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The construction of the 127.1-kilometer Bagakhangai–Khushig Valley–Emeelt railway, being implemented by Ulaanbaatar Railway SOE, is progressing intensively in accordance with the project plan. The project, with a total investment of MNT 1.9 trillion, commenced in April 2025. As of today, the main construction works for the first phase, covering 87.2 kilometers of railway, have been completed.As part of the financing required to continue the project’s construction, the Development Bank of Mongolia has provided USD 100.0 million in financing. This funding is crucial for ensuring the uninterrupted continuation of construction works and for completing the project within the planned timeframe.Once the new Bagakhangai–Khushig Valley–Emeelt railway is commissioned, it will help reduce the burden on Ulaanbaatar’s road traffic while enabling a greater share of freight transportation to be shifted to rail.

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MONGOLIA’S DEVELOPMENT BANK PROVIDES USD 100 MILLION IN FINANCING

Today, O. Batchuluun, Chief Executive Officer of “Mongolian Railway” SOE, met with N. Budbayar, Chief Executive Officer of DBM Leasing LLC, a subsidiary of the Development Bank of Mongolia.During the meeting, the parties exchanged views and discussed possible financing solutions for the purchase of locomotives required to meet the anticipated increase in transportation demand following the commissioning of the Gashuunsukhait–Gantsmod cross-border railway. The discussion was held in connection with the ongoing acceleration of construction works for the project.

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DISCUSSIONS HELD ON SECURING FINANCING FOR INVESTMENT

&nbsp;At the urgent meeting held by the Minister of Road and Transport on August 18, 2026, instructions were issued to pay particular attention to several areas related to the operations of railway organizations.&nbsp;In particular, relevant organizations were instructed to personally monitor the progress of major government-implemented projects and construction works on site, and to take concrete measures to increase coal transportation.&nbsp;In this regard, the management of “Mongolian Railway” SOE was instructed to visit the construction site of the Bagakhangai–Khushig Valley–Emeelt railway project in person, together with design specialists and engineers, assess the progress of the work on site, and promptly resolve any issues encountered.&nbsp;It was also emphasized that payments related to design work should not be settled in cases where errors or violations have occurred. Furthermore, when constructing engineering structures such as bridges, culverts, and underpasses, unnecessary costs arising from design deficiencies must be avoided.&nbsp;In addition, the relevant organizations were instructed not to incur unjustified additional costs related to work performance and to implement projects and construction works strictly in accordance with the approved designs, plans, and budgets.

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MADE IT MANDATORY TO PERSONALLY SUPERVISE MAJOR CONSTRUCTION PROJECTS

The Prime Minister of Mongolia and relevant members of the Government are continuing their work at the construction site of the 476-meter-long bridge over the Tuul River, located at kilometer 110 of the Bagakhangai–Khushig Valley–Emeelt railway route.The bridge, one of the project's largest engineering structures, is being constructed by five Mongolian companies led by Ochirnyam LLC. Beam installation is currently underway on the northern section of the bridge. A total of 20 beams are planned, of which 8 have been installed so far.The area around the Tuul River is low-lying and prone to flooding. During periods of heavy precipitation, water can accumulate, while rising river levels may increase the risk of flooding. Therefore, the construction of the bridge foundations, supports, and embankments requires sophisticated engineering solutions.Along the entire railway route, 1,200 meters of reinforced-concrete bridge structures are planned at nine locations, along with water crossings, wildlife and livestock passages, and 127 reinforced-concrete culverts.&nbsp;

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476-METER-LONG BRIDGE CONSTRUCTION CONTINUES

&nbsp;Mongolian Prime Minister N. Uchral and members of the Government are visiting the construction site of the Bagakhangai–Khushig Valley–Emeelt railway project, being implemented by Mongolian Railway (MTZ) SOE, today to address and resolve outstanding issues.The total length of the project's main railway line is 127.1 kilometers. The line will branch off from Bagakhangai Station of Ulaanbaatar Railway JSC, located in Bagakhangai District of Ulaanbaatar, and run through Sergelen and Altanbulag soums of Töv Province before connecting to Emeelt Station. The project plans to construct four railway stations and three passing loops along the line.

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MONGOLIAN PRIME MINISTER VISITS THE BAGAKHANGAI–KHUSHIG VALLEY–EMEELT RAILWAY PROJECT SITE

During their visit to the construction site of the Bagakhangai–Khushig Valley–Emeelt railway project, Mongolian Prime Minister N. Uchral and members of the Government visited Bagakhangai Station and the 33-meter-deep cutting located at kilometer 43 of the project. They are reviewing construction progress and discussing challenges on site.Construction of the 87.8-kilometer railway section from Bagakhangai Station to Khushig Valley began on April 25, 2025. As of today, the main earthworks, railway superstructure installation, bridge structures at five locations, and culvert construction have all been fully completed.With this, the main construction of the first 87.8 kilometers of the project's first phase has been completed. The project has now entered the final stage, with work continuing to ensure compliance with railway quality and technical requirements and to prepare the line for commissioning. The total volume of earthworks for the project is 31.3 million cubic meters.During the visit, officials also reviewed the progress of work on the 33-meter-deep cutting at kilometer 43 of the first-phase railway alignment. This section is one of the more challenging parts of the project due to its terrain, soil conditions, and engineering requirements. Earthworks were carried out in stages, taking into account the mountain valley, steep terrain, and specific soil characteristics.&nbsp;

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MAIN CONSTRUCTION OF THE FIRST 87.8 KM COMPLETED, PREPARATIONS UNDERWAY FOR COMMISSIONING

The amount of freight transportation between TT-ZB, TT-GSH railway

Тавантолгой-Зүүнбаян &nbsp;Тавантолгой-Гашуунсухайт чиглэлийн төмөр замаар хийсэн тээвэр

Тавантолгой-Зүүнбаян  Тавантолгой-Гашуунсухайт чиглэлийн төмөр замаар хийсэн тээвэр

The amount of freight transportation between TT-ZB railway

<a href="https://res.cloudinary.com/dlo8veppc/raw/upload/v1769739274/Short_prospectus_2025_2_11_17_english_32f91e45fa.pptx" target="_blank" rel="noopener noreferrer">Танилцуулгыг энд дарж үзнэ үү.</a>&nbsp;

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BAGAKHANGAI–KHUSHIG VALLEY BRANCH RAILWAY PROJECT


"In accordance with Annex 2 of Government Resolution No. 155 from 2019, a significant allocation of 400 hectares of land has been issued for the establishment of a logistics center.&nbsp;This center plays a vital role in the region's logistics infrastructure, and it has approximately 14 kilometers of broad and standard gauge railways. It is a complex structure with a 19-meter-long reinforced concrete bridge structure, a 1.6-kilometer road, infrastructure, buildings, and engineering networks intersecting with the railway entering and exiting the logistics center on two levels.&nbsp;&nbsp;1.Transfer all types of containers from one wagon to another2.Transfer of all types of cargo from open wagon to another3.Transfer all types of containers from vehicles to wagons&nbsp;<figure class="image"><img src="https://res.cloudinary.com/dlo8veppc/image/upload/v1695863543/image_9b2e72040a.png"></figure>&nbsp;&nbsp;&nbsp;&nbsp;

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"In accordance with Annex 2 of Government Resolution No. 155 from 2019, a significant allocation of 400 hectares of land has been issued for the establishment of a logistics center. This center plays a vital role in the region's logistics infrastructure, and it has approximately 14 kilometers of broad and standard gauge railways. It is a complex structure with a 19-meter-long reinforced concrete bridge structure, a 1.6-kilometer road, infrastructure, buildings, and engineering networks intersecting with the railway entering and exiting the logistics center on two levels.

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 “Dunzyaan Galiin Port Zone” consists of a terminal, logistics, and tourism area.&nbsp;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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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.

TIANJIN TRANSPORT AND LOGISTICS CENTER PROJECT

COMMISSIONING OF THE 1255 KILOMETER RAILWAY ROUTE "ARTSSUURI-NARIINSUKHAIT-SHIVEEKHUREN"A new railway system in the Artssuuri-Narinsukhait-Shiveekhuren direction will be built in accordance with Resolution No. 106 of the State Great Khural of Mongolia, dated December 30, 2021, titled "Approval of the New Revival Policy. Additionally, a decision was made to implement the railway project in the Artssuuri-Nariinsukhait-Shiveekhuren direction under Government Resolution No. 116 of 2022.&nbsp; The "Artssuuri-Nariinsukhait-Shiveekhuren" railway, situated within the western vertical route, is projected to have a preliminary length of 1255 km and upon the complete implementation of the railway, the annual cargo turnover is projected to reach a range of 15-20 million tons.&nbsp;‘’ARTSSUURI-NARIINSUKHAIT-SHIVEEKHUREN’’ RAILWAY PROJECTIn accordance with the execution of Government Resolution No. 116 of 2022, the process of selecting domestic and international companies for investment in railway infrastructure construction along the "Artssuuri-Nariinsukhait-Shiveekhuren" direction was conducted.The announcement of this selection occurred on May 17, 2022, as per the pre-selection criteria document. This document was dispatched to a total of 46 companies, and offers were received by June 8, 2022.On June 9, 2023, both "Mongolian Railway" SOSC and "East Corridor Railroad" LLC formally signed and confirmed the shareholders' agreement for "Artssuur-Nariinsukhait-Shiveekhuren Railway" LLC. The company successfully obtained its state registration certificate on July 3, 2023, for special purposes.The State Secretary of the Ministry of Road Transport and Development granted approval on January 24, 2023, for the task of developing the feasibility study dedicated to the construction of the railway infrastructure within the project.An official letter No. 01/1081, "Concerning Concession Agreement," dated July 21, 2023, has been submitted to the State Procurement Office.&nbsp;&nbsp;CONSTRUCTION AND COMMISSIONING OF THE 426 KM RAILWAY LINE CHOIBALSAN-KHUUT-BICHIGTIn alignment with the "Vision 2050" development policy and Parliament Resolution No. 32 of 2010, specifically outlined in clauses 3.2.2.4 for Choibalsan-Khuut and 3.2.4.4 for Khuut-Bichigt, the establishment of the railway route between these regions is designated as a paramount priority.&nbsp; In order to carry out the Khuut-Choibalsan and Khuut-Bichigt railway projects, "Choibalsan-Khuut-Bichigt" LLC was formally established by Government Resolution No. 116 of 2022.&nbsp;&nbsp; The railway will have the capacity to convey 20–25 million tons of freight annually. The Bichigt-Ereentsav railway corridor is 500 kilometers shorter than the railway between Russia and China, and it is possible to save $12 USD every ton of cargo. This route will play a significant role in the transport of cargo between Europe and China.&nbsp;CHOIBALSAN-KHUUT&nbsp; RAILWAY PROJECTIn 2014, "Nippon Koei" Co., Ltd. provided technical consulting services, and "McKinsey &amp; Company" conducted a preliminary feasibility study for Phases I and II of the "State Policy on Railway Transportation."&nbsp; In accordance with Government Resolution No. 116 of 2022, "East Corridor Railroad" LLC actively participated in the selection process for the 426 km Choibalsan-Khuut-Bichigt railway line, which was announced by “Mongolian Railway" SOSC. The selection process concluded with "East Corridor Railroad" LLC being chosen on February 3, 2023. Subsequently, on June 15, 2023, "Mongolian Railway" SOSC and "East Corridor Railroad" LLC finalized the shareholders' agreement. The establishment and registration of "Choibalsan-Khuut-Bichigt" LLC were completed and recorded in the state register on July 3., 2023.&nbsp; The Feasibility Study for the 234 km railway line "Khuut-Bichigt" is currently underway, undertaken through a contract with the China Railway Design Corporation Ltd (CRDC). Furthermore, a consortium involving the Chinese company "China Yangtze River Petrochemical Group Limited" has agreed to jointly execute this project. An investment agreement was formally signed on June 28, 2023, in Beijing, China.&nbsp; The feasibility study and design for the first phase of the project, the border railway in Bichigt-Zuun Khatavch, is being conducted by " Mongolian Railway " SOSC."East Corridor Railroad" LLC has committed to conducting field research, feasibility studies, and designs for the Choibalsan-Khuut-Bichigt railway line, ultimately resolving the project's investment and overseeing its construction.&nbsp; Various comprehensive studies, including geology, geodesy, archeology, paleontology, and environmental impact assessments, are currently underway as part of the project's planning and development process.&nbsp;COMMISSIONING OF SHIVEEKHUREN-CEKE BORDER RAILWAYIn accordance with Government Resolution No. 232 of 2018, the establishment of "Shiveekhuren Railway" LLC was carried out in collaboration with "Nariinsukhait Railway" LLC. Their joint objective is the construction of the foundational infrastructure for a 13 km railway. Parliament Resolution No. 106 of 2021, titled "Adoption of the New Revival Policy," outlines a progressive plan to interconnect border ports comprehensively through railway development in incremental phases.&nbsp;&nbsp; Upon the successful completion of the 19.3 km border railway between Shiveekhuren and Ceke port, the export capacity for coal is anticipated to surge, enabling an annual export volume of 10 million tons.&nbsp;BICHIGT-ZUUNKHATAVCH BORDER RAILWAY PROJECT"Mongolian Railway" SOSC is actively involved in the progression of these critical studies for the development of a feasibility study approved by the Secretary of State of the Ministry of Road and Transport Development on February 7, 2023, as well as the subsequent approval of the detailed engineering design task on March 17, 2023.&nbsp; At present, professional organizations are conducting studies encompassing engineering-geodesy, engineering-geology, hydrology, Environmental Impact Assessment (EIA), archeology, and paleontology. &nbsp;&nbsp; "East Corridor Railroad" LLC has responsibility for funding the construction of the foundational structure of the Bichigt-Zuunkhatavch border railway, and the entity has been selected to implement the Choibalsan-Khuut-Bichigt railway project.&nbsp;SAINSHAND-BARUUN-URT-KHUUT DIRECTION RAILWAY PROJECTThe Mongolian Government officially approved the route for the 431-kilometer-long railway in the Sainshand-Baruun-Urt-Khuut direction in the initial appendix of Resolution No. 146 of 2016.&nbsp; In 2011, McKinsey &amp; Company developed the preliminary feasibility study for this project. Field research work was conducted within the project area between 2010 and 2013.&nbsp; By 2013, "Nippon Koei" had completed the technical design of the project, specifically the Front-End Engineering Design (FEED).&nbsp; The phased preliminary feasibility study of the Sainshand-Baruun-Urt-Khuut railway commenced in 2022 as part of the memorandum titled "Coordination of Mongolia's Railway Development Strategy with the Establishment of the East Asian Railway Association (EARC)." This memorandum was signed between the Ministry of Finance, the Ministry of Road and Transport Development of Mongolia, and the Ministry of Land, Infrastructure and Transport of the Republic of Korea.&nbsp; A draft of the government resolution pertaining to the execution of the Sainshand-Baruun-Urt-Khuut railway project was prepared and transmitted to the members of the Government. This draft was sent via Letter No. 1/3292 dated July 19, 2023.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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COMMISSIONING OF THE 1255 KILOMETER RAILWAY ROUTE "ARTSSUURI-NARIINSUKHAIT-SHIVEEKHUREN"A new railway system in the Artssuuri-Narinsukhait-Shiveekhuren direction will be built in accordance with Resolution No. 106 of the State Great Khural of Mongolia, dated December 30, 2021, titled "Approval of the New Revival Policy. Additionally, a decision was made to implement the railway project in the Artssuuri-Nariinsukhait-Shiveekhuren direction under Government Resolution No. 116 of 2022.&nbsp; The "Artssuuri-Nariinsukhait-Shiveekhuren" railway, situated within the western vertical route, is projected to have a preliminary length of 1255 km and upon the complete implementation of the railway, the annual cargo turnover is projected to reach a range of 15-20 million tons.

NEW RAILWAY PROJECT

The Tavantolgoi-Zuunbayan railway would be built in the first phase according to the government's railway transport program, which was approved by Parliament Resolution No. 32 of 2010.&nbsp; The Tawantolgoi-Zuunbayan railway project was instructed to promptly initiate it according to Parliament Resolution No. 73 of 2018.&nbsp; According to Government Resolution No. 135 of 2019, the required capital sources have been determined, and it has been agreed to build in compliance with applicable rules and regulations.&nbsp; Mongolian Railways has been granted authorization to begin construction of the basic structure of the Tavantolgoi-Zuunbayan railway under Government Resolution No. 231 of 2019.&nbsp;Implementation process:The Tavantolgoi-Zuunbayan railway project commenced construction on May 24, 2019. A remarkable achievement of 25 million cubic meters of earthworks has been successfully accomplished as an integral part of the project's scope.&nbsp; The Tavantolgoi-Zuunbayan line completed 463.2 kilometers of road infrastructure construction, 2 stations, 6 crossings, engineering networks, and the construction of the depot, repair workshop, housing, and administration buildings was handed over to the State Commission.&nbsp;&nbsp; Another significant aspect of the project involves the construction of a 455.5 km 35kV overhead power transmission line, complemented by the installation of 35/0.4kV 160kV transformers at the Tsogttsesii station and 6 crossings. The expansion endeavors of the Zuunbayan substation, Tsagaansuvarga substation, and Tsogttsetsii substation have also been flawlessly completed, handed over to the State Commission.&nbsp; The "Korea National Railway" firm performed the complex signaling and communications construction work. A total of 871 km of fiber optic cables were installed along the railway route and handed over to the Technical Commission.&nbsp; The 47-kilometer-long animal protection fence, customs inspection area, surveillance camera system, lighting, and dust protection fence construction have been executed.&nbsp; The Technical Commission established by the order of the Minister of Road and Transport Development (A/196, dated December 23, 2021, and A/152, dated June 6, 2022) made a determination as to whether the road construction work complied with applicable laws and standards and concluded that the State Commission is capable of carrying out the duties assigned by the Commission's members.&nbsp;The Tavantolgoi-Zunbayan railway line transported a total of 1.4 million tons of cargo in 2022-2023.&nbsp;&nbsp;

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The Tavantolgoi-Zuunbayan railway would be built in the first phase according to the government's railway transport program, which was approved by Parliament Resolution No. 32 of 2010.&nbsp; The Tawantolgoi-Zuunbayan railway project was instructed to promptly initiate it according to Parliament Resolution No. 73 of 2018.&nbsp; According to Government Resolution No. 135 of 2019, the required capital sources have been determined, and it has been agreed to build in compliance with applicable rules and regulations.&nbsp; Mongolian Railways has been granted authorization to begin construction of the basic structure of the Tavantolgoi-Zuunbayan railway under Government Resolution No. 231 of 2019.

TAVANTOLGOI-ZUUNBAYAN” RAILWAY ROUTE PROJECT


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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