OREANDA-NEWS. February 16, 2009. The Russian Railways will by year 2020 invest 41,4 billion RUB (920 million EUR)in the development of the Murmansk Railway Hub, company plans show.

When the plans of the Russian Railways are materialized, the Kola Peninsula will significantly improve its transport capacity. That will subsequently open up the region for new industrial development.

Part of the plans is also the construction of a 28 km long branch railway to Lavna on the western shore of the Kola Bay, the site for a planned oil terminal. –This will help develop the western shore [of the Kola Bay] which today is in little use because of the lack of railway access, Murmansk Minister of Industry and Transport Sergey Leus said.

According to regional authorities, the goods turnover of the transport hub is to be boosted from 25,9 million tons (2008) to 79,8 million tons in 2015.

Parts of the plans are major upgrades of the whole October branch of the Russian Railways. A total of ten new stations are to be built from Sankt Petersburg to Murmansk, newspaper Gudok reports. The company is currently modernizing the stations of Kem and Kandalaksha.

The transport hub is part of the grand plans for the Murmansk Transport Hub, a project on the development of ports and infrastructure in the Murmansk area. The Transport Hub is developed jointly by the Murmansk Trade Port, the Russian Railways, Rosneft, Rosmorport and the Murmansk regional administration.

The October Railways are a branch of the Russian Railways, which includes 10334 of railway stretching over ten Russian federal subject. More than 25 million people yearly travel along the lines. A total of 100,000 work in the October Railway company. The company is instrumental in the development of infrastructure in Murmansk Oblast.