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Coal road - Putin gave instructions to expand BAM and Transsib

Coal road - Putin gave instructions to expand BAM and Transsib
Photo: pixabay.com

In the coming years, Russia will increase the volume of coal exports to the countries of the Asia-Pacific region due to a decrease in demand for coal in Europe. However, this can be hampered by the low capacity of the railway. 

At the meeting on the development of the coal industry, chaired by the President of the country, it was noted that the coal industry remains one of the key industries in the structure of the Russian economy. Since 2017, the production level has exceeded 400 million tons per year, about half of which is exported abroad. At the same time, the main export direction is the Asia-Pacific regions. The volume of supplies amounted to about 122 million tons of coal in 2020.

At the same time, according to the President of Russia, there is still potential for increasing volumes. Coal supplies can be increased by at least one third until 2024. For this, work has begun to expand the capacity of the BAM and Transsib, which go to seaports, but it needs to be strengthened. The existing capacity is no longer enough for all market players, and therefore the president demanded that the government strictly fix the construction stages and expansion parameters of the BAM and Transsib, while working out additional possibilities for expanding the Eastern section of the BAM, as well as ensuring the conclusion of agreements between coal companies and Russian Railways so that there is an accurate and clear idea of ​​who and how much will be able to take out until 2024.

Russia is now second only to Indonesia and Australia in terms of supply. But the attraction of new funds for infrastructure is not progressing at a sufficient pace. Because of this, in the future, the industry will only expect a decrease in efficiency, and the railway will work at the limit of its capabilities.

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