The inauguration ceremony for the construction of the cross-border railway at the Gashuunsukhait-Gantsmod port, linking Mongolia and China, is being held today. The event is attended by Prime Minister of Mongolia L. Oyun-Erdene, members of Parliament and the Cabinet, representatives of the Government of the People’s Republic of China, the Chinese Ambassador to Mongolia, the Chairman of the Board of Directors of China Energy Group, and representatives of the contracting organizations from both countries.

This marks the second cross-border railway connection between Mongolia and China, following the Zamiin-Uud–Ereen railway, which was established under a bilateral agreement in 1955.

The intergovernmental agreement to connect the Gashuunsukhait-Gantsmod port by rail was signed on February 14 of this year, with construction commencing three months later.

First proposed in 2004 and under negotiation since 2008, the project has now come to fruition. The new railway link is expected to double the port’s capacity, increase annual coal export volumes to 165 million tons, and generate an additional USD 1.5 billion in revenue each year.

The Gashuunsukhait–Gantsmod cross-border railway will feature a double track system consisting of a 1,520 mm broad gauge and a 1,435 mm narrow gauge. The main line will span 19.5 km. The broad gauge railway will have the capacity to transport up to 30 million tons of cargo annually, while the standard gauge line will handle 10 million tons per year. The total project budget is estimated at MNT 902 billion. In accordance with Resolution No. 68 of the Parliament of Mongolia, passed in 2023, the project will be financed by Erdenes Tavantolgoi JSC.

The Gashuunsukhait–Gantsmod port railway is expected to boost Mongolia’s coal exports, enhance its transportation and logistics infrastructure, and serve as a major driver of economic growth. Once operational, the cross-border railway will increase coal export volumes from the current 83 million tons to 165 million tons annually. It is also projected to raise Mongolia’s annual export revenue by MNT 1.5 billion and contribute toward achieving a per capita gross domestic product of USD 10,000.

With the launch of this project, further groundwork is being laid to connect other Mongolian-Chinese border ports – such as Shiveekhuren-Sekhee, Bichigt-Zuunkhatavch, and Khangi-Mandal—under the framework of an existing intergovernmental agreement.