Russia approves 3,7 trillion ruble Far East rail modernisation

Russia has approved further modernisation works of railway infrastructure in its Far Eastern region. On the 50-year anniversary of the so-called Baikal-Amur line (BAM), the country confirmed that it will be spending 3,7 trillion rubles to boost throughput capacity to 270 million tonnes by 2032.
The approved investments are part of the third stage of modernisation works on the BAM and the Trans-Siberian line (Transsib), together often referred to as the “Eastern Polygon”. This year, Russia intends to complete the second stage of its modernisation, which is supposed to grow throughput capacity to 180 million tonnes annually.

The Kremlin approved the transport ministry’s plans on the 50-year anniversary of the BAM, which “has key importance for the connectivity of the regions, the integration of Siberia and the Far East, and the economic sovereignty of Russia”, writes the Russian government on Telegram.

China-Russia trade

The Eastern Polygon has become increasingly important for Russia’s economy. In the face of reduced trade with Western countries, Russia is forced to redirect its trade towards other parts of the world. Trade with China has been growing, and the Eastern Polygon is an essential infrastructure artery that facilitates the flow of goods in the east. Current volumes have already pushed the infrastructure to its capacity limit, and are expected to grow further into the future.

The large 3,7 trillion ruble (37 billion euros) investment reflects the Kremlin’s perceived importance of the Eastern Polygon. Russian prime minister Mihail Mishustin stated that “the expansion of the Eastern Polygon will create new opportunities for industries, especially in the mining and manufacturing sectors. It will also help to grow freight volumes and shorten travelling times. Order volumes will grow, new jobs will be created. Territories along the route will become more prosperous, which will improve the quality of life of people in Siberia and the Far East.”

Modernisation projects

While earlier plans heavily favoured the BAM with 90 per cent of all investments spent on that line, shippers lobbied with Russian Railways and the transport ministry to amend the plans in favour of the Transsib. Now, the plans include 12 projects on the Transsib and 10 on the BAM.

In the coming 8 years, Russia subsequently intends to expand 3 tunnels near Severomuysk, Kuznetsovsky, in the Kodar mountain range and a bridge across the Amur river. The city of Khabarovsk will get a bypass and the transport node at Nakhodka will be developed further. Lastly, Russia plans to build double tracks at various locations along the two lines.

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