Business 2 Template

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Belkomur Project History

• In the middle of the 1930s a railway
  construction began in the planned Belkomur
  location. In 1944 the railway Kotlas-Vorkuta
  connected Pechora Coal Basin and Cherepovets
  Metallurgical Works. In 1953-1954 the railway
  construction in the Russian Polar Region was
  stopped.

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• In 1995 a large-scale meridional project was
  proposed. The aim of the project was to link the
  cities of Arkhangelsk, Syktyvkar, Kudymkar and
  Perm by means of a railway called Belkomur.
• The project design was based upon the General
  Scheme of Railways Development in Russian
  European North.

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Railway network development in the Urals and
Russian European North
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The project operator is JSC Interregional Company
Belkomur
Public share in the capital is 97
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In early 1998 the company Belkomur started
construction of the northern part of the railway
simultaneously from both directions.
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Construction of the bridge over the r. Vashka,
Udorsky District, the Republic of Komi
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The Idea of Belkomur Project

• The project implies a construction of a new
  aligning railway 1252 km long, including a new
  construction of 795 km, the rest is
  reconstruction and modernizing of the existing
  lines.

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Belkomur consists of two parts Northern and
Southern
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Belkomur consists of two parts Northern and
Southern
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The new railway is of strategic importance for
Russia since it will provide a direct connection
of the Urals and the Republic of Komi to the
ice-free ports in Arkhangelsk, Murmansk and
Northern Europe.
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Belkomur Project Objectives

• Railway network development in Russian European
  North
• Infrastructural dead-ends liquidation
• Reduction of transportation distances
• Including idle territories into economic
  activities
• Railway transportation cost savings

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Project Implementation Stages

• 1st stage Northern Link construction of
  Karpogory-Vendinga rail way
• 1st order construction of
  Karpogory-Vendinga rail way by start-up complex
• 2nd order reaching full capacity of the
  rail way Karpogory-Vendinga

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Project Implementation Stages

• 2nd stage Southern Link construction of
  Syktyvkar-Perm rail way1st order construction
  of Syktyvkar-Perm rail way2nd order reaching
  full capacity of the rail way Syktyvkar-Perm

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Integrated program for industrial and
infrastructural development of the Republic of
Komi, Perm Region and Arkhangelsk Region
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General financial and economic details General financial and economic details General financial and economic details
Total amount of investment RUR bln. 350
RF Investment Fund assets/private investors assets RUR bln. 75/275
Gross growth in industrial production RUR bln. per year 90
More jobs Number 25 000
Projects payback period
private investment / RF Investments Fund Years 3-15 / 6.5
Revenues to all budgets RUR bln. per year 25
IRR (internal rate of return) 27
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Brief description of the project participantsThe
Republic of Komi

• About RUR 110 bln. of total investments till
  2012.
• 23 mln. tons of cargo flow per annum (2006)
• Over RUR 20 bln. industrial output growth
  by 2010-2012.
• 40 - 50 cargo flow increase by 2010-2012.
• Projects included in General Scheme (2007)
• Yarega Mining and Chemical Plant
  construction
• Vorkuta project
• Bauxite and Alumina Plant construction
• Step Project
• Udora and Troitsko-Pechorsk Pulp-And-Paper
  mills projects

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Perm Region Bereznikovo-Solikamsk Industrial Hub

• RUR 120 bln. of total investments till 2012.
  
• Over RUR 20 bln. industrial output growth
  by 2010-2012.
• 30 40 cargo flow increase by
  2010-2012.Projects included in the Complex
  Program (2007)
• JSC Uralkaliy project
• JSC Silvinit project
• JSC Solikamskburprom project
• LLC Soda-Chlorat project
• JSC Bereznikovsky Sodium Plant project

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Arkhangelsk Region

• Deep-Water Port
• 45 mln. tons of annual cargo turnover
• RUR 45 bln. of total public and private
  investments
• Over 9,000 jobs
• Servicing ships up to 70,000 tons
  dead-weight
• 55 km rail way included in the Rail Ways
  Development Strategy till 2030

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Projected cargo flows
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Construction of the new railway Belkomur within
Eurasian Transport Corridor
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Construction of the new railway Solikamsk Gainy
Syktyvkar Arkhangelsk within transport
corridor North East West (NEW)
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The major interregional projects within Russian
part of the Northern Transport Corridor

• Karpogory-Vendinga-Syktyvkar-Kudymkar-Perm
• railway

• Ledmozero-Kochkoma railway
• Kotlas motor-road bridge
• Road transport communication within roadway
  networks in the Republic of Karelia and
  Arkhangelsk Region
• Road transport communication within roadway
  networks in Arkhangelsk Region and the Republic
  of Komi

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A new railway Solikamsk Gainy Syktyvkar
Karpogory Arkhangelsk (Belkomur)

• Total railway length 1252 km
• New construction 795 km
• RUR 75 bln. of total investments

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