Russia will spend an additional one trillion rubles (10 billion euros) on the Trans-Siberian and Baikal-Amur railway lines. The extra financial injection is part of an infrastructure upgrade plan in Russia’s Far East. On 27 March, Russian Railways and the Russian transport ministry agreed on a framework for upgrades until 2035.
The Russian transport ministry, alongside Russian Railways (RZD), approved a plan for infrastructure upgrades that constitute the third stage of development of the Eastern Polygon. Russia plans to finalise the second stage later this year. While the second stage aims to grow throughput capacity to 180 million tonnes, the third stage is supposed to boost it to 270 million tonnes annually by 2032.
According to Russian publication Kommersant, Russia will spend an additional one trillion rubles on its Far East railway infrastructure. The so-called Eastern Polygon operates at maximum capacity amid increased freight volumes to and from China. As a result of Western sanctions, it is geopolitically important for Russia to find alternative trade markets. To facilitate a reorientation of its trade, it is looking to increase the pace of rail development in its Far Eastern region.
Changed plans
An earlier version of the plan saw 90 per cent of all funding allocated to the Baikal-Amur line. In the newly approved version, Russia plans to spend additional funding on projects that were requested by shippers, who wanted more funds for the Trans-Siberian railway and links to Far Eastern ports.
Consequently, the plan now includes a bypass around the city of Khabarovsk and rail developments near the coastal town Nakhodka. Russia also plans to build a double track between Komsomolsk and Volochayevka. Spending on the Trans-Siberian line will increase by 353 billion rubles.
Financing
In total, the expanded plans will lead to an additional required investment of 1 trillion rubles (10 billion euros). The required investments for the planned upgrades now amount to 3,7 trillion rubles (37 billion euros).
According to the publication Svoboda.org, it remains to be seen if additional funding will be enough to fulfil the stated goals of the plan and how much money will have to be drawn from government funds. The head of Russia’s National Research Centre for Transport and Infrastructure estimates the share of government funding at about 40 per cent. Other sources include RZD’s investment budget and private investors.
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