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Railway sector investment eng

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Mongolian Railway Sector Overview

Mongolian Railway Sector Overview

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  • 1. Railway line in Gobi-East region Road, Transport Policy Department MRTCUD
  • 2. Main goal for railway sector development
    • Development of railway sector legal framework
    • Restructure in railway transport sector
    • Extension of railway network
    • Increase of carrying and passing capacities of railway line
  • 3. Present condition of freight transportation
    • Currently only the UB Railway has been carrying 62.8 per cent of freight from the total freight transportation; as well as 2.3 per cent of passenger from total passenger transportation of country;
    • On the other hand, the main line of UB Railway with two flows limits the country’s export, import, transit and local transportation;
    • Due to use of deteriorated locomotives, tracks, wagons and techniques the labor productivity is decreased, the possibility of effective operation and introduction of new technologies is limited, thus it is reduced the speed of country’s development.
  • 4. Railway freight transportation, mln.tn 14.0 6 14.79 15.56 14.05 12.28 1 4 . 65
  • 5. Transit transportation through Mongolia Year 2003 2004 2005 2006 2007 2008 From Russia to China 3 453 430 4 648 530 5 028 430 4 003 100 2 944 700 1 964 700 From China to Russia 191 400 176 050 360 000 465 780 528 600 366 920 Total 3 644 830 4 824 580 5 388 430 4 468 880 3 473 300 2 331 000
  • 6. External coal market demand № Market consumer Thermal coal demand, mln.tn Coking coal demand, mln.tn 1. RUSSIA - 73 2. KOREA 66 17 3. JAPAN 101 80 4. CHINA 13 6
  • 7. Extension of railway network
    • The real necessity to extend the railway network
    • possibility of connection of the regions
    • access to the sea
    • not dependant with one market
    • To transport the mineral deposit product and to open the new transit corridor it is required to construct the railway line to connect the existing mail line with Gobi and East regions.
  • 8. Proposed railway line Tavan tolgoi Sainshand Choibalsan
  • 9. Railway line to connect Gobi and East region
    • À. Gobi region’s railway line
      • Tavantolgoi - Zuunbayan section- 370 km
    • The approximate amount of construction of the Tavantolgoi-Zuunbayan section is
    • $ 580 ml n USD .
  • 10. Importance of Tavantolgoi-Zuunbayan-Sainshand railway line
    • Connection to railway main network
    • Possibility to export the mineral products to Russia and China using two directions, as well as transport for the local needs
    • Possibility to connect through the Russian and Chinese railway network to the Europe, Middle East, East and South East Asia by Russian ports of Bladivostok, Nahodka, Vostochnyi and Chinese port of Tianjin and Dalian .
  • 11. Negative side
    • The following criteria will be negatively influenced in connection with existing railway’s main line
    • The capacity of main line is limited
    • The capacity of freight processing of transshipment facilities at the Zamyn-Uud station and Chinese border station of Erlian is limited.
  • 12. B . East railway line
    • Shaishand-Baruun-Urt section - 350 km
    • Baruun-Urt-Choiabalsan section- 200 km
    • The approximate amount of construction of Zuunbayan-Choibalsan section and its infrastructure is $ 825 ml n USD .
  • 13. Importance of Sainshand-Baruun-Urt-Choibalsan railway line
    • Possibility to export the mineral products to Russia and China using two directions, as well as transport for the local needs
    • Connection through the Russian and Chinese railway network to the Europe, Middle East, East and South East Asia by Russian ports of Bladivostok, Nahodka, Vostochnyi and Chinese port of Tianjin and Dalian .
    • The line will be a junction of Gobi, Central and East network connection
    • Establishment of new transit transport corridor
    • Establishment of new access to the sea by connecting to the North East Asia
    • The role and participation of Mongolia in regional cooperation will increase
    • There is minimum of curves due to a good landscape for the railway construction
    • Possibility of the effective operation of UBRailway’s branch line of Bayantumen .
  • 14. Negative side
    • By construction of this line the following impacts will influence negatively :
    • There is need for overhaul repair of Bayantumen railway line;
    • The passing capacity of main line is limited;
    • The capacity of freight processing of transshipment facilities at the Zamyn-Uud station and Chinese border station of Erlian is limited.
  • 15. Cooperation in railway sector
    • The foreign investment should not exceed 49 % in railway infrastructure for the main lines
    • The use of Private Public Partnerships (PPP) and Private Sector Participation (PSP) in the railway activities
  • 16. Thank you for your attention