Yo.Manlaibayar: Mongolia will have three huge transit railroad corridors
In an interview with Yo. Manlaibayar, the chairman of the Coordinating Department of Railway and Maritime Policy of the Ministry of Roads and Transportation, we learn more about proposals for the renovation of Ulaanbaatar Railway.
-A trilateral Russian-Mongolian-Chinese meeting about railroad issues was held last December. What was the main issue covered during the meeting?
-A trilateral Russian-Mongolian-Chinese meeting was held on December 18. The main subject of the meeting was the “North Corridor”, the nearest path connecting Russia and China to Europe through Mongolia. Both [Russia and China] clarified their interests in the path several times. Due to the lack of idle capacity, Mongolia has yet to use it efficiently; therefore, Mongolia invited representatives of both countries to construct a strategy for the enhancement of efficacy, since the corridor doesn’t pass through only Mongolia.
No matter how much we improve one side, overall, it would not make significant changes. Thus, it is urgent for the railroad’s capacity to be enhanced in Russia from Naushki to the Trans-Siberian railroad, and in China from Erenhot to Jining.
Through this meeting we were able to understand how our two neighboring countries perceived the issue.
-What conclusion were the three countries able to agree on and by what means will they cooperate with our country?
-The representative from China reported that they have been working on blueprints for reconstructing the railroads with double railroads and electrical power. As for Russia, they are currently able to use up to 25 percent of their railway from Naushki to the Trans-Siberian railroad, and if Ulaanbaatar is able to enhance its capacity, Russia is ready to enhance capacity together with Mongolia’s. This was one of the main negotiations in the meeting.
Secondly, Russia shared that they were also ready to assist with the renovation of Ulaanbaatar Railway including blueprints, investments and technology issues.
-A special operation for the renovation of Ulaanbaatar Railway is being constructed. How much capacity will be increased with the renovation?
-A general congress of the Ulaanbaatar Railway was held in November 2013. The first -project for renovation, discussed for over ten years, was validated. The renovation of Ulaanbaatar Railway had been discussed since 1990 and projects actually began in the latter half of 2013.
We discussed detailed projects requiring completion by 2015, and have confirmed 257 million USD in required expenses, which includes construction work for replacing mechanical linkages, the widening of stations and the lengthening of railroad junctions. By doing so, the capacity of Ulaanbaatar will increase from its current capacity of 20 million tons to 34 million tons by the end of 2015. In 2013, 20.5 million tons was transported, which, by itself, is the highest achievement made capacity within the limits of current technology. This is why reconstruction of the railroads and the lengthening of stations are crucial for the company.
-Even if we do get enhanced railway capacity, will we have enough cargo?
-As the years pass, the amount of exports and imports in Mongolia is increasing, though the profit for the country is deficient. We discussed increasing the number of transit railways because it is the most profitable solution. We have said that we will enhance our capacity and insisted that Russia and China give us their cargo, which they agreed on, making it one of the negotiation policies.
-So does that mean that Russia will transport cargo to China and vice-versa? Were the previous transports one-way?
-Until 2006, Mongolia transported up to six million tons of petroleum a year to China through transit rail, but current records show that 1.4 million tons is being transported through transit rails. Not to mention, it used to be one-way transportation from Russia to China. After cargo had been transported the train would return with an empty wagon. However, it has been decided that both sides will exchange cargo. Russia agreed upon transporting mainly mining products to China and China will be transporting containers to Russia. We will make trilateral plans by the end of January.
-The main target zone for the two-way transportation is said to be our country. There must have been detailed calculations about the nation’s profits, right? Overall, how profitable is the transit railway?
-Yes, in general, transit railway is the most profitable means of transportation. Ulaanbaatar Railway has achieved its greatest profit in 2013. As the operations increase, the profit should correspondingly increase. However, our profits did not increase because the transportation goods are mainly internal coal. Coal, by itself, is a non-profitable cargo. The price of electricity rises whenever we try to raise transportation fees. This is connected to the fact that it is namely coal used for electric power stations. The internal capital loss for the transporting coal in the country was 14 million USD, looking at just 2013’s statistics. With passenger transportation following behind. In contrast to auto-transport, railway is 15 times cheaper. This too is unprofitable. Even with increased ticket fees, the loss would increase, since society’s burden is tied into it. The way to avoid loss is to increase profitable work by maximizing the transportation of profitable goods. The most profitable work is transit. If we can increase transit, we can overcome society’s burden and will be able to work efficiently, with profit.
-Currently, 1.4 million tons of transit is being conducted. So how much trade passing through the corridors to our neighboring countries increase?
-Obviously, we aim for it to increase by up to 10 to 20 million. During the trilateral meeting our neighbors said they will multiply reciprocity in trade by 2.5, which means the current reciprocity in trade (80 billion) will become 200 billion. Thus, the corridor for this trade is crucial. In order to pass this cargo through our country, increased capacity of Ulaanbaatar Railway is needed. This work is in progress. Ulaanbaatar Railway can have two-way railroads. A pre-feasibility study is being conducted. If we can achieve this, the capacity will grow by up to 100 million. On the other hand, if we cannot handle 100 million tons of cargo, it will have been a deficient investment. Along these lines, the pivotal issue we need to concentrate on is to have one side invest while the other increases their trade reciprocity.
-Assuming we finish the 1,800 km long railway, how many transit corridors can be built?
-According to our statistics, Ulaanbaatar Railway is 1,800 kilometers long. We are planning to add an additional 5,600 kilometers to the length. In other words, it will increase to four times its length. As the years go by, the transportation of mining products is increasing. Estimates show that by 2020, 100 million tons of cargo is to be exported. It is absolutely necessary for us to have the capacity for this transportation, but with only Ulaanbaatar Railway, it is impossible. Hence, we need three to four other sources.
On the other hand, with the new 1,800 kilometer long railroad route, it makes it possible to build two more transit corridors: one transit corridor connecting Russia and China, and the other enabling internal cargo to transport to our neighbors. Stated simply, Mongolia will have three transit corridors. Currently, we have only one passing through Ulaanbaatar Railway.
Short URL: http://ubpost.mongolnews.mn/?p=7296
-A trilateral Russian-Mongolian-Chinese meeting about railroad issues was held last December. What was the main issue covered during the meeting?
-A trilateral Russian-Mongolian-Chinese meeting was held on December 18. The main subject of the meeting was the “North Corridor”, the nearest path connecting Russia and China to Europe through Mongolia. Both [Russia and China] clarified their interests in the path several times. Due to the lack of idle capacity, Mongolia has yet to use it efficiently; therefore, Mongolia invited representatives of both countries to construct a strategy for the enhancement of efficacy, since the corridor doesn’t pass through only Mongolia.
No matter how much we improve one side, overall, it would not make significant changes. Thus, it is urgent for the railroad’s capacity to be enhanced in Russia from Naushki to the Trans-Siberian railroad, and in China from Erenhot to Jining.
Through this meeting we were able to understand how our two neighboring countries perceived the issue.
-What conclusion were the three countries able to agree on and by what means will they cooperate with our country?
-The representative from China reported that they have been working on blueprints for reconstructing the railroads with double railroads and electrical power. As for Russia, they are currently able to use up to 25 percent of their railway from Naushki to the Trans-Siberian railroad, and if Ulaanbaatar is able to enhance its capacity, Russia is ready to enhance capacity together with Mongolia’s. This was one of the main negotiations in the meeting.
Secondly, Russia shared that they were also ready to assist with the renovation of Ulaanbaatar Railway including blueprints, investments and technology issues.
-A special operation for the renovation of Ulaanbaatar Railway is being constructed. How much capacity will be increased with the renovation?
-A general congress of the Ulaanbaatar Railway was held in November 2013. The first -project for renovation, discussed for over ten years, was validated. The renovation of Ulaanbaatar Railway had been discussed since 1990 and projects actually began in the latter half of 2013.
We discussed detailed projects requiring completion by 2015, and have confirmed 257 million USD in required expenses, which includes construction work for replacing mechanical linkages, the widening of stations and the lengthening of railroad junctions. By doing so, the capacity of Ulaanbaatar will increase from its current capacity of 20 million tons to 34 million tons by the end of 2015. In 2013, 20.5 million tons was transported, which, by itself, is the highest achievement made capacity within the limits of current technology. This is why reconstruction of the railroads and the lengthening of stations are crucial for the company.
-Even if we do get enhanced railway capacity, will we have enough cargo?
-As the years pass, the amount of exports and imports in Mongolia is increasing, though the profit for the country is deficient. We discussed increasing the number of transit railways because it is the most profitable solution. We have said that we will enhance our capacity and insisted that Russia and China give us their cargo, which they agreed on, making it one of the negotiation policies.
-So does that mean that Russia will transport cargo to China and vice-versa? Were the previous transports one-way?
-Until 2006, Mongolia transported up to six million tons of petroleum a year to China through transit rail, but current records show that 1.4 million tons is being transported through transit rails. Not to mention, it used to be one-way transportation from Russia to China. After cargo had been transported the train would return with an empty wagon. However, it has been decided that both sides will exchange cargo. Russia agreed upon transporting mainly mining products to China and China will be transporting containers to Russia. We will make trilateral plans by the end of January.
-The main target zone for the two-way transportation is said to be our country. There must have been detailed calculations about the nation’s profits, right? Overall, how profitable is the transit railway?
-Yes, in general, transit railway is the most profitable means of transportation. Ulaanbaatar Railway has achieved its greatest profit in 2013. As the operations increase, the profit should correspondingly increase. However, our profits did not increase because the transportation goods are mainly internal coal. Coal, by itself, is a non-profitable cargo. The price of electricity rises whenever we try to raise transportation fees. This is connected to the fact that it is namely coal used for electric power stations. The internal capital loss for the transporting coal in the country was 14 million USD, looking at just 2013’s statistics. With passenger transportation following behind. In contrast to auto-transport, railway is 15 times cheaper. This too is unprofitable. Even with increased ticket fees, the loss would increase, since society’s burden is tied into it. The way to avoid loss is to increase profitable work by maximizing the transportation of profitable goods. The most profitable work is transit. If we can increase transit, we can overcome society’s burden and will be able to work efficiently, with profit.
-Currently, 1.4 million tons of transit is being conducted. So how much trade passing through the corridors to our neighboring countries increase?
-Obviously, we aim for it to increase by up to 10 to 20 million. During the trilateral meeting our neighbors said they will multiply reciprocity in trade by 2.5, which means the current reciprocity in trade (80 billion) will become 200 billion. Thus, the corridor for this trade is crucial. In order to pass this cargo through our country, increased capacity of Ulaanbaatar Railway is needed. This work is in progress. Ulaanbaatar Railway can have two-way railroads. A pre-feasibility study is being conducted. If we can achieve this, the capacity will grow by up to 100 million. On the other hand, if we cannot handle 100 million tons of cargo, it will have been a deficient investment. Along these lines, the pivotal issue we need to concentrate on is to have one side invest while the other increases their trade reciprocity.
-Assuming we finish the 1,800 km long railway, how many transit corridors can be built?
-According to our statistics, Ulaanbaatar Railway is 1,800 kilometers long. We are planning to add an additional 5,600 kilometers to the length. In other words, it will increase to four times its length. As the years go by, the transportation of mining products is increasing. Estimates show that by 2020, 100 million tons of cargo is to be exported. It is absolutely necessary for us to have the capacity for this transportation, but with only Ulaanbaatar Railway, it is impossible. Hence, we need three to four other sources.
On the other hand, with the new 1,800 kilometer long railroad route, it makes it possible to build two more transit corridors: one transit corridor connecting Russia and China, and the other enabling internal cargo to transport to our neighbors. Stated simply, Mongolia will have three transit corridors. Currently, we have only one passing through Ulaanbaatar Railway.
Short URL: http://ubpost.mongolnews.mn/?p=7296
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