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.

In 1995 a large-scale meridional project was proposed 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.

Railway network development in the Urals and Russian European North

The project operator is JSC Interregional Company Belkomur Public share in the capital is 97%

In early 1998 the company Belkomur started construction of the northern part of the railway simultaneously from both directions.

Construction of the bridge over the r Construction of the bridge over the r. Vashka, Udorsky District, the Republic of Komi

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.

Belkomur consists of two parts: Northern and Southern

Belkomur consists of two parts: Northern and Southern

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.

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

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

Project Implementation Stages 2nd stage: Southern Link – construction of Syktyvkar-Perm rail way 1st order – construction of Syktyvkar-Perm rail way 2nd order – reaching full capacity of the rail way Syktyvkar-Perm

Integrated program for industrial and infrastructural development of the Republic of Komi, Perm Region and Arkhangelsk Region

General financial and economic details Total amount of investment RUR bln. 350 RF Investment Fund assets/private investors’ assets 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 25 IRR (internal rate of return) % 27

Brief description of the project participants The 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

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

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

Projected cargo flows

Construction of the new railway Belkomur within Eurasian Transport Corridor

Construction of the new railway Solikamsk – Gainy – Syktyvkar – Arkhangelsk within transport corridor North East – West (NEW)

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

Total railway length 1252 km A new railway Solikamsk – Gainy – Syktyvkar – Karpogory – Arkhangelsk (Belkomur) Total railway length 1252 km New construction 795 km RUR 75 bln. of total investments