CONSTRUCTION OF CROSS-BORDER RAILWAY BEGINS AT GASHUUNSUKHAIT–GANTSMOD PORT

Since 2008, more than 60 rounds of negotiations have taken place, culminating in an intergovernmental agreement between Mongolia and the People’s Republic of China. As a result, construction of the cross-border railway officially commenced on May 14, 2025.

The railway is a first-class line featuring dual tracks with both 1520 mm broad gauge and 1435 mm standard gauge. The main line will span 19.5 kilometers and include both single and double-track bridge structures.

Designed to transport up to 30 million tons of freight annually via the broad-gauge line and 10 million tons via the standard-gauge line, the railway represents a major infrastructure investment. The total project budget stands at 902 billion MNT, with financing provided by Erdenes Tavantolgoi JSC, in line with Resolution No. 68 of the State Great Khural (Parliament) of Mongolia, adopted in 2023.

The launch of this project paves the way for connecting additional Mongolia–China border ports—Shiveekhuren–Sekhee, Bichigt–Zuunkhatavch, and Khangi–Mandal—by rail, as outlined in further intergovernmental agreements.

In addition to the railway deal, the two sides have signed supplementary agreements covering coal sales, procurement, and the expansion of the Tavantolgoi mine. Under these agreements, Mongolia will export 27 million tons of coal to China between 2025 and 2029, and more than 20 million tons annually starting in 2030.

As a result, Mongolia’s coal export capacity is projected to rise from 83 million tons to 165 million tons, increasing annual export revenues by USD 1.5 billion and making a significant contribution toward raising the country’s per capita GDP to USD 10,000.