NEW RAILWAY PROJECT
2023-09-28
mtz

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.

  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.

 

‘’ARTSSUURI-NARIINSUKHAIT-SHIVEEKHUREN’’ RAILWAY PROJECT

In 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. 

 

CONSTRUCTION AND COMMISSIONING OF THE 426 KM RAILWAY LINE CHOIBALSAN-KHUUT-BICHIGT

In 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.  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. 

  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.

 

CHOIBALSAN-KHUUT  RAILWAY PROJECT

In 2014, "Nippon Koei" Co., Ltd. provided technical consulting services, and "McKinsey & Company" conducted a preliminary feasibility study for Phases I and II of the "State Policy on Railway Transportation."

  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.

  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.

  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.

  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.

 

COMMISSIONING OF SHIVEEKHUREN-CEKE BORDER RAILWAY

In 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.

 

  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.

 

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.

  At present, professional organizations are conducting studies encompassing engineering-geodesy, engineering-geology, hydrology, Environmental Impact Assessment (EIA), archeology, and paleontology.  

  "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.

 

SAINSHAND-BARUUN-URT-KHUUT DIRECTION RAILWAY PROJECT

The 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.  In 2011, McKinsey & Company developed the preliminary feasibility study for this project. Field research work was conducted within the project area between 2010 and 2013.

  By 2013, "Nippon Koei" had completed the technical design of the project, specifically the Front-End Engineering Design (FEED).

  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.

  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.