Rail is the cheapest way to move freight, and a railway siding gives an enterprise a steady operating rhythm and higher profitability. On top of that, a site served by a railway siding is worth several times more than one without.
Why railway sidings are seen as complex and expensive
Even so, the business community holds a persistent belief that building a railway siding is complicated and costly. The belief has several sources:
- Lengthy approvals. First and foremost, there is the difficulty of getting a siding approved by the divisions of JSC NC Kazakhstan Temir Zholy (KTZ) and other authorities. Approval can drag on for years, and the cost of approvals plus the extra work needed to meet the railway's technical conditions often exceeds the cost of building the siding itself.
- Contractors without railway experience. Industrial facilities are usually handled by general contractors and general designers who do not know the specifics of railway construction. The unknown puts them off — all the more so because railway specialists rarely explain it in plain terms.
- Raising the question too late. The siding is often considered too late, which leads to unjustified construction costs and wipes out its investment appeal. Typically the facility ends up awkwardly placed relative to the connecting station, because the question only comes up when utilities are being designed — after the land has been bought, when nothing can be changed.
- The total cost. Finally, when a siding is being considered, clients are often alarmed by the total price: one kilometre of track costs roughly USD 700,000 to 1.5 million. However, compared with the company's road haulage costs, in most cases a railway siding pays for itself within 1–5 years — followed by enormous savings on transport.
A railway siding is an achievable and attractive project
All of these issues do occur in railway construction practice. Nevertheless, a well-informed investor, timely planning and an experienced partner make building a railway siding achievable and economically very attractive.
With this in mind, this section gives potential investors the initial set of information needed for a preliminary assessment of a railway siding project. For a more detailed look at your project, our specialists are available by phone at +7 (7172) 767-123 or in person.