"The opening of the Khangi-Mandal port will create the second Gashuunsukhait and the second Zamiin-Uud"Society
Ulaanbaatar /MONTSAME/. Prime Minister L. Oyun-Erdene delivered remarks at the ceremony to commence the construction of railway en route Zuunbayan-Khangi on March 11.
“Dear Mongolian Citizens,
Dear guests and representatives, gathered with us today to witness today’s such historical event;
To successfully sustain the resources and backgrounds of the long-term development plan of Mongolia, to resolve matters that pose limits to developments in a short span of time, and to extend economic circumferences, “The New Revival Policy” suggested by the Mongolian Parliament has been activated since the 1st of January of 2022. We successfully managed to start the implementation of underground mining by Oyu-Tolgoi, which was the first important task of the policy.
And we are gathered here today to celebrate the start of building 226kms of railroads between Zuunbayan-Khangi, the second big project of the 'New Revival Policy', with the partnership of private and public enterprises, with a goal of finishing it within half a year.
You may recall when the 'New Revival Policy' was passed by the State Great Assembly, I said that “We cannot discuss progress without resolving the issues of border points when our economy only relied on mining, the state budget only consisted of coal export, petrol was imported from a single country, and imports was connected to only one border point - where we felt the impacts even more during COVID times, and our economy was in worse shape.”
This is the reason for promoting the construction of connecting all
border points via roads, railroads, and highways in consecutive steps, and to extend its economic background in the spectrum of the 'New
Having no access to the sea, out of 42 dry-road border points, only 3 of them - Sukhbaatar, Ereentsav, and Zamiin-Uud are connected by railroads.
About half the amount of copper and copperized coal exports, our main exports, are passed solely through Gashuunsukhait whereas the 70 percent of imported common-use goods are passed by Zamiin-Uud border point.
Khangi border point is located exactly at the middle point of Gashuunsukhait and Zamiin Uud, making it a geopolitically strategic point.
By connecting the Khangi-Mandal port by rail and opening a new gateway, our country's import and export capacity will increase by a total of 20 million tons, and the total volume of rail transportation will increase by 65 percent, respectively. With the commissioning of the Zuunbayan-Khangi railway, transportation to Baotou, China, the neighboring country's main mining export market, will be shortened by 242 kilometers, saving transportation costs and time.
In other words, the opening of the Khangi-Mandal port will create the second Gashuunsukhait and the second Zamiin-Uud.
180 companies and more than 3,500 workers will take part in the construction of the 226-kilometer Zuunbayan-Khangi railway, which will create more than 1,300 jobs. This construction is a branch of the Zuunbayan railway, creating the first tripartite railway junction in Mongolia.
Mongolia is starting the construction of a railway linking the Khangi port with the Chinese port of Mandal today.
This month, the Government of Mongolia is racing to complete the 416-kilometer Tavan Tolgoi-Zuunbayan railway. The Khangi-Mandal railway will be operational in half a year and will connect the Tavan Tolgoi-Zuunbayan railway to transport Oyu Tolgoi copper concentrate, Tavan Tolgoi coking coal, and other export products through a new market based on free-market competition, and increase the value of mineral deposits in the Gobi region and new opportunities for economic circulation will open up.
As the Prime Minister of Mongolia, I would like to reiterate that we are always ready to cooperate with investors and companies in a mutually beneficial manner within the framework of the 'New Revival Policy' proposed by the Government of Mongolia.
I would like to emphasize today that the start of construction of the Zuunbayan-Khangi railway is an important step in increasing exports, creating rapid economic growth, and ensuring economic independence and autonomy.
Economic challenges continue to be faced around the world. But we must not give up on the goals we have set for Mongolia's revival amid the crisis. On the contrary, we must work together more than ever to overcome the difficulties and achieve our goals and objectives!
On behalf of the Government of Mongolia, I would like to wish the investors, companies, engineers, technicians, and the armed forces success in their work in completing the 226-kilometer Zuunbayan-Khangi railway in the first half of the year.
Let’s implement the revival policy nationwide,
May Mongolia prosper!”