Russian Railways and JSC Tuva Energy Industrial Corporation have signed a cooperation agreement to implement the project “Construction of the Elegest-Kyzyl-Kuragino Railway Line.” as Rail Eng Digest understands.

An agreement to build the 410 km  Elegest – Kyzyl – Kuragino Railway in the Republic of Tyva was signed by Russian Railways President Oleg Belozerov and Ruslan Baisarov, Managing Director of coal mining concession holder Tuva Energy Industrial Corp, at the St Petersburg International Economic Forum on June 1.

 

The aim of the project is to ensure the shipment of up to 15 million tons per annum of coking coal from the Elegest coal field.The construction of the 410-km railway line is planned to be completed in 2022, in just 4.5 years.

Under the latest plan, the Russian government would to award a concession for construction of the line to TEIC Kyzyl-Kuragino, a special-purpose subsidiary of Tuva Energy Industrial Corp which would be the line’s main customer. .

The route of the line was agreed in early 2009, when it had been planned that Russian Railways would build the line with the estimated 98·6 rouble cost to be shared equally by the Russian Federation Investment Fund and the mining concessionaire. The Tyva government and the mining company signed a public-private partnership agreement in August 2009, but in November 2012 the federal government removed the line from its list of state investment projects, leaving the project to be financed privately.

In May 2015 Tuva Energy Industrial Corp signed a memorandum of understanding with the China Civil Engineering Construction Corp subsidiary of China Railway Construction Corp, which planned to seek Chinese investment for the project which was then costed at 156bn roubles.

Russian Railways – one of the biggest transport companies in the world – will operate the line once it is running and will also oversee the infrastructure.

JSC TEIC will act as one of the investors of the project, and will also be the main consumer of services for freight transportation from Elegest.

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