Mongolia completes rail crossing with China to spice up coal exports

ULAANBAATAR, Mongolia: Mongolia has launched a rail line that might assist increase coal exports to China to 50 million tons a 12 months, the nation’s president stated, ending a decade-long look ahead to the crossing. A ceremony to mark the launch of the rail service between the Tavan Tolgoi coal subject and Gashuun Sukhait on the Chinese language border was held on Friday.

Mongolian President Ukhnaa Khurelsukh was among the many dignitaries in attendance, in accordance with his web site. Closely depending on mining, Mongolia has lengthy sought cheaper and extra environment friendly methods to export its minerals overseas and has a nationwide technique to develop its rail community connections with Russia and China.

Mining makes up 1 / 4 of the nation’s gross home product. China has stepped up its funding in coal within the face of utmost climate, an financial slowdown and a world gasoline disaster.

The 233-kilometer (145-mile) Tavan Tolgoi rail line has the capability to export between 30 million and 50 million tons of coal to China yearly, in accordance with Tavantolgoi Railway LLC, the state company that constructed the road. In 2020 the North Asian nation exported 28.6 million tons of coal. Final 12 months, exports fell to fifteen.9 million tons. The railway can also be anticipated to decrease the associated fee to move coal to $8 per ton, in comparison with $32 per ton when coal is delivered by truck, in accordance with the railway authority.

Tavan Tolgoi is wealthy in coking coal, a vital ingredient within the steel-making course of.

For years coal has been transported in vehicles to China, a course of that has led to lengthy queues on the border and frequent accidents. Mongolian governments have tried to construct a railway from Tavan Tolgoi to the Gashuun Sukhait border for greater than a decade.

Tavantolgoi LLC was fashioned in 2018 to finish the venture. Ulaanbaatar-based Bodi Worldwide served as the overall contractor. The Gashuun Sukhait-Gantsmod border crossing is now the second Mongolia-China border level with a rail crossing, with the opposite at Zamyn-Uud-Erlian.

Progress Rail, a division of Caterpillar, agreed to produce 16 locomotives to assist operations for the railway venture. The brand new locomotives are designed to suit the 1,520 mm gauge utilized in Mongolia, Russia, and different former Soviet republics.

Mongolia’s present 1,900 km rail community was nearly solely constructed throughout the twentieth century with assist from the Soviet Union. It consists primarily of the Trans-Mongolia line between Russia and China, and a spur line to the town of Erdenet. – AFP

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