Russia's waterborne trade and transport: issues in market transformation

Abstract

During the Soviet era most of the Union's international non-oil trade was transported over water. Following the former Soviet Union's break-up, the share of water transport in accomodating Russia's trade has become modest, as the railways carry most goods that are traded domestically or with the new republics of the Commonwealth of Independence States, which are now treated as foreign countries. Adjusting the Russian Federation's water transport industry and related infrastructure to the changed geo-political and regional economic conditions proves difficult. While the country inherited a fair share of the former Soviet merchant fleet, it is deprived of port assets which were originally built to serve all-Union trades but are now located in other republics of the Commonwealth of Independent States. Major reforms are required to streamline the provision of port services and the ports' commercial performance. The Russian Government took several steps in 1992 which effectively put the national water transpor...