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VIS TransStroy LLC, a company of VIS Construction Group, has been declared the winner of the competition for the construction and operation of the Bovanenkovo - Sabetta railway line PPP project in Russia.

The competition was held by the Department of Economics of the Yamal-Nenets Autonomous District and its results were announced on December 30. The agreement was signed in Salekhard also on December 30.

The purpose of the project is the implementation of the priority tasks of an integrated socio-economic development of the Yamal-Nenets Autonomous District, attraction of investments into the economy of the region, as well as the creation and operation of Bovanenkovo-Sabetta non-public railway line. The project should contribute to the development of mineral resource base of the Yamal-Nenets Autonomous District, Polar Urals, Western Siberia and the Arctic, as well as the development of the Yamal transport infrastructure.  

Under the terms of the Agreement, at the own expenses and borrowed funds “VIS TransStroy” LLC is to carry out the development of working design documentation and construction of the railway line within 36 months, until the end of 2019. Investment’s volume exceeds RUB113 billion (US$1.51 billion).

Upon the completion, the selected bidder will carry out the technical and commercial operation of established transport infrastructure. The concession runs until 2036, then the railway line is to be put in the possession of the Yamal-Nenets Autonomous District.

Bovanenkovo - Sabetta non-public railway line will be the final point linking the Northern Latitudinal Railway called “Arctic’s energy” (Obskaya-2 – Salekhard – Nadym – Pangody – Novy Urengoy – Korotchaevo) and the Northern Sea Route. Its length will be up to 170 km. The capacity of new railway line in the fifth year of operation will be 7 million tons and in the 10th year of operation it will be 14 million tons. There is also long-term development, in which capacity can be increased up to 35 million tons of goods per year.

The railway line will be built in a single-track performance, but there is also roadbed dumping for a promising second path provided. Track width is standard –1520 mm; the movement will be carried out on diesel traction. Estimated maximum speed of freight and passenger trains will be 50 km/h.

The project includes not only the construction of the railway line, but also an extensive related infrastructure - reception and dispatch sorting parks, junction station, locomotive depot, shift systems, passenger platforms and a railway station in the station of Sabetta. Large complex of environmental protection measures and special safety requirements of transport infrastructure are also provided.