The new Zuunbayan-Khangi railway in Mongolia is now open. Credit: PRNewsfoto / The Government of Mongolia.

A new Zuunbayan-Khangi rail link has opened in Mongolia following the completion of the construction phase, which started in March.

Spanning 226.9km across the south-east of Mongolia, the new rail link serves as a key connection between the Tavantolgoi-Zuunbayan railway and the Khangi-Mandal crossing on Mongolia’s border with China.

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The transportation distance for freight across this economic corridor will be reduced by around half following the completion of another connection to a new railway being built on the Chinese border.

The Zuunbayan-Khangi rail link is expected to enhance the country’s export competitiveness and economy under the Government’s ‘New Recovery Policy’.

Its completion is anticipated to support a 30% growth in Mongolian export freight volume.

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According to the government, the annual freight volumes are projected to stabilise at nearly twice the existing level, which is 10.4 million tons, from 2025.

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After the launch of the new rail link, Mongolia Prime Minister L Oyun-Erdene said: “The new Zuunbayan-Khangi railway was built in just eight months, through a public-private-partnership investment model, and is Mongolia’s new gateway for transporting mining export products competitively to the global marketplace.

“Today’s opening marks a major milestone in the Government of Mongolia’s ‘New Recovery Policy’, which is focused on strengthening the country’s economy following the pandemic and making Mongolia into a leading Asian country by 2050.”

Mongolia has no access to the sea and depends on 42 dry-road border points for its trade. As of March 2022, only three of these were linked by railroads.