Mongolia is seen as the most favorable location for the international transportation. Government is recognizing the competitive advantage of Mongolia's location and aims to establish Mongolia as a transit and logistics center. In this case Mongolia's transit transport will advance significantly. Therefore, Government faces many challenges in this sector starting from the regulations.
Minister N.Tumurkhuu emphasized the benefits of transit transportation for all the participating parties as the trade balance between Russia and China in 2014 reached USD 70 billion.
Minister of Road and Transportation N.Tumurkhuu briefed on the activities done in this sector.
-We have negotiated the general transit transportation agreement with PRC, according to which we are entitled to special tariffs to be used on their railway system and use of certain ports in China. The same negotation was done with PDRK to use the Rajin port with initial testing load of 20 thousand tons in near future. The good news is the coal from Sharyn Gol deposit has been confirmed to comply with South Korean standards. In the case of success with tesign loads Mongolia has the potential to enter energy markets in South Korea and Northern parts of Japan.
Sharyn Gol coal deposit was selected as its coal was the most adhering to the requirements of South Korea.
Nowadays, we are working on establishing negotiations with Russia on transit transportation, therefore the tariffs to Rajin port can be negotiated. This coming July might be the milestone in this process as the deal might be signed at the UFA summit. If this succeeds, Mongolian commodities will be able to reach the third markets. Transit transportation agreement has another benefit for Mongolia as it will increase the transit load going through territory of Mongolia as this negotiation will cover air routes as well.
Minister N.Tumurkhuu emphasized the benefits of transit transportation for all the participating parties as the trade balance between Russia and China in 2014 reached USD 70 billion.
Moreover, Minister mentioned that of the new airport commences the passenger flow will double and this is the good news for the national air carriers. In future Mongolia aims to be become the hub like Frankfurt and Istanbul.
Mongolia is seen as the most favorable location for the international transportation. Government is recognizing the competitive advantage of Mongolia's location and aims to establish Mongolia as a transit and logistics center. In this case Mongolia's transit transport will advance significantly. Therefore, Government faces many challenges in this sector starting from the regulations.
Minister N.Tumurkhuu emphasized the benefits of transit transportation for all the participating parties as the trade balance between Russia and China in 2014 reached USD 70 billion.
Minister of Road and Transportation N.Tumurkhuu briefed on the activities done in this sector.
-We have negotiated the general transit transportation agreement with PRC, according to which we are entitled to special tariffs to be used on their railway system and use of certain ports in China. The same negotation was done with PDRK to use the Rajin port with initial testing load of 20 thousand tons in near future. The good news is the coal from Sharyn Gol deposit has been confirmed to comply with South Korean standards. In the case of success with tesign loads Mongolia has the potential to enter energy markets in South Korea and Northern parts of Japan.
Sharyn Gol coal deposit was selected as its coal was the most adhering to the requirements of South Korea.
Nowadays, we are working on establishing negotiations with Russia on transit transportation, therefore the tariffs to Rajin port can be negotiated. This coming July might be the milestone in this process as the deal might be signed at the UFA summit. If this succeeds, Mongolian commodities will be able to reach the third markets. Transit transportation agreement has another benefit for Mongolia as it will increase the transit load going through territory of Mongolia as this negotiation will cover air routes as well.
Minister N.Tumurkhuu emphasized the benefits of transit transportation for all the participating parties as the trade balance between Russia and China in 2014 reached USD 70 billion.
Moreover, Minister mentioned that of the new airport commences the passenger flow will double and this is the good news for the national air carriers. In future Mongolia aims to be become the hub like Frankfurt and Istanbul.