MYTH OR REALITY?

From Japan to Europe via the Sakhalins


A corridor to be constructed

Stanislav Goncharenko
Deputy Head of the Department of Economics
The Russian Ministry of Transport

         On the brink of the third millennium, the role of the Commonwealth's transportation system is significantly changing. Thanks to objective preconditions, the system will transform into a "locomotive" capable of invigorating industrial development, intensifying economic activity and of raising theStanislav Goncharenko living standards in many Russian regions. The development of international Euro-Asian transport corridors will provide solutions to global social-economic problems.
        All this is directly related to the fact that the world's economy has grown rapidly during these last decades. This includes a global division of world labor and correspondingly, a radical increase in the exchange of goods between different parts of the world. Industrial supplies have intensified and large markets are more competitive due to accelerated capital flow.
        "Door to door" cargo delivery with maximum reliability and cost effectiveness in minimum time is now especially relevant.
        World cargo flow is regrouping in a focused search for more effective routes, including Eurasian ones. At present, cargo travels between Asia and Europe through the Pacific, Atlantic and Indian Oceans. It takes 35 days to get to Europe from Japan through the Suez Canal. Reliable cargo delivery schedules depend on sea conditions. It is therefore not surprising that cargo owners are currently searching for alternative routes.
        World foreign trade exceeds 4-5 trillion dollars. In 1997, Japan alone had a turn over of 0.88 trillion dollars. The volume of foreign trade for the ASEAN countries was assessed at 0.72 trillion dollars for the same year. The European Community and the USA especially, are the leading world exporters and had a far greater trade movement. The exchange of goods between Europe and Asia makes up half the world's cargo. In 1998 alone, 6 million 20-foot containers were shipped between Europe and South East Asia. As a result, many countries are looking to create transportation corridors.
        Almost all Eurasian routes pass within the transportation networks of the CIS countries and primarily of Russia. A common policy in respect to international cargo is important not only for the CIS but also for the majority of countries in the world.
        Practically all CIS states have strong prospects for development based on a close interaction with each other. However, the most attractive routes for cargo owners cross Russian territory. By the year 2010, Russia could have the main portion of the Eurasian international freight flow thanks to its geographical location and powerful infrastructure which includes railway, motor and water transportation.
        The importance of this issue has moved the government to create a federal program for the "Development of International Transportation Corridors". This program envisions among others, two Eurasian transport corridors, "East-West" and "North-South," a "great European water ring," and the development of the "Northern Sea Route."
        The main route between Europe and Asia is the "East-West" wide corridor. Although there are several branches within the corridor, its general direction is latitudinal. The territory from the Russian Far East Coast to its western borders makes up the central section of this corridor. The eastern section covers China, Korea, Japan and other states of the Asian Pacific region. The western section includes European transportation corridors, Baltic waterways, the North, Black and Mediterranean Seas and the Danube and the Rhine.
        In order to increase freight handling capabilities for cargo shipped from or via Russia and in order to give the country autonomy, various ports are being modernized while new ports are being constructed on the Baltic, Azov and Black Seas.
        The backbone of the "East-West" international corridor is the Trans-Siberian Railroad thanks to which the Chinese northeastern provinces link to the town of Chita. Ulan-Ude is the starting point of another railway, which merges into the Trans-Siberian route that crosses Mongolia into inner China.
        The Trans-Siberian railroad covers three routes from east to west:
        Ekaterinburg-Perm-Nizhny Novgorod-Moscow, Ekaterinburg-Kazan-Moscow and Chelyabinsk-Ufa-Syzran-Moscow. In the European part of Russia, the railway network is supplemented with river ports, roads, and airports. Also promising for the "East-West" corridor is the Volga transportation system through which cargo can be carried to the Baltic, Black Sea, Mediterranean and Caspian regions. What's more, the Danube-Rhine water corridor further links the network with central Europe.
        Even now the "Transib" is capable of handling up to 100 million tons of cargo a year. This includes international freight with a total sum of 140 thousand 20-foot containers. With a complete modernization, up to one million cargo containers could be shipped through the "Transib" annually. This is still insufficient though, given the present cargo volume between Europe and Asia and the very rapid increase of export-import cargo from Asian Pacific countries. The construction of a railway-road "Europe-Russia-Japan" corridor is an especially important project for regrouping global cargo flows between Europe and Asia within the "East-West" corridor.

MYTH OR REALITY?

Moving from words to needs


Interest in the project demonstrated by railway men, gas and oil producers, car drivers and power engineers.
And not only in Russia...

Yakov Mkrtychyan
Ph.D. in Technical Science
Honored scholar in Science and Technology

        As early as the 1930s, the Soviet Union and Japan considered connecting the Sakhalin Island with Russia's mainland and Japan.Yakov Mkrtychyan Because the Sakhalin was (and still is) the only oil-gas region in the Far East, the goal was to connect the island with the mainland through a tunnel and thus boost the development of production forces both on the island and in the entire Far East. The tunnel would supply food and goods to the population and provide the mainland with oil and gas. This objective is still relevant.
        The first and so far last attempt to connect the Sakhalin Island with the mainland was undertaken in the pre-war years. Experts developed and began to implement a project for an 8-km long tunnel in the Nevelsky Strait. The war interrupted this construction however. The project was forgotten for many years.
        In 1979, we revived this project and added further plans for the construction of a 30-km long tunnel between the Sakhalin Island and Japan across the La Peruse Strait. This idea emerged independent of previous research into oil and gas transportation between the island, the mainland and Japan. In those years Russia signed an agreement with Japan to jointly develop the oil and gas fields on the Sakhalin's shelf based on a sharing principle. Hence the need for oil and gas transportation to Japan. However, this initiative was also abandoned. It "withered away" at the proposal stage. Both the Chairman of the USSR Council of Ministers A. Kosygin and the Minister of the Gas Industry S. Orudzhev who supported this initiative passed away one by one. The project was again forgotten.
        Years passed, the country's railway network developed and began to operate full-time. We approached the First Vice-Prime Ministers of the Russian Government (first Y. Maslyukov and later N. Aksenenko) in vain. The former only had time to order to consideration of our proposal. After his resignation, officials simply "closed" the proposal with no second thoughts. In fact, N. Aksenenko spoke about my petition in the "Kommersant" newspaper. The article "Undermining Japan" (July 8, 1999, No. 118) convincingly outlined the many advantages of connecting the Sakhalin Island, the mainland and the Island of Hokkaido, yet only in terms of the national railway's cargo volume.
        Hardly anyone can doubt the enormous dividends for Russia in directly linking Japan, Europe and Asia through Russian territory. At present a project is underway for constructing a 1000-km underwater gas pipeline "Sakhalin-Japan" (1300 km long). Gas producers might be interested in the "tunnel project" while oil and gas companies might consider laying a pipeline through the tunnel under the Nevelsky Strait. This obviously does not exclude oil transportation using tank-wagons through the tunnel. The development of the tunnel project must consider the interests of the Ministries of Communications (MPS) and Defense, as well as those of gas and oil producers, car drivers, power engineers and tourism companies.
While the tunnel project is a-priori profitable for our country what is the attitude in Japan towards this idea? The answer is unambiguous yet the project appears to interest Japanese businessmen. First, they have always wanted access to the natural resources in the Far East and Siberia. Second, direct shipment and delivery between Japan, Europe, Asia and Russia becomes cheaper, faster, more reliable and cost effective while also better protecting the cargo from damage.
        It is time to change words for deeds. The Sakhalin Island link is unavoidable and will be permanently profitable. It is time to create a multi-branch federal commission to develop within 6 months a feasible project to subsequently implement. This depends on the Government's will.
        In terms of the Sakhalin-Hokkaido tunnel we must proceed in two ways:

  1. From below: the above mentioned federal commission should develop a joint proposal in cooperation with the already existing Japanese commission and submit it to their respective governments.
  2. From above: Diplomatic negotiations are necessary. Connecting two nations by land is a state matter, which should be handled by state leaders. The English Channel Tunnel that connects Great Britain and France can be used as an example.

MYTH OR REALITY?

A coridor that needs to be extended


  • This is beneficial to all
  • From China to the world via Primorye
  • Predicting the development of the transport system

Yevgeny Novoseltsev,
Deputy Director General
The JSC "Far Eastern Marine Fleet Research Institute"

         Russia's Far East is best suited for cooperation with the Asian Pacific countries. External economic relations are crucial for its development. First, it is closer to the rapidly developing countries in Asia and the Pacific than to the major Russian industrial centers. The shipping costs from Japan to Far Eastern Russia are 3-5 times lower than from the European part of Russia. Second, the Far Eastern economy is connected to the national economy through an inter-sector exchange rather than through industrial and technical cooperation. Third, production and consumption in the Russian Far East and in some Asian Pacific countries is in most cases mutually complemented.
        The interests of Russia as a Eurasian power are geared not only towards the West but to the East as well. In this respect, the Primorsky district is an important meeting point with the dynamically developing Asian Pacific region.
        During the reform years, the decline of cargo transportation through ports in the Far East weakened its economic relations with the center of the Russia. The result was the reexamination of the role of transportation in the international labor division. The development of the Far East has again become possible thanks to the transportation networks of the Asian Pacific countries and to newly formed trade and cargo relations.
        The multi-modal transportation system is the most effective in the Far East. It allows operators to use the advantages of each type of transportation and offer consumers high quality products at reasonable prices. This is also relevant for corridor No. 2, which needs to be extended as far as the ports in Primorye and the Asian Pacific region along the following routes:
- Northeastern provinces of China - southern Primorye - USA (and Canadian) West Coast.
- Northeastern provinces of China - southern Primorye -Japan, South Korea and other Asian Pacific countries.
- Europe - southern Primorye - Asian Pacific countries
- Europe - Russian railroad - Japan
        The northeastern provinces of China that link to the Russian transportation network have an enormous potential. Two of them - Heilunjiang and Girin have no exit to the sea and this predetermines its external trade. Northeastern China's exports are carried out through the Daliang port.
        China must create new exits to the sea because its port and railroad are overloaded (especially the Harbin - Shenyang section) and its industrially developed centers are far from the port. Under these conditions, the ports in Primorye could receive the cargo flows from the adjoining Chinese provinces and partly relieve the ports in Japan and Korea that hold the cargo in transit from North America to China.
        In view of the European experience, work is underway now in Primorye to create a transportation corridor between the Chinese northeastern provinces, Primorye and the USA. This idea has been supported in the USA (in the Seattle and Tacoma ports) and it is also being carefully examined by Chinese specialists. The proposed route already transports more than 50 thousand containers a year. It is 2630 km shorter than the conventional route from the USA through the ports of Japan and Daliang. Correspondingly, the cost of delivering one container is almost 600 USD lower. There are also other routes through Primorye from China to Japan and Korea that have significant advantages. A recently established container line is in operation on all directions through the Vladivostok, Posiet and Zarubino ports while coal is being transported from China through the Vostochny port.
        A direct railway connection between the Trans-Siberian Railroad and Japan through the Sakhalin Island is essential for the transportation network and trade relations. All the necessary conditions exist for implementing this project: a direct passenger and cargo communication between Japan, Russia and Europe; Japan's need for raw materials and fuel. This railway would be loaded with cargo containers (between Japan, Central Asia and Europe) and raw materials (coal, oil and ores).
        The development of this project depends to a great extent on Russia. It needs to connect the mainland with the Sakhalin Island and open the possibility for Japan to construct a bridge to Sakhalin from its side. The creation of international transportation corridors across the Far East will give Russia a tremendous income. This will allow it to fully utilize the Primorsky district's infrastructure, join the Asian-Pacific region in international economic cooperation, participate more actively in the creation and development of the industrial exporting zone and intensify foreign investments. Transportation will carry raw materials to the industrial regions of Russia and the Asian Pacific countries and therefore, open new opportunities for the economic development of our country.

MYTH OR REALITY?

Calculations confirmed the enormous economic effect


  • How large should cargo flow be?
  • From shipper to customer without reshipping
  • The Railway will connect Tokyo and London

Sergey Sharapov
Deputy Director
The State Technical & Economical Institute
for Railway Research and Design

         Last year, the Minister of Communications gave us the task of preparing a project for a railway link between mainland Russia and the Sakhalin Island. In search for new solutions, Sakhalinwe applied the experience of previous undertakers such as "Mosgiprotrans," the JSC "Dal'giprotrans," the Sakhalin and Far East railways and the Sakhalin local administration. We laid out the mainland's transportation infrastructure in the Sakhalin area. The Vanino-Kholmsk ferry crossing is the most dependant link in bad weather. Yet cargo remains detained for two-week periods at the Vanino and Kholmsk stations, which inevitably affects the cargo's integrity.
        It was therefore necessary to find a financially sound and technically feasible long-term solution to provide a stable transportation link with the Sakhalin. The first stage was a marketing study to determine the region's traffic flow. Given the present state of the local economy and its development tendencies, we concluded that the cargo turn over within the Sakhalin would amount to one million tons of cargo by 2010 and no less than two million tons by 2015, as opposed to the present 0.8 million. If Russia's foreign trade grows, we anticipate 1.4 to 6 million tons of cargo will flow between the Sakhalin and Japan by 2015. This figure includes cargo in transit to West Europe. We foresee a cargo movement of 2.5 million tons in 2010 and 3.0 million tons in 2015 between the mainland and its island.
        The transportation system must be developed in order to reach these anticipated figures. This means reconstructing and expanding the Vanino-Kholmsk ferry crossing; providing these ports with reshipment sea vessels; building a direct rail link between Sakhalin and Cape Lazarev (553 km) and between Pogibi and Nogliki (131 km) with a 11.7 km tunnel crossing the Nevelsky Strait; creating a traincar transfer point at the Nogliki station (to 1067 mm track). The economic viability of direct railway communication depends on international cargo flow. The intensified development of the Sakhalin rail link requires an investment of 35.1 billion rubles to be returned over a period of 24 years. This is acceptable considering the magnitude of the investment and the long-term advantages of such an infrastructure.
        The building of railway lines and a bridge/ tunnel crossing on the Nevelsky Strait is politically and economically sound. It would strengthen Russia's territorial integrity by providing more reliable communications with the center. This also means a stronger position in the world's economy. This project would offer Japan a direct link to Western Europe and simplify trade movements between the European Union and Asian Pacific countries. A 15000 km-long transcontinental railway line will connect Tokyo and London directly.
        Railway transportation across Russia is appealing because cargo travels faster than by sea. For example, a shipment between Tokyo and Rotterdam would take 15-18 days less by rail. Transportation costs would also lower by 523 USD for one 20-foot container on the same route. Cargo would not need to be reshipped along the way and would reach the clients directly. This would protect the cargo's integrity and reduce its cost for customers. At present, cargo travelling between Japan and Europe undergoes four loading-unloading operations!
        Connecting the mainland with the Sakhalin Island would significantly impact Russia's economy. The national budget would absorb 10-16 billion rubles annually as a result. The project's legacy would be a reliable all-weather communication network with prospects for even further growth with small investments. The Sakhalin would practically cease being an island.
        This is not all. New areas in the Khabarovsk district and the Sakhalin region would become economically active. Presently, the Baikal-Amur rail link (BAM) has only one exit to the sea (Vanino). With the construction of a new line, BAM will have an exit to the non-freezing Sakhalin ports of Kholmsky, Nevelsky and Korsakov, as well as to the mainland forest ports of De Kastri and Cape Lazarev. The cargo flows will be better distributed between Transsib and BAM. The industrial facilities of mainland seaports will be freed from the reshipment of cargo in transit to Sakhalin, Kamchatka and Magadan. These ports could be therefore put to better use in handling import-export cargo, decreasing the costs for port development. The costs for cargo transportation on this direct rail link between the Sakhalin, Magadan and Kamchatka will decrease by 18-20% via the Kholmsk and Korsakov ports and by 25% via the new port Nogliki.

MYTH OR REALITY?

Important for the whole of Russia!


Vladimir Shapoval,
First Deputy Governor
of the Sakhalin Region

        The problem of creating stable all-seasonVladimir Shapoval transportation between the Sakhalin Island and Russia's mainland has a long history and the issue was almost resolved in the early 1950s. The main goal was to carry domestic cargo and passengers as well as to open new transportation links with the Asian Pacific region (with Japan primarily). On May 5 1950, The USSR Government officially opened the construction of a railway line between Komsomolsk-on-Amur, Cape Lazarev and the Sakhalin Island with a tunnel crossing the Nevelsky Strait. The work stopped in 1953 yet the project is as relevant now as it was back then:

  • The Sakhalin region's economy and trade relations are dependent on a sea train-ferry crossing between Vanino and Kholmsk. Before 1994, 10 ferries were in operation with a capacity to transport 26 cars on each trip. At present only 5 are in operation. Both the ferries and the entire ferry system have become physically and morally obsolete. They also depend on weather and ice conditions in the Tatar Strait. The present ferry will exhausts its resources in approximately 2005-2008 after which the Sakhalin Island will have no stable transportation.

  • The creation of a direct and stable all-season railway network between the Sakhalin Island and the mainland is of enormous geopolitical significance for Russia and could have a decisive influence on the future development of the entire Sakhalin region and Far Eastern Russia. A direct rail link would also activate the Sakhalin's relations with Central Russia and the Asian Pacific countries (primarily Japan and China).

  • Two factors must be considered for a comprehensive and objective assessment of the economic, social and political consequences of the construction of this railway line between Komsomolsk-on-Amur, De Kastri, Cape Lazarev, the Sakhalin Island and the Island of Hokkaido: a long-term program for the social and economic development of the Sakhalin region and the Khabarovsk district, and the development of oil and gas extraction in the entire Far East. The Ministry of Communications under orders from the Russian Federation Government commissioned a study called "Technical and economic prognoses on Far Eastern transportation relations and the construction of a direct railway link between the mainland and the Sakhalin Island". The estimated cost of developing this study is 418 million rubles to be accomplished in a 1.5-2 year period. It would take less than 6-7 years to construct a tunnel (bridge crossing) and fortify the Sakhalin road section. Based on its scale and economic impact, the creation of a land corridor between Japan, Russia and Europe could become the most important major project of the 21st century.

  • MYTH OR REALITY?

    Is the idea of establishing the most appealing transport corridor of the new century feasible?


             We put these questions to Mr. Stanislav Goncharenko, author of the articles we published on the project for an overland passageway between the Sakhalin Island, the mainland and Japan.

            There is no doubt the idea is feasible, he said, for an Europe-Russia-Japan land corridor will ensure an expanded cargo turnover between Europe and Japan via the shortest route. It is capable of impelling force to the already powerful and progressive development of Siberia, the Far East and the Polar Regions as well as of many other parts of Russia, the Commonwealth States and Asian and European countries. This implies a general activation of science, innovative activities and manufacture.
            The construction of a Europe-Russia-Japan land corridor would be of strategic importance not only because it would redistribute global cargo flows but it would also provide access to an area rich in minerals. At the same time, the scope of cargo traffic would expand, and there would be a boost in imports-exports and in the volume of domestic freight.
            This will secure a maximum use of the Trans-Siberian Railway and the Russian eastern seaports, resulting in a second major boost of activities throughout the Baikal-Amur Trunk (BAM). The ultimate completion of its construction will be guaranteed. It would also secure the improvement of the adjoining area, i.e. a poorly developed and scarcely populated 400-km belt, which extends 4095 km from the Town of Ust-Kut in Eastern Siberia to the Tatar Strait.
            The traffic alone of natural resources will completely saturate the BAM whose capacity is 15 million tons. During the first stage of developing the adjacent deposits, the route will be capable of accommodating European-Japanese cargo deliveries in view of their single-track status. In the long run however, with the region's industrial and social evolution, as well as the growth of import-export cargo between Europe, Japan, China and Korea, the establishment of a second BAM track will be needed. The predicted shift from to the present 6 million containers to only 1 million between Europe and Asia seriously underestimates Russia's prospects.
            From the perspective of all countries, especially those lacking natural resources, access to the natural reserves of Eastern Siberia and the Far East is the main appeal for a Europe-Russia-Japan land corridor. Foreign consumer interests in Russia's natural resources will ensure their involvement in the renovation of low-intensity railroads, the construction of extended railroad branches and motor roads to remote ore deposits and distant large forests. In this way, natural deposits, timber, industrial business and social facilities become garlands stringed on the intercontinental trunk. It will be possible to deliver raw materials from a mine to a cargo terminal in any factory, in any country on the trunk without reloading or re-embarking. The same applies to commercially viable wood, spare parts, etc.
            The second appealing consideration, especially from the standpoint of industrial countries, is the enormous emerging market within those vast areas for construction and extensive economic development.
            The economic appeal of the production facilities that consume local raw materials and are "tied" to the trunk, is the heightened inflow of foreign capital into the area. The interest will be higher if joint ventures are undertaken in Siberia and the Far East. If so, Russia would gain an opportunity to dictate the admission requirements for foreigners. These would include advanced technological integration, experience in modern operations, substantial investment contributions and the promotion of Russian products in external markets.
            The construction of the trunk, communication networks and new industrial and social facilities will create a higher demand for metallurgical products such as rails, accessories, pipes and various types of rolled sheets and bars. This will guarantee a steady demand to metallurgists in Russia, Ukraine and Kazakhstan.
            Construction, mining, and cargo transportation will require a wide range of services: mining equipment, quarrying and building plants, diesel locomotives, freight and passenger railway cars, tractors and trailers, lorries, buses and railway station facilities. Orders for container production will increase drastically. At present, the traffic of containers in Russia is a low as 0.7% from the total traffic, while this figure reaches 20% in Eastern Europe and 40% in Western Europe.
            The growth in rolling stock production will increase the demand for spare parts to be manufactured by electric engineering plants, and by rubber, paint, varnish, and other industries. Diesel engineering will need to be developed further together with the use of imported parts in the entire range of diesel engines.
            The construction in extensive areas with different topography will require high-precision equipment designed for lugging and for ensuring the secure operation of the transportation system. The satellite navigation system GLONASS/GPS will be especially needed. Optic fiber lines will be installed to provide reliable communications.
            The success of construction and transportation in this emerging industrial area depends on automated data control systems based on a distributed computer network. Integrate flexible production will require fully automated systems for essential conversion processes. Because of the high demand for electronic equipment, it will be possible to liquidate the remains of the national electronics base.
            The expansion of business activities throughout a vast area and the establishment of a modern social infrastructure will have a positive effect on the demography of the sparsely populated eastern regions of Russia.
            Russia is having difficulty solving its problems because of a lack of foreign investment. Japan could be the main foreign investor in the construction of a passageway, two tunnels and a road network, among other things. The project as a whole is very appealing to them.
            Many parts of the Russian and Japanese transportation network have been in existence and operation for a long time. However, the construction of the Europe-Russia-Japan passageway and more specifically, of the two tunnels, will be a major breakthrough in the 21st century for Russia, the Commonwealth States and many Asian and European countries.

    Русский Archive Contact us all magazine your mind content all block anons