6 Nov 2012 12:54

Russia can dramatically increase transit freight via Trans-Siberian - PM

*** Railroad could carry 100 mln tonnes per year

MOSCOW. Nov 6 (Interfax) - Prime Minister Dmitry Medvedev said that Russia plans to be more active in the Asia-Pacific region and develop transportation infrastructure.

"The huge and still clearly underdeveloped potential of our country, which occupies about a third of the Eurasian continent, is in its transport and transit possibilities," Medvedev wrote in an article ahead of the Asia-Europe Meeting (ASEM) summit in Laos on November 5-6.

Russia's transport network is relatively well developed, Medvedev said, citing the Trans-Siberian and Baikal-Amur Mainline, seaports in all basins, the network of air routes and airports that provide the shortest routes for shipments and coincide with the main configuration of freight traffic.

"The modernization and liberalization of economic conditions are capable of ensuring substantial growth of transhipments - at least 15% of total freight traffic - in Europe-Asia, as well as Europe-Asia-America transportation. The Trans-Siberian is capable of carrying up to 100 million tonnes per year, and this will be the shortest route," Medvedev said.

He said a specialized freight train travels from Nakhodka to Russia's western borders in nine days, and can reach Western Europe in two weeks, while freight shipped by sea takes 35 days to get from ports in the Asia-Pacific region to Hamburg or Antwerp.

"In coming years and decades, Russia faces a paramount historical challenge - to ensure the accelerated modernization of the economy based on the balanced development of Russian regions. The priority will be given to Siberia and the Far East," Medvedev said.

The focus of the global economy is shifting to the East and "Russia simply must be more active in the Asia-Pacific region, which is becoming the center of global economic growth, generating about 55% of global GDP, almost have of global trade," Medvedev said.

"Promising prospects are opening up for the development of the Northern sea route, which is half the length of current routes from Europe to East Asia through the Indian Ocean. Even with the difficulty of maintaining it, the cost of navigating ships through the Arctic Ocean is 30% cheaper than through the Indian Ocean," Medvedev said.

In his article, the prime minister also pointed out the economic benefits of using Russian air space and Siberia's network of airports. Medium-range aircraft can refuel in Russia, "above all this applies to flights along the route Europe - East Asia," Medvedev writes.