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Electrifying Infrastructure and Expanding Rail Lines Represent $84 Billion in Project Spend for the Passenger and Freight Rolling Stock Ecosystems
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Russia is expected to invest approximately $84 billion in railway projects by 2026 as the rail market undergoes major developments with several projects planned. This research looks at the key areas of fleet renewal in the passenger (locomotives, multiple units, coaches) and freight (locomotives, wagons) rail segments, high-speed rail (HSR) projects, infrastructure development, digitization of rolling stock and railway infrastructure, as well as upgradation of signaling and train control systems.With the expected increase in freight volumes over the coming decade, Russia’s existing infrastructure and rail network have insufficient capacities and capabilities to handle the growing traffic. Expansion of railway networks, increasing freight rail rolling stock, and improving connectivity to make freight movement more efficient are the top priorities for projects in this segment. The passenger segment is expected to see vast expansion in high-speed rail network and new high-speed rolling stock that will reach speeds up to 400 kph. High-speed rail projects are planned to have connectivity of 700 km on average, with some projects looking to link regions of Asia Pacific. New electric multiple unit (EMU) deliveries and electrification of passenger railway infrastructure are also expected to see significant increase in demand in the next 5 to 10 years across the region. The improved connectivity in passenger rail services will reap greater returns once implemented, when the problem of last-mile connectivity for passengers is resolved. To address this issue, opportunities exist for transit authorities to make arrangements in last-mile connectivity via shared mobility providers and automated people movers (APMs). These new mobility solution providers are expected to collaborate with Russian transit agencies to cater to commuters’ last-mile needs.
The base year of this research is 2018 and forecasts end in 2026. The Russian rail market is segmented into freight rail and passenger rail. All major planned projects in Russia’s rail market are listed out, along with the go-to companies in the region. The study highlights regional trends impacting the rail sector and includes strategic initiatives that will help rail market participants partake in the huge growth opportunity in the region. Other research areas covered are investments allocated; potential growth in market size; forecasts of rolling stock in mainline, urban, and freight rail; and growth in traffic volumes for both passenger and freight rail segments. The study lists relevant strategies for ascertaining a significant share of the market.
Key Issues Addressed
Author: Krishna Achuthan
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