Implementation of international projects to construct infrastructure facilities abroad
In 2013 the Company achieved notable results in implementing international projects to construct railway infrastructure abroad, extended cooperation geography in this field and signed a number of important documents with foreign railway administrations on construction and renovation of railways.
Implementation of infrastructure projects abroad is an important element of the Company's portfolio diversification and is primarily determined by economic feasibility. Vietnam, Ecuador, Brasil, Namibia, Jordan, Kuwait, Ethiopia, Iran and India have expressed their interest in cooperation with JSC Russian Railways. This demonstrates the Company's potential competitiveness upon the local infrastructure construction markets of these countries.
One of the most significant results of 2013 is the signing of a contract between RZD International LLC — a subsidiary of JSC Russian Railways — and JSC Serbian Railways for the sum of 941.2 million US dollars.
The project stipulates:
- Construction and electrification of 15 km of the second track of the railway line Belgrade — Panchevo;
- Reconstruction of 6 sections with a total length 112 km of Pan-European Corridor X;
- Reconstruction of the existing and construction of a new track in the railway section Stara Pazova — Novi Sad (43 km);
- Reconstruction of the Serbian section of the railway line Belgrade — Bar with a total length of 200 km;
- Supply of diesel trains produced by JSC Metrovagonmash (Russia).
DPRK, Republic of Korea
On September 22nd, 2013 the first stage of the project was completed — the reconstructed railway section Hasan (Russia) to Rajin (DPRK) was launched into operation. Furthermore, reconstruction of quay No 9 Terminal in Rajin port was largely finished, except for bottom dredging. The works to dredge the bottom and launch the port terminal into operation is scheduled in 2014. It is planned that initially the new terminal will be used to export Russian coal to APC countries in the volume of up to 4 million tons per year. Later it can be utilized for container transportation.
An important outcome of 2013 was the reaching of an agreement with a group of South Korean companies, which stipulated that they will become a part of the project “Hasan-Rajin”
Austria, Slovakia, Ukraine
The work on evaluating and developing the project of constructing a 1,520 mm gauge railway line to Bratislava and Vienna has been continued.
In July 2013 project participants made a joint decision to conduct the tender for the next stage of the technical and economic review entitled “Engineering services for the Feasibility Study, selection of a route and track, ecological analysis” and also to prepare a business model and conduct a goods traffic marketing research. The Joint Venture tender documentation for the next stage of the Feasibility Study has been officially published in September 2013.
In 2013 the Company continued working on the project of modernization of the Ulan-Bator Railways (JSC UBZD) and construction of a new railway infrastructure in Mongolia.
It was decided to allocate the funds which remained after the increase of the JSC UBZD charter capital in 2012 to fulfill the first stage of the Program of Technical Modernization and Development of JSC Ulan-Bator Railways (for the period up to 2015).
Modernization of the Ulan-Bator Railways will provide the required carrying capacity increase for freight transportation, primarily of mineral products from deposits in Mongolia in the direction of China and the Far East ports of Russia, as well as an increase of transit transportation between Russia and China.
14May 14>th, 2013 JSC Russian Railways, Vietnamese Railways and company An Vien signed a Framework Agreement on cooperation in the area of design and construction of railway infrastructure in the south of the country.
In 2013 the Company continued to finance a project in Indonesia. The project envisaged construction of transport infrastructure on Kalimantan Island to transport coal from deposits in the central part of the island to the eastern coast. Within the project framework we are planning to build 180 km of railway infrastructure, a marine coal terminal in the eastern coast and a power station.
In 2013 JSC RZD has resumed the consideration of the project to construct a railway line Sirte—Benghazi in Libya, earlier suspended in 2011. JSC Russian Railways, the Ministry of Transportation of Libya and Libyan Railways have reached an agreement to establish a joint commission to determine conditions and parameters for further cooperation in project implementation.
In October 2013 JSC Russian Railways and the Ministry-coordinator of strategic sectors in the Republic of Ecuador signed a Declaration of Intent in the area of new railways construction in the Republic.
In 2013 the Company took certain steps to expand the portfolio of infrastructure projects implemented by JSC RZD in Africa. In October 2013 JSC Russian Railways and Ethiopian Railways signed a revised Memorandum of Understanding to construct a railway line Mojo—Veite—Moyale.