Mongolian truck companies engaged in coal transport from the Tavan Tolgoi coal mine to the Gashuunsukhait border crossing went on strike on 6 May, demanding an increase in transport services fees.
Currently, there are more than 170 companies engaged in coal transport on the route. Presently, the transport service price has slumped to 65 yuen/t from the previous 115 yuen/t, pushing many of them into the red, according to the Coal Transport Industry Protection Association, which announced the strike.
Among the 170 coal transport companies, 80% are controlled by Chinese investors and only 20% are Mongolian-funded firms. The association urged an expansion in the Mongolian-owned market share and a public discussion on coal transport and purchase issues by 13 May.
Currently, the strike had a limited impact on coal transport through Gashuunsukhait border crossing, which connects with the Ganqimaodu (Gantsmod) border crossing on the Chinese side. On 6 May, 761 coal trucks went through the Ganqimaodu border crossing, almost unchanged from levels before the May Day holiday.
The strike, according to sxcoal.com, was also due partly to import quotas imposed by local authorities on imported Mongolian coal for further preparation into washed coal. Most of the quotas were given to Chinese truck companies, causing dissatisfaction among Mongolian truckers. (china coal index)