Belkomur Project History

Belkomur Project History

In the middle of the 1930s a railway construction began in the planned Belkomur location.

In 1944 the railway Kotlas-Vorkuta connected Pechora Coal Basin and Cherepovets Metallurgical Works.

In 1953-1954 the railway construction in the Russian Polar Region was stopped.

In 1995 a large-scale meridional project was proposed. The aim of the project was to link the cities of Arkhangelsk, Syktyvkar, Kudymkar and Perm by means of a railway called Belkomur.

The project design was based upon the General Scheme of Railways Development in Russian European North.

Railway network development in the Urals and Russian European North

The project operator is JSC Interregional Company Belkomur

Public share in the capital is 97%

0,00%10,00%

20,00%30,00%

40,00%50,00%

60,00%70,00%

80,00%90,00%

100,00%

1

Russian Federation -12,44%

The Republic of Komi -54,63%

Arkhangelsk Region -17,53%

Perm Region - 7,38%

Komi-Perm AutonomousDistrict - 5,02%

Other companies andagencies - 3%

In early 1998 the company Belkomur started construction of the northern part of the railway simultaneously from both directions.

Construction of the bridge over the r. Vashka, Udorsky District, the Republic of Komi

The Idea of Belkomur Project

The project implies a construction of a new aligning railway 1252 km long, including a new construction of 795 km, the rest is reconstruction and modernizing of the existing lines.

Belkomur consists of two parts: Northern and Southern

Belkomur consists of two parts: Northern and Southern

The new railway is of strategic importance for Russia since it will provide a direct connection of the Urals and the Republic of Komi to the ice-free

ports in Arkhangelsk, Murmansk and Northern Europe.

Belkomur Project Objectives

• Railway network development in Russian European North

• Infrastructural dead-ends liquidation

• Reduction of transportation distances

• Including idle territories into economic activities

• Railway transportation cost savings

Project Implementation Stages

1st stage: Northern Link – construction of Karpogory-Vendinga rail way

1st order – construction of Karpogory-Vendinga rail way by start-up complex

2nd order – reaching full capacity of the rail way Karpogory-Vendinga

Project Implementation Stages

2nd stage: Southern Link – construction of Syktyvkar-Perm rail way

1st order – construction of Syktyvkar-Perm rail way

2nd order – reaching full capacity of the rail way Syktyvkar-Perm

Integrated program for industrial and infrastructural development of the Republic of Komi, Perm Region and Arkhangelsk Region

General financial and economic detailsTotal amount of investment RUR bln. 350

RF Investment Fund assets/private investors’ assets

RUR bln.75/275

Gross growth in industrial production

RUR bln. per year 90

More jobs Number 25 000

Projects payback period

private investment / RF Investments Fund

Years 3-15 / 6.5

Revenues to all budgets RUR bln. per year 25

IRR (internal rate of return) % 27

About RUR 110 bln. of total investments till 2012.

23 mln. tons of cargo flow per annum (2006)

Over RUR 20 bln. industrial output growth by 2010-2012.

40 - 50% cargo flow increase by 2010-2012.

Projects included in General Scheme (2007)

Yarega Mining and Chemical Plant construction

Vorkuta project Bauxite and Alumina Plant

construction Step Project Udora and Troitsko-Pechorsk Pulp-

And-Paper mills projects

Brief description of the project participantsThe Republic of Komi

Perm Region Bereznikovo-Solikamsk Industrial Hub

RUR 120 bln. of total investments till 2012.

Over RUR 20 bln. industrial output growth by 2010-2012.

30 – 40 % cargo flow increase by 2010-2012.

Projects included in the Complex Program (2007)

JSC Uralkaliy project JSC Silvinit project JSC Solikamskburprom project LLC Soda-Chlorat project JSC Bereznikovsky Sodium Plant

project

Arkhangelsk Region

Deep-Water Port

45 mln. tons of annual cargo turnover

RUR 45 bln. of total public and private investments

Over 9,000 jobs

Servicing ships up to 70,000 tons dead-weight

55 km rail way included in the Rail Ways Development Strategy till 2030

Projected cargo flows

Construction of the new railway Belkomur within Eurasian Transport Corridor

Construction of the new railway Solikamsk – Gainy – Syktyvkar – Arkhangelsk within

transport corridor North East – West (NEW)

The major interregional projects within Russian part of the Northern Transport Corridor

• Ledmozero-Kochkoma railway

• Kotlas motor-road bridge

• Road transport communication within roadway networks in the Republic of Karelia and Arkhangelsk Region

• Road transport communication within roadway networks in Arkhangelsk Region and the Republic of Komi

• Karpogory-Vendinga-Syktyvkar-Kudymkar-Perm railway

A new railway Solikamsk – Gainy – Syktyvkar – Karpogory – Arkhangelsk (Belkomur)

Total railway length 1252 km

New construction 795 km

RUR 75 bln. of total investments