Seven new dry ports being constructed by Mongolia will assist pace up the circulate of products, together with vital coal destined not just for China, but additionally for Europe. (Photo: Xinhua)
Resource-rich however underdeveloped Mongolia is planning seven new dry ports to develop commerce with neighboring giants China and Russia, a Mongolian official advised the Post.
Authorities within the landlocked nation are conducting a feasibility research on the inland cargo ports, in accordance to its street and transport growth minister, Sandag Byambatsogt, who stated the World Bank and the United Nations Economic and Social Commission for Asia and the Pacific have been working with Mongolia. .
“I’m assured that these initiatives will lead to the enlargement of the Mongolian-Russian-Chinese financial hall, leading to a rise within the variety of exports and accelerated imports … and a discount in the price of transport and items, ” stated Byambatsogt.
At least one proposed port, in southeast Mongolia’s Zamyn-Uud free financial zone, would function close to the Chinese border. And at the very least yet one more could be positioned, within the North Altanbulag free commerce zone, shut to an intersection with Russia.
Mongolia wants new dry ports as a result of current cargo and transportation services should not have the capability to deal with a “surge” in exports, stated Xu Tienchen, senior China economist with The Economist Intelligence Unit in Beijing.
The growth adopted different infrastructure enhancements, such because the completion of a street linking the huge Tavan Tolgoi coal mine to the Chinese border, and the beginning of 24-hour border crossings that reportedly started in June.
Xu stated the upgrades have diminished cargo “bottlenecks” in Mongolia. Such tasks don’t require “giant investments” however can produce “affordable outcomes” if the variety of shipments is excessive, he stated.
“These dry ports is not going to solely serve the commerce with these neighbors, but additionally with international locations which might be additional away however are eager to benefit from Mongolia’s mining reserves, equivalent to France and Germany,” stated Xu.
No estimated timetable for the ports’ completion was instantly obtainable, and it was unclear how a lot the enterprise will price.
Dry ports are land-based services that enable shippers to consolidate and distribute their items, “leading to value-added features”, stated TL Yip, affiliate professor at Hong Kong Polytechnic University’s Department of Logistics and Maritime Studies.
Dry ports usually join by street or rail to a selected port to ship sea cargo additional inland.
“China and Russia are anticipated to welcome the new dry ports in Mongolia,” Yip stated, including that traders and dry port builders might come from China or Russia.
“Leveraging our strategic geographic place because the shortest route connecting Asia and Europe, Mongolia’s participation on this hall is important,” stated Byambatsogt.
The nation of three.4 million folks is determined by China for quite a few investments, and China sees Mongolia as a connector for commerce with Central Asia.
China-Mongolia commerce will attain US$12.2 billion in 2022, in accordance to Chinese customs information, up from US$9.1 billion the earlier 12 months. Minerals account for about 90 p.c of Mongolia’s exports, whereas China accounts for 80 p.c of all outgoing shipments, in accordance to UN figures.
Mongolian coal, for instance, is used to energy Chinese factories.
Byambatsogt expects China-Mongolia commerce to attain about US$20 billion per 12 months within the close to future.
The Mongolian authorities can also be planning six new street tasks to enhance export capability, Byambatsogt stated.
He is increasing a part of that community to assist the Mongolia-Russia-China Economic Corridor to attempt to cease commerce among the many three nations, and to enhance Mongolia’s entry to land routes with Europe and Asian international locations. they’ve ports.
Byambatsogt stated his nation additionally goals to create an “japanese railway hall”. He stated the railway will join Russia, by way of Mongolia, with the ports of Jinzhou and Lianyungang in japanese China. From 2019 to 2023, he stated, Mongolia added 905km (562 miles) of new railways, bringing its whole community to 2,258km.
“The implementation of those tasks is about to enhance the competitiveness of transport and logistics, not solely in Mongolia however all through the area,” stated the Minister.