Current State of the Railway and Metro Construction Industry

2025/04/29, 01:23
Railway construction in Russia is not only a critical component of the transportation infrastructure but also a key factor influencing the country's overall economic development. The transport sector accounts for approximately 6–8% of Russia's GDP, with railways representing a significant share of this figure.

The construction of new lines and the modernization of existing infrastructure require substantial investments, which in turn stimulate growth in related industries such as construction materials, mechanical engineering, and electronics.

Mechanical Engineering: The production of locomotives, railcars, and other rolling stock is a crucial aspect of railway construction. This sector provides jobs and drives technological advancement.

Construction Materials: Railway construction demands large quantities of materials like concrete, steel, and asphalt, boosting demand for construction industry products.

Energy: The electrification of railways necessitates the development of energy infrastructure, including power plants and transmission networks, while also promoting the adoption of renewable energy sources.

Logistics and Freight Transport: Railways play a pivotal role in supply chains, facilitating the movement of goods between producers and consumers. This is vital for trade development and enhancing the competitiveness of domestic products.

As of 2018, the total operational length of railway tracks in Russia was 122,000 km, including 86,600 km of public tracks (of which 44,100 km are electrified) and 35,000 km of non-public tracks (located on industrial sites and mining areas). In terms of total track length, Russia ranks third globally, behind the United States (293,564 km) and China (124,000 km), and second in electrified rail length.

According to the official website of Russian Railways (RZD), the company's construction division completed projects worth a record over 400 billion rubles in 2022, meeting all targets set by the comprehensive modernization and expansion plan for mainline infrastructure.

Key achievements in 2022 included:

  • Increased transport capacity to 125.1 million tons for ports in the Azov-Black Sea basin, 145.6 million tons for the Northwestern basin, and 158 million tons for the Eastern Polygon routes.
  • Passenger traffic in the central transport hub reached the planned 735.5 million passengers per year.
  • Construction of 415 km of additional main tracks, 397 km of overhead contact lines, and electrification of 258 km of mainlines.
  • Erection of 110 artificial structures (bridges, tunnels, etc.).
  • Peak employment of 25,000 workers across construction sites.

Notable projects completed in 2022:

  • Launch of the second track on the Anosovskaya–Purikan section of the Baikal-Amur Mainline (BAM).
  • Completion of double-tracking on the Tikhoretskaya–Kozyrki section of the North Caucasus Railway.
In 2023–2024, RZD accelerated work on the BAM's second phase of the Eastern Polygon development, advanced construction on the Volkhovstroi–Murmansk section in the Northwest, and intensified efforts on the Saratov Bypass in the southern direction.

Key Trends:

  • Over the past 25 years, Russia's total railway length has remained nearly unchanged, but the share of electrified tracks has grown (see Table 1).
  • The operational length of metro lines has increased significantly.

Table 1. Length of Railway Tracks in the Russian Federation

(Year-end; thousand km)
Indicator 2000 2010 2020 2021 2022 * 2023 *
Public railway tracks 86.1 85.7 87.0 87.0 87.0 87.0
Of which, electrified 41.0 43.2 44.5 44.6 44.6 44.6
Metro tracks 0.405 0.475 0.616 0.634 0.632 0.667
* Excludes data from the Donetsk (DNR), Luhansk (LNR), Zaporizhzhia, and Kherson regions.
Source: Rosstat

The density of railway tracks varies significantly across Russia's federal districts (see Table 2).

Table 2. Density of Public Railway Tracks

(Year-end; km of tracks per 10,000 km² of territory)
Federal District 2000 2010 2020 2021 2022 ** 2023 **
Russian Federation 50 50 51 51 51 51
Central 266 261 261 261 261 261
Northwestern 77 78 78 78 78 78
Southern 156 154 165 165 165 165
North Caucasian 125 124 123 123 123 123
Volga (Privolzhsky) 144 142 142 142 142 142
Ural 48 47 47 47 47 47
Siberian 26 25 25 25 25 25
Far Eastern 17 17 18 18 18 18
** Excludes data from DNR, LNR, Zaporizhzhia, and Kherson regions.
Source: Rosstat.

Challenges and Outlook

The Siberian, Ural, and Far Eastern districts, despite their vast territories, have the lowest railway density. The Northwestern District also lags, posing risks from a geostrategic perspective. Hopes are pinned on the new Spatial Development Strategy and the "Pivot to the East" initiative to improve these metrics.

Yakovleva Marina Nikolaevna, Master's student Faculty of International Economic Relations
Tolkachev Sergey Alexandrovich, tor of Economics, Professor
Financial University under the Government of the Russian Federation
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