Economics\11. Logistics

Olesia Kirsanova

PhD, associate professor

Russian Presidential Academe of National Economy and Public Administration

(Branch in Smolensk)

New concepts to develop a network of roads in the Smolensk region

Quality of roads that provide proper and regular transportation of passengers and goods through and over the region is one of the most important components to set up a regional logistic cluster.

The existing network of interregional and municipal roads meets the current economical needs to provide proper transportation of passenger and goods in the Smolensk region.

However, thorough diagnostics and analysis of quality of interregional and municipal roads clearly demonstrates that the standards of quality are not always met.

The network of regional roads is rather extensive so certain problems connected with maintenance and further development arises. In Russia there is a saying that the country has two major problems; roads being one of the problems.

The new designed concept to improve the condition of the roads and provide their further development is aimed at the solution of the following primary tasks:

- keep and develop the existing network of regional roads;

- improve quality and structure of roads;

- reduce transport costs in transportation of passengers and products;

- develop and strengthen economical and social collaboration with adjacent regions, as well as with foreign countries;

- organize a united road network on the basis of coordinated development of federal, regional and municipal roads located in the region;

- construct roads circling cities and towns;

- modernize and develop intra-city segments of the roads.

However, there are certain risk factors that prevent efficient implementation of the tasks.

First, there is poor coordination of activities of federal, regional and municipal authorities responsible for maintenance of the roads. For example, regional segments of federal roads are controlled by the Federal Authority “The Department of the High-Way Moscow-Minsk of the Federal Road Agency” and the Federal Authority “The Department of the High-Way Moscow-Bobruysk of the Federal Road Agency.

The Regional Authority “The Department of Regional Roads” is responsible for exploitation of the network of regional and municipal roads.

Cooperation between the authorities is really poor to provide proper coordination and joint activities to maintain and develop roads. The existing situation prevents fast delivery of products and transportation of passengers as well as formation of a regional logistic cluster.

Organization and development of the regional logistic cluster should be an integrate part of the whole system of the regional road management. Lower structures of road management should be responsible for functional issues as the authorities dealing with repair and construction activities as well as implementation of the major concepts of modernization and development of the roads.

Attraction of investments is of great significance as well, including international resources. This opportunity is of particular importance because the Smolensk region is a border region and the capital of the Union State. Efficient attraction of investment can provide an opportunity for modernization and development of regional roads.

But the resources attracted should be distributed properly taking into consideration of an opportunity and urgent necessity of systemic approach to the development of the economical sphere.