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September 12, 2011

Russian Railways Plans to Introduce a New Border Crossings to China

Russian Railways OAO (RZhD) intends to restore the border crossing Makhalin Ц Hunchun (China), and in the future to introduce a new transition Nizhneleninskoye - Tongjiang (PRC), said Valery Reshetnikov, Senior Vice-President of the company at the plenary session of the VII Baikal Economic Forum on September 12.

"Since June 2011, the company has owns the railway infrastructure border crossing Makhalin Ц Hunchun that stopped operating some years ago. As a result of negotiations with China, opening the border crossing for goods of foreign trade is expected in the nearest future," Ц said V. Reshetnikov. He explained that the RZhD has prepared a feasibility study of construction and subsequent operation of the bridge Nizhneleninskoye - Tongjiang, as well as reconstruction of the Birobidzhan Ц Leninsk line.

In his speech, Reshetnikov said that in 2010 the traffic volume of export cargo of the Far East and the Baikal region totaled 92.7 million tons, an increase of more than 20% compared to 2009. "Even during the crisis period 2008-2010, when traffic flows in the whole network declined, the volume of shipments to China, Mongolia and Far Eastern ports were growing," stated V. Reshetnikov. He explained that the volume of exports in this area has increased by nearly 30 million tons per year for last three years.

However, according to V. Reshetnikov, the resource potential of the Far East and the Baikal region is not used in full due to objective and subjective reasons. "We need to take the decision to implement the agreement reached between the Heads of the States of Russia and China to increase annual coal deliveries to China up to at least 15 million tons by 2015 and more than 20 million tons by 2035," said Vice President of RZhD.

As V.Reshetnikov added, RZhD is consistently implementing its policy of creating favorable tariff conditions at Russian railways to increase volumes of traffic in communication with Mongolia. In addition, the company has developed a programme of activities aimed at modernizing the railway infrastructure of "Ulan-Bator Railway AO. The program provides modernization of the Sukhe Baator Ц Dzamyn-Ude railway line. It is planned to increase the volume of transit freight traffic on the Ulan Bator railway from the current 2.4 million tons to 6 million by 2020.

Another project of RZhD, implemented with the aim to develop transit potential of the Far East, is restoration of the Trans- Korean line and on-going operations of the reconstruction of the Rajin-Hassan railway and the terminal construction in the North Korean port of Rajin, said V. Reshetnikov.

"Together with our Korean partners, we are planning to carry out a demonstration freight along the Hassan Ц Rajin railway section", said V. Reshetnikov. It is planned to complete the full range of works on reconstruction of the site and construction of the terminal at the port in the first half of 2012.

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VII Baikal International Economic Forum Headquarters

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