And, as usual, in Mundo, we bring you only the best investment opportunities. Today, we’re here to present you with the possibility to invest in one of the newest industrial parks in Russia. We’re talking about the Bronka Industrial Park, which is only half an hour away from Saint Petersburg, the second-largest city and economic center of Russia, and 5 kilometers away from the Bronka port.

We’re selling the land lots of the Bronka Industrial Park, and we’ll explain to you why this is one of the best industrial investment opportunities in Russia.

Investing in Saint Petersburg

The Bronka Industrial Park is located a few miles away from Saint Petersburg, in the Leningrad region. Saint Petersburg is the second-largest metropolis in Russia, after Moscow. It is also the largest economic driver of the Baltic region and also has its biggest port.

It has the 4th largest GRP of all Russian federal subjects concentrating about 8% of the foreign trade turnover of Russia.

It also comes with an unparalleled pool of human resources. There are 78 institutions of higher education in Saint Petersburg.

The total turnover of the six ports in Saint Petersburg is almost 40 % of the turnover of all Russian ports. Imagine how that number will increase after the Bronka port enters into its third stage, which will almost triple its actual capacity (more on that ahead).

Saint Petersburg is an industrial stronghold with more than ten industrial clusters with the successful presence of world-renowned brands such as Siemens, Caterpillar, Schneider Electric, Phillip Morris International, Kraft, Henkel, Nissan, Hyundai, Ford, and Toyota.

What is the Bronka Industrial Park?

The Bronka Industrial Park is a project for industrial expansion, which is currently in the development phase. It has a total extension of 176.5 hectares. It is only five kilometers away from the Bronka seaport.

The Bronka seaport is the most modern port of Russia’s North-Western region. It is the only deep-water sea terminal in Saint Petersburg, and the depth of the approach channel is 14.4 meters.

Both the port and the industrial park have privileged locations as they are located in Southwest of St. Petersburg, just outside of the city limits and close to the Bronka railway stations, which is connected to the port by a 1.2 km railway line.

This means the port allows transshipment by sea, river, motorway, and railway, which is quite advantageous for companies located in the industrial park as it reduces transportation costs.

Moreover, the port has fast handling of vessels, road, and rail transport as the overall handling time is one hour.

One of the biggest advantages of both the industrial park and the port is that they allow the development of high-risk industries. The park is readily available for locating industrial branches with IV-V hazard classes, and the port is prepared to handle all types of dangerous cargo with guaranteed safety.

Also, the Bronka Industrial Park comes with immediate availability of free energetic capacities in the site location area.

Thus, wrapping it up, the Industrial Park comes with the following advantages:

1)    Proximity to the Bronka seaport (5 km).

2)   Proximity to high transport nodes (international airport, railway, and highways).

3)   Proximity to St. Petersburg, Russia’s second-largest metropolis and economic center.

4)   Location in a rapidly developing region in Russia.

5)   Presence of major economic investors and corporations.

6)   Proximity to some of the biggest transport corridors.

7)   A high plot area that allows integrated development with creation of synergies.

8)   More than 90% of the area is flat land, which means there won’t be a significant investment in flattening the land.

What is the Bronka port?

The Leningrad region and St. Petersburg are located at the beginning of the North-South transport corridor. The region currently has six working seaports, but the one with the largest potential is, by far, the Bronka port. The current capacity of the six seaports is 4 million TEU per year. However, the Bronka port alone has a planned capacity of about 120% of all existing container capacities in the Baltic.

The Port was put into operation in 2015 with a yearly TEU capacity of 1.45 million. That capacity was increased in 2019, in the second stage of the project to 1.9 million. The third stage of the project will launch in 2022, with a TEU capacity of 4.9 million.

The port offers a deeper ship’s draft than the port of St. Petersburg (14m vs 11m), which will attract part of the cargo flow from that port and other Baltic transit ports. Also, this comes with a possible transfer of the Baltic customs posts of the St. Petersburg port to Bronka.

Likewise, there is an availability of an underdeveloped port area with a well-developed transport infrastructure.

Location of the Bronka Industrial Park

Utilities

The industrial park has a privileged location, and it has the potential of establishing all primary services with relative ease.

First of all, it has an incredible advantage. Most of the terrain is plain (more than 90%), meaning there won’t be a large investment in flattening the terrain.

The main road connection to the KAD highway costs between 140 and 320 million rubles.

A 6 MW boiler station can be established for about 140 million rubles plus 15 million rubles per KM for heating networks within the plot.

Regarding the power supply, a connection to the HV line, including the installation of the lines and the modular substations, costs about 19.5 million rubles/MVA.

The estimated cost of the water supply is 230k-320k rubles per cubic meter, 230k-350k per cubic meter for sanitary sewage, and 120k-140k per cubic meter for rain sewage.

Lastly, gas pipeline investment costs about 4 million rubles.

What can be done in the Bronka Industrial Park?

With such a fantastic location in a highly industrialized region, Bronka’s potential is limitless.

The following industries can be easily established in the park taking advantage of the natural benefits of the region,

Processing of wood and wood products:

• Factories of sawmill, plywood, and parts for wood products.
• Assembling of furniture
• Production of pellets

Rubber and plastic products

• Plastic processing

o  Casting

o  Extrusion

o  Pressing

o  Vacuum forming

Agriculture

·      Greenhouse

·      Foodstuff, fruit, and grain storage

·      Cattle ranching up to 100 cattle heads

Electrical equipment

·      Lighting fixtures without casting

·      Electric generators, capacitors, and transformers

Vehicles, machinery, and equipment

·      Machinery manufacturing with metal processing and varnishing (without casting)

·      Jig-boring machines

·      Vehicle and machinery repairment

Non-metallic mineral products

·      Glassblowing, grinding, and glass etching

·      Concrete-making plant

Metal industry and metalware

·      Metal processing with iron, steel, and non-ferrous casting

·      Recycling of non-ferrous metals

·      Iron mold casting

Textile and clothing manufacture

·      Production of clothing, hosiery, silk weaving manufacture, and sports equipment

·      Yarn and woven fabrics of wool, cotton, linen

Chemical industry

·      Household chemicals from finished drawn materials and storages

·      Formulations (without producing substances)

Food industry

·      Milk, oil, and cheese production

·      Non-alcoholic and alcoholic beverages

·      Confectionery and bakery

Pulp and paper industry

·      Paper production from finished pulp and drags

·      Paper production from waste paper

Leather, leather goods, and footwear

·      Production of patent, leather, and articles made of fine leather

·      Footwear manufacturing

·      Temporary storage of unprocessed leather

We shall get into detail on some of these potential investment areas.

For example, it can serve as a warehouse complex for logistics, both processing inbound and outbound cargo. It can serve for handling containers, repacking, and cross-docking. Its nearness with the Bronka port eases this possibility, and the potential increase of the port TEU to 4.9 million per year in 2022 gives the industrial park even more warehouse potential.

It can also be a hotspot for the production of plastic goods. Russia is a growing market of polymer consumption, and some of the promising consumers of polymers in Russia are the military industry, agroindustry, FMCG, building, pharmaceutical, and medicine. Russia still depends on the import of processable plastic, and factories in the Bronka Industrial Park can start changing that trend.

The park can also be a producer of pharmaceutics, especially of finished dosage forms from finished substances. The port can be used to have direct access to imported substances to sell them in Russia or for exportation. The Russian pharmaceutical market is one of the fastest-growing on the entire planet, but almost 70% of the pharmaceutical market in Russia is comprised of imported products. Nevertheless, the government has created beneficial legislation to reduce the share of pharmaceutical imported products.

Lastly, another incredible opportunity is the production of fuel and wood pellets. There is a deficiency of pellets in the European market of almost 23 %, while Russia has a large stock of waste timber that can be used for the pellets. The pellet market is set for a 10 % increase in the next few years, and the sale price of pellets in Europe is almost two times higher than the production cost in Russia, opening a natural export market that sets its production industry in the park.

Status of the project

It can be said that the project is 50% complete. It’s only waiting for investors that see its evident potential.

The following steps have been already completed:

1)   Acquisition of the land plot and registration under ownership.

2)  Alteration of the permitted use: the category of the land plot was changed from farming land to industrial land.

3) Obtainment of technical specifications: The prerequisites for gas and electricity connections have been already obtained

4)   Design of schemes of connections to the infrastructure for transport and energy

5)   Design of the development concept of the land plot

Now, the next steps of the project are the following:

1)   Cooperation with investors: Searching for investors and defining ways of collaboration

2)   Preparation of an investment project including:

a.    Obtainment of approvals

b.   Conclusion of preliminary agreements

c.    Initial advancements of the project

3)   Design work, including:

a.    Geotechnical investigation

b.   Development of the design estimate and working documentation

4)   Construction and assembling, including:

a.    Connection to the external networks

b.   Preparation of land plots

c.    Main works

d.   Connection to utilities

5)   Operation and development

Who are we, and what can we do for you?

In Mundo, we have 25 years offering top corporate solutions for investors and high net worth individuals all over the world.

We have an expert team in Russia ready to offer the best investment opportunities and financial and corporate services in this commercial giant.

Our team works hand in hand with the developers of the Bronka Industrial Park, which offers rarely-seen opportunities for industrial investors thanks to its closeness to the cutting-edge Bronka port.

We can help you acquire some of the best land lots in the industrial park for incredible prices.

The Bronka Industrial Park is one of the best investment opportunities in Russia. All you need to do to know more is contact us right now! 

 Contact us right now!

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