Priority Investment Projects

One of the main approaches to investment policy in St. Petersburg is cluster approach. Today the city territory is divided into several clusters, the largest being:

• Transport and logistics cluster
• Automotive cluster
• Tourist cluster

Transport and logistics cluster is catalyzed by big infrastructure projects implemented in St. Petersburg on a public-private basis. Transport and logistics projects include:

• Pulkovo airport development. Total investment is more than USD 1,200 bln. The project involves construction of the new terminal with an overall area of 174,432 sq. meters and annual transit capacity of 22 mln passengers. Modernization of the airport will allow 212,188 taking off and landing procedures in 2025.
• Sea passenger terminal construction. Total investment is USD 1,250 bln. The project involves dredging and reconstruction of the existing coastal water area. Soil extracted from the bottom will be used in hydraulic-filling. Several terminals and seven new piers for major sea vessels (over 350 m) are to be implemented on existing and projected hydraulic fill area. Later on the area will also be used for commercial purposes such as construction of housing and commercial facilities, hotels, etc.
• Western high-speed diameter toll road construction. Total investment is USD 3,100 bln. Project goal: Construction of an urban motorway to link the St. Petersburg transport hub including the grand Port of St. Petersburg and major transport and logistics systems of the city to the federal road network and enhance efficiency of urban transportation. The total length of the motorway is 46.4 km, including 17.1 km of roads and 29.3 km of elevated sections. Project includes construction of 14 traffic interchanges at intersections of the WHSD with the street and road network of the city and non-urban roads. Sections of the motorway are designed to accommodate 4 to 8 traffic lanes depending on traffic flow estimates.
• Orlov tunnel construction. Total investment is USD 1,054 bln. The project is carried out in terms of Volga-Baltic waterway development. The tunnel under the Neva river will create a new continuous link between the right and the left bank districts of St. Petersburg to increase open-bridge periods, to provide for the growing demand for international water transit, as well as to relieve existing bridges and arterial streets of the city .

Automotive cluster is stimulated by the world biggest car manufacturers entering the regional market. In December 2007, Toyota Motor Corporation auto plant was put in operation (project budget is EUR 100 mln); in June 2009, Nissan Motor Co. entered the market with their new plant in St. Petersburg (project budget is USD 200 mln); Hyundai Motor Manufacturing Rus is now building their car plant (project budget is USD 400 mln). Magna International Europe AG, a world-known manufacturer of automotive systems, assemblies, modules and components is considering building their plant in St. Petersburg. The company has signed an agreement with Hyundai to produce pressed parts.

Major touristic investment projects are as follows:

• Hotel infrastructure of St. Petersburg. The project is aimed at developing hotel market and tourism of St. Petersburg. St. Petersburg administration has issued an address list of 170 buildings and land areas which can be used only for hotel placement. The project is implemented by assigning lands for hotels, real estate auctions for hotels.
• New Holland Island. The project creates a new sight of St. Petersburg, a sort of dominating structure, attractive and available place for tourists and citizens. The area of 180,000 square meters will be occupied by office buildings, department stores, 3 hotels, 9,000 thousand square meters for houses, Festival Palace, an art gallery, a museum, an underground parking lot. The project includes reconstruction of two bridges and construction of eight new bridges. The project budget is USD 378 mln.