In 2012, Russia's state railway firm Joint Stock Company (JSC) signed a Memorandum of Understanding with the East Kalimantan Governor over railway lines to transport coal and other freight. The first stage will connect an area near Balikpapan port to West Kutai Regency in a 183-kilometer line and is estimated to cost about $1.8 billion. It will commence in 2013 and by 2017 it is hoped that it carry 20 million tons of coal annually. The second phase will connect a line to Murung Raya in Central Kalimantan with a 60 kilometer line, which will cost an estimated $600 million.