The city's economy is shaped by businesses and organizations of the power industry, power engineering, mechanical engineering, construction, food sector (including fishing), agriculture, trade, catering, mining, and processing industries.
City industrial enterprises produce more than a third of the industrial output of the Magadan region.
The analysis of the indicators characterizing socio-economic situation in the city of Magadan makes it possible to define it as a stable one with a noticeable trend towards improvement.
Summarizing the results by the end of 2014, based on the Statistical Register of Economic Entities 4,014 business entities and 5,014 entrepreneurs are registered and identified in the regional center.
515 industrial enterprises are registered on the territory of the Magadan municipality, including 250 mining enterprises, 242 manufacturing companies, and 23 enterprises working in production and distribution of electricity and water sector.
In 2014 large and medium companies involved in industrial production shipped own production goods, performed works and provided services for the amount of 7.3 billion rubles.
Twenty-three Magadan organizations employing 2.4 thousand people work in the sphere of electricity and water production and distribution.
The centralized supply of heat and electricity to the city is provided by Magadan Power Plant, which is the branch of Energy and Electrification OJSC Magadanenergo, as well as by the boiler houses of the municipal unitary enterprise Magadanteploset.
The enterprises of the fuel and energy complex produced thermal energy in the amount of 1319.4 thousand Gcal. The electricity was generated in the amount of 148.5 million KWh.
In the city of Magadan as of 01.01.2015 there were 242 manufacturing companies registered, 20 of them are large and medium-sized enterprises.
JSC Magadan Mechanical Plant is the leading company within the infrastructure of the Magadan region mining industry.
The main items produced by Magadan Mechanical Plant are:
• hydroelevating gateway devices;
• hydraulic drum unit;
• flushing devices for gold extraction from placer deposits;
• hoist rope belt conveyor;
• floodgate attachments;
• diesel drive pumping stations;
• polyurethane foam insulation tubes in and others.
Magadan Mechanical Plant production is delivered to the enterprises of the Republic of Sakha, Kamchatka, Chukotka Autonomous District, the Krasnoyarsk Krai etc, is exported to Tajikistan, Kyrgyzstan, Ghana (Africa) and other countries of the former Soviet Union and far abroad.
The plant also develops parts for imported and domestic earthmoving machinery and other equipment based on customer drawings samples.
The leading enterprises of the food processing industry are Kolyma Delicacy LLC, Siberian Delicacy Magadan LLC, Magadan Gormolzavod JSC and Alexandra LLC.
In the city of Magadan fishery is one of the basic industries which is the only food industry with its products sold not only in the domestic Russian market, but also exported.
Every year, fishing companies catch about 100 thousand tons of fish and seafood. The largest share of the catch are pollock, herring, salmon, moreover, capelin, black and Pacific halibut, and rock trout are being caught as well. Among non-fish fishing products are crabs, shrimp, and trumpet fish. Part of the catch is fished in coastal waters.
Fishing enterprises fishing vessels fishing carry out their catch mainly in the economic zone of Russia: in the Okhotsk and Bering Seas. The basic areas of fisheries are the Western Bering Sea area, and the North Okhotsk and West Kamchatka subzones of the Sea of Okhotsk.
The structure of the agricultural industry of Magadan is represented by such sectors as livestock farming, crop production, poultry and others. Local agro-industrial sector is essential for providing the residents of the city and the region with agricultural produce.
Cattle, pigs and poultry are bred and vegetables are grown by two agricultural companies and fifteen private farms as well as on citizens’ private plots.
Local manufacturers constantly participate in municipal competition for the right to supply products to budgetary organizations of the city.
One of the measures to support individual farms, smallholdings, agricultural and processing enterprises of the city and the region is the Weekend Fair which gives an opportunity to sell the manufactured products at no additional cost for commercial spaces rental and advertising.
As of 01.01.2015 there were on 420 construction companies registered. The scope of work performed by large and medium-sized organizations in this sector amounted to 1.5 billion rubles, or 107.6% to the level of 2013.
Commissioning of apartment buildings and individual houses in the municipality of Magadan grew by 67.8% in 2014 in relation to the previous year and amounted to 10,219 m of residential floor area. Five apartment houses and thirteen individual houses were built.
A group of companies (DSK, MDSK, SMU-6, MZKPD, MagStroy Invest) has been performing numerous projects for the construction of housing, as well as regionally significant road industrial and social facilities for more than fifteen years. With its modern material and technical base, the group of companies successfully implements new technologies and efficient methods used by leading foreign and domestic enterprises.
Produce by Basalt Technologies Ltd. has higher sound insulation qualities compared to insulating materials manufactured without the use of basalt raw material, now more common on the global construction market. In addition to the already mentioned characteristics, there is one more quality the construction industry is fighting for and that is reducing the materials flammability (ignition at more than a thousand degrees Celsius). This material also has moisture repellent properties and does not attract rodents.
Magadan is one of the major transport centers of the Far-East Federal District where air, road and sea routes intersect. In the city there is an airport capable of accomodating all classes of aircraft, and sea trading and fishing ports. Kolyma highway originates in Magadan, linking the city with the region’s hinterland and Yakutia.
Magadan airport is the main facility that provides inter-regional passenger and cargo air traffic.
It covers an area of about 8 square kilometers, and the length of the runway applies to A class aerodromes. On the airport territory there are a runway, a passenger service terminal, an international sector terminal, a fuel storage, a cargo storage, special transport service, a hotel and preventative clinic, engineering networks as well as water supply, heating, electricity, and sewage facilities.
Direct flights connect Magadan with such cities as Moscow, St. Petersburg, Ekaterinburg, Novosibirsk, Krasnodar, Irkutsk, Khabarovsk, Vladivostok, and others.
About 99% of incoming and outgoing cargo in Magadan and beyond is transported by sea. One of the main links in the transport scheme is Magadan Commercial Sea Port JSC which is the only company capable of handling transshipment of virtually the entire range of goods coming into the region. The annual turnover of the port about 900 thousand tons.
About 87% of domestic regional traffic in the Magadan region are taken by road transport.
It would be impossible to create a full-fledged transport hub in Magadan without Kolyma federal highway which passes through from Nagaeva Bay through gold mining areas to the Republic of Sakha (Yakutia). Its length is over one thousand kilometers.
The road transport network of Magadan city is about 176.6 km.
The main role in the passenger traffic is played by private organizations and individual entrepreneurs contacted by the city administration for public routes.
On the territory of Magadan municipality there are 47 communication companies registered. The volume of communication services provided to general public by large and medium organizations in 2014 amounted to 1.6783 billion rubles. Land line connection in Magadan is provided by Magadan branch of Rostelecom OJSC. Mobile (cellular) services are provided by Magadan branch of Rostelecom OJSC as well as by four leading Russian mobile operators (MTS, Megafon, Beeline and Tele2).
Magadan branch of Rostelecom OJSC offers a wide range of communication services from traditional land line to modern telecommunication technologies.
The Rostelecom company is the executor of various state programs in information technology such as the creation and development of e-government infrastructure (including portal gosuslugi.ru), the organization of real time video broadcasts for the Unified State Exam, and others.
Magadan branch of Rostelecom OJSC in 2014 performed investment projects in various fields with the volume exceeding 54 million rubles. One of the main projects of the company is construction of Magadan-Sokol-Palatka fiber-optic communication line. Implementation of this project will allow the residents of Magadan municipality to get increased speed Internet access and use IP TV service.
914 retail outlets and 254 public catering establishments (restaurants, cafes, bars, canteens, specialized canteens, canteens in educational institutions) operate in the city of Magadan. 356 companies provide various services to the population (tailoring; shoe, home appliances, watches, and cars repair etc.).
Local retail networks continue to develop in Magadan, including the sale of agriculture and food processing industry products.
The resident population of Magadan municipality as of January 01, 2015 amounted to 99.7 thousand people (or 67.4% of the population of the Magadan region). Women are 52.3% of the total population of the city. The labor force population is 65.3% of the city residents, for those younger than working age the percentage is 17.2%.
In 2014 there were 1,254 children born in the city of Magadan, mortality rate among the population is 1,093 people, natural population growth is 161 people.
In order to increase the birth rate, to reduce mortality from external causes, to preserve and build up public health, to preserve spiritual and moral family values and traditions the Action Plan for Demographic Situation Improvement in 2015-2020 was approved in Magadan municipality in 2014.
It provides for:
• compensation of parental fees for the child care in municipal preschool educational institutions,
• establishment of special pre-school education network,
• sport development,
• building up tolerance and prevention of xenophobia,
• organization of summer holidays for children and adolescents,
• disease prevention (including influenza and SARS),
• organizing activities promoting a healthy lifestyle, and more.
Municipal educational network in the city of Magadan includes 54 institutions, including 21 general education institutions, 2 institutions for children extended education and 31 preschool educational institutions.
In the city of Magadan there are three of secondary vocational education institutions and six higher professional education institutions (three of which are public).
The recent number of students in the educational institutions of secondary vocational education is 1,435 people.
The recent number of students in higher education institutions amounts to 6,805 people, including 1,813 students enrolled in daytime courses and 4,992 students in correspondence courses. Non-public educational institutions are more focused on working students, including the ones receiving the second higher education, so most of them choose correspondence courses and that is 73.3% of the total student number.
The largest of the scientific institutions in Magadan is the North-Eastern Interdisciplinary Scientific Research Institute which is the Far Eastern Branch of the Russian Academy of Sciences. About ten Doctors of Science and thirty PhDs work here.
The scientific work of the Institute of Biological Problems of the North is well-known in Russia and abroad.
VNII-1 (Research Institute of Gold and Rare Metals) is closely related to the gold mining companies’ activities in the region and is their experimental technical base . In addition, there is Agricultural Research Institute of the North-East and the Research Institute of Fisheries and Oceanography.
The health care system of the city is represented by 12 hospitals for 1,597 beds total, 24 outpatient clinics of various subordination. They use the latest methods of treatment and diagnosis and work on modern medical equipment. The capacity of outpatient clinics is 3,884 total visits a shift. Ambulance station is included into the medical institutions network.
Art and Culture
Culture services are provided to general public in Magadan municipality by 16 local municipal establishments, including five extended education institutions in the field of art, a museum, a cinema, a city park, a brass band, a library (with nine branches) and six culture and leisure establishments.
The townspeople and visitors of city are attracted by museums: Museum of Local Lore, Geological Museum, NEISRI museum, Kozin apartment museum and others. Museum exhibits acquaint visitors with the history, the wealth and the nature of the extreme North-East of Russia. In addition, there are two theaters: Magadan Music and Drama Theatre and the Magadan Puppet Theatre.
In Magadan there is an extensive network of sports infrastructure facilities: Sports Palace, the city stadium, ski resort in Solnechny district, a swimming pool, Metalist and Energy cultural and sport centers, Kolymskyi indoor football field and the Ice Palace.
The municipal sports infrastructure includes eight children and youth sport schools, a Yunost’ sport club, Metalist sport center, Snezhnyi sport and recreation base, and the municipal stadium. There are more than four thousand children and adolescents being trained in municipal sport schools and clubs.