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Review of the socio-economic indicators of Novosibirsk and the Novosibirsk region

Novosibirsk is the third city in Russia in terms of population and area after Moscow and St. Petersburg, and has a population of about 2 million people.

To reach the million people mark it took Moscow 700 years, Tokyo 400 years, New York City 250 years and Chicago 85 years. Novosibirsk achieved this in less than 70 years. According to this indicator, Novosibirsk is the only city in the world to have achieved that.
Novosibirsk is the political, administrative and business center of Siberia, with an area of influence of over 5 million sq.km.(30% of the territory of Russia) with a population of over 20 million people (14% of the population of Russia) (Figure number 1). The region is bordered on the south by the north-eastern territories of Kazakhstan, with which shares active co-operation in business, science and culture.

Scheme N 1

Novosibirsk

The residence of the Presidential Plenipotentiary Envoy to the Siberian District is located in Novosibirsk, as well as representations of all the key ministries of the Government of Russia, the headquarters of the Association of Governors of Siberia, the Association of Mayors of the Siberian and Far Eastern cities and several consulates of foreign countries.

The Novosibirsk region is the number one in Siberia in terms of total number of joint ventures and foreign enterprises and is one of the leaders in terms of foreign investment. The city holds forty two representative offices of foreign companies from seventeen different countries. Foreign trade operations are carried out with partners in eighty six countries plus eleven CIS countries. The number of enterprises with foreign investment is more than six hundred and fifty. The greatest amount of foreign partners come from Germany, the USA and China. The most active cooperation among CIS countries is with Kazakhstan, Ukraine, and Belarus.

Novosibirsk takes the third place in Russia in terms of developed structure of modern means of communication and also in the level and scope of telecommunications services.

Private ownership prevails in all sectors: trade: 93%, in construction: 96%, industry: 83%.
The city has a strong tradition in industrial production as well as a high level of engineering and production personnel. The main features of the city are its prevalence in the high-tech and knowledge-intensive industries, the availability of more than 120 scientific research organizations and the high level skills development.

Novosibirsk is the main trade gateway of Siberia, the largest industrial center beyond the Urals and the second wholesale distribution center in terms of transportation and commerce in Russia.

Industry, construction and finance

The sectorial structure of the industry in the Novosibirsk region is as follows:

Table N 1
Sectorial structure of the industry in the Novosibirsk region

Branch % To the total
Manufacture of food products, beverages and tobacco 27%
Machinery and metal 15%
Fuel and energy 25%
Metallurgical 1%
Chemical 4%
Light industry 1%
Pulp and paper, wood processing 3%
Manufacture of electrical equipment 9%
Manufacture of rubber and plastic products 4%
Other 11%
TOTAL 100%

In the last four years the regional industry has received more than $ 400 million in foreign direct investment, this means that Russian business have been able to invest in the construction of new plants and modernization of existing ones.

The regional administration is pursuing an active industrial policy by passing a number of regulations on providing state support to producers.
Thanks to the commitment of the regional administration, more than 600 new plants have been created, ranging from food, health, wood industry and building materials, helping further develop the local industry, together with industrial technological modernization and the development of competitive products. The industrial output of the Novosibirsk region increased in the period between 2009 - 2013 by more than 50 percent, from 247.4 billion rubles to 388.2 billion rubles.

Chart number one
Sales of locally produced goods, works, and in-house services
Novosibirsk Region

Sales of locally produced goods, works, and in-house services

 

Chart number 2
Indicator of total volume of shipped goods, works and services, in % compared to previous years

Indicator of total volume of shipped goods, works and services, in % compared to previous years

The Novosibirsk region is one of the leaders in the construction industry in Russia. As estimated by the Construction Committee of Russia, the construction infrastructure of the Novosibirsk region is recognized as the best in the country for the achievement of high performance and a significant increase in the volume of construction capital and investment growth in the industry. Also through increased housing construction and development of mortgage lending, the development of road construction and the increase in production of building materials. In terms of production of building materials, the Novosibirsk region ranks first in the Siberian Federal District.

Chart N 3
The volume of work performed by the "Construction" industry.

The volume of work performed by the «Construction industry»

Chart N 4
Indicator of total volume of shipped goods, works and services, in % compared to previous years

Indicator of total volume of shipped goods

The financial sector of the city is supported by ninety one banks, fifty five of which are regional branches of large and international banks. Among those, there are some that have their Headquarters for the Siberian Federal District located in Novosibirsk, e.g. Siberian Bank of Sberbank, Raiffeisen Bank (Austria), Societe Generale Vostok (France) , GE Money Bank (headquartered in the UK GEMoney), UniCredit Bank (Italy), Banca Intesa (Italy), Nordea Bank (Sweden), BNP Paribas (France). In addition, Novosibirsk has over one hundred and thirty investment, finance and insurance companies, including branches and representative offices of major Russian and foreign companies, also dealing with stock and currency exchange.

Trade and services

Consumer goods and services market shows dynamic development: in the period between 2009-2013 retail turnover rose 50% (Chart number 5), new sales points as well as warehouse facilities and consumer services were established. New enterprises are equipped with modern equipment, providing high level services.
The rapid growth of international trade has demanded the creation of a Regional Customs Office in Novosibirsk. The area occupied by the customs and the terminal warehouse is about 1 million square meters.

Dynamic business and active investment in the industry ensure the implementation of advanced technologies, also allow for the construction, modernization and renovation of existing enterprises and the creation of new jobs.
Well known retail networks such as IKEA (Sweden), Metro (Germany), Auchan (France) and LeRoy Merlin (France) have opened branches in Novosibirsk.

Chart N 5

The ratail and public catering turnover

Transport

Novosibirsk is the second largest transportation hub in Russia including rail, air, road and water transport. Major routes connecting the western and eastern regions of the country run across the region. Passenger traffic has more than doubled in the last four years.

Air transport
Novosibirsk is considered the “Air Gate of Siberia”. Here is where the West Siberian Regional Management Office of Air Transport is located, and it serves Kemerovo, Tomsk, Omsk and Altai. The length of the air routes is 172,000 kilometers. More than half of the passenger traffic managed by the Office of air transport flies through the Novosibirsk region since is possible to connect with all the main airways of the country through it. Novosibirsk largest airline "S7" is second only to "Aeroflot - Russian Airlines" in terms of air traffic. JSC "Airport Tolmachevo" is the main aviation hub in Siberia, and it ranks fifth among the leading airports in Russia -after Moscow and St. Petersburg’s- in terms of passenger traffic. The airport partners with one hundred airlines that connect Novosibirsk with 80 cities of Russia, CIS and other countries such as Germany, China, UAE, Israel, Thailand et al. Annually the airport serves about 10,000 regular flights that dispatch and receive passengers, baggage, mail and cargo. Popular destinations for domestic flights are Moscow and St. Petersburg, and also other cities in Siberia and the Far East. Germany, Israel, Korea, China and UAE are the leading destinations for international flights. In 2013 passengers traffic totaled 3.7 million people. Airport "Tolmachevo" is certified category 1 by the International Civil Aviation Organization (ICAO).Technical parameters related to "A" class airfields. Airport "Tolmachevo" was awarded the first prize to "The Best Airport in Russia and the CIS in 2004."

Rail transport
The West-Siberian Railway Headquarters are located in Novosibirsk. This is one of the most important railroads, its Route expands 4180.7 kilometers. Traffic is more than double the national average, the total freight weight is 20 percent higher than the national average but the cost of transportation is 38 percent lower. The West-Siberian Railway is ranked in the first place in Russia.
Novosibirsk is considered a major railway hub, with its four stations: Main, West, East and South, and serves over 20.000 passengers every day. The Main Station alone receives 15,000 of them, and they get to see one of the most striking landmarks of the city and what is considered the largest train station in Russia. Suburban electric trains also serve short and medium distance passenger transport.
The portion of the Trans-Siberian Railway that runs from Omsk to Novosibirsk is considered the most congested portion of any railway in the world, with more than 100 million ton-km per 1 km.
The second largest freight yard in Russia is located in Novosibirsk, the "Inskaya" includes five working areas that send and receive more than 16,000 railroad cars every day.

Automobile transport
The length of the road network is more than 12,000 km. that run through the Novosibirsk region, including the federal highway Moscow - Vladivostok, and other federal highways. More than a dozen major transport companies engaged in long-haul and international freight (to Europe, China, Mongolia and CIS) are located in Novosibirsk. The bus service connects Novosibirsk with Tomsk, Kemerovo, Novokuznetsk, Barnaul and cities of Kazakhstan.

Water transport
Novosibirsk is located on the bank of the Ob River - the largest river in Russia, with a basin area of 3 million square km. West Siberian River Shipping provides shipping and trade with neighboring territories, fulfilling an important role in the implementation of the program supplies of the territory of the North, which produce most of the energy resources of Russia, 9% of the total amount of cargo of the Novosibirsk Region is shipped by Water transport. Passengers and tourists are offered modern and comfortable ships.

Metro
Novosibirsk Metro is the third-longest in Russia and its bridge across the Ob River is considered the longest in the world with a length of over 2 km. In addition, the Novosibirsk Metro features a famously unique system of tunnels, unparalleled in any metro in Russia and CIS countries.

Science and Education

Akademgorodok- Academic Town- was built in 1960, with the idea of canalizing the scientific potential of Russia. It became the first organization in the country to serve as a scientific center and it became a model for a number of organizations that were set up in Japan, the U.S., France and South Korea. In Akademgorodok converge The Russian Academy of Sciences, The Russian Academy of Agricultural Sciences and The Russian Academy of Medical Sciences, with more than 120 research institutions and organizations, research and development is carried out by more than 30,000 employees, of which more than 5000 have a degree, also here there is a great number of international research centers. In Koltsovo, a suburb of Novosibirsk, the State Research Center of Virology and Biotechnology "Vector", has at its disposal a unique collection of microorganisms - the world's analogue of such a collection exists only at the Center for Disease Control and Prevention in Atlanta (USA).

In 2001 Novosibirsk became the first and only city in Russia to be accepted by the World Technopolis Association WTA (World Technopolis Association), which brings together a total of 38 cities from 17 countries, that feature a highly scientific and technological base.

Novosibirsk is one of the largest centers of software production, exporting its products to the world. Also in Akademgorodok and industrial park is under construction, and some of its residents have already moved in this year.

The State Public Scientific and Technical Library -SPSL - is one of the largest libraries in the world with a capacity of 14 million volumes. It takes the second place in Russia (after Moscow’s) in patent pool, it has 14 specialized reading rooms. 475 highly qualified employees serve the institution. The Library has the status of Institute of Science, and is the only one in the country that has a post-graduate course. Its methodological center oversees all academic libraries in Siberia.

In the Novosibirsk region there are 24 independent and 10 branches of public higher education institutions, including 14 universities and 20 institutes.evel of education and training of qualified personnel for various industries traditionally is considered to be very high . The amount of specialists with higher education is 281 per 1,000, exceeding the national average of 9%.

Culture

Novosibirsk is one of the cultural centers of Russia, it features more than 2,200 institutions and cultural organizations, more than 4800 creative groups and eight professional theaters, including:

The Novosibirsk State Academic Opera and Ballet Theatre, the largest theater facility in the country and one of the largest in the world.
The Novosibirsk Philharmonic, institution which brings together more than 20 teams that are well known beyond Russia.
Among the teams appears the pride of the city: the famous Symphony Orchestra of the Novosibirsk State Philharmonic. Its artistic director and chief conductor is Gintaras Rinkyavichus.
In 2013 Arnold Kats State Concert Hall was opened in Novosibirsk. The new hall became a home base for Novosibirsk Philharmonic Orchestra.
The Novosibirsk State Glinka Conservatory, preparing world-renowned musicians for more than 50 years.
Famous jazz groups.
The Novosibirsk State Choreographic School is one of the top three ballet schools in Russia.
The Novosibirsk State Art Gallery is the largest in Siberia, with a permanent exhibition of more than six thousand works of Russian and foreign artists.

Sport

Novosibirsk athletes have to their credit 30 Olympic gold medals. Five athletes have entered the Guinness Book of Records for number of world records, number of victories at the Olympic Games and world championships. Many athletes have repeatedly been the best athletes of the world and European champions.

Four of Novosibirsk’s sports teams play in the Premier league of the country. These include the women's basketball club "Dynamo-Energiya", the volleyball men's team "Lokomotiv", the hockey team "Sibir" and the ball hockey team "Sibselmash." Many Novosibirsk players perform in the national teams.

Home games for the Russian championships draw thousands of fans from Novosibirsk and other cities, e .g over thirty hockey matches are played every year at the Ice Palace, many of which are played at full capacity (8,000 people).

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