The Erdenes-Tavantolgoi’s (ETT) Tavantolgoi-Gashuunsukhait Railway Project in Mongolia has been completed. It is hailed as a milestone of co-operation in the face of many longstanding challenges, and a major boost for the country’s economy.
In its press release, ETT said the project has brought together more than 600 enterprises and 5,000 workers. This first-of-its-kind, heavy-duty railway provides an annual capacity of 30-50 mil t of freight, specifically for the shipment of coal to neighbouring China.
While it is expected to generate a net profit of US$147.7 million, off an annual revenue of US$268.9 million, the railway has also created about 2,000 permanent jobs, a significant long-term investment in the local economy that will improve quality of life for thousands of people.
Speaking at the opening ceremony, President Khürelsükh Ukhnaa expressed, on behalf of the Mongolian people, “our deepest gratitude and warm congratulations to ETT for putting this railway into operation on schedule, despite the difficult situation of international geopolitics and epidemics in recent years.”
He added that the development “has clearly shown the importance of mutual understanding, proper management, rational policy and responsibility between the government and the private sector.”
The project was first started a decade ago, but almost immediately placed on hold by the Mongolian government in 2013 due to financial concerns and mismanagement issues. Re-initiated in March 2020 with the creation of Tavantolgoi Railway LLC under Government Resolution No. 242, the project was revitalised with Erdenes-Tavantolgoi JSC responsible for investment and financing. Together, these entities managed to complete the railway in just two years.
Recognising the impact that the construction phase of the project has made, ETT’s CEO Gankhuyag Battulga also expressed his gratitude to “everyone who participated and supported this major development in our country, which is so important for our economy.”