The Northern Latitudinal Passage includes two parts, the first an east-west connection across the great river Ob between Nadym and Labitnangy.
The line included an extension to Sabetta of Gazprom's current railway to Bovanenko in the Yamal Peninsula. This extension will be about 170 kilometres long and move across the open tundra in the harshest of Arctic conditions.
The rail line will link two of Russia's key Arctic railway lines, the Northern Line from Archangel and the line between Nadym and Tyumen.
Today, all traffic to Sabetta goes by plane or ship reports, Norway's Independent Barents Observer. In the future, the far northern settlement could get also a railway.
President Putin previously made clear that he wants a railway line to the northernmost coast of the Yamal Peninsula.
The far northern seaport of Sabetta should be developed into 'a universal port for all kind of goods,' and get supplies both from the BAM and Trans-Siberian Railways, he said in a 2015 press conference.
Since then, little progress has been made with the major infrastructure project, said the report.
'This project has been under elaboration for a long time. Now is the time for its launch,' President Putin said.
But the railway must be able to carry more than nine million tons of goods per year and open a new export routes for natural resources from Yamal, via the Northern Sea Route, said Deputy Prime Minister Yuri Trutnev, also chairman of federal Arctic Commission.
The price tag for the whole project is huge. According to estimates from the Nenets-Yamal government, the bridge across the Ob River alone is estimated to cost RUB70 billion (US$97 million).