In spite of the fact that mining sector’s part in Mongolian economy is heavy, its competitiveness in the export market is mediocre due to price and non-price factors. One of the main reasons for this is landlocked geographical location of Mongolia and weak carrying capacity of its infrastructure, especially the rail network.

Therefore, draft parliamentary resolution was worked out to include projects for construction of new railroads linking the Zuunbayan station to Khangi border checkpoint and Erdenet station to Ovoot coal deposit in Tsetserleg soum, Khuvsgul aimag and further to Artssuuri border checkpoint with the aim of promoting export of iron ore, coal and other minerals and expanding rail network infrastructure in the state policy on railway transportation.

By building about 281 km railroad continuing Sainshand-Zuunbayan railway line in Dornogobi to the Khangi-Mandal border checkpoint and connecting it to the railway, currently under construction in the Chinese border, transportation distance of Sainshand-Zuunbayan-Khangi-Mandal-Bugat route will be cut to 590 km, which is shorter by 318 km. The main freights transferred by Zuunbayan-Khangi route is iron ore, but some other raw materials and products can be transported.

Within the framework of the Erdenet-Ovoot-Artssuuri rail route project, Erdenet station of the UB Railways company will be branched to reach the Ovoot deposit in Tsetserleg soum, Khuvsgul aimag and then connected to the Artssuuri border checkpoint in Tes soum, Zavkhan aimag.

M.Anudari