In this regard, the commonality worth mentioning is that most of the countries need to upgrade and restructure their transportation infrastructure and acquire Western know-how, technology and equipment. Hence, potential export opportunities exist for U.S. manufacturers of materials and equipment as well as U.S. engineering and design firms interested in working in these challenging, yet potentially lucrative markets. All of the reports contain references to relevant government organizations and private companies active in the transportation sectors of the countries/regions covered. The Transportation Report 2007 is part of the LOGISTICS OF EXPORTING TO EURASIA SERIES (previous reports in this series include: Customs Report 2004 and Certification Report 2005). This complete report is available on the BISNIS website at www.bisnis.doc.gov/bisnis/transportation_report.cfm.
Irina Mitchell is a BISNIS trade specialist in Washington, DC covering the Transportation Sector. |
by Andrey Vasenev Stretching over four time zones, the territory of the Russian Far East (RFE) region is about two-thirds the size of the United States. The northeastern territory of Chukotka is just several kilometers away from Alaska, and the southern tip of Sakhalin is only a few kilometers from Japan. By contrast, the distance between the largest city in the region, Vladivostok, and Moscow is more than 9,000 kilometers (over 5,600 miles). The region is rich in natural resources, such as diamonds (almost 100% of Russia’s output); precious metals, including gold (70% of the country’s output), platinum, and silver; oil, gas, and coal; timber; and seafood. Most of the RFE population (about 7 million) resides in urban areas. The majority of the territory is virtually uninhabited or sparsely populated. The largest cities in the region are: Vladivostok, Khabarovsk, Komsomolsk-on-Amur, Blagoveshchensk, Petropavlovsk-Kamchatsky, and Yakutsk. The proximity to Alaska and synergetic industry profiles of the two regions result in strong economic ties between the Russian Far East and the U.S. West Coast. In addition to growing trade with the United States, the RFE also enjoys strong commercial ties with other neighboring countries on the Pacific Rim. The three top trade partners are Japan (29% of total trade turnover), China (28%), and South Korea (15%). The RFE’s domestic market is also showing consistent growth. In a recent speech to the Security Council of the Russian Federation, President Putin outlined positive growth in gross regional production and average incomes, as well as growing foreign trade and investment. However, severe deficiencies in industrial infrastructure, the current difficult socio-economic situation, as well as a declining population pose serious threats to the nation’s security and call for a complex RFE development strategy. President Putin emphasized the importance of eliminating infrastructure barriers for RFE socio-economic growth through the development of power engineering, border infrastructure, transportation, logistics and telecommunications network modernization. Development of a favorable business environment and potential improvements in tariff and tax policies were also mentioned as top priorities. The RFE industry sectors outlined below represent best prospects for U.S. companies interested in exporting to or investing in the region. Oil and Gas Today, the RFE’s economic potential lies with its immense natural resource base. RFE oil and gas reserves are practically undeveloped and deposits contain an estimated 8.5 billion tons of oil and 30 trillion cubic meters of natural gas. The regions that are especially rich in oil deposits are Sakhalin, Kamchatka, Magadan, and the continental shelf of the Yakutia region (Sakha Republic). The neighboring Pacific Rim countries create a large consumer market for RFE oil and gas. In the next 15 years, experts claim China’s demand for oil will increase by 300 million tons and natural gas by 90 billion cubic meters. In North America, the demand is expected to grow by 150 million tons and 70 billion cubic meters respectively. The program for gasification of the RFE entails construction of four gas processing operations in Yakutia, Primorsky and Khabarovsk krais. By 2020, demand for natural gas in the RFE region is expected to reach 20 billion cubic meters. Gazprom is finalizing negotiations for the purchase of a section of the Sakhalin–Komsomolsk-on-Amur–Khabarovsk Gas Pipeline. It plans on expanding the existing pipeline system and constructing one more pipeline from Sakhalin through Khabarovsk and on to Vladivostok and China. The capacity projections will take into account Yakutia gas from the Chaindinskoye Deposit that is expected to reach Primorye by 2016. This network will also allow the transport of gas to other countries. Power Engineering According to Kamil Iskhakov, Russian President’s Plenipotentiary Representative in the Russian Far East Federal District, the region possesses immense opportunities for hydropower engineering development. The South Yakutia hydropower complex may become the largest such project in Russia’s Eastern territories. The project envisions construction of seven hydropower stations with the total capacity of 8,500 MWt. In addition, the hydropower opportunities of Amur Region will be explored further. Hydropower station construction is also initiated in Primorsky and Khabarovsk Krai as well as tidal power plant construction on the Shore of the Okhotsk Sea. During his visit to Khabarovsk in December 2006, Anatoly Chubais, head of RAO EES Rossii (Unified Power Systems of Russia JSC), signed an agreement with Governor Ishayev for RAO EES’s investment policy in the Khabarovsk Krai. The document envisions a number of large joint projects including:
Machine Building and Metallurgy In 2006, the District’s machine building sector showed trends of revival. Five machine building investment projects are expected to add over 100 billion rubles ($3.75 billion) to the Region’s gross product. A number of new development programs are currently being launched, including the program for production of Su-27SM planes and the creation of the fifth-generation aviation complex. Khabarovsk aircraft manufacturer KnAAPO will also be responsible for production of the first Sukhoi Super Jet 100. From 2008 to 2010, approximately 100 planes will be produced and sold on domestic and foreign markets. In metalworking, the construction of the steel producing plant project in Yakutia is a top priority. The Republic possesses 4.5 billion tons of iron ore, 4.2 billion tons of coke, and all accompanying components. Baikal-Amur Railway (BAM) provides the infrastructure. Because the RFE hydropower resources are underused, there are real opportunities for establishing at least two aluminum plants. In the fall of 2006, the representatives of U.S. Alcoa visited Amur Oblast to discuss construction of an aluminum processing plant. The plant’s estimated annual production capacity would exceed 320,000 tons of aluminum. The operation will require four million kilowatt/hour of electric power and will probably employ Bureiskaya Hydropower Station as the primary power source. Transportation & Logistics Due to the region’s large size, the transportation sector plays an important role in the RFE. The share of transportation costs in the region is 25 percent, nearly twice the Russian average. Transportation accounts for 11 percent of the RFE regional gross product. Railway transportation accounts for 82% of cargo turnover and 40% of passenger turnover. In 2006, 10.64 billion rubles ($400 million) were allocated from the federal budget for transportation development in the RFE. Another 44.6 billion rubles ($1.67 billion) will be allocated through 2010. The primary transportation projects to be implemented in the next few years include strengthening of the Transiberian railway; completion of BAM and AYaM; completion of the Berkakit-Tommot-Yakutsk Railroad; reconstruction of the Sakhalin railroads; modernization of the Vanino-Kholmsk ferry; and full-scale introduction of the Lidoga-Vanino highway. By 2010, Russian Railroads company will invest over 241.5 billion rubles ($8.95 billion) in the Transsiberian Railway under the federal target program for modernization of the Russia transportation system. Nearly half of that amount will be allocated by 2008. The future demand for freight services utilizing the eastern section of the Baikal-Amur Railway is primarily associated with the transportation of oil from Komsomolsk and construction of the coal terminal in Vanino. As a part of the RFE logistics development, Moscow-based Avalon Holding will construct a $30 million Logistics Center in Khabarovsk. The 50,000 sq. meter center will consist of large storage facilities with transport communications, parking lots, hotels and other infrastructure. The company expects to commence construction in April 2007 and put the center into operation by the first quarter of 2008.To read the full version of this report, including information on border cooperation, click here. For further information on the Russian Far East, visit www.bisnis.doc.gov/bisnis/country/fareast.cfm Andrey Vasenev is the BISNIS representative in Khabarovsk. |
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CRDF’s Services for Accessing Global Innovation
Establishing international research and development (R&D) partnerships allows companies to leverage limited resources, broaden R&D capabilities, and access innovative technologies. This is particularly important for small to mid-size companies facing the challenge of finding suitable partners in a foreign country, maneuvering through customs and government bureaucracy, understanding local culture and practices, and establishing payment mechanisms. These obstacles can often push global collaboration out of reach. CRDF draws on its expertise developed in 11 years of operation throughout Eurasia to deliver a host of services tailored to clients’ needs from startups to global leaders. Available services include:
A few examples of companies who have utilized these services to minimize risks of doing business abroad and develop new technologies include:
For more information, contact CRDF Project Manager Heather Fernuik at 703-600-3452 or hfernuik@crdf.org. CRDF will host The Innovation & Investment Forum in Northern Virginia March 27-28, 2007 (www.innovationforums.org/virginia) ClearView Russian Market Reports
DIRECTORY - The Directory is a unique multifunctional tool that allows all registered members to publish their company profiles for free. It also cross references company information with actual foreign trade transaction data. The Directory contains all Russian companies officially involved in foreign trade transactions. STATISTICS - The Statistics tool allows members to view dozens of statistical reports on almost all products that cross the Russian customs border. The system includes data on each of the approximately 10-12 million foreign trade transactions that occur each year in Russia. MARKET SNAPSHOT REPORTS (MSR) - An MSR will show you exactly which Russian companies imported or exported the product you selected, what quantities, what prices, etc. An MSR+ report provides detailed data on both Russian and foreign trade participants. CORPORATE SNAPSHOT REPORTS (CSR) - A CSR report will show you all inclusive details on all foreign trade activity of a particular Russian company: What products they imported/exported; Partners; Volumes; Values; Average Prices, and more. MARKETPLACE - The Marketplace is where Premium members can publish and review offers and inquiries posted by other Premium members. Visit www.clearview-rmr.com for more information and sample reports. |
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Ambassador Chirtoaca discussed a wide range of topics including the state of roads in Moldova; diversification of export markets and the energy sector; fairness of economic courts; Moldova's situation regarding its workforce abroad; and MCC's ability to educate the Moldovan people about Threshold and Compact programs. For more information on Moldova, visit BISNIS online at http://bisnis.doc.gov/bisnis/country/moldova.cfm |
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Russian Alternative Investment Forum Organizer: Adam Smith Conferences Securitisation in Russia and CIS Organizer: Euromoney Seminars Third Annual Banking on Development Conference Organizers: U.S. Commercial Service and World Trade Center of New Orleans www.wtcno.org/programs/2007/banks3-16.htm U.S. Export-Import Bank 2007 Annual Conference Investment Opportunities in Russian and CIS Banking Organizers: The Financial Services Volunteer Corps, the Association of Russia's Regional Banks and the bank rating agency RusRating www.fsvc.org; www.rusrating.ru BIO International Convention Organizer: The Biotechnology Industry Organization (BIO) World Russian Forum 2007 Organizers: American University In Moscow and Media Group Kontinent USA EBRD 2007 Annual Meeting and Business Forum Organizer: European Bank for Reconstruction and Development (EBRD) Caucasus Banking & Finance Conference 2007 Organizer: Iteca Caspian LLC CIS Oil and Gas Summit Organizer: Energy Exchange Ltd. www.theenergyexchange.co.uk/energy215overview.html CIS Local Counsel Forum Organizer: Russian-Ukrainian Legal Group, P.A. |
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Ukraine International Travel and Tourism Exhibition (UITT) 2007 28 – 31 March 2007 UITT (www.uitt-kiev.com) is the largest inbound and outbound travel and tourism exposition in Ukraine. In 2005, the event hosted over 850 exhibitors from 38 countries, visited by 23,500 visitors (over 7,500 trade visitors.) Almost 85% of exhibitors and visitors were senior corporate executives. UITT is an official exhibition of the World Tourism Organization (WTO). The show runs concurrently with the hotel and restaurant equipment exhibition. Contact: EnterEx 2007 / ExpoTel 2007 16 – 19 April 2007 EnterEx 2007 (www.enterex.ua) / ExpoTel 2007 (www.expotel.euroindex.ua) is the main annual information and communications technology trade show in Ukraine. The special focus of this year’s show will be on corporate information systems, enterprise resource planning systems, and corporate telecommunications networks. The information technology exhibitions will include technical seminars. Contact Intercharm Professional 19 – 21 April 2007 Contact: Forestry, Wood Processing and Furniture Salon 23 – 26 April 2007 The forestry and wood processing sectors in Russia are based on vast forest resources. Consequently, processing of these renewable resources is one segment of the Russian Far East that presents a great sales-potential for U.S. manufacturers and exporters of forestry equipment and woodworking machinery. The Forestry and Wood Processing show is the leading promotional event for the RFE forestry sector and related industries. This annual show is traditionally held in Khabarovsk, but logging and wood-processing firms from other RFE regions and Siberia usually attend. Previous show participants include: Andreas Stihl AG, Bosch, Caterpillar/Amur Machinery, Gardena, GreCon Dimter GmbH, Husquarna, Koetter Dry Kiln, Komatsu, Logosol, Makita, Marunake, Oregon Cutting Systems, Partek Forest oy AB, Sparky, Timberjack, Viking, Volvo Truck Corporation, Waco Jonsereds AB, Weinig AG, and Wood-Mizer. Contact: ELCOM 2007 24 – 27 April 2007 The International Exhibition ELCOM Ukraine (www.elcom.euroindex.ua) is a prestigious annual trade event covering industrial electrical engineering and electronics. ELCOM Ukraine is the only trade show of electrical technologies in Ukraine, which is certified by the Global Association of the Exhibition Industry (UFI, www.ufi.org.) ELCOM promotes the latest technology and equipment for generation, transformation, accumulation, transmission and distribution of electric power. This includes: electrical engineering and technology; measuring, regulation and control equipment; lighting equipment and accessories; electronic components and uninterruptible power supply units. The exhibition features technical seminars, in addition to the trade show. Interested in exporting to other regions of the world besides Eurasia? The Commercial Service has a network of export and industry specialists located in more than 100 U.S. cities and over 80 countries worldwide. These trade professionals provide counseling and a variety of products and services to assist small and midsized U.S. businesses to export their products and services. |
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BISNIS is the U.S. government's primary market information center for U.S. companies For more information, call: 202-482-4655 or email: bisnis@ita.doc.gov. To call BISNIS toll-free, dial 1-800-USA-TRADE (872-8723), press 2 and then press 8 |
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Director Managing Editor Contributors Articles by non-U.S. government employees express the views of the authors and should not be construed as a statement of U.S. government policy. |