Mongolia has started construction of a 7.1-km railway linking Shivee Khuren and China's Ceke border port, which is likely to boost bilateral coal trades through the artery after it completes construction by late October, Mongolian media reported.

Shivee Khuren port handles 48% of the fuel exports to China, and construction of the railway project is expected to take 6 months, Mongolia's Prime Minister, Luvsannamsrai Oyun-Erdene said during his atendence in the groundbreaking ceremony.

Oyun-Erdene emphasized the strategic significance of connecting the Shivee Khuren with Ceke via the railway, as it marks the beginning of the west trans-border railway, a part of the China-Russia-Mongolia economic corridor.

With the completion of the cross-border railway, the port's export clearance capacity of cargoes is expected to double to reach up to 20 million tonnes, which will help to improve efficiency and reduce transportation costs.

Oyun-Erdene also observed the operation of the automated guided vehicles (AGVs) that transport coal at the Shivee Khuren port. The AGVs have been operational since December 2022 and can transport up to 6.5 million tonnes of coal annually, media reported.

Simultaneously with the construction of the railway, Mongolia and China have signed contracts to initiate feasibility studies and detailed design work for the Gashuunsukhait-Ganqimaodu railway.

Both Shivee Khuren and Gashuunsukhait border ports are located in the South Gobi province and serve as primary channels for the export of coal from the Tavan Tolgoi mine and copper from the Oyu Tolgoi mine.

(Writing by Emma Yang  Editing by Harry Huo)
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