Modernisation of the 833.8km railway began in 2003, and so far 591.5km has been upgraded. RZD will complete work on the Kholmsk - Noglik line in 2017 followed by the Arsentievka – Korsakov line in 2018. The modernisation programme also includes work on 24 stations and 70 bridges.

Sinara supplied 32 double-unit TG16M 1067mm-gauge diesel locomotives last year to haul mineral trains on the Yuzhno - Sakhalinsk - Kholmsk line.