China and Mongolia to accelerate coal exports and increase logistics efficiency Signed an agreement to build a new railway line between Gashuun-Sukhait and Gants-Mod.This project, aims to reduce costs and strengthen the supply chain by reducing dependency on road transport.
Agreement, Approved by the heads of government of both countries on February 14, 2025.Construction Starting in April 2025 and completion in 2028 is being planned.
New Era in Mongolia's Coal Exports
Currently in Mongolia Coal from Tavan Tolgoi coalfield is transported by road.This method, causes high logistics costs and extended delivery timesWith the new railway line coming into operation:
- Transport time will be shortened,
- Shipping costs will decrease,
- Coal supplies to China will become more regular.
Experts say the railway line will reach an annual coal carrying capacity of 165 million tons This capacity increase is estimated to be It will strengthen Mongolia's economy by increasing its export revenues and further strengthen trade ties with China..
Growth in Mongolia’s Coal Exports
A significant increase in Mongolia's coal exports has been observed in recent years.
- While 2022 million tons of coal was exported in 31, this figure increased to 2023 million tons in 70.
- Record-breaking 2024 million tons of coal to be supplied to China in 83.
- 60% of China's coke needs are met by Mongolia.
This growth, Due to China's increasing demand in the metallurgical sector. With the new railway line Mongolia's coal exports to China will become more efficient, increasing its competitiveness in global energy markets.
A New Step in Economic Cooperation
The railway project is only It will not only speed up coal transportation but also strengthen economic ties between the two countries.. Thanks to the direct railway connection:
- Congestion on highways will decrease,
- Coal supply chain will become more reliable,
- Long-term energy cooperation between the two countries will be encouraged.
The railway line is planned to be completed in 2028, It will be a strategic turning point in Mongolia's trade with ChinaThis investment, will lead a significant change in energy transportation in Asia by strengthening the logistics infrastructure.
