Preliminary preparation stage for concession on Northern Latitudinal Railway completed
A working meeting has been held on the implementation of the Northern Latitudinal
Taking part in the meeting were Russia’s acting Minister of Transport Maxim
Sokolov, the CEO and Chairman of the Board of Russian Railways Oleg Belozerov, the
Governor of the Yamal-Nenets Autonomous District Dmitry Kobylkin, representatives
of the future Northern Latitudinal Railway concessionaire, the Public Joint Stock
Company (PJSC) Gazprom and other parties to the project.
At the meeting, which was held in Salekhard in north Russia Top of Formon 11 May
2018, the participants finalised the main conditions and parameters of the concession
scheme and signed the final protocol.
The participants also noted that all the documents necessary to start the construction
of the Northern latitudinal Railway were ready for submission to the Government of
the Russian Federation for a decision.
At the moment, the potential concessionaire is currently completing design and
survey work in order to begin construction work in 2019.
As part of the concession, more than 350 kilometres of railway track and bridges
across the Ob and Nadym rivers will be built.
The construction work is scheduled for completion in 2023.
According to the meeting participants, the project’s implementation fully
corresponds to one of the key tasks set by the President of Russia Vladimir Putin
in the decree "On National Goals and Strategic Tasks in the Development of the Russian
Federation during the Period until 2024" – that of increasing the degree of
economic coherence across the country's vast territory.
After the meeting, Maxim Sokolov, Oleg Belozerov and Dmitry Kobylkin took part
in a ceremony to lay a memorial capsule in the foundation of the future bridge over
the Ob River.
"Today we are not only making a symbolic start to the construction of a bridge
across the Ob, but are also opening up a new large-scale stage in the development
of Russia’s transport infrastructure. The construction of the Northern Latitudinal
Railway will change the picture of transportation across the whole country," concluded
Oleg Belozerov during the meeting.
* * *
The construction of the Northern Latitudinal Railway is scheduled for 2018-2023.
The projected volume of transportation is 23.9 million tons, consisting mainly of
gas condensate and oil products.
The Northern Latitudinal Railway will be implemented on the principles of a Public-Private
Partnership (PPP) in the form of a concession.
In global practice, PPPs are the most progressive form of implementing such large
capital-intensive projects, facilitating the provision of financing and rationally
distributing the risks between the participants.
In the framework of its investment programme, Russian Railways will carry out the
reconstruction of the adjacent sections of the Konosh - Kotlas - Chum - Labytnangi
stretch on the Northern Railway, including Ob station, and the Pangody - Novy Urengoy
- Korotchaevo railway line, which is part of Sverdlovsk Railways.
PJSC Gazprom will complete the construction and commissioning of its own 104 km
Nadym - Pangody railway line
Under the concession agreement, a special project company called SPK-Concessionaire
will provide the financing, construction and operation of the Obskaya-Salekhard-Nadym
line. A railway section of the bridges across the rivers Ob and Nadym and the approaches
to them will be built, as well as a new 353 km Salekhard-Nadym railway section.
The administration of the Yamalo-Nenets Autonomous District will be an investor
in the construction of the automobile section of the bridge across the Ob and will
provide the necessary project documentation.
Yamalo-Nenets will also provide federal property with the plots of land needed
for the construction of the road, and will ensure that construction workers have access
to water bodies and forest areas. The Autonomous District will also make available
benefits on the property tax.