The Mongolian Embassy in Beijing has held a transportation forum with Chinese and Russian authorities to discuss cooperation on freight train transportation. Trans-Mongolian routes link the countries; however, China uses a different rail gauge from Mongolia and Russia and trains must change bogies at the Mongolian border, a time-consuming process taking several hours. There are also problems with over-capacity on Chinese rail.
The three trans-Mongolian routes head east through to the border with North Korea and then on to Vladivostok, the western route extends through to Xinjiang and onto Kazakhstan, while the central route links Mongolia and Russia and extends to other European countries.
Mr. B Tsogtgerel, the Mongolian vice-minister of transportation, said the central route is very important. A total of 167 China Central Route Railway trains passed through Mongolia last year, and the target is to reach 400 during 2017.
“Mongolia will continue to provide assistance to make sure the path is smooth, including further cutting time for trains to cross borders and clear customs. Mongolia will also provide more space for freight trains to load and unload goods. The economic collaboration between China, Mongolia and Russia is an important part of the global economy,” he added.
China started the China-Europe freight train service in 2011, and enhanced the service in 2013 under the initiative. Last year, 1,702 trains departed from China on overland international routes, a 109 percent year-on-year increase, and 572 trains returned to China, up 116 percent year-on-year, according to the China Railway Corporation.
Silk Road Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Eurasia, including ASEAN, China, India, Indonesia, Russia & Vietnam. For editorial matters please contact us here and for a complimentary subscription to our products, please click here.
Dezan Shira & Associates provide business intelligence, due diligence, legal, tax and advisory services throughout the Asian and Eurasian region. We maintain offices throughout China, South-East Asia, India and Russia. For assistance with OBOR issues or investments into any of the featured countries, please contact us at email@example.com or visit us at www.dezshira.com
Dezan Shira & Associates´ Silk Road and OBOR investment brochure offers an introduction to the region and an overview of the services provided by the firm. It is Dezan Shira´s mission to guide investors through the Silk Road´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the region.
This unique and currently only available study into the proposed Silk Road Economic Belt examines the institutional, financial and infrastructure projects that are currently underway and in the planning stage across the entire region. Covering over 60 countries, this book explores the regional reforms, potential problems, opportunities and longer term impact that the Silk Road will have upon Asia, Africa, the Middle East, Europe and the United States.