Ulaanbaatar, Mongolia –(Business Wire)–The completion of the Erdense-Tawangtolgai (ETT) Tawangtolgay-Gashun Suhite railway project has been hailed as a milestone in cooperation in the face of many long-term challenges and has been hailed as A major boost to the Mongolian economy.
At the opening ceremony, President Ukhna said on behalf of the Mongolian people, “We would like to express our deepest gratitude and warm congratulations to ETT for making this railway open to traffic on schedule under the severe international geopolitical and epidemic situation in recent years.” It added that the development “clearly demonstrates the importance of mutual understanding, good governance, sound policies and responsibilities between government and the private sector.”
The first heavy-haul railway brought together more than 600 companies and 5,000 workers. CEO of ETT, Mr. Acknowledging the impact of the construction phase of the project, Gankhuyag Battulga also thanked “everyone who has participated in and supported this major development in our country, which is very important to our economy.”
Railroads benefit from restrictions on transport and border crossings, reducing costs by a factor of four. It offers an impressive annual capacity of 300-50 million tons of freight, especially coal shipments to neighboring China. While it is expected to generate a net profit of $147.7 million on the basis of annual revenue of $268.9 million, the railroad has also created approximately 2,000 permanent jobs, a significant long-term investment in the local economy that will improve local residents quality of life. Thousands of people.
The project was first launched a decade ago, but was shelved almost immediately by the Mongolian government in 2013 due to financial problems and mismanagement. Relaunched in March 2020 with the creation of Tavantolgoi Railway LLC under Government Resolution No. 4. In 242, the project was revitalized with Erdenestavan Tolgoi JSC in charge of investment and financing. Together, these entities proceeded at an astonishing pace, resulting in the project being completed in just two years, renowned for a project of this scale. The project was completed in the face of numerous logistical challenges posed by Covid, which makes its conclusion even more fulfilling.
The Tavantolgoi-Gashuunsukhait railway is just one of nearly 20 ETT infrastructure projects still in development, creating thousands of jobs. While its completion ends a long and daunting challenge, it opens up important new long-term opportunities that will continue to impact Mongolia’s economy for generations to come.