Yekaterinburg: the dynamically growing centre of the Urals
Situated on the eastern edge of the Ural Mountains, 2,500 km from Moscow, Yekaterinburg is the business, industrial and cultural center of the Urals. It is the capital of both the Sverdlovsk Region and the larger Urals Federal District of Russia, which comprises six other regions for a total population of 14.2 million.
The economies of Sverdlovsk Region and Yekaterinburg are evolving dynamically, as are major indicators, such as industrial output and retail turnover.
Yekaterinburg is Russia's third largest city by social and economic development, the second by consumer goods expenditures, with the salaries of Yekaterinburg residents rising on average by 23% a year.
Yekaterinburg is:
• 1 330 thousand people,
• 110 thousand Ha,
• 10 thousand US dollars of regional product per capita,
• 6 thousand US dollars of retail turnover per capita.
Yekaterinburg: transport hub of the Urals
Yekaterinburg location and infrastructure make it a natural transportation hub:
• it is located at the junction of Asia and Europe, and is an intersection point of transcontinental flows of goods, raw materials, financial, human and information resources,
• situated nearly equal distances from large neighboring cities, it is at the heart of key transport networks.
Rail – Yekaterinburg is an important stop on this major east-west Trans-Siberian railway and has rail lines radiating to all parts of the Urals and the rest of Russia.
Air – Yekaterinburg’s Koltsovo International Airport is Russia’s largest airport outside of Moscow and St. Petersburg. International airlines such as Lufthansa, British Airways, Austrian Airlines, Turkish Airlines, Czech Airlines, Malev fly direct to Koltsovo. A Federal program is underway to expand Koltsovo International Airport – by 2009 the addition of a third runway will increase flight capacity by 50% – and transform it into Russia’s largest center for trade between Europe and Asia.
Roads – Seven major highways intersect in Yekaterinburg including routes leading to Moscow, Perm, Chelyabinsk, Tyumen, Ufa and other destinations.
The consumers of logistics premises
Retail
Given rising wealth and the high level of consumer spending, it is no surprise that Yekaterinburg's retail segment is expanding rapidly. In 2006 alone, nearly 200,000 sq.m. of space in modern shopping centers were completed. Another 560,000 sq.m. are expected to come on line during 2007-2009.
Major national and international retailers have opened for business in the city. Large international retailers currently present in Yekaterinburg include Auchan, IKEA, Metro Cash & Carry, OBI and Real, while national chains such as Eldorado, M.Video, Starik Hottabych and Carousel are also making inroads. Many more retailers are expected to arrive as modern retail space becomes increasingly available.
As retailers expand their activities in Yekaterinburg, they need more and better warehouse space to store their goods.
Industry
Yekaterinburg’s industrial output nearly doubled between 2002 and 2005. Key industries include metalworks and the manufacture of machines and equipment, construction materials.
From January to September 2006, over 110 million tonnes of freight were transported through Yekaterinburg by rail, truck and air. By volume, the largest types of shipments were construction materials, oil and petroleum products, iron and ferrous metals, and fertilizers.
Warehouse and logistics environment
There are approximately 700,000 sq.m. of warehouse space in Yekaterinburg – at present, virtually none of these premises meet international standards.
Local end users estimate their needs at a minimum of 600,000 sq.m. of additional modern warehouse space. As retail and industrial activity continue to expand, the lack of high-quality warehouse space will be more acutely felt.
This situation is reflected today in high lease rates for Yekaterinburg’s best warehouse space. Lease rates have tripled since 2000 and currently hover around – and in some cases exceed – $100 per sq.m. per year, well above rates in Europe and the United States.
International standard logistics complex in Akademia City
Access
The new logistics center will be situated in Akademia City– a new city region under construction. The site is 7km from Yekaterinburg city center.
It is easily accessed from Yekaterinburg six-lane Middle Ring Road, carrying heavy trucks through industrial parts of the city.
Close proximity to the planned eight-lane Yekaterinburg Ring Road (EKAD) which will surround the city and lead to Koltsovo Airport.
Warehouse
Total area: 60,000 sq.m., 3 phases, the 1st phase to be completed in 2009.
Tenants
• national retailers;
• wholesalers;
• regional distributors;
• third-party logistics providers;
• manufacturers;
Infrastructure
• Utilities network,
• Road network.
Investment program
RENOVA-StroyGroup is seeking for strategic partners / investors / end-users / developers / operators to jointly develop the Logistics center. The Logistics Complex investment program:
• Investment total: $300 Mio.
• Construction starts: 2009
• Construction ends: 2011
• Total space: 248 thousand sq.m.
• External financing requirement:
$ 150 Mio.
