Mongolia Business and Mongolian Daily Business News

Last week, an international conference “Infrastructure development strategy of the Mongolian Railway: was held. Business-mongolia.com brings you its detailed observation and analysis.
Railway will connect North East Asian Countries and Russia will invest $256 million in its initial phase.

Mongolia has one line railroad, from east to the North West, with length of 1815 km. It can be extended to eastern border port Rashaant through Baganuur, Khentii (province center) and Choibalsan (center of Dornod province) cities, connecting to North East Asia, Tumen River Region and its feasibility study is developed.

Minister Kh.Battulga informed that 400 km railroad from central line to Tavan Tolgoi is planned and its budget will surely be investment from abroad. The issue can be solved with common agreement with investors in the Mongolian mining sector. Minister Kh.Battulga and Yakunin, President of Russian Railways Public Corp. signed on the memorandum of understanding of launching the railroad project from Zuunbayan – Dalanzadgad/Tavan Tolgoi. Within this framework, Mr. Yakunin revealed that his company will invest $265 million as beginning of the project. $300 thousand is required to build 1 km railroad.

Most important issue is to transport mineral resource of the Mongolian mines to overseas. Mr. Yakunin, the President of Russian Railway Corp. stated that “Mongolian – Russian geopolitical location and their technical universal base of railroads will play important role in the world economy system, especially bridge between EU and North Eastern Asian countries”. “Two countries signed on MOU to develop transit transportation. Now it is time to realize it. Because of poor development of railroads, transportation wastes much time at borders. Therefore, today’s meeting is not only about railroad, it will focus on maritime transport also. This conference is pivotal step towards exporting Mongolian minerals to overseas” he continued.

Mr. Wan Linshou, senior adviser to the Minister for Railways of People’s Republic of China said that “Chinese Government has developed national program of innovating its railroad network. According to the program, it will increase its length of railway up to 110,000 km, improve the capacity of speed train and public transport. Also China prefers to unite its railway network with its neighbors, Russia and Mongolia”

Related post

• The Mongolian Railway Dilemma (Update 2): The Government will develop special policy on railway
• Railway Update (1): Time to decide how to use Tavantolgoi
• Millennium Challenge Fund stopped its grant due to suspention of auditing
• Mongolia invites Germany to the “dance floor”
• Mongolian Railway is to give year off over 7000 employees without salary
• 189 billion US$ is planned to spend for the innovation of the Mongolian railway
• Mongolian Railway Is Making Reform
• Will Establish “Mongolian Railway” Joint Company