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Transport section

Initially, in accordance with the subprogram the "Railway transport" of the Federal Target Program the "Development of the Transport System of Russia (2010-2015)" the "Ural Industrial - Ural Polar" investment project planned the implementation of the following:
- the construction of the railway "Salekhard - Nadym";
- the construction of the railway "Polunochnaya - Obskaya - Salekhard";
- the construction of a bridge over the river Ob in the Salekhard.

After the decision of the Government Commission on the investment projects of national importance, on the 17.11.2007, the approval of the project and the allocation of funds for the financing from the IF has been developed and agreed in the General institutional expertise on the following projects:
- the construction of the railway line "Salekhard - Nadym";
- the construction of the railway line "Polunochnoe - Obskaya - Salekhard"
- the construction of the bridge over the river Ob in the Salekhard.

In accordance with the interregional program the "Cooperation" the project documentation for the construction of the bridge over the river Nadym has been also developed and agreed in the General institutional expertise.

However, due to the fact that as a result of geological exploration in the North, in the sub Polar and Polar Urals, the estimated amounts of minerals, which were meant to supplement the cargo base for the area of the Polunochnaya - Obskaya, were not confirmed; the financing of the "Comprehensive Plan for the development of mineral resources base "Ural Industrial – Ural Polar" for 2010-2015" has been suspended.

In order to optimize the spending of the federal budget, taking into account the lack of investment component in the tariffs for the rail freight and the lack of funding source for the "Construction of the railway line "Polunochnaya - Obskaya - Salekhard" a plan for realization of the activities listed above, excluding the construction of the railway line "Polunochnaya - Obskaya - Salekhard" has been developed with the formation of the Northern latitudinal railway(Obskaya - Salekhard - Nadym - Pangody - Noviy Urengoy - Korotchayevo).

As requested by the President of the Russian Federation Dmitry A. Medvedev on the 23rd of March, 2010 ¹ Pr-803 (based on a working trip to the Urals Federal District on the 23rd of March, 2010) a work has been conducted on the review of the options for the further implementation of the "Ural Industrial - Ural Polar" comprehensive investment project in the section of the construction of the Northern latitudinal railway "Obskaya - Salekhard - Nadym - Pangody - Noviy Urengoi - Korotchaevo" by the Ministry of Transport of the Russian Federation, the Office of the Plenipotentiary Representative of President of the Russian Federation in the Urals Federal District, the OJSC " Ural Industrial - Ural Polar Corporation", together with the OJSC "Russian Railways", the OJSC "Gazprom" and the Government of the Yamalo-Nenetsky Autonomous District.

The essence of the project

Development of the Northern Latitudinal Railway Obskaya - Salekhard - Nadym - Pangody - Noviy Urengoi - Korotchaevo

The Northern Latitudinal Railway will connect the Northern railway road of the Russian Railways near the station Obskaya to the Sverdlovsk Railway of the Russian Railways at the station Korotchaevo. Thereby the creation of transport corridor will be the shortest transit way of hydrocarbon loads in the westward direction and the best way for cargos necessary for the development of gas condensate and oil fields in the East.

The total length of the Northern Latitudinal Railway is 700 km, including:
construction of new railways - 390 km;
the existing railways - more than 300 km;
construction of two major bridges over the river Ob and the river Nadym - 3,7 km

Project structure

Obskaya transport hub, includes:
- completion of the junction station Obskaya-2;
- selection from the project documentation of the railway line Polunochnoe - Obskaya - Salekhard and the construction of the railway from the stations Obskaya-2 to the left approach of the bridge over the river Ob and from the right approach to the bridge over the river Ob to the railway station Salekhard;
- construction of bridge over the river Ob in the city of Salekhard.

Construction of the railway line Salekhard - Nadym;
Construction of the bridge over the river Nadym;
Completion of the railway section Nadym - Pangody;
Completion of the railway section Pangody - Noviy Urengoi - Korotchaevo.

Key decisions

  • Prepared project documentation on the construction of: railway lines Polunochnoe - Obskaya - Salekhard and Salekhard - Nadym, bridges across the river Ob in the city area of Salekhard and across the river Nadym, for all of the project documents the positive conclusion is obtained by the state expertise
  • In terms of budget constraints and in order to optimize the spending of the federal budget the Corporation has developed an alternative project excluding the construction of the railway line Polunochnaya - Obskaya - Salekhard from the formation of the Northern latitudinal railway Obskaya - Salekhard - Nadym - Pangody - Noviy Urengoi - Korotchaevo
  • The optimal scheme for the junction of the Northern latitudinal railway to the railways of public use Northern Railway was developed by the joint working group: “The Ural Industrial - Ural Polar Corporation", the Federal Agency of Railway Transport, Gazprom, the Russian Railways, Lengiprotrans
  • The organizational and the legal structure of the project have been defined. The five-sided agreement of intent was signed in November 2010 between the project participants: the Federal Agency of Railway Transport, the Government of the Yamalo-Nenetsky Autonomous District, the Russian Railways, Gazprom, “The Ural Industrial - Ural Polar Corporation"

Project participants

In order to implement the project, a special project committee (SPC) has been created and based on the existing "Yamal Railway Company" which works on the railway sections Nadym - Pangody - Noviy Urengoi - Korotchaevo and Noviy Urengoy - Yamburg.

The project participants - the Corporation, the Russian Railways and Gazprom - transmit the assets of the SPC needed for the project realization, in exchange for a share of the authorized capital. The assets of the YNAD transferred to the SPC through the transit fee to the authorized capital of the Corporation.

Cargo traffic

Efficiency of the project

According to the PricewaterhouseCoopers

Commercial efficiency

  • the positive net present value (NPV) -3,8 billion rubles;
  • the acceptable for an infrastructure project internal rate of return (IRR) - 12%;
  • the acceptable for an infrastructure project simple (undiscounted) payback period – 13,8 years;
  • the positive net income and the positive operating cash flow in the first year of operational phase of the project.

Budgetary and social efficiency

  • the total tax revenues to the federal and regional budgets and to the extra budgetary funds during the project period (2011 – 2025 years) - 42.5 billion rubles;
  • the creation of new workplaces during the railway construction and operation;
  • the development of the transport infrastructure in the region, an increase in fright turnover, mobility of the population;
  • to stimulate further development and exploration of the mineral deposits in the region.

Prospects for the development

The program of integrated development of hydrocarbon deposits from the area of the Yamalo-Nenetsky Autonomous District and from the north area of the Krasnoyarsk Region The Government Decree of 11.10.2010 ¹ 1713-P the Comprehensive Plan for the development of liquefied natural gas (LNG) on the Yamal Peninsula

The construction of LNG facilities and building of the seaport on the Yamal Peninsula

The construction of the railway Bovanenkovo – Sabetta

An additional cargo flow for the Northern Latitudinal Railway

The perspective directions of development of the North latitudinal railway are the construction of the railway Obskaya - Bovanenkovo - Karskaya to the Cape of Kharasavey and the construction of the railway Korotchayevo - Igarka - Dudinka with the access to the Norilsk.