ROAD, TRANSPORT SECTOR OF ROAD, TRANSPORT SECTOR OF

MONGOLIAMONGOLIA

Ministry of Road, transport, construction and Ministry of Road, transport, construction and urban development urban development

ContentsContents

1. Transport management structureTransport management structure

2. Present Transport network

3. Road

4. Road Transport

5. Railway Transport

6. Civil aviation

7. Water transpor

8. Problem faced in transport sector

Road transportation companies

Ministry of Road, transport, construction and

urban development

Civil Aviation Authority

Railway AuthorityRoad Research and Supervision Center

Airlines

Railway companies

Transport ServiceCenter

Government

Road construction and maintenance companies

Transport management structureTransport management structure

Present Transport network

Paved road

Gravel road

Earth road

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Airport with improved running way

Airport with paved running way

Airport with earth running way

Railway network

Number of Transport MeansNumber of Transport Means

Road transport

special3859

buses9692

truck24620

car, 78750

Sea transport

ship, 6

boat, 23

other, 5

Railway transport

Truck 2482

Locomotive,79

Pass, Wagon, 290

Air transport

Boeing, Airbus,

3

MI-8, 5

An, Fokker, 7

CURRENT SITUATION OF THE ROAD CURRENT SITUATION OF THE ROAD NETWORK OF MONGOLIANETWORK OF MONGOLIA

Total length of the country’s road network is 49186 .2 km including international, state and local government roads. Ro ad pavement type by administration is as follows:

38,031.038,031.036,637.036,637.0499.0499.0498.0498.0276.0276.055.055.0LocalLocal

49,186.249,186.242,919.642,919.61,811.31,811.32,006.42,006.42,283.32,283.3111.6111.6Total Total

11,136.211,136.26,282.66,282.61,312.31,312.31,508.41,508.42,007.32,007.356.656.6State State

TotalTotalEarth Earth

trackstracksImproved Improved

earthearthgravelgravelasphaltasphaltconcreteconcrete

Total Total

Unpaved roadUnpaved road

Paved road Paved road AdministratioAdministratio

n leveln level

In addition to the above, the MRTT is responsible f or state road construction and maintenance (11,136.2km) and, also 372 pcs or 13648long meter of concrete and wooden br idges.

TRANSPORT STRATEGYTRANSPORT STRATEGY

•• The Government of Mongolia (GOM) and other sources The Government of Mongolia (GOM) and other sources have created numerous strategies for the transport sector have created numerous strategies for the transport sector encompassing expected goals for the long term and encompassing expected goals for the long term and anticipated budgets. Included in the group is the National anticipated budgets. Included in the group is the National Development Strategy 2007Development Strategy 2007--2021 (NDS), the National 2021 (NDS), the National Transport Strategy for Mongolia (NTS), Transport Strategy for Mongolia (NTS), ““ Transit MongoliaTransit Mongolia””program, the Mongolian Road Master Plan 2008program, the Mongolian Road Master Plan 2008--2020 2020 (RMP), and a long(RMP), and a long--term 15 year investment program term 15 year investment program developed by MRTT. developed by MRTT.

•• The Mongolian Asian Highway links include following three main The Mongolian Asian Highway links include following three main corridors;corridors;

•• AHAH --33 that links regional markets of Siberia with the hinterland markethat links regional markets of Siberia with the hinterland markets and ts and the international eastern seaboard ports of China via main vertithe international eastern seaboard ports of China via main vertical road, cal road, AltanbulagAltanbulag--DarkhanDarkhan--UlaanbaatarUlaanbaatar--NalaikhNalaikh--ChoirChoir--SainshandSainshand--ZamiinZamiin uuduud

•• AHAH --44 which links the regional markets of Siberian region with Xinjiawhich links the regional markets of Siberian region with Xinjiang ng Autonomous Region in China to the border with Pakistan via westeAutonomous Region in China to the border with Pakistan via western rn vertical main road, vertical main road, TsagaannuurTsagaannuur--OlgyOlgy--KhovdKhovd--YarantYarant

•• AHAH --3232 which forms the countrywhich forms the country’’ s principle easts principle east--west horizontal arterial west horizontal arterial corridor, corridor, KhovdKhovd--UliastaiUliastai--UlaanbaatarUlaanbaatar--ChoibalsanChoibalsan--SumberSumber--NomrogNomroghas its has its eastern junction with AH31 that provides access to the Korean Peeastern junction with AH31 that provides access to the Korean Peninsula ninsula and its western junction with AHand its western junction with AH--4 in the western region of Mongolia. 4 in the western region of Mongolia.

ASIAN HIGHWAY VIA MONGOLIAASIAN HIGHWAY VIA MONGOLIA

ASIAN HIGHWAYASIAN HIGHWAY

AH32

2325kmAH32

AH4

750 kmAH4

AH3

1041 kmAH3

ASIAN HIGHWAY ROUTES IN MONGOLIAASIAN HIGHWAY ROUTES IN MONGOLIA

Western Corridor

Mongolia connects with Central Asian counties via main Mongolia connects with Central Asian counties via main twotwo corridors ascorridors as road, road/railway by following routes road, road/railway by following routes which overlapped with AHwhich overlapped with AH--4 and AH4 and AH--3.3.

•• CAREC (4a)CAREC (4a)-- YarantYarant ––KhovdKhovd--OlgyOlgy--TsagaannuurTsagaannuur in in western region western region

•• CAREC (4b) CAREC (4b) ––AltanbulagAltanbulag ––DarkhanDarkhan--UlaanbaatarUlaanbaatar--NalaikhNalaikh--ChoirChoir --SainshandSainshand--ZamiinZamiin UudUud in central regionin central region

CENTRAL ASIAN REGIONAL ECONOMIC CENTRAL ASIAN REGIONAL ECONOMIC COOPERATIONSCOOPERATIONS’’ (CAREC) CORRIDORS VIA (CAREC) CORRIDORS VIA MONGOLIAMONGOLIA

““ Transit MongoliaTransit Mongolia”” programmeprogramme

•• The The programmprogramm has adopted by Government in May of has adopted by Government in May of

2008 and it will be implemented to 2015. 2008 and it will be implemented to 2015.

•• The The programmeprogramme ““Transit MongoliaTransit Mongolia”” includes following includes following

projects:projects:

-- Construction a secondary railway lineConstruction a secondary railway line

-- Railway electrification project Railway electrification project

-- Construction Asian Highway Routes in Mongolia Construction Asian Highway Routes in Mongolia

-- Facilitation Transit transport through Mongolian territoryFacilitation Transit transport through Mongolian territory

-- Construction transport and trade logistics and terminals Construction transport and trade logistics and terminals

etc.etc.

STATE ROADS BY 2010STATE ROADS BY 2010

STATE ROADS BY 2015STATE ROADS BY 2015

Current situation of Asian highway via Current situation of Asian highway via Mongolia (2008)Mongolia (2008)

2,671.002,671.001,438.001,438.00

4,109.00 4,109.00 TotalTotal

1,585.00 1,585.00 740.00 740.00 2,325.00 2,325.00

SumberSumber--ChoibalsanChoibalsan--

UndurkhaanUndurkhaan--UlaanbaatarUlaanbaatar--

KharhorinKharhorin--UliastaiUliastai--HovdHovdAH32AH32

638.00 638.00 10105.00 5.00 743.00 743.00 UlaanbaishintUlaanbaishint--TsagaannuurTsagaannuur--

UlgiiUlgii--HovdHovd--BulganBulgan--YarantYarantAH4 AH4

(CAREC 4a)(CAREC 4a)

448.00 448.00 593.00 593.00

1,041.00 1,041.00

AltanbulagAltanbulag--DarkhanDarkhan--

UlaanbaatarUlaanbaatar--NalaihNalaih--ChoirChoir--

SaynshandSaynshand--ZamiinZamiin UudUud

AH3AH3

(CAREC 4b)(CAREC 4b)

Unpaved Unpaved

(km)(km)Paved (km)Paved (km)

Length Length

(km)(km)ItineraryItineraryRoute NoRoute No

BENEFIT TO MONGOLIA DEVELOPING OF BENEFIT TO MONGOLIA DEVELOPING OF

INTERNATIONAL ROADSINTERNATIONAL ROADS

•• To broaden local and foreign trade, and to increase volumes of To broaden local and foreign trade, and to increase volumes of freights and freights and passengers to regional markets for the sale and supply of commodpassengers to regional markets for the sale and supply of commodities at ities at more advantageous prices; andmore advantageous prices; and

•• Having two or more trade routes reduces the leverage that neighbHaving two or more trade routes reduces the leverage that neighboring oring countries may have on the cost of international transport and oncountries may have on the cost of international transport and onthe ability the ability of local products to be able to compete at least on price in intof local products to be able to compete at least on price in international ernational markets.markets.

•• To provide fast, efficient and safe access between the centers oTo provide fast, efficient and safe access between the centers of f consumption and production of the countryconsumption and production of the country’’ s five economic regions, s five economic regions, between the economic centers of these regions and the hinterlandbetween the economic centers of these regions and the hinterlandmarkets markets in neighboring Russian and China and to international markets viin neighboring Russian and China and to international markets via eastern a eastern seaboard ports of China and Russiaseaboard ports of China and Russia

Road Transport

The road transport sector has started its history The road transport sector has started its history since 1920since 1920’’ s and played an important role in s and played an important role in the transport sector of the country whereas the transport sector of the country whereas other means of transport were not sufficiently other means of transport were not sufficiently providing countrywide service.providing countrywide service.

In 1990In 1990’’ s there were 15 major entities with a fleet s there were 15 major entities with a fleet of 300of 300--1000 vehicles for intercity transport and 1000 vehicles for intercity transport and over 20 local entities carrying out cargo, over 20 local entities carrying out cargo, passenger and postal deliveries. The total passenger and postal deliveries. The total number of vehicles of these entities took up number of vehicles of these entities took up only 30 percent of the entire vehicle population only 30 percent of the entire vehicle population of the country but carried over 70 percent of of the country but carried over 70 percent of freight transport and 98.5 percent of passenger freight transport and 98.5 percent of passenger transport.transport.

With the transition into the market economy the With the transition into the market economy the demand for Road transport have increased demand for Road transport have increased among people and private entities and as a among people and private entities and as a result of government policy on privatization all result of government policy on privatization all road transport sector except four Ulaanbaatar road transport sector except four Ulaanbaatar city public bus companies were privatizedcity public bus companies were privatized..

Road Transport SectorRoad Transport Sector

•• Intergovernmental Agreements on Road Transport: Intergovernmental Agreements on Road Transport: –– /Russian Federation, China, Republic of Kazakhstan, Ukraine, Be/Russian Federation, China, Republic of Kazakhstan, Ukraine, Belarus, Turkey, larus, Turkey,

and Kyrgyz Republic / and Kyrgyz Republic /

•• International Transport Conventions to which Mongolia have accedInternational Transport Conventions to which Mongolia have acceded: ed: –– /Customs Convention on the International Transport of Goods unde/Customs Convention on the International Transport of Goods under the Cover r the Cover

of TIR Carnets, Convention on the Contract for the Internationalof TIR Carnets, Convention on the Contract for the InternationalCarriage of Carriage of Goods by Road, Convention on Road Traffic and on Road Signs and Goods by Road, Convention on Road Traffic and on Road Signs and Signals/Signals/

•• Roads transportation is mainly operated between Russia, MongoliaRoads transportation is mainly operated between Russia, Mongoliaand China, and China, which is regulated by meetings of the working groups on annual which is regulated by meetings of the working groups on annual basis.basis.

Road Transport

Is still playing main role in the transport Is still playing main role in the transport sector, but facing difficulties: sector, but facing difficulties:

•• llааck of investmentck of investment

•• inter city and inter state road transport service inter city and inter state road transport service is not developedis not developed

Railway sectorRailway sector

•• Transport department of MRTCUDTransport department of MRTCUD

•• ““Railway AuthorityRailway Authority””-- Government agencyGovernment agency

•• Mongolian Railway /MTZ/Mongolian Railway /MTZ/--State railway State railway

shareholding companyshareholding company

•• Ulaanbaatar Railway/UB Railway/Ulaanbaatar Railway/UB Railway/--

MongolianMongolian--Russian joint ventureRussian joint venture

•• Private rail companiesPrivate rail companies

Baganuur

Shariin gol

Bagakhangai

Bayantumen

Zamiin-UudZuunbayan

Sainshand

Airag

Bor-Undur

Songino

ULAANBAATAR

Sukhbaatar

Darkhan

Erndenet

Ereentsav

Railway

Sukhbaatar-Zamyn-Uud 1110 km Salkhit-Erdenet 164 kmDarkhan-Shariingol 64 kmBagakhangai-Baganuur 96 kmKhonkhor-Nalaikh 14 kmTolgoit-Songino 21 kmAirag-Bor Undur 60 kmSainshand-Zuunbayan 50 kmEreentsav-Bayantumen 238 km

Baganuur

RailwayRailway

Present situationPresent situation

•• Not competitiveNot competitive

•• Provides limited Provides limited ararееaa

•• Not independent Not independent

•• LLааck of investmentck of investment

RailwayRailway

Future plan Future plan

•• Renew Intergovernmental Agreement Renew Intergovernmental Agreement

•• Establish legal frameworkEstablish legal framework

•• Introduce competitivenessIntroduce competitiveness

•• Expand existing rail networkExpand existing rail network

•• Renovate rolling stock fleetsRenovate rolling stock fleets

Railway future networkRailway future network

Transit transportation through MongoliaTransit transportation through Mongolia

Year Year 20032003 20042004 20052005 20062006 20072007 20082008

From From Russia to Russia to

China China 33 453453 430430 44 648648 530530 55 028028 430430 44 003003 100100 22 944944 700700 1 964 7001 964 700

From From China to China to Russia Russia

191191 400400 176176 050050 360360 000000 465465 780780 528528 600600 366 920366 920

Total Total 33 644644 830830 44 824824 580580 55 388388 430430 44 468468 880880 33 473473 300300 2 331 0002 331 000

External coal market demandExternal coal market demand

№№ Market consumer Market consumer Thermal coal Thermal coal demand, demand, mln.tnmln.tn

Coking coal Coking coal demand, demand, mln.tnmln.tn

1.1. RUSSIARUSSIA -- 7373

2.2. KOREAKOREA 6666 1717

3.3. JAPANJAPAN 101101 8080

4.4. CHINACHINA 1313 66

Proposed railway line Proposed railway line

Tavan tolgoiTavan tolgoi

SainshandSainshand

ChoibalsanChoibalsan

Railway line to connect Gobi and East regionRailway line to connect Gobi and East region

ÀÀ..Gobi regionGobi region’’s railway line s railway line �� TavantolgoiTavantolgoi--ZuunbayanZuunbayan sectionsection-- 370 370 kmkm

The approximate amount of construction of the The approximate amount of construction of the TavantolgoiTavantolgoi--Zuunbayan sectionZuunbayan section is is

$$580580 mlmlnn USDUSD..

BB..East railway lineEast railway line

�� ShaishandShaishand--BaruunBaruun--UrtUrt section section --350350 kmkm

�� BaruunBaruun--UrtUrt--ChoiabalsanChoiabalsan sectionsection--200200 kmkm

The approximate amount of construction of The approximate amount of construction of ZuunbayanZuunbayan--

Choibalsan sectionChoibalsan section and its infrastructure is and its infrastructure is $$ 825 825 mlmln n

USDUSD..

Railway line to connect Gobi and East regionRailway line to connect Gobi and East region

ÀÀ..Gobi regionGobi region’’s railway line s railway line �� TavantolgoiTavantolgoi--ZuunbayanZuunbayan sectionsection-- 370 370 kmkm

The approximate amount of construction of the The approximate amount of construction of the TavantolgoiTavantolgoi--Zuunbayan sectionZuunbayan section is is

$$580580 mlmlnn USDUSD..

BB..East railway lineEast railway line

�� ShaishandShaishand--BaruunBaruun--UrtUrt section section --350350 kmkm

�� BaruunBaruun--UrtUrt--ChoiabalsanChoiabalsan sectionsection--200200 kmkm

The approximate amount of construction of The approximate amount of construction of ZuunbayanZuunbayan--

Choibalsan sectionChoibalsan section and its infrastructure is and its infrastructure is $$ 825 825 mlmln n

USDUSD..

Importance of Importance of TavantolgoiTavantolgoi--ZuunbayanZuunbayan SainshandSainshand--BaruunBaruun--UrtUrt--ChoibalsanChoibalsan railway linerailway line

�� Possibility to export the mineral products to Russia and China uPossibility to export the mineral products to Russia and China using sing two directions, as well as transport for the local needstwo directions, as well as transport for the local needs

�� Connection through the Russian and Chinese railway network to Connection through the Russian and Chinese railway network to the Europe, Middle East, East and South East Asia by Russian porthe Europe, Middle East, East and South East Asia by Russian ports ts of of BladivostokBladivostok, , NahodkaNahodka, , VostochnyiVostochnyi and Chinese port of and Chinese port of TianjinTianjinand and DalianDalian. .

�� The line will be a junction of Gobi, Central and East network The line will be a junction of Gobi, Central and East network connection connection

�� Establishment of new transit transport corridorEstablishment of new transit transport corridor�� Establishment of new access to the sea by connecting to the NorEstablishment of new access to the sea by connecting to the North th

East AsiaEast Asia�� The role and participation of Mongolia in regional cooperation wThe role and participation of Mongolia in regional cooperation will ill

increaseincrease�� Possibility of the effective operation of Possibility of the effective operation of UBRailwayUBRailway’’ss branch line of branch line of

BayantumenBayantumen..

Civil Aviation Civil Aviation International DestinationsInternational Destinations

Berlin/ Frankfurt

Moscow

Irkutsk

Khukh khot

Beijing

Seoul

Tokyo/ Osaka

Ulaanbaatar

17 routes for domestic fligths

CIVIL AVIATION

Future planFuture plan

• Improving air navigation safety and Operational safety standards of all air service operators

• Restructuring of Civil aviation authority • Privatization of state owned company MIAT• Construction of new international and domestic

airports • Expansion of international services• Increasing of number of air crafts• Technical enhancements to be sustained to increase

Mongolian airspace capacity and support growth of over-flights;

Water transportIn 1905 the Russian commercial fleet of Baikal started to transport goods, raw materials and timber by steam boats over the river Selenge. From 1913 the Russian commercial ships started navigation on the lake Khuvsgul.

Water TransportWater Transport

•• Water transportation is not well developed in Water transportation is not well developed in Mongolia due to the limited domestic water ways Mongolia due to the limited domestic water ways

•• Mongolia has acceded to 11 international conventions Mongolia has acceded to 11 international conventions and a member of the International Maritime and a member of the International Maritime Organization Organization

•• Mongolian Ship Registry Company was established Mongolian Ship Registry Company was established in 2003. in 2003.

•• Now 250 registered ships with a Mongolian flag are Now 250 registered ships with a Mongolian flag are floating in seafloating in sea

WATER TRANSPORTWATER TRANSPORT

•• To study the potential waterways passenger and To study the potential waterways passenger and freight traffic, the integrity of existing waterways freight traffic, the integrity of existing waterways infrastructure and vessels, and identification of any infrastructure and vessels, and identification of any needed new infrastructure; andneeded new infrastructure; and

•• To establish minimum levels of waterway To establish minimum levels of waterway infrastructure /navigation aids, channel markers, and infrastructure /navigation aids, channel markers, and public docking facilities; andpublic docking facilities; and

250,0250,0Construction of new international airportConstruction of new international airport

44

825825,0,0Construction of East region railway lineConstruction of East region railway line

33

1000,01000,0Construction of second parallel lineConstruction of second parallel line22

55880,00,0Construction of Construction of GoviGovi region railway lineregion railway line

11

Budget Budget

ml.$ml.$Future major projects Future major projects №№

Conditions of investmentConditions of investment

•• In road sector In road sector •• No limitation No limitation

•• In road transport sector In road transport sector •• The foreign investment should not exceed 49The foreign investment should not exceed 49% % in international in international

passenger transportation passenger transportation

•• In railway transport sector In railway transport sector •• The foreign investment should not exceed 49The foreign investment should not exceed 49% % in infrastructure for in infrastructure for

the railway main linethe railway main line

•• In civil aviation sector In civil aviation sector •• The foreign investment should not exceed 49The foreign investment should not exceed 49% % in international in international

passenger transportationpassenger transportation•• Air navigation services belong to the state Air navigation services belong to the state

Cooperation with Economic Cooperation with Economic

Commission for EuropeCommission for Europe

•• Proposal to include the Proposal to include the Mongolian Asian Highway links Mongolian Asian Highway links include following three main corridors;include following three main corridors;

-- AHAH --33 that links regional markets of Siberia with the hinterland that links regional markets of Siberia with the hinterland markets and the international eastern seaboard ports of China markets and the international eastern seaboard ports of China via main vertical road, via main vertical road, AltanbulagAltanbulag--DarkhanDarkhan--UlaanbaatarUlaanbaatar--NalaikhNalaikh--ChoirChoir--SainshandSainshand--ZamiinZamiin uuduud

-- AHAH --44 which links the regional markets of Siberian region with which links the regional markets of Siberian region with XinjiangXinjiang Autonomous Region in China to the border with Autonomous Region in China to the border with Pakistan via western vertical main road, Pakistan via western vertical main road, TsagaannuurTsagaannuur--OlgyOlgy--KhovdKhovd--YarantYarant

•• Proposal to include the Proposal to include the Mongolian Asian railway link Mongolian Asian railway link from from SukhbaatarSukhbaatar to to ZamynZamyn--UudUud with length of 1100 km with length of 1100 km main main lineline

Thank you for theThank you for theattentionattention