Introduction on Dry Ports in Mongolia

2017.11.14 Dry Ports Significance for Introduction Land‐Locked Countries

Mongolia is an ideal environment for the development of Dry Ports. With fast growing local industries and volumes of cargo exchanged with our world, with no access to a sea but with a relatively good connection to neighboring ports of Russia and China calls for an erection and development of respective hubs, even with reflection of the vast territory of the country and a minor‐but‐growing intensity of settlement. Dry Ports Significance for Dry Ports Significance for Land‐Locked Land‐Locked Countries Countries as Mongolia

• Mongolia ratified the Intergovernmental Agreement on Dry Ports on 23 April 2016.

• The Agreement identifies a number of existing and potential dry port locations that are to be the basis of a coordinated effort to creates modes along an international integrated intermodal transport and logistics system. Dry Ports Significance for Dry Ports in Mongolia Land‐Locked Countries

o Altanbulag (border with Russian Federation) o Ulaanbaatar o Sainshand o Zamyn-Uud (border with People`s republic of China) o Choibalsan (potential dry port) Dry Ports Significance for Dry Ports in Mongolia Land‐Locked Countries Dry Ports Significance for Dry Ports in Mongolia – Access to the Sea Land‐Locked Countries Dry Ports Significance for Dry Ports in PRC&RF - Significance for Mongolia Land‐Locked Countries

CHINA • Erenhot South International Logistics Center, Erenhot • Manzhouli New International Freight Yard, Manzhouli • (altogether 17 ports, the above 2 have a direct connection with Mongolia). Dry Ports Significance for Dry Ports Significance for Land‐Locked Land‐Locked Countries Countries

Nominated as Dry Ports /inland ports/ in Mongolia ALTANBULAG and ZAMYN-UUD are respectfully key parts of a wider Altanbulag and Zamyn-Uud Special Economic Zones.

These have several targeted focuses, as vehicles for increased investment, economic development and commerce. Special legal (custom) regimes are offered to those companies whose activities foster fast development of high‐productivity and competitive industries, promote investments and transfer of new technologies, and increasing employment opportunities. Dry Ports Significance for Challenges for Mongolia Land‐Locked Countries

ALTANBULAG dry port has easier logistics (same gauge) and locates not so far from Mongolian capital.

Therefore a major investment into the site changing the border railway station and road crossing into a 21st century hub should be prompted. Here should be built railterminal with transloading equipment, a custom bonded zone, a minor railcar and container repair‐ and depot‐facility. Dry Ports Significance for Challenges for Mongolia Land‐Locked Countries

ZAMYN-UUD dry port has a direct connection with the Chinese seaport of Tianjin with a bonded coverage, and the site is a logical service point because of different gauges.

Being a part of the Transsiberian railway system its role in the long distance trade should also be reiterated by interconnection with hubs in Ulanbaatar, Oyu Tolgoi and other centers to become a first class gateway to the country. Dry Ports Significance for Challenges for Mongolia Land‐Locked Countries

o Lack of knowledge for planning of intermodal facilities in transport infrastructure are large and complex

oGoM needs to formulate context specific strategies for intermodal development, including public infrastructure funding priorities

oSetting up the priority in term of developing and building of nominated dry ports

oLack of legal framework to minimize a total logistics cost Dry Ports Significance for Current international intermodal transit routes Land‐Locked Countries Dry Ports Significance for STATE POLICY FOR RAILWAY Land‐Locked Countries TRANSPORT Dry Ports Significance for The economic corridor Land‐Locked Countries

• Connection with the Silk Road Economic Belt assures access to South East Asia, India-China Peninsula, South, West and Central Asia

• Connection with the TransSiberian and the North-South Transport Corridor will provide an opportunity to access the Atlantic, the Pacific and the Arctic Oceans

• АH-3 (АH6 + АH= Baltic Sea, Thailand), АH-4 (АH5 + АH7 = Iran, Pakistan) Dry Ports Significance for Northern and central railway links of the economic Land‐Locked Countries corridor

Conduct studies on northern railway links of the economic corridor (Kurangino-Kyzyl- Tsagaantolgoi-Artssuuri-Ovoot- Erdenet-Salkhit- Zamiinuud- Erenhot-Ulaantsav-Zhangjiakou- Beijing- Tianjin). In the case of a positive feasibility study result, the construction work will start.

Conduct a feasibility study for comprehensively redeveloping the main railway links of the economic corridor (Ulaanude-Naushki-Sukhbaatar- Ulaanbaatar-Zamiinuud-Erenhot- Ulaantsav-Zhangjiakou-Beijing-Tianjin), constructing a double-track railway, and distributing electricity to it. Dry Ports Significance for Economic corridor-Asian highway networks Land‐Locked Countries

1. Western Economic Corridor: Ongoing implementation of 2 projects, and construction of 249.7km road. 2. Central Regional Economic Corridor: Ongoing AH-4 East implementation of 1 project, corridor and construction of 220km road. AH-3 This will need a financing of 560 million USD. 3. Eastern Economic Corridor: Need financing for 357.8 million USD to implement a total of 4 projects, and construction of 757.5km road. 4. Planning to implement 5 projects, 11 alone the corridor including the service facilities АНХААРАЛ ТАВЬСАНД БАЯРЛАЛАА

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