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A shareholder meeting was held for “Mongolian Port Group” LLC, a subsidiary of “Mongolian Railway” SOSC. At the meeting, new members of the Board of Directors of "Mongolian Port Group" LLC were appointed, and they were assigned the obligation of resolving the project's financing and accelerating its implementation.The Dongjiang Transport and Logistics Center will establish an optimal transportation network connecting Mongolia and Eurasia, increase transit transportation, reduce transportation and logistics costs of export and import goods, and accelerate goods circulation. Mongolian enterprises will be involved in production and operations under the preferential policy of the free trade port zone.According to Government Resolution No. 152, the establishment of "Mongolian Port Group" LLC by the "Mongolian Railway" SOSC aims to develop a "Transportation and Logistics Center" within the period of 50 years on 10 hectares of land in the Dongjiang Free Trade Zone.&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;

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MONGOLIA AND TIANJIN PROJECT “DONGJIANG TRANSPORT AND LOGICTICS CENTER” WILL BE INTENSIFIED

The managers of the Mongolian Railways State-owned JSC met with the representatives of the US Federal Railroad Administration led by its Director of International Programs Barbara K. Barr.At the meeting, the representatives of the US Federal Railroad Administration presented the professional functions and responsibilities, safety inspections, decision-making as to where and how to conduct inspections, risk assessment, and railroad regulatory activities of their Safety Department.The Chief Engineer of the Mongolian Railways T. Batzorig introduced to the representatives about the railway construction, infrastructure exploitation, transport organization and railway safety activities, and expressed the desire to exchange experience and expand cooperation.In the meantime, the United States Federal Railroad Administration organized a US - Mongolia Rail Workshop on Safety and Research involving representatives of the Mongolian railway sector. Specialists of this field attended relevant training and studied experience.

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Railway Safety World Standards Focused

The goal of the Port Revival of the Government of Mongolia's New Revival Policy was to gradually connect border ports with railways and paved roads, improve transportation and logistics competitiveness, improve cargo flow, and create the basic conditions for Mongolia to become a transit country in the future.In order to achieve the objectives listed above, the Ministry of Road and Transport Development is expanding the national railway network and constructing a cross-border port railway.The Ministry of Road and Transport Development, the Ministry of Foreign Affairs, the Ministry of Economy and Development, the Embassy of Mongolia in Beijing, China and representatives of the railway contractor companies discussed Gashuunsukhait-Gangimaodu, Shiveekhuren-Ceke, Khangi-Mandula, and Bichigt-Zuunkhatavch ports on the Mongolia-China border progress and issues of the railway construction.Shiveekhuren-Ceke port has a railway extension length standard gauge of 19.3 km and a broad gauge of 30.7 km, and it will be able to transport 10 million tons of freight between 2024 and 2029. The infrastructure, construction of bridges, pipelines, terminal sites, and provision of electricity are all ongoing operations.&nbsp;&nbsp;&nbsp;

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CROSS-BORDER RAILWAY CONSTRUCTION IS INTENSIFIED

Representatives of 35 nations from around the world are gathered at the Fourth Mongolia-China Expo, which is taking place in Hohhot, the capital city of Inner Mongolia Autonomous Region of People's Republic of China, under the theme "New pattern for opening-up, new opportunities".More than 500 Mongolian entrepreneurs and businesses are promoting their products at the event, which continues from September 6–10, 2023.Previously, the biennial event was held in 2015, 2017, and 2019. The Fourth Mongolia-China Expo is taking place at the Tselger Tal International Exhibition Center in Hohhot, the capital city of Inner Mongolia of PRC. The Expo, which had been postponed due to the pandemic, has been restarted this year.The total area of ​​the exhibition is 92,000 square meters, consisting of five main events, such as trade and economic conferences, branch meetings, forums, and cultural exchange activities.Representatives from the Mongolian and Chinese sides emphasized our two countries' long-standing friendly and good neighborly relations, as well as the importance of the expo in enhancing border trade and cooperation and improving economic circulation for businesses, during the opening ceremony.The first day of Expo continues with the theme "National Economic and Trade Forum for the Open Development of the North", and S. Byambatsogt, Minister of Road and Transport Development, attended. By presenting its road transport infrastructure projects to investors at a time when the wind of positive economic growth is blowing after the pandemic, he emphasized its desire to develop together as a responsible, mutually beneficial, friendly, and reliable partner to investors.

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“MONGOLIAN RAILWAY” SOSC IS SUCCESSFULLY PARTICIPATING The fourth  Mongolia-China expo 

Congratulations on the remarkable occasion of the 85th anniversary of railway transport development in Mongolia!On this occasion, in collaboration with "Mongolian Railways" SOSC, we extend a warm welcome to this significant day, celebrating the professional holiday of railway personnel.&nbsp;In 2010, the Parliament's endorsement of the government's railway transportation policy marked a significant step forward. The decision to establish a new national railway network encompassing approximately 6,600 km was a transformative moment. As proud Mongolians, in collaboration with national enterprises and companies, we take immense pride in the accomplishment of constructing a remarkable 1,000 km of railways. These railways span across critical routes such as Tavantolgoi-Zuunbayan, Tavantolgoi-Gashuunsuhait, and Zuunbayan-Khangi. The remarkable feat of constructing these railways in a short timeframe, especially during the challenges posed by the epidemic, underscores our collective dedication and determination.&nbsp;Furthermore, a significant milestone was reached as we successfully handed over 416.1 km of the "Tavantolgoi-Zuunbayan" railway line to the State Commission. This development holds the potential to substantially augment the carrying and throughput capabilities, allowing for the seamless operation of up to 9 trains each day. The positive outcomes of this achievement extend beyond mere infrastructure enhancements; they encompass a notable increase in the company's revenue and the creation of conditions conducive to yielding substantial socio-economic benefits.At present, the impact of this achievement is tangible as evidenced by the transportation of 1.4 million tons of cargo. This cargo includes coal and&nbsp;fuel products earmarked for export, as well as essential raw materials for briquettes designed to mitigate the emissions of Ulaanbaatar city. Such endeavors contribute significantly to the sustainable development and prosperity of our region.&nbsp;The Government's visionary "New Revival Policy" encompasses a strategic focus on the revival of ports. As a pivotal element of this initiative, Mongolia is ambitiously aiming to establish 5 cross-border export railway crossings, with construction endeavors already underway. Among these transformative projects are Shiveehuren-Sekhe, Gashuunsuhait-Gantmod, Hangi-Mandal, Zamiin-Uud-Ereen, and the notable Bichigt-Zunkhatavc railway. This dynamic undertaking aims to connect ports with the People's Republic of China via rail, fostering enhanced trade and connectivity.&nbsp;A prime example is the Shiveehuren-Sehe port, where a 19.3 km-long railway is in progress and slated for completion by 2023. This monumental endeavor commenced in May and is set for handover this October, showcasing our steadfast commitment to timely and efficient execution. Moreover, the construction of the Bichigt-Zuunkhatavch railway is poised to commence by August, marking another significant milestone in our pursuit of robust cross-border connectivity and economic prosperity.&nbsp;The implementation of the east vertical railway line from Choibalsan to Khuut and Bichigt is poised to establish a highly efficient and strategic economic corridor. This railway line will serve as the shortest route connecting China, Mongolia, and Russia, with its significance underscored by its linkage to the Bichigt-Zunkhatav port project. This initiative holds profound strategic importance, reflecting our commitment to fostering regional collaboration.The dedicated team at "Mongolian Railways" has assumed a leadership role in this transformative endeavor. Their pivotal role encompasses the transportation of significant cargo volumes, which in turn enhances the value of mineral deposits within the region. As a consequence, new prospects for economic circulation are emerging, redefining opportunities and facilitating an environment of sustained growth and development. The momentum we are generating through this venture is a testament to our shared vision and unwavering dedication to progress.&nbsp;A significant milestone has been achieved in the construction of approximately 1,700 km of vertical railways across both the western and eastern directions. This endeavor has seen the selection of a national enterprise to participate actively in the construction process. A notable achievement in this journey is the establishment of a dedicated special purpose company, jointly formed with the active participation of "Mongolian Railways" SOSC.&nbsp;In the western vertical direction, the allocation of approximately 1,255 km of railway spanning "Artssuur-Narynsukhait-Shiveekhuren" has been entrusted to the private sector. Similarly, the eastern vertical direction has seen about 426 km of railway spanning "Choibalsan-Khuut-Bichigt" awarded under the "Design-Build-Operate-Transfer" concession agreement. Through this collaborative effort, companies are uniting their expertise and resources to foster remarkable developments through strategic investments. This symbiotic partnership serves as a catalyst for substantial progress, marking an inspiring chapter in Mongolia's railway advancement.&nbsp;Congratulations extend to the esteemed veteran railway workers, whose unwavering dedication and lifelong commitment have played an instrumental role in the remarkable growth and development of Mongolia's railway sector. Your invaluable knowledge and tireless efforts have left an indelible mark on the landscape of progress.Equally deserving of praise are the current generation of dedicated railwaymen, who are actively shaping the ongoing narrative of development. Your collective endeavors are shaping a legacy that continues to inspire.To the aspiring students who have chosen to specialize in this field, your selective pursuit of knowledge holds great promise for the future. Your dedication to learning and contributing to the railway sector is both commendable and promising.In unity, we celebrate the achievements, legacies, and aspirations that define Mongolia's railway journey. Congratulations to all for your invaluable contributions to this shared endeavor of growth and advancement.&nbsp;&nbsp;

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Greetings from CEO

In accordance with Government Resolution No. 116 of 2022, the special purpose companies which are named "Artssuuri-Nariinsukhait-Shiveekhuren Railway" LLC and "Choibalsan-Khuut-Bichigt Railway" LLC were established to implement the Western and Eastern vertical railway projects.

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"MONGOLIAN RAILWAY" SOSC SIGNS AN AGREEMENT WITH THE INVESTORS OF THE WESTERN AND EASTERN VERTICAL RAILWAYS

The amount of freight transportation between TT-ZB railway in 2023

Тавантолгой - Зүүнбаян чиглэлийн төмөр замаар хийсэн тээвэр

“To Develop Regional Logistics Center МОН2719/0240 project” in Zamyn-Uud soum, Dornogovi province has been carried out and commissioned bythe State Commission in 30th of December 2018.



Regional logistics center covers 128 hectare and it is planned to have 3 sections including a container area, a heavy load capacity area and a warehouse area. The construction for center contains 2 of 50 tons overhead cranes, mechanics maintenance center, crossing bridge facilities with 11.5 km railway line and 1.6 km road. Following construction works have been builtat high quality into the logistics center: heating supply, customs house, accommodation and administration office, maintenance center, clean water supply, drainagesystem equipment and its installation, signaling, electrical network and inner pipe connections.         

     

What is the vital importance of the logistics center for our country?

By commissioning the Regional Logistics Center will create opportunities to receive common goods, large-scale equipment for mining sector and process transit cargo through our country.  

According to the survey, about 8 wagons were received from People’s Republic of China daily. By operating this facility that number will be doubled.  

From 2020, transit transportation, export, import volume will be increased and current Trans loading facilities have insufficient capacity. Therefore, Regional Logistics Center will vital importance for increasing capacity.

Moreover, in scope of the project, terminal logistics center is to be built for specialty by aim to decreasevolume ofcheckpoint and freight transition office in Zamyn-Uud port, to create transport complex terminal and logistics service, to transfer equipment and management system for freight loading from road to railway.      

Economic benefits of project:

Freight turnover will be increased in Mongolia.
Logistics center will work for 24 hours with 12-hour shift, and about 800 wagons or 16 trains a daily will be received and transloaded.
In order to transit freight cargo flow from Northeast Asia to Russia and Europe from railway to railway or from cars to wagons through our country that create conditions loading/unloading technics, contribute in the transport sector in Mongolia and increase competitiveness to the other international transport corridors.
Will create 170-200 permanent work places.
Legal rationale:

“To develop regional logistics center project” is being implemented in Zamyn-Uud, Dornogovi by establishing a soft loan contract between the Government of Mongolia and Asian Development Bank in 2011.
Logistics center development stages:

Zone I Container zone- daily 46 wagons and 8 trains will be carried out. Yearly capacity to Trans load 280.000 container freight.
Zone II Bulk cargo- 40 wagons and 12 trains will be processed
Zone III Warehouse- if 40 wagons will be carried out mechanic freight for 24 hours, there would be loaded 8100 cargoes in 270 days a year.   
Construction period: For the logistics center, totally 11.7 billion MNT was used for following construction works: 3.6 km clean water supply system, bridge over 2 at-level railway crossing, 1.6 km road construction work, 4.15 km outside signaling and underground cable construction work, power plant, substation extension and substation construction work.      

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ZAMIIN-UUD TRANSPORT AND LOGISTICS CENTER PROJECT

In order to the objectives of the project are to create opportunities for Mongolian entities to start business within the free trade zone, to accelerate goods turnover, to decrease costs for logistics and export import transport, to increase transit freight and to create a network which connects Mongolia to Asia, Europe and other continents, Memorandum of Understanding was signed in 2009 by Ministry of Road, Transport, Construction and Urban Development of Mongolia and People’s Government of Tianjin city, People’s Republic of China to develop trade and economic cooperation of the two countries in Binhai new district of Tianjin city of PRC.

According to the Mongolian Government Resolution no.152 of 2013, “Mongolian Railway” SOSC (MTZ) shall have a right to represent Mongolian side to implement the transport and logistics project with China and select possible investors.

Project area is in south side of Xi an avenue, east side of Ao Zhou street, west side of Fei Zhou street of Dongjiang free trade zone of Tianjin city and its south side is wasteland to own and use 10-hectare area in Dongjiang free trade port zone. The Tianjin Transport and Logistics Center shall have following operations:

Storage of transit goods and freight
Service of open area
Storage of production of goods and packaged mining products and refrigeration of groceries
Rental of area
Transport and logistics service
Project significance:

To create a network connecting Mongolia to Asia, Europe and other continents and carry out transport and logistics service;
To export mining products;
To export agricultural and livestock’s raw materials and meat products;
Tostore, preserve and import seafoods, fruits and berries;
Tocreate opportunities for Mongolianentities to join the Dongjiang certified customs reduction policies;
To increase transit freight;
To provide a time-saving and faster commodity circulation of import and export in Mongolia;
To store groceries to keep safer for longer;
To reduce costs for export and import transportation;   
To stabilize the supply of goods;
To make semi-finished products for factory and other consumer goods;
Introduction of Tianjin port

Tianjin city is the project implementation place and ranks 4th place by its population, Tianjin portstands in the 4th and 3rd place in the world and in Asia respectively by its economic performance, and over 500 million tons of freight is transported every year. The port trades more than 600 ports in 180 countries and territories around the world.

Tianjin port is on the shore of the Bohai sea and consists of following 5 ports:

Dongjiang free trade zone
Nangjiang port
Beijiang port
Lingang economic zone
Nangang industrial zone
 “Дунзяан гаалийн боомт бүс” нь Терминал, логистик, аялал жуулчлалын бүсээс бүрдэнэ.

Dongjiang free trade zone

“Transport and logistics center” project is in Dongjiang free trade port zone to own and use 10-hectare area cooperating with PRC side for 50 years in Binhai new district, Tianjin city.   

“Dongjiang custom port zone” has a terminal operation area, a logistics procession area and a comprehensive service area.

Total covered area - 30 square kilometer
Unloading capacity - 14 million containers
Goods turnover – 80 million tons
It is possible to eco produce.
Project processes:

Memorandum of Understanding was signed on 15 April 2009 by Ministry of Road, Transport, Construction and Urban Development of Mongolia and People’s Government of Tianjin city, PRC to develop trade and economic cooperation of the two countries in Binhai new district of Tianjin city of PRC.

Pursuant to the Mongolian Government Resolution №152 "Measures to improve opportunities for sea access"dated on 27 April 2013, MTZ shall have a right to represent Mongolian side to implement the transport and logistics project with China and the Deputy Prime Minister of Mongolia was assigned to select possible investors.

In May 2018, this MoU has been renewed to cohere with Mongolia’s Development Path program of Mongolia and China’s “Belt and Road” Initiative,  based on Agreement between the Government of Mongolia and the Government of the PRC on “Access to the International road transportation through Asia’s road network”, Agreement between the Government of Mongolia and the Government of the People’s Republic of China on “Mongolia’s access to the Sea and Transit Transport through Chinese territories” and“Mongolia-China Deepening Economic and Trade Cooperation Intermediate Program”.   

The eighth meeting of the working group of Mongolia and People’s Republic of China was hold and officially signed on the Minutes of the meeting on 27 September 2018 according to the renewed MoU. Agreement on Cooperation for Tianjin Transport and Logistics Center project was signed by Ministry of Road and Transport Development and MTZ from Mongolian side, and Tianjin Municipal People’s Government of the PRC and Tianjin Port Group from Chinese side on 23 October 2018 during official visit of Li Hongzhong, a member of Political Bureau of PRC and Party Secretary of Tianjin on 23 October 2018.

According to the Mongolia-Tianjin eighth meeting of the Working group, Order no. A/74 of CEO of MTZ dated 29 October 2018assigned to establish a Working group from Mongolian side that contract and charter of the company shall be prepared and the feasibility study will be renewed to implement “Tianjin Transport and Logistics Center” project with Tianjin Port Group of PRC.

The working group was reestablished under the resolution of Board of Directors of the joint ventures that Mongolian Port Group was established on 11 January 2019 between MTZ and “Inner Mongolia Mining Asset Management” Co., Ltd, although the working group has carried out analysis of the feasibility study of 2014 that was created by Construction Design Institute in Tianjin.

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TIANJIN TRANSPORT AND LOGISTICS CENTER PROJECT




Project in Tianjin port

Tumurtei station serves as a crucial mine loading facility, equipped with modern technology including advanced signaling, MPT centralization, and various dedicated sections for train operation, locomotive maintenance, railway services, wagon inspection and repairs, track construction, and the mine loading point.&nbsp;&nbsp; This railway station holds the distinction of being a 2nd-class terminal station, featuring six receiving tracks and four loading tracks to efficiently handle train traffic. Additionally, Tumurtei station has a one-track loading and unloading area located at Khandgait station.&nbsp;&nbsp; On April 3, 2016, transportation operations from Tumurtei station commenced under the management of the “Mongolian Railway” SOSC. Presently, the station primarily transports iron ore from the Tumurtei iron ore mine to China, with an annual capacity of 1 million tons of iron ore.

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Brief introduction of Tumurtei station

TUMURTEI STATION

“State policy on the railway transportation” was approved by government

“State policy on the railway transportation” was approved by Parliament Resolution No. 32.
“State policy on the railway transportation” was approved by Parliament Resolution No. 32.

In the first phase of the policy, it is planned to build the Dalanzadgad-Tavan Tolgoi-Zuunbayan and Sainshand-Baruun Urt-Choibalsan railways.

Resolution of the Parliament of Mongolia

On June 24, 2010, the “State policy on the railway transportation” was approved.

Integrated network planning

Legislation

Resolution of the Government of Mongolia dated 04/10/2019 No. 135 "On some measures to be taken on the Tavan-Tolgoi-Zuunbayan railway project." The article was financed through the sale of Mongolian railways and the purchase of Erdenes-Tavan-Tolgoi JSC.

ECONOMIC EFFICIENCY OF THE TAVAN TOLGOI-ZUUNBAYAN RAILWAY.

Natural resources will be transported via coking coal and the Tavan-Tolgoi route along the existing internal Russian railway network through the Russian and Chinese railways and further to seaports.

The goal is to supply coking coal from the Tavan Tolgoi deposit to the markets of China, Korea and Japan, reduce dependence on one market and increase the competitiveness of Tavan Tolgoi coal.

By connecting Mongolia's railway network to its strategic deposits and major projects, it will create a major economic opportunity to build an industrial park and export value-added processed mining products internationally.

THERE ARE 37 MINERAL DEPOSITS ALONG THE TAVAN TOLGOI-ZUUNBAYAN RAILWAY ROAD



There are total of 37 licensed mineral deposits in the 30 km zone along the Tavan Tolgoi-Zuunbayan railway route. In addition to the Tavan Tolgoi coal deposit, there are large deposits of coal, copper, gold, gypsum, zeolite and uranium, such as the Tsagaan Suvarga copper deposit, the Kharmagtai copper and gold deposit, and the Manlain coal deposit, with reserves of 6.02 billion tons. With the construction of the railway, these deposits have the opportunity to enter the economy.

 

GENERAL INDICATORS OF TAVAN TOLGOI-ZUUNBAYAN RAILWAY

 TECHNICAL SPECIFICATIONS.

 

The length of the road -416.1 km

Travel length - 463 km

Station-1

Crossing - 6

Steering slope - 6/9%

The capacity-25 tons

Gauge - 1520 mm

Carrying capacity -15 million tons

 

INFRASTRUCTURE WORK

Earthworks -25.1 mil

 

Pipes-595



 

Bridge works- 27. Length2427



Railroad 63263.1 tons

 

Fasteners and concrete sleepers 842,600



 

Ballast-890,000 cubic meters



 

Power lines-455.1 km



 

Glass fibre cable-871 km



 

The crossing stations-7



 

 

PROJECT PERFORMANCE

 

3 apartments at the station, 6 apartments at the crossroads - 224 households

Heating stove – 1

Засварын төв

Alarm communication complex work

Infrastructure construction work plan

Infrastructure construction and installation work performance

Earthworks

25.101.494.48 m3

The pipe

Square pipe – 379

Round pipe - 216

Work performance -100%

Bridge

72 locations 2427 u/m

Water supply

43 wells

DRAWING INFRASTRUCTURE WORK PLAN

Infrastructure construction and installation performance

Construction

1 station, 6 crossings, 100% completion

Energy

457.5-power grid

Work performance - 76.8%

Glass fiber cable

Completed 866 km out of 871 km

Work performance - 99.4%

Manufacture of concrete sleepers

842.6 thousand to perform

Work performance - 100%

Crushed stone mining

865.1 thousand cubic meters

Work performance - 97.2%

 

RAILWAY AND MECHANICAL CONSTRUCTION TECHNOLOGY

Engineers and technicians of Mongolian Railway State Joint Stock Company have developed a methodology for assembling the railway superstructure by hand and mechanics in order to eliminate the delays caused by the construction of the project railway infrastructure due to certain reasons (such as railway supply). A total of 224.6 km of railway infrastructure has been completed using this method.



INFRASTRUCTURE WORK

"Ulaanbaatar Railway" JSC- 227.1 km

"General Staff of the Armed Forces"- 224.6 km

Total-451.7 km



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	Tavan Tolgoi-Zuunbayan 416.1 km railway project.

New railway project

The State Great Khural of Mongolia ratified the “State Policy on Railway Transportation”for the purpose of establishing unified railway network in June 2010.

Pursuant to the Resolution no. 121 of the Government of Mongolia dated 03 November 2012, stating that railway base infrastructures to be developed within Phase I and Phase II of the “State Policy on Railway Transportation”, granted the special right to build these railway base infrastructures to “Mongolian Railway” State Owned Shareholding Company (“MTZ” SOSC).     

New Railway Project is effective and beneficial project for not only sectors of mining and railway but also economy of Mongolia, route from the Tavantolgoi coal deposit to the south and east side to access the overseas market through the territories of People’s Republic of China and Russian Federation and create a new gate of exports.

Project Overview:

Under the scope of the New Railway Project, 1800 km railway structure to be build which meets the world standards on the south and east of Mongolia territory. The total required investment is 6-9 billion USD for the construction of the New Railway Project.   

Benefits of Project:

Transportation expenses will decrease and competitiveness will risewhen unified railway network establishes to access to the world market through transportation of domestic mining products.
Way of transportation will be accessed environmentally friendly based on the latest researches, surveys and technologies.
Transit corridor will be established linking to Euro Asia. /Ereentsav-Choibalsan-Khuut-Bichigt/
In the railway sector, a thousand fold of work places will be created.   
Tavantolgoi-Gashuunsukhait railway project

The State Great Khural of Mongolia approved the State Policy on Railway Transportation by the Resolution no. 32 as specified in the provision 8.1.1 in Law on Railway Transport. 

Economic benefits of project:

Supporting the exports of coal and copper, creating an opportunity to transport to the territory and port of China and the third country markets, the mining companies in Mongolia will have an opportunity to compete with low price in the world market through operating of Tavantolgoi-Gashuunsukhait railway line.
Transportation cost of coal export will be at 8 USD per ton in the territory of Mongolia till China, currentroad transportation cost will be decreased from 32 USD to 24 USD, and transportation capacity will up at 30 Mtpa by rail port.
Coal miningsupply in Tavantolgoi mining will be up to 2-3 times.   
 “Tavantolgoi railway” LLC

“Tavantolgoi railway” LLC is established pursuant to the Resolution no.242 dated 08 August  2018 of Government of Mongolia and  Resolution no.12 dated 08 October 2018 of Board of Directors of MTZ by separated concession right to build-operate-transferinfrastructure of Tavantolgoi-Gashuunsukhait railway line which granted to MTZ under Resolution no. 28 of the Government of Mongolia in 2013.

In scope of objective to establish “Tavantolgoi railway” LLC, an agreement is made about conditions of establishment of “Tavantolgoi railway” LLC thatagreed upon preconditions and long-term conditions by mutual consentwith “Erdenes Tavantolgoi” JSC. Following are the conditions below:

Concession right to build-operate-transfer the infrastructure of “Tavantolgoi-Gashuunsukhait” railway infrastructure to be transferred to “Tavantolgoi railway” LLC and appointed its founder.
“Erdenes Tavantolgoi” JSC shall invest and sharerates to “Tavantolgoi railway” LLC by tangible and intangible assets in stages.
“Tavantolgoi railway” LLC shall befinanced to perform the normal operations the assets from the “Erdenes Tavantolgoi” JSC meant as an investment.
“Erdenes Tavantolgoi” JSC shall elect 4 members and “Mongolian railway” SOSC shall elect 3 members for the Board of the Directors of “Tavantolgoi railway” LLC will have 7 members total.
Meeting of Board of Directors of “Mongolian railway” SOSC has hold and decided to establish “Tavantolgoi railway” LLC and approved its charter on 08 December 2018.   
 

On 04 December 2018, Board of Directors of “Tavantolgoi railway” LLC appointed a Chief Executive Officer during its meeting. Moreover, the management budget plan for project 2018, 2019, plan for investment, company structure and job positions were approved.
“Tavantolgoi railway” LLC has been registered by General Authority for State Registration, received registration certificate and seal and started work at MTZ office.
MTZ got evaluated concession to right to Tavantolgoi-Gashuunsukhait route by Property Assessment Company, and assessed value is USD 202 million.
The evaluation for railway strip line of is being processed.
Zuunbayan-Khangi railway project

This project covers the territories of Ulaanbadrakh, Khuvsgul and Khatanbulag soum of Dornogovi province, Zuunbayan station owned by “Ulaanbaatar Railway”JSC connecting to Mandal port of PRC. Total length of railway infrastructure is 281km.   

 

By developing Zuunbayan-Khangi railway base infrastructure, increasing the competitiveness of Mongolian iron ore and coal and goods turnover and reducing transportation cost to city of Bugat, city of industries in Inner Mongolia, revenue for iron ore exports will be increased to become a way for new railway contribution to economy of Mongolia.

Economic profit:

Iron ore export capacity will be increased 2-3 times;
Transportation distance will be short and transportation cost per ton will be decreased by 4-8 USD.
Railway infrastructure network will be developed for being decreasedloading port of Zamyn-Uud
4.8 million tons of iron ore is explored to export from iron ore mining a year in Yeruu soum, Selenge province by rail transportation through Zamyn-Uud port, Mongolia. Therefore, freight volume can be increased 10 million tons to 13 million tons byincreasing market request. This freight is transported totally 908 km from Sainshand to Bugat through Trans loading facility of Erlian city and route of Jining, Hohhot city in Inner Mongolia Autonomous Region.

If 281 km railway base infrastructure is to be built continued line Sainshand-Zuunbayan in Dornogovi province till Khangi-Mandal port between Mongolia and China, Sainshand-Zuunbayan-Khangi-Mandal-Bugat railway line distance would be at 590 km and nearby 318 km shorter than existing line.  

Project processes

“Erdenes Mongol” JSC and China Railway 20th Bureau signed on MoU on September 27 2018.
On October 27-31, the representatives and engineers of Ministry of Road, Transport Development, “Mongolian railway” SOSC, “East railway” LLC and China Railway 20th Bureau have worked for giving opinions according to newly plannedalignment of Tavantolgoi-Zuunbayan and Zuunbayan-Khangi railway line that has made feasibility study by China Railway 20th Bureau group.
“Erdenes Tavantolgoi” JSC and China Railway 20th Bureau agreed in advance that the construction of railway project will being started via finance by offtake coal agreement by the Development Bank of China issued from “East railway” LLC and China Railway 20th Bureau group. 
According to “East railway” LLC’s request, prefeasibility study is made by China Railway 20th Bureau group. It has not officially received nor introduced and approved by the relevant organizations.
Khuut-Bichigt railway project

In 2014,the State Great Khural of Mongolia approved resolution no. 64 stating that Khuut-Bichigt railway to be constructed in standard 1435 mm gauge.

 

Economic profit:

To contribute in regional development of three countries by opening transit transport corridor connecting with railway networks of Russian Federation and People’s Republic of China;
To create the shortest for transportation corridor connecting Europe and Asia cooperating with our neighbor countries;
To modify economic and trade cooperation of regions in three countries;
To reciprocity in economy of all the east mining in Mongolia;
Project processes:

In the scope of the preparation for the “The Eastern railway corridor- development of the region and the mining” international consultative meeting” conference, the information was received from 12 of 56 special license owners in mineral resources located in Dornod, Sukhbaatar who were issued by official letters. According to data received, mineral resources in region were increased by 703.3 million tons and totally 5.411.8 million tons. Moreover, annual capacity was increased by 24 million tons and totally 46.4 million tons which was defined in a feasibility study.
According to this result, resource news has sent to be implemented into research of feasibility study for Khuut-Bichigt line by official letter to executing party “China railway design corporation” LLC.
A proposal, to establishment of “Khuut industrial complex” by “Baxin railway” Co., Ltd, transmitted to the Minster of Mining and Heavy Industry.
According to the official visit of Prime Minister Mr. Khurelsukh.U to People’s Republic of China, MTZ and “Baxin railway” LLC signed to renewal on MoU on 11 April 2018 that was signed in 2015.  
Nariinsukhait-Shiveekhuren railway project

Ministry of Road and Transport Development of Mongolia, “MTZ” SOSC and “MAK” LLC signed on Memorandum of Understanding for construction of Nariinsukhait-Shiveekhuren-Sekhe railway base infrastructure on 21 July 2015, cooperate on conducting a feasibility study, creating construction design and engineering calculation, financing the construction work, railway base infrastructure operation-transfer-own.

Project processes:

Geological, geodesic, archeological and paleontological studies were carried out in 2009.
FEED was carried out by Railway Design Institute of Inner Mongolia Autonomous Region in 2009.
Advisory team “McKinsey and Company” has carried out prefeasibility study within Phase I and II of the “State policy on Railway Transportation” in 2011.
In 2017, Environmental Impact Assessment was carried out by “MAK” LLC and approved by the Ministry of Environment and Tourism.
The feasibility study and FEED, carried out in 2009, were renewed by “Mungun zurlug” LLC by request of “MAK” LLC andconfirmed within discussion about it by Science and Technology Council of the Ministry of Road and Transport Development in 2017.
“Nariinsukhait railway” LLC was established by and between “MAK” LLC, “Usukh zoos” LLC, “South Gobi sand” LLC and “Chinhua MAK Nariinsukhait” LLC in 2017.






 

Tavantolgoi-Zuunbayan railway project

 

Project processes:

Resolution 153 of Government of Mongolia on May 23, 2018 has been approved by the Government of Mongolia to establish a State-owned legal entity "Zuunbayan rail" LLC, a joint venture “MTZ” SOSC and "East railway" LLC.
The plan was approved by Deputy Minister of Road and Transport Development of Mongolia to work process in scope of implementing of resolution 2018.
The MoU was signed between “Erdenes Mongol” JSC and China Railway 20th Bureau Group on 27 September 2018,
The shareholders agreement draft and the statement draft for establishing working group were sent to “East railway” LLC to implement the resolution on 19 October 2018.
On 27-31 October, representatives and engineers of relevant to the Ministry of Road and Transport Development, “MTZ” SOSC, “East railway” LLC and China Railway 20th Bureau Group have checked and given proposals along the newly alignment construction that China Railway 20th Bureau Group plans to develop the feasibility study for Tavantolgoi-Zuunbayan and Zuunbayan-Khangi railways base infrastructure.
“Erdenes Tavantolgoi” JSC and China Railway 20th Bureau agreed in advance that the construction of railway project will being started via finance in offtake coal agreement by the Development Bank of China issued from “East railway” LLC and China Railway 20th Bureau group. 
According to “East railway” LLC’s request, prefeasibility study is made by China Railway 20th Bureau group. It has not officially received nor introduced and approved by the relevant organizations.

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The State Great Khural of Mongolia ratified the “State Policy on Railway Transportation”for the purpose of establishing unified railway network in June 2010.

Pursuant to the Resolution no. 121 of the Government of Mongolia dated 03 November 2012, stating that railway base infrastructures to be developed within Phase I and Phase II of the “State Policy on Railway Transportation”, granted the special right to build these railway base infrastructures to “Mongolian Railway” State Owned Shareholding Company (“MTZ” SOSC).    

2023