Magadan - Economy

Economy

Ship building and fishing are the major industries. The town has a seaport (fully navigable from May to December) and a small international airport, Sokol Airport. There is also a small airport nearby, Magadan 13. The unpaved Kolyma Highway leads from Magadan to the rich gold-mining region of the upper Kolyma River and then on to Yakutsk.

Magadan is very isolated. The nearest major city is Yakutsk, 2,000 kilometers (1,200 mi) away via an unpaved road which is best used in the winter, especially since there is no bridge over the Lena River at Yakutsk (the choices are: ferry from Nizhny Bestyakh in the summer, when the rest of the road may not be passable due to standing water, or over the ice in the dead of winter).

The principal sources of income for the local economy are gold mining and fisheries. Recently, gold production has declined. Fishing production, although improving from year to year, is still well below the allocated quotas, apparently as a result of an aging fleet. Other local industries include pasta and sausage plants and a distillery. Although farming is difficult owing to the harsh climate, there are many public and private farming enterprises.