Russian Railways and JSC TEIC sign agreement to construct new railway line for freight
Posted: 8 June 2017 | | No comments yet
Russian Railways and JSC Tuva Energy Industrial Corporation have agreed to construct the Elegest-Kyzyl-Kuragino Railway Line.
Russian Railways and JSC Tuva Energy Industrial Corporation have signed a cooperation agreement to construct the Elegest-Kyzyl-Kuragino railway line.
The aim of the new line is to ensure the shipment of up to 15 million tons of coking coal from the Elegest coal field per year.
The agreement was signed by the President of Russian Railways, Oleg Belozerov, and the Managing Director of JSC Tuva Energy Industrial Corporation, Ruslan Baisarov, within the framework of the St. Petersburg International Economic Forum.
The project will involve private investors under a concession scheme and it is assumed that the Russian Federation will act as a concedent. The concessionaire is the special design company JSC TEIC Kyzyl-Kuragino, which is a subsidiary of JSC Tuva Energy Industrial Corporation.
Russian Railways will invest capital in JSC TEIC Kyzyl-Kuragino and within the framework of the project will supervise issues related to the technology of transportation and the operation of the new railway line’s infrastructure, as well as carry out transportation.
JSC TEIC will act as one of the investors of the project, and will also be the main consumer of services for transportation of freight from its own Elegest coal deposit.
The construction of the 410km railway line is planned to be completed by 2022.