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A private railway, Mikhail Degtyarev (Ldpr), the perspectives for the Far East. An economic essay

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    A private railway, Mikhail Degtyarev (LDPR), the perspectives for the Far East. An economic essay.

  A private railway, Mikhail Degtyarev (LDPR), the perspectives for the Far East. An economic essay.
  
  
  The Khabarovsk Krai (where Mikhail Degtyarev is acting as a governor) is located in the Far East.
  
  The Far East, as is commonly believed, is among the richest regions.
  
  (It is even strange why Russial citizens from there leave for European Russia, and not vice versa).
  
  If this is such a rich region, then, therefore, mineral deposits can be located there. For example, the coal ones.
  
  Imagine yourself in the place of a person holding a public position, a person concerned about the interests of the country and the people.
  
  The State Man receives information about the presence of a large coal deposit.
  
  The depth of the seams and the quality of the coal are known. Production technologies differ (for different deposits), but they are more or less standard.
  
  So, the State Man has forecast data on the cost of a ton of coal mined - for the coal deposit in question.
  
  In addition, he has information about coal prices in the Asian region and in the world. Prices are rising. Coal price growth forecasts are favorable.
  
  A profitable business? For a number of reasons, the supply of coal from Australia to China is difficult, therefore, China is interested in the supply of coal, and one can hope to make a profit. (Why have relations between China and Australia changed? - This question is not very relevant for the players ...).
  
  Next, the State Man looks at the cost of building a railroad from a coalfield to a port on the Pacific coast.
  
  It compares the cost of coal, coal prices, other costs. And he sees. He sees that the business - it is profitable.
  
  This is not a high-tech business, where every step is a step into the unknown, where everything depends on the talents and abilities of entrepreneurs.
  
  Algorithms for coal mining, its transportation by rail, loading of coal on ships and delivery to consumers - all these algorithms are basically widely known. Details are important, but they are secondary.
  
  The State Man creates a state corporation (or other state-owned legal entity), and the work begins.
  
  If we compare this option with the option of transferring the coal deposit to private hands, then who loses (under the option of state ownership)?
  
  I suppose that under the option of state ownership, potential owners of yachts for 350 million euros, palaces (under the modest name of "villas"), owners of multibillion-dollar accounts in foreign banks (including bank accounts for "patrons") lose.
  
  Now I turn to the speech of Mikhail Degtyarev, which I heard this morning on the radio.
  
  He proudly talks about the private railroad. Already built 20 kilometers.
  
  It is difficult to perceive verbal information, issuing out of the radio receiver. But from today's speech on the radio by Mikhail Degtyarev, one can presumably draw the following picture.
  
  The coal deposit is in private hands. Private railway (property is evident from the name). Port - at first it was supposed to be Vanino, but then, due to the discontent of local residents, a plot of land was allocated for a port on the Pacific coast somewhere else. Private port?
  
  Not a very long time, Mikhail Degtyarev heads the Khabarovsk Territory - and already such a project.
  
  But still, what is better - for the option of developing a coal deposit and selling coal abroad? A private property or the state one?
  
  How, for example, will it look like attracting labor from abroad?
  
  A state-owned enterprise will be more inclined (albeit under pressure) to recruit Russian citizens ...
  
  A state-owned enterprise will be more inclined to purchase equipment from Russian firms.
  
  It is more difficult for a state-owned enterprise to evade inspections and hide money in foreign accounts ...
  
  Of course, someone will not have yachts worth hundreds of millions of euros, tropical islands, palaces in Western Europe (appearing under the modest name of "villas").
  
  But on the other hand, Russia will be filled with income, and its citizens will get an additional chance to live like normal people, and not as the addressees for the small periodic financial handouts.
  
  Let's pay tribute to Mikhail Degtyarev. If, when he took office, protests against the location of the coal port in Vanino did a great noise, today the project has already entered the implementation phase, a new place has been found for the port, and 20 kilometers of a private railway have already been built ...
  
  And if Mikhail Degtyarev moves to Moscow for some reason, he will arrive in Moscow not empty-handed, but with well-established connections - as a person who stood at the first steps of an important and profitable project.
  
  As for the Far East, one can only hope that the departure of Russial citizens from the Far East will slow down...
  
  It's good when capable leaders are put [lodged] at the helm who can launch profitable projects in a short time.
  
  
  April 7, 2022 12:52
  
  
  Translation from Russian into English: April 7, 2022 13:50.
  Владимир Владимирович Залесский "Частная железная дорога, Михаил Дегтярев (ЛДПР), перспективы Дальнего Востока. Экономический очерк".
  
  { 2897. Частная железная дорога, Михаил Дегтярев (ЛДПР), перспективы Дальнего Востока. Экономический очерк.
  MMDCCCLXVII. A private railway, Mikhail Degtyarev (LDPR), the perspectives for the Far East. An economic essay. }
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