The Intercontinental Eurasia-America Transport Link: Key Element of a World Transport System

V.N.Razbegin

Late 19Late 19thth century century First proposals for a railroad to the Bering Strait, through Yakutsk and along the coastline of the Sea of Okhotsk.

1902-19051902-1905French explorer Loicq de Lobel proposes an intercontinental railroad across the Bering Strait, on a concession basis.

October 1906October 1906The Russian Government Commission on the Great Northern Route supports Lobel’s plan; it is decided to expedite work on the project.

March 1907March 1907 The Russian government terminated the contract, having decided its terms were not favorable.

April 1918April 1918Russian leader V.I. Lenin addressed the All-Russian Executive Committee on the need to intensify railroad construction, including toward the Bering Strait.

1930s-1950s1930s-1950sDevelopment and the start of construction on an Arctic Railroad from Vorkuta to Anadyr; construction of 1,700 km from the western end.

19911991

The international non-profit corporation "Interhemispheric Bering Strait Tunnel and Railroad Group" (IBSTRG) – also known as “Transcontinental” – was officially registered in Washington, DC. The founding members of the IBSTRG from the American side were the State of Alaska, the American Railroad Association, the Association of Low-population Ethnic Groups (it owns land along the Bering Strait), and several large railroad, construction, and consulting companies, as well as firms that specialist in raw materials extraction and processing. President: George Koumal.The Russian section of the IBSTRG was registered at the same time. Director: V.N. Razbegin.

1992-19961992-1996 The IBSTRG did preliminary studies for the project and submitted its findings to the Russian and U.S. governments.

March 1996March 1996 The U.S.-Russian Intergovernmental Commission (the Gore-Chernomyrdin Commission) recommended support for the Project as “having great potential”… $10 million was allocated in the U.S. Federal Budget for studies, but these funds were not disbursed.

March 1996March 1996

The Government of the Russian Federation received a draft decision document defining the need for a set of feasibility studies on the potential for a multimodal corridor, involving the Railways Ministry, the Ministry of Construction, the State Committee for the North, the Main Administration of the Chukotka Autonomous Region, and the CEOs of UES (the national power utility) and the Transstroy construction agency, as well as the Siberian Division of the Russian Academy of Sciences.

History of the Intercontinental Link Project

“… transport infrastructure is more than a mere economic task [for Russia]. Its solution has a direct effect … on the integrity of the country as a whole.”

President Vladimir Putin, May 2004

“We need transportation access to the sparsely inhabited regions of the country and promising industrial zones. … In effect, this means developing the sparsely inhabited regions of the country.”

President Putin, addressing the April 10, 2007 conference on Russia’s rail development strategy to the year 2030

“The Russian economy will … fully take up our historical mandate as the energy and transportation center of Eurasia.”

First Deputy Premier Dmitri Medvedev, Jan. 2007 at the Davos World Economic Forum

Why war? Why not a big project?

Former Governor of Alaska Walter Hickel

20062006Presidential go-ahead for Yakutsk-Magadan railroad by

2020.

February February 20072007

Planning of Yakutsk-Uelen rail line’s first segment, to Magadan, slated to start in 2007, with construction in 2009 and completion in 2015 in tandem with hydroelectric power projects.

September September 6, 20076, 2007

Russian Government rail strategy to 2030 is approved, including Yakutsk-Uelen line to the Bering Strait as one of the priority projects for strategic, social, and freight purposes.

Russia Government decisionson implementation of the project

The Intercontinental Link – a multimodal corridor

Two-track, fully electrified, high-speed rail mainline Yakutsk-Zyryanka-Uelen-Fort Nelson (Canada), total length 6,000 km

Electric power transmission line − up to 1500 Kv DC, 12,000-15,000 Mw capacity

Fiber optics telecommunications lines

Oil and gas pipelines

Global importance of the Intercontinental Link Project

• Single, interlinked global transportation network, with corridor for freight shipments between Eurasia and America.

• Accelerated global economic integration and development

• Development of northern regions of Russia, the USA, and Canada, with enormous natural resources becoming linked to world markets

• Positive impact on international political relations

The global transportation network

The Intercontinental Link will shorten the trip from Asia to The Intercontinental Link will shorten the trip from Asia to America by 14 daysAmerica by 14 days

The Intercontinental Link − missing element in the global transportation network

6000 km6000 km

Russia is the key link, connecting Asia and AmericaRussia is the key link, connecting Asia and America

3% of world rail freight3% of world rail freightin 2005 pricesin 2005 prices

The Intercontinental Link – over 3% of world rail freight shipments

148.9 165.4

89.6 182.0

Freight flows through tunnel 300-350 million tons

Volume of freight on Intercontinental Link system

500-600 million tons - max

Transit shipments 60-80 million tons

Annual transit income $8 – 10 billion

TOTAL238.5 - 2005347.4 - 2030million tons

Россия

Knitting together the rail networks of Eurasia and North America

The tunnel across the Bering Strait

Basic parameters of the railroad

Yakutsk-Uelen rail line km

- Northern route Yakutsk – Zyryanka - Uelen

3850

- Southern route Yakutsk-Susman-Markovo-Anadyr-Uelen

4020

- Yakutsk-Magadan railroad 1560

Wales-Fairbanks-Fort Nelson (BC) railroad

1925

Tunnel under the Bering Strait Different options:98 - 113

The electric power component of the project

• Construction of electric power transmission line with capacity of 12,000 – 15,000 MW. Economies from integration of energy systems and electricity transmission are estimated at $20 billion annually.

• Construction of power stations exploiting tidal potentialPenzhinskaya 10.5 GWTungurskaya 5.3 GWCook Bay 9.4 GW

• Increased benefits from development of the Southern Yakutia Hydroelectric Complex

The Intercontinental Link − electric power generation and transmission

Required capital investment for the Project

(IBSTRG estimates)Billions of

U.S. $

Yakutsk-Uelen (Russia) 9.5-11.5

Wales (Alaska) – Fort Nelson (BC) 2.5-3.5

Total for railroads12-15

Tunnel construction 10-12

Electric power industry, including intercontinental transmission line

23-25

Other (social infrastructure, fiber optics lines, etc.) 10-15

Total 55-67

Economic efficiency

Инвестиции: (млрд.долл.США)

железнодорожная магистраль 12-15тоннель под Беринговым проливом 10-12электроэнергетика 23-25прочее 10-15ВСЕГО 55-67

ДоходыОсвоение природных ресурсов и социальное развитие территории 25-30 Доход от перевозок 8-10 в год Эффект от электроэнергетики 18-20 в год Прочие эффекты 10-15 в год Сроки окупаемости 13-15 лет IRR не ниже 10%

The Intercontinental Link as a national project – its importance for Russia

• Increased geopolitical presence in the Asia-Pacific Region

• Improved position in world transportation services markets, as well as energy and industrial markets

• An important link in Russia’s own transportation network, linking Northeast Russia to international transportation corridors, thus bringing the country’s transportation potential to life

• Precondition for intensive economic development and population of Northeast Russia (year-round transportation access, reduced transport costs, competitive advantages for key manufacturing)

• Improved standards of living; new jobs; reversal of out-migration

Southern Yakutsk Hydroelectric Complex

Каскад ГЭС на р. Вилюй

Тугурская ПЭС

Пенжинская ПЭС

ПЭС в заливе Кука

ГЭС

ГЭС

The Intercontinental Link, hydroelectric power, and raw materials deposits