FHWA assistance to Russia

Public Roads, Spring, 1994 by Bert Schacknies

Congressional Visit to Russia

When the Russian participants in the observational study tour met in the spring of 1992 with Congressman Norman Mineta (D-Calif.), chairman of the House Public Works and Transportation Committee, Mineta's then Russian counterpart, Gennady Alekseev, invited Mineta to visit Russia. Mineta accepted and asked FHWA to prepare and participate in a congressional oversight visit.

Congressman Mineta, seven of his committee members, FHWA Administrator Rodney E. Slater, and Office of International Programs Director John D. Cutrell were in Russia from Aug. 22 through Sept. 1, 1993, and met with high-ranking officials. The congressional delegation held meetings with U.S. Ambassador Thomas Pickering; the ministers of foreign affairs, economy and international affairs, and transport; representatives of the regional and municipal governments in Moscow and St. Petersburg; and their legislative counterparts in the Russian Parliament. The visit also included contacts with U.S. corporations--such as 3M, Caterpillar, and Paccar/Kenworth Trucks--that have significant interests and investments in Russia.

The ambassador and American businessmen presented first-hand reports about conditions in Russia. The ambassador explained the status of the Russian government's privatization efforts and the role of the U.S. Agency for International Development (AID). He also said that, despite the Russian government's ability to obtain international credits, the majority of the capital for road rehabilitation and maintenance must still come from private investors. The businessmen reported that it is still somewhat difficult to do business in Russia and amplified the need for institutional reform.

High-ranking officials in the Russian government expressed a strong willingness to model their government on the American experience. Congressman Mineta discussed the importance of transportation in a free-market economy and the significance of Russian-American private sector cooperation.

Initiatives to Develop the Private Sector

FHWA's direct interaction with Russian colleagues will help guide their policy formulation and standard-setting processes. This will ultimately open the Russian market to U.S. products and services. It will also help strengthen the Russian desire to import American--rather than European or Asian--technology The equipment-procurement requirements of the capital investment projects of multilateral finance institutions and private banks are only now being formulated, and FHWA!S involvement will ensure that U.S. companies receive timely notification of opportunities.

The principal sources of U.S. funding for multimodal transportation feasibility studies in Russia are AID and the U.S. Trade and Development Agency Several U.S. transportation companies are active in Russia, including CSX Sealand, involved in railroad and port access improvements; Cummins Engine, working with a diesel engine plant at Kamaz; and Kenworth Trucks and Caterpillar, which are part of a U.S.-russian joint venture to manufacture a new truck for Russia. The World Bank is also concerned with urban transportation and the upgrading of the bus fleets. These projects are only a few of many projects covering all modes of transportation.