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North Siberian Railway construction cost estimated at $86 billion

The Institute of Economics and Industrial Production has confirmed as reasonable the project to develop the route, including in the proposed configuration

NOVOSIBIRSK, March 27. /TASS/. The construction cost of the North Siberian Railway, which will connect the Trans-Siberian Railway and the Northern Sea Route, is estimated at 8 trillion rubles ($86 billion), and the repayable term is 20 years, Gennady Guselnikov, head of the Siberian Federal District's Interregional Association told TASS.

"The project's total cost is 8 trillion rubles," he said. "Scientists say the railway is repayable within about 20 years."

Part of the railway will cost 691 million rubles ($7.46 million) per kilometer, the cost of construction on a mountainous section will grow to 3 billion rubles ($32.4 million) per kilometer, he added.

Specialists also consider an option, where the North Siberian Railway has a branch to the port of Sabetta, which uses capacities of the Ob-Irtysh basin, and then towards Lesosibirsk, and further on along the Yenisei River to access port facilities of the Angara-Yenisei basin. Thus, the route will have two exits to the Northern Sea Route.

The Institute of Economics and Industrial Production (the Russian Academy of Sciences' Siberian Branch) has confirmed as reasonable the project to develop the route, including in the proposed configuration.

Another option to consider is to link the North Siberian Railway with the railway from Siberia to China and Mongolia (Kyzyl - Kuragino). The construction of this railroad is also considered appropriate. "We have completed a preliminary assessment of the feasibility of building both railways. We are adamant both railways will be repaid within about 20 years on the cargo base, calculated today," Guselnikov said, explaining that in June specialists will complete assessments, using the cargo base, expected when infrastructures are in place.

North Siberian Railway

Earlier, Guselnikov said the Siberian Federal District needs another route, different from the Trans-Siberian Railway. Even after the Eastern railway direction is upgraded, the available capacities would not be sufficient to handle most cargo from Siberia, including fertilizers and coal.

The new railway's one line will lead to the Arctic, and experts now eye it may exit to the shores of the Gulf of Ob in Yamburg or to the port of Sabbeta. The railway's another line will run towards China across Siberian regions.

Earlier, Russian President Vladimir Putin ordered the government to work jointly with the Kemerovo Region, the Russian Academy of Sciences and the Russian Railways Company (RZD) to consider building the North Siberian Railway.

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