Russian government approves second stage of BAM and TSR expansion

On May 03, 2021, the Russian government approved the second stage of the expansion project of the Baikal-Amur Mainline (BAM) and the Trans-Siberian Railway (TSR). The first stage of the modernization, including construction of 670 km of railway tracks, is planned to be completed in 2021. The second stage involves the construction of more than 1.3 thousand km of tracks.

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Overall investment into the project until 2024 may reach 780 billion RUR (10.4 billion USD). By 2024 the railway carrying capacity of TSR and BAM is thought to increase 1.5 times – up to 180 mio t per year for all types of cargo.

The modernization of BAM and TSR is necessary to fulfil the plan, outlined by Vladimir Putin. On March 05, 2021 under the statement of the Russian president, by 2024 Kuzbass miners shall ramp-up exported coal supplies eastwards to 68 mio t per year (see CAA Russian Coal Weekly dated March 05, 2021).

Apart from that, in 2021 the mining companies of Yakutia plan to increase coal extraction to 39 mio t and by 2024 – up to 80 mio t. There are two large coal suppliers in the region – Kolmar and Elgacoal. Both companies intend to enhance production volumes as well as the existing port capacities. A new coal terminal VaninoTransUgol (VTU), constructed by Kolmar’s subsidiary, assumes a gradual increase in coal handling capacity from current 12 mio t per year up to 24 mio t by 2022.

Albert Avdolyan’s A-Property also plans to construct a coal terminal in the port of Vanino with annual capacity of 30 mio t by 2024 and build a washing plant at Elga with a processing capacity of 32 mio t at the first stage (end of 2021) and 45 mio t at the second stage (2023).

Source: CAA Analytics

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