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Current Situation on Intermodal Transport in Mongolia and Recommendations to Improve It

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Current Situation on Intermodal Transport in Mongolia and Recommendations to Improve It Current situation on intermodal transport in Mongolia and recommendations to improve it Seoul, 23rd - 24th of Oct 2012 Emma Enkhriimaa Nyamosor Email : [email protected] http ://www.tuushin.mn Contents 1 Economy overview, mineral export overview 2 Infrastructure, transport corridors 3 Challenges to local industry in liberalizing trade and transport service 4 MTO’s logistics solutions 5 Transport facilitation projects 6 Recommendations 2 ECONOMY GROWTH • Borders: Russia 3,485 km long, China 4,677 km long • Total Area: 1.566 mln sq.km, roughly the same size as Alaska (1,7 mln sq.km), 3 times the size of France (550,000 sq.km) • Population: 2.8 mln, of which over 1.2 mln in capital • Density: 1.6 individuals per sq.km • GDP 2011: US$ 7.9 bln, 2012H1GDP: US$ 4.7 bln • Real GDP growth 2011 = +17.3% • Total trade turnover = US$ 11.3 bln, +85%yoy; (2010: US$ 6.1bln) • Export 2011:US$ 4.8 bln + 64.4% yoy; (2010: US$2.9bln) • Import 2011: US$ 6.5 bln + 104 % yoy; (2010 : US$3.2bln) • Inflation rate 2011/Dec:10.2 % yoy; (2012/Dec:14.9%yoy) EXPORT OF MINERALS (by Sep 2012, from Jan - to Sep) • Huge reserves of copper, coal, coking coal, uranium, molybdenum, phosphates, fluorspar, tin, zinc , iron ore, gold ,silver and oil . • Share of coal in export is 44.3 per cent (volume 14.29 million ton), copper concentrate 19.4, iron ore 11.8, crude oil 7.3, non proceed zinc ore 2.7, non proceed gold 2.2, fluoride spar ore 2.3 and other products 10 comparatively. • Mongolia is very closely correlated with China: 92.1% of the exports accounted for by China. • Coal is loaded in heavy trucks and transported by road to China ( very few volume to Korea in conventional wagons ) through Russian sea port • Copper shipment from Erdenet (Mongolian – Russian j/v) transported by railway to Russia as conventional bulk cargo, the containerized shipment dispatched to Japan and Korea via Xingang • There’re over 8000 deposits of 440 different minerals in Mongolia. THE FREIGHT TRANSPORT VOLUME ( by Sep 2012, from Jan to Sep) • The freight carried out by all modes of transport is 33.7 million ton, the increase by 1.9 million ton or 6.1 per cent compare to certain period in 2010. • Railway transport carried out 15.0 million ton freight, the increase by 1.5 million ton or 11.5 per cent compare to certain period in 2010. • Road transport carried out 18.7 million ton freight, the increase by 0.4 million ton or 2.2 per cent compare to certain period in 2010. • Air transport carried out 3061.5 ton freight, the increase by 1159.7 ton or 61 per cent compare to certain period in 2010. ROAD NETWORK CURRENT SITUATION Khankh Khandgait Ereentsav Khatgal Baga-Ilenh ULAANGOM Altanbulag UVS HUVSGUL Naranbulag MURUN ULGII SELENGE Ulgii DARKHAN BAYAN-ULGII Havirga BULGAN ERDENET ZAVKHAN ARHANGAI BULGAN Jargalant ULIASTAI ULAANBAATAR CHOIBALSAN KHOVD Tsahir Battsengel KHENTII Tamsagbulag Lun DORNOD ZUUN MOD Matad TSETSERLEG TUV UNDURKHAAN Khar-Khorin Yarantai ALTAI Uench BARUUN- URT BAYANHONGOR CHOIR SUKHBAATAR ARVAIHEER GOVY-ALTAI Bichigt MANDALGOVY UVURHANGAI BAYANHONGOR DUNDGOVY SAINSHAND Burgastai DORNOGOVY Tsogt Ovoo Tsagaan Tavantolgoi suvarga DALANZADGAD UMNUGOVY Oyutolgoi Khanbogd Shivee huren Gashuun Suhait Paved road Under consrtruction Paved road Unpaved road Total Earth road Administrati on level Concrete Asphalt Gravel Improved earth Earth road Total STATE 38.87 2 081.8 1 440.7 1 403.0 6 254.5 11 218.9 LOCAL 54.8 421.8 521.24 499.0 36 534.4 38 031.2 TOTAL 93.67 2 503.6 1 961.9 1 902.0 42 788.9 49 250.06 ROAD NETWORK DEVELOPMENT INTERNATIONAL ROAD NETWORK AH CAREC Under Completion Paved Unpaved Total Length Percentage Route route construction Plan AH3 4b 593 448 - 1 041 100% 2014 AH4 4a 150 397 178 725 75% 2015 AH32 - 890 391 1 239 2 520 51% 2016 Total 1 633 1 236 1 417 4 286 67% 2016 EXISTING RAILWAY NETWORK Khankh Khandgait Ereentsav Khatgal Baga-Ilenh ULAANGOM Altanbulag UVS HUVSGUL Naranbulag MURUN ULGII SELENGE Ulgii DARKHAN BAYAN-ULGII Sharyn gol Havirga BULGAN ZAVKHAN ERDENET ARHANGAI BULGAN Jargalant ULIASTAI ULAANBAATAR CHOIBALSAN KHOVD Tsahir Battsengel KHENTII Tamsagbulag Lun DORNOD ZUUN MOD Matad TSETSERLEG TUV UNDURKHAAN Khar-Khorin Yarantai ALTAI Uench BARUUN- URT CHOIR BAYANHONGOR SUKHBAATAR ARVAIHEER GOVY-ALTAI Bichigt MANDALGOVY UVURHANGAI BAYANHONGOR DUNDGOVY SAINSHAND Burgastai Tsogt Ovoo DORNOGOVY Tsagaan Tavantolgoi suvarga DALANZADGAD UMNUGOVY Oyutolgoi Khanbogd Shivee huren Gashuun Suhait •Total length of railway-1908 km • Railway gauge-1520 mm •Single railway line FUTURE RAILWAY NETWORK OF MONGOLIA CHALLENGES TO LOCAL INDUSTRY IN LIBERALIZING TRADE AND TRANSPORT SERVICE New Railway Construction In Mongolia,appr.5683.5 km railway lines will be built in 3 stages : - 1st stage , 2nd stage will cover the construction of 1933 km new railway lines from the Gobi region to East region. - The 3rd stage over 3600 km railway lines will be constructed , connecting the Western region and Gobi region - New rail link from Ukhaa Hudag to Choibalsan to link with existing connection ( to Transsiberian from Nauskhi to Erlian 1113 km ) estimated cost of US$ 2.5 mln per km - Planned for capacity to ship coal output of up to 100 mln tones per year Sea Gates to Mongolia Sea gates in China ( Multimodal transport ) 1. Xingang port – ZU (Sea/Rail/Rail, Sea/Rail/Road ) Is the nearest , the only port for Mongolian transit cargo since 1990, 2-3 block trains per day. 2. Dong Jian port – ZU ( Sea /Rail/Rail, Sea/Rail/Road ) since May 2012 , new terminal in North East, just close to TEDA, is fixed to be the port for transit cargo to Mongolia. Now Korean shipments are calling that port. Also needed to haulage the container to railway CY then dispatch. 3. Lianyungang port – ZU (Sea/Rail, Rail/Rail ) main port Central Asia including Mongolia . Busy port with 6-7 block trains per day. Busan - LYG –ZU : 3 days by sea , 1-2 days T/T, 1-2 days waiting wagon, 5 days by rail , total transit time 12 days. LAS, Long Beach –LYG : 16 days , most of USA shipments use LYG port. 4. Qingdao port – ZU (Sea/Rail ) also open for Mongolian transit cargo Inchon – Qingdao – ZU , total; transit time 25 days Sea gates in Russia (Rail/Sea ) • Vladivostok, Vostochny , Nakhodka , Vanino , not popular used , not competitive transport mode. • Related to future railway line , through TSR , Russian East ports is always in a consideration CHALLENGES TO LOCAL INDUSTRY IN LIBERALIZING TRADE AND TRANSPORT SERVICE Difficulties in railway facilitation 1. Rail/Rail , Rail/Road mode Less capacity of terminals/transshipment facilities at Zamyn uud border Railway station : • in ZU station there are 3 terminal/transshipment facilities, operated by UBTZ; • capacity of those facilities is 2 million ton per year; • some equipment and machineries of Facilities are obsolete or deteriorated; • not sufficient rolling stocks, crane, locomotives • shortage of different type of wagons , delay of wagon supply on time • lack of equipped especial wagon for reefer containers in Mongolia , also in Russia and China All these make an influence for increase of freight congestion at border, that is followed by further stopping to dispatch trains from Tanggu and Erlian. 2. Road/Rail mode Loaded heavy trucks also have to wait in a long line, MOT’s have to pay Chinese truck rent fee, huge amount CHALLENGES TO LOCAL INDUSTRY IN LIBERALIZING TRADE AND TRANSPORT SERVICE 3. Less capacity of terminals/transshipment facilities at Ulaanbaatar Railway station: • not sufficient rolling stocks, locomotives for shift loaded wagons to local CY’s ; • lack of rail cars or o/t wagon supply to local CY’s for carriage of COC’s back to Xingang port ; • lack of modern well equipped , temperature controlled C.B.W’s at local CY’s • lack of modern bridge crane or top spreaders at CY’s • No repair facilities for damaged COC’s, agents SOC’s according to ISO. This existing capacity of terminal limits in Ulaanbaatar impact to : the processing of increased export, import and transit freights according to global market need; brings difficulties to organize dispatch of block train centralized at Ulaanbaatar railway station for in/outbound shipments; enabling increase of COC demurrage to Shipping Lines day by day, F/F or MTO’s cost in millions of MNT yearly; at the end not efficient international logistical solutions. CHALLENGES TO LOCAL INDUSTRY IN LIBERALIZING TRADE AND TRANSPORT SERVICE Difficulties by road transportation Due to: • lack railway network and very few stations near to coal mining, shortage of o/t wagon for supply to coal, o/t wagons must be transshipped again from Mongolian into Chinese wagon at border for now effective mode for carriage of coal is : by road. • The coal as bulk carried by heavy trucks to China with payload 60- 90 ton , where ever the road is not standard, not paved, gravel and earth off roads, so it’s risky and not safety to 3rd party and traffic , very bad influence to ecology , highly dependent from non renewable resources of mining sector ; • Due to not existing ISO paved road, not finished AH-3, so far international TIR carnet trucks or containerized heavy carriage impossible for transit transportation by existing road in Mongolia. CHALLENGES TO LOCAL INDUSTRY IN LIBERALIZING TRADE AND TRANSPORT SERVICE Difficulties by air transportation Less capacity of International air traffic at Chinggis Khaan International airport in Ulaanbaatar : • no reefer air ULD’s available for export frozen meat • limited international direct air lines service; • limited surface operational and landing service for big Freighter Airlines; • lack of modern techniques in existing only one warehouse for temperature controlled for perishables; CHALLENGES TO LOCAL INDUSTRY IN LIBERALIZING TRADE AND TRANSPORT SERVICE Difficulties in multimodal facilitation, internationally 1.
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