China and Mongolia Signed an Agreement on Railway Construction

China and Mongolia have signed an agreement to build a railway line between Gashuun-Sukhait and Gants-Mod. The project will enhance coal export efficiency by replacing road transportation with rail transport. This was reported by the railway transport news portal Railway Supply.

The document was approved on February 14, 2025, by the heads of government of both countries. Construction will begin in April 2025 and is scheduled for completion in 2028.

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Currently, coal from the Tavan Tolgoi deposit is transported by road, reducing delivery efficiency. The new railway will cut logistics costs and speed up exports.

According to forecasts, the route’s capacity will increase to 165 million tons of coal annually. This will have a positive impact on Mongolia’s economy and strengthen trade relations with China.

In 2024, Mongolia exported 83 million tons of coal to China, surpassing the 2023 figures when shipments totaled 70 million tons.

Compared to 2022, coal exports have more than doubled, as only 31 million tons were supplied that year. The growth is driven by high demand from China’s metallurgical industry.

Mongolia is one of the leading coal suppliers to China. In 2024, it provided 60% of China’s demand for coking coal.

New Agreement to Strengthen Economic Ties

The railway’s launch is expected to improve coal supply efficiency. The project will also strengthen economic cooperation between the neighboring countries.

Agreement to Accelerate Coal Transportation

The project’s implementation will shorten coal transportation times between the two nations. Direct rail connectivity will significantly reduce the burden on roads and enhance supply stability.

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