Transport Connectivity and Logistics Center is to be Built with World Bank

2022-12-18 14:26:25

Ulaanbaatar /MONTSAME/. Mongolia Transport Connectivity and Logistics Improvement Project will be implemented in our country with a World Bank loan.


The Minister of Road and Transport Development, S. Byambatsogt, received the World Bank Regional Director for China and Mongolia Mara Warwick, Country Manager for Mongolia Andrey Mikhnev, and related specialists. During the meeting, he stated that this significant project is being launched in Mongolia's road and transport industry in cooperation with the World Bank.


It is planned to establish a model regional logistics hub in Uvurkhangai aimag to improve the physical connectivity and logistics efficiency for meat processing depending on the transport flow, the number of animal heads, and geographical location by the feasibility study prepared by the World Bank. The project agreement was finalized between the World Bank, the Ministry of Finance, the Ministry of Economy and Development, and the Ministry of Road and Transport Development. The Ministry of Economy and Development and the Ministry of Finance prepared the project for State Great Khural discussion at the Cabinet Meeting on November 30 this year. A working group was established to support the preparation of the project to implement the project without any delay. The Minister stated that the Project Implementation Unit should be officially confirmed after the State Great Khural made a particular decision since the operational costs and related funding for the Project Implementation Unit still need to be clarified.


The Minister of Road and Transport Development, S. Byambatsogt, expressed his gratitude to the World Bank for helping Mongolia to rapidly overcome the transition period's difficulties, improving the fading infrastructure industry, and implementing concessional loans, grants, and technical assistance for this project. Also, the Government of Mongolia is paying particular attention to transport connectivity development. In this regard, it was emphasized that Strengthening International Trade and Logistics through the Participation of the Private Sector and the Preliminary Feasibility Study of the Transport Connectivity Port in Zamiin-Uud project was started in October 2022 with the technical assistance of the World Bank.


In 2013, Mongolia signed the UN Transport Connectivity Project Agreement, including Altanbulag, Ulaanbaatar, Sainshand, and Zamiin-Uud as transport connectivity and Choibalsan as a future possible transport connectivity location. The following works should be done within this project:


• determine the location of the transport connectivity port,

• integrate into regional and international transport networks, improvement of logistics,

• facilitate private sector participation,

• to attract investment and create a structure and organization that supports coordination,

• create legal arrangements for the establishment of a transport connectivity port.


Furthermore, he asked to cooperate in developing a feasibility study for establishing a transport connectivity port in Zaiiyn-Uud. He also noted that the western vertical transport corridor of the AN4 direction had been put into operation. Accordingly, it was also requested study the establishment of a transport connectivity port in Khovd aimag.


He noted that the work of connecting the same transport corridor with railways in the eastern region is starting. Choibalsan City of Dornod aimag, supported by the railway, should also be turned into a transport connectivity port. We need multiple exits for supplying export and import goods except for Zamiin Uud. The Minister of Road and Transport Development expressed his position that the price of goods can be kept stable by having many transport connectivity and logistics passageways.


The representatives of the World Bank stated being ready to support and expand cooperation in the future diversification of the Mongolian economy within the logistics center project and technical assistance. Roads and transport cannot develop without logistics. It is the right decision that the Government of Mongolia and the Ministry of Road and Transport Development pay attention to the logistics development and implement them in an interconnected manner.


In the technical assistance framework for establishing a transport connectivity port, criteria should be assessed and documented. Some components can be prioritized after the State Great Khural approves the draft. The World Bank expressed its willingness to cooperate in all respective ways.