Russian Railways (RZD) has invested RUB1.1bn ($33.7m) for the second phase of its ongoing “Oil Shipments to China” rail project.

The project is aimed at improving rail infrastructure to increase the volume of oil trade between the two countries to 30 million tonnes per annum.

The work for the remainder of the year includes installing automatic blocking systems and electric centralised points between Borzi and Zabaikalsk and reconstructing the first main track on the Karymsky-Borzi line.

In addition, continuous welded rails on various stretches will be laid and station track and switches at Olovyannaya station will be revamped.

The total RUB28bn second phase involves building a 247km track between Karymsky and Borzi and is expected for completion by 2010.

RZD completed the first phase of the project from 2004 to 2008 which involved building a 218.8km rail network between Karymsky and Zabaikalsk with an investment of over RUB13.4bn.