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2008 October 1   11:04

Russian Railways to invest RUR 9.6 bln in Oil for China project in 2009

Russian Railways (RZD) (RTS: RZHD) plans to invest  9.575  billion  rubles in 2009 to implement the Oil for China project, Trans-Baikal Railways, and RZD subsidiary, said according to Interfax.

RZD  plans  to  ship  8.8  million  tonnes of oil to China in 2008. Improvements   are   needed  in  light  of  forecast  increases  in  oil transportation volumes.

Investment  in  the project this year will amount to 10.693 billion rubles.

Work  on the first phase involves completing reconstruction of five stations  on  the Karymskaya-Zabaikalsk line, laying 12.82 kilometers of yard track  and  47  switches,  modernization of signaling, shunting and centralization  facilities  and  communications  at 12 sidings and eight stations.

In   the   second   phase,   the  Karymskaya-Borzya  line  will  be electrified. This will involve construction of five traction substations and other electrical infrastructure.

RZD's investment in development of Trans-Baikal Railways will total 23.433 billion rubles in 2008.

It  was  reported  earlier  that 2.3 billion rubles was invested in 2007 under  the first phase of the project (2004-2008). Preparatory work for he second phase (to 2010) cost 1.6 billion rubles.

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