The Government of Mongolia and Mongol Bank have recently agreed to implement a project to reduce the costs of critical commodity goods imported from abroad. Within the framework of this initiative, it is planned to increase the supply of freight wagons, reduce rail transportation cost, lessen the pressure on the Tianjin and Zamiin-Uud direction, and increase the capacity of general railway transport systems.
The project is already underway, and the Ministry of Road and Transportation, and Mongol Bank will be discussing its implementation and results to date on a quarterly basis.
As the first action, two additional freight trains began hauling goods between Zamiin-Uud and Ulaanbaatar at 0900 and 1900 hours every day. It is hoped that this will help customers to better plan their business cycle, receive their goods in a shorter time frame and eventually reduce retail prices of the main commodities such as building materials. Previously, clients were frustrated with the waiting time to receive goods from the People’s Republic of China due to shortage of freight cars available, notably, during the warmer months the construction sector is active.