The governments of Belarus and Mongolia have reached an agreement to construct a freight train assembly plant in Mongolia.
Belarus’ Mogilev railway car construction plant will assist in the project.
According to news.mn, Mongolia’s Minister of Road and Transport Development, B. Enkh-Amgalan, met with the Belarussian Minister of Industry, Pavel Utyupin. During this meeting, Enkh-Amgalan put forward the proposal to cooperate on the project.
Enkh-Amgalan said that Mongolia has a high demand for cargo trains. These facilitate coal and ore mining projects that require rail for transport.
The Belarussian authorities confirmed that the countries can come to a bilateral agreement. They also confirmed that Mongolia can obtain loans from the Development Bank of the Republic of Belarus. This will fall under the terms of the €50m credit line between the two countries.
Enkh-Amgalan signed a memorandum of cooperation with the Belarusian Transport and Communications Minister Aleksei Avramenko on 27 January.
The five-year agreement deals with the implementation of joint transportation projects.
Belarus will also provide trucks and special purpose equipment to Mongolia for use in road maintenance.
MAZ, BelAZ, and other Belarusian manufacturers will supply the equipment.
In December, Ulan-Bator Railways contracted Russian Railways International for technical consulting services for the Tawan-Tolgoi to Zuunbayan rail line in Mongolia. Neither company revealed the financial details of the contract. The contract will be completed in the next 12 months.
In February 2019, the World Bank urged Belarus to introduce rail reforms and restructure the country’s railway sector in order to boost competitiveness and passenger experience.