International forum titled “Economic Tunnel” was held for two days on last Thursday and Friday. Scholars from Mongolia, China and Russia delivered their speeches and discussed of where to establish trilateral economic tunnel, upcoming challenges and its impact.
Above all, we highlight the speech given by D.Sukhuu, doctor and scholar from Foreign Relations Division of Academy of Science. He delivered the speech titled “Mongolia, China, Russia – trilateral economic tunnel and connecting “Steppe Road” with “Silk Road”.”
Doctor D.Shurkhuu pointed out at first that it is fundamental to rely upon three countries’ advantages in order to strengthen mutual understanding and trustworthiness, and connect both roads. The reason is that “Mongolia-China-Russia trilateral economic tunnel”, “Steppe Road” and “New Silk Road” projects are likely to be differently received respectively by officials, scholars and public.
Thus, the establishment of the economic tunnel must commence with respective officials and scholars having same notion over projects. Elimination of misunderstanding will lead countries to reach final agreement. At the beginning of his speech, Mr. D.Shurkhuu cited that Mongolians initiated the project “Steppe Road”.
MONGOLIA – CHINA – RUSSIA RELATIONS
Recent years, trilateral relations and understanding have positively evolved. It was certain to have benefited from trilateral summit held two times with initiation by President of Mongolia Mr. Ts.Elbegdorj. On the other hand, Mongolia with “Steppe Road”, China with “One Region, One Road” and Russia with “Eurasia Economic Association” have respectively started such initiatives. As a result, trilateral relations and partnership have grown. However, public has had limited access to legitimate information over matters despite positive relations among state officials.
ABOUT “STEPPE ROAD”
The reasons to implement the project:
- Mongolian development demands and needs
- Ambition to tackle geopolitical obstacles
- Goal to be reckoned at regional and international levels
- Need to establish positive political, economic and free market environments
How to perceive the project?
- Its goal and objectives are as same as ones of “New Silk Road” project
- Combination of mega projects
- It will be further studied and public must pay attention to it
- The project initiated by Democratic party might be stagnant in the future if other party is elected to take over power
The project’s goal
The objective is to become hub of Eurasia transportation – logistics or landbridge, especially connect Asia with Europe via reliable, shortened and economical line.
- 39th resolution approved by Parliament in 2013
- Major Directions to develop Mongolian economy in 2014 included in its 4.4 clause “Establish infrastructure line of railway, highway, oil, natural gas and energy which connects with Russia and China, define and implement related policies.”
Also in 2014, PM N.Altankhuyag met President V.Putin in Saint Petersburg, and introduced “Steppe Road” project to him. Next, The Government of Mongolia formed working group to ensure application of parliament resolution “About approaches to intensify economy”.
MONGOLIAN ADVANTAGES
- Unique location to connect two continents and huge markets
- Mineral resources to take road, transport and economic tunnel into circulation
- Energy and oil resources which lead Mongolia to become regional leading energy supplier
- Organic and agricultural products to prevent Mongolian economic dependency from mining
However, it is necessary to involve strategic mines such as Oyu Tolgoi and Tavan Tolgoi in order to take full advantage of Mongolia’s unique location. Then, it is smooth to establish trilateral economic tunnel and connect two roads.
Energy production, sales, and consumption have been continuously increasing lately. The country aims to become a top regional energy supplier in 2020. More than 20 energy projects are underway at different levels. As it follows:
- 11 Thermal Power Plant projects
- 4 Water Power Plant projects
- 3 Solar Power Plant projects
- 4 Wind Power Plant projects
Energy production and import have been regularly increasing since 2011. Also, oil export volume has been ascending since 2004.
OUR ADVANTAGE – ORGANIC FOOD
Untouched nature, unpolluted soil, fresh air and harsh climate in Mongolia are fundamental to produce original organic food. We have a plenty of opportunities to increase production and import volume of meat, wheat and vegetables. Recently, we have expanded meat export volume thanks to close partnership with neighbors. Mongolia is estimated to export 125 thousand tons of meat and meat products in 2015-2016. Furthermore, the country must aim to increase meat export volume up to 1 million tons a year by building intensive livestock farms. Food and agricultural production will definitely boost benefits of economic tunnel.
WHERE TO ESTABLISH ECONOMIC TUNNELS?
Vertical tunnels
- Khiagt (Russia) – Altanbulag – Ulaanbaatar – Zamin-Uud – Erlian (China) route, total length is 1000 km. This railway and road based tunnel is planned to be improved by 2020.
- A – Tashanta (Russia) – Ulaanbaishint – Khovd – Yarantai – Takeshiken (China) route, total length is 750 km. This road based tunnel is to be completed in 2017.
- B – Khandgait (Russia) – Borshoo – Ulaangom – Khovd – Yarantai – Takeshikan (China) route, total length is 800 km. This road based tunnel must be extended with 250 km road in order to be fully completed.
- Solovyovsk (Russia) – Ereentsav – Choibalsan – Khuut – Bichigt – Zuunkhatavch (China) route, total length is 600 km. Feasibility study is in process to establish 600 km long railway on route of Choibalsan – Bichigt.
Horizontal tunnels
- Tashanta (Russia) – Ulaanbaishint – Khovd – Ulaanbaatar – Choibalsan – Sumber – Arshaan (China) route, total length is 3100 km.
- Tsagaantolgoi (Russia) – Artssuuri – Ovoot – Erdenet – Salkhit route, total length is 1000 km. Concession agreement was reached to establish 550 km long railway on route of Ovoot-Erdenet. Feasibility study to establish 250 km long road on route of Artssuuri – Ovoot is in process.
- Tavan tolgoi – Sainshand – Khuut – Sumber – Arshaan (China) route, total length is 1520 km. Gashuunsukhait – Tavantolgoi route’s railway is under construction. Feasibility study to construct road in remaining part is underway.
In addition, three lines of Asian highway pass through areas of Mongolia.
TRANSPORT TUNNEL: RAILWAY
Major problem facing us in terms of railway to connect two roads is difference in railway gauges. Lately, Mongolia and Russia have agreed to extend gauge track into deep in the land in order to operate transportation. Mongolia has also accepted construction of standard or narrow gauge on routes of Tavantolgoi – Gashuunsukhait and Khuut-Bichigt. Moreover, 60 km long railway from Zarubino (Russia) to Mahalino port (Russia-China border) will be constructed with dual gauge track, reported by Kommersant (10.09.2015).
In order to ensure equality and economic benefits of railway, 800 km railway from Bichigt to Zinjou sea port (China), and 250 km broad gauge railway from Sainshand to Bayan-Ovoo (Inner Mongolia) are being examined for construction. Zinjou seaport is known for its coal, oil and wheat transportation to Russia and Siberian markets. Also, Bugat is one of major markets for us. Because it has exhausted its iron ore reserve, we have received a request to supply 5-10 million tons of iron ore annually. Such profitable deals must be done rapidly.
Finally, two broad gauge tracks will go in and out through regions of Mongolia. It will definitely lead to mutually beneficial partnership.
From above information, ‘train’ to lead implementation of railway and road projects fundamental for establishment of economic tunnel has already left station. Then, what challenges are we expected to face in order to implement multi-year projects which involve vast region? Here is response by Doctor D.Shurkhuu.
There is inequality between small and large markets. For instance, trade debate occurs between Kazakhstan and Russia, both of them are member countries of Eurasia Economic Association.
Despite beneficial to each other, neighbor countries could be fierce competitors. Cross-border natural disaster, air pollution and such issues might threaten future cooperation.
Construction of large power plants and energy export to China will be definitely followed by issues of water shortage and air pollution.
Mongolia now faces difficult challenge to overcome economic dependency and manage geopolitical interests by powerful nations.
CONCLUSION
“Steppe Road” and “New Silk Road” initiatives are common in objectives, multinational involvement and their originalities.
Mongolia’s geographical location, mining and energy sectors’ rapid development are pivotal to connect “Steppe Road” and “New Silk Road”.
New emergence of Mongolia-Russia-China cooperation is to accelerate establishment of trilateral economic tunnel.
We should strive to reach mutually beneficial results with full efforts and taking full advantage of our advantages.
What we are lack of in order to implement such mega projects are investment, personnel, legal environment and research works.
Scholars from three countries discussed for two days positive impacts of economic tunnel on tourism, cultural impact and considering differences in religious views and cross-border railway strategy.
Now it is fully up to state officials to utilize scholars’ research and suggestions in developing policies.
According to scholars, it takes around 10 years to fully complete trilateral economic tunnel. Obviously, how long it will take will depend on decision-makers.
Photos by Ts.Bayarbaatar
International forum titled “Economic Tunnel” was held for two days on last Thursday and Friday. Scholars from Mongolia, China and Russia delivered their speeches and discussed of where to establish trilateral economic tunnel, upcoming challenges and its impact.
Above all, we highlight the speech given by D.Sukhuu, doctor and scholar from Foreign Relations Division of Academy of Science. He delivered the speech titled “Mongolia, China, Russia – trilateral economic tunnel and connecting “Steppe Road” with “Silk Road”.”
Doctor D.Shurkhuu pointed out at first that it is fundamental to rely upon three countries’ advantages in order to strengthen mutual understanding and trustworthiness, and connect both roads. The reason is that “Mongolia-China-Russia trilateral economic tunnel”, “Steppe Road” and “New Silk Road” projects are likely to be differently received respectively by officials, scholars and public.
Thus, the establishment of the economic tunnel must commence with respective officials and scholars having same notion over projects. Elimination of misunderstanding will lead countries to reach final agreement. At the beginning of his speech, Mr. D.Shurkhuu cited that Mongolians initiated the project “Steppe Road”.
MONGOLIA – CHINA – RUSSIA RELATIONS
Recent years, trilateral relations and understanding have positively evolved. It was certain to have benefited from trilateral summit held two times with initiation by President of Mongolia Mr. Ts.Elbegdorj. On the other hand, Mongolia with “Steppe Road”, China with “One Region, One Road” and Russia with “Eurasia Economic Association” have respectively started such initiatives. As a result, trilateral relations and partnership have grown. However, public has had limited access to legitimate information over matters despite positive relations among state officials.
ABOUT “STEPPE ROAD”
The reasons to implement the project:
- Mongolian development demands and needs
- Ambition to tackle geopolitical obstacles
- Goal to be reckoned at regional and international levels
- Need to establish positive political, economic and free market environments
How to perceive the project?
- Its goal and objectives are as same as ones of “New Silk Road” project
- Combination of mega projects
- It will be further studied and public must pay attention to it
- The project initiated by Democratic party might be stagnant in the future if other party is elected to take over power
The project’s goal
The objective is to become hub of Eurasia transportation – logistics or landbridge, especially connect Asia with Europe via reliable, shortened and economical line.
- 39th resolution approved by Parliament in 2013
- Major Directions to develop Mongolian economy in 2014 included in its 4.4 clause “Establish infrastructure line of railway, highway, oil, natural gas and energy which connects with Russia and China, define and implement related policies.”
Also in 2014, PM N.Altankhuyag met President V.Putin in Saint Petersburg, and introduced “Steppe Road” project to him. Next, The Government of Mongolia formed working group to ensure application of parliament resolution “About approaches to intensify economy”.
MONGOLIAN ADVANTAGES
- Unique location to connect two continents and huge markets
- Mineral resources to take road, transport and economic tunnel into circulation
- Energy and oil resources which lead Mongolia to become regional leading energy supplier
- Organic and agricultural products to prevent Mongolian economic dependency from mining
However, it is necessary to involve strategic mines such as Oyu Tolgoi and Tavan Tolgoi in order to take full advantage of Mongolia’s unique location. Then, it is smooth to establish trilateral economic tunnel and connect two roads.
Energy production, sales, and consumption have been continuously increasing lately. The country aims to become a top regional energy supplier in 2020. More than 20 energy projects are underway at different levels. As it follows:
- 11 Thermal Power Plant projects
- 4 Water Power Plant projects
- 3 Solar Power Plant projects
- 4 Wind Power Plant projects
Energy production and import have been regularly increasing since 2011. Also, oil export volume has been ascending since 2004.
OUR ADVANTAGE – ORGANIC FOOD
Untouched nature, unpolluted soil, fresh air and harsh climate in Mongolia are fundamental to produce original organic food. We have a plenty of opportunities to increase production and import volume of meat, wheat and vegetables. Recently, we have expanded meat export volume thanks to close partnership with neighbors. Mongolia is estimated to export 125 thousand tons of meat and meat products in 2015-2016. Furthermore, the country must aim to increase meat export volume up to 1 million tons a year by building intensive livestock farms. Food and agricultural production will definitely boost benefits of economic tunnel.
WHERE TO ESTABLISH ECONOMIC TUNNELS?
Vertical tunnels
- Khiagt (Russia) – Altanbulag – Ulaanbaatar – Zamin-Uud – Erlian (China) route, total length is 1000 km. This railway and road based tunnel is planned to be improved by 2020.
- A – Tashanta (Russia) – Ulaanbaishint – Khovd – Yarantai – Takeshiken (China) route, total length is 750 km. This road based tunnel is to be completed in 2017.
- B – Khandgait (Russia) – Borshoo – Ulaangom – Khovd – Yarantai – Takeshikan (China) route, total length is 800 km. This road based tunnel must be extended with 250 km road in order to be fully completed.
- Solovyovsk (Russia) – Ereentsav – Choibalsan – Khuut – Bichigt – Zuunkhatavch (China) route, total length is 600 km. Feasibility study is in process to establish 600 km long railway on route of Choibalsan – Bichigt.
Horizontal tunnels
- Tashanta (Russia) – Ulaanbaishint – Khovd – Ulaanbaatar – Choibalsan – Sumber – Arshaan (China) route, total length is 3100 km.
- Tsagaantolgoi (Russia) – Artssuuri – Ovoot – Erdenet – Salkhit route, total length is 1000 km. Concession agreement was reached to establish 550 km long railway on route of Ovoot-Erdenet. Feasibility study to establish 250 km long road on route of Artssuuri – Ovoot is in process.
- Tavan tolgoi – Sainshand – Khuut – Sumber – Arshaan (China) route, total length is 1520 km. Gashuunsukhait – Tavantolgoi route’s railway is under construction. Feasibility study to construct road in remaining part is underway.
In addition, three lines of Asian highway pass through areas of Mongolia.
TRANSPORT TUNNEL: RAILWAY
Major problem facing us in terms of railway to connect two roads is difference in railway gauges. Lately, Mongolia and Russia have agreed to extend gauge track into deep in the land in order to operate transportation. Mongolia has also accepted construction of standard or narrow gauge on routes of Tavantolgoi – Gashuunsukhait and Khuut-Bichigt. Moreover, 60 km long railway from Zarubino (Russia) to Mahalino port (Russia-China border) will be constructed with dual gauge track, reported by Kommersant (10.09.2015).
In order to ensure equality and economic benefits of railway, 800 km railway from Bichigt to Zinjou sea port (China), and 250 km broad gauge railway from Sainshand to Bayan-Ovoo (Inner Mongolia) are being examined for construction. Zinjou seaport is known for its coal, oil and wheat transportation to Russia and Siberian markets. Also, Bugat is one of major markets for us. Because it has exhausted its iron ore reserve, we have received a request to supply 5-10 million tons of iron ore annually. Such profitable deals must be done rapidly.
Finally, two broad gauge tracks will go in and out through regions of Mongolia. It will definitely lead to mutually beneficial partnership.
From above information, ‘train’ to lead implementation of railway and road projects fundamental for establishment of economic tunnel has already left station. Then, what challenges are we expected to face in order to implement multi-year projects which involve vast region? Here is response by Doctor D.Shurkhuu.
There is inequality between small and large markets. For instance, trade debate occurs between Kazakhstan and Russia, both of them are member countries of Eurasia Economic Association.
Despite beneficial to each other, neighbor countries could be fierce competitors. Cross-border natural disaster, air pollution and such issues might threaten future cooperation.
Construction of large power plants and energy export to China will be definitely followed by issues of water shortage and air pollution.
Mongolia now faces difficult challenge to overcome economic dependency and manage geopolitical interests by powerful nations.
CONCLUSION
“Steppe Road” and “New Silk Road” initiatives are common in objectives, multinational involvement and their originalities.
Mongolia’s geographical location, mining and energy sectors’ rapid development are pivotal to connect “Steppe Road” and “New Silk Road”.
New emergence of Mongolia-Russia-China cooperation is to accelerate establishment of trilateral economic tunnel.
We should strive to reach mutually beneficial results with full efforts and taking full advantage of our advantages.
What we are lack of in order to implement such mega projects are investment, personnel, legal environment and research works.
Scholars from three countries discussed for two days positive impacts of economic tunnel on tourism, cultural impact and considering differences in religious views and cross-border railway strategy.
Now it is fully up to state officials to utilize scholars’ research and suggestions in developing policies.
According to scholars, it takes around 10 years to fully complete trilateral economic tunnel. Obviously, how long it will take will depend on decision-makers.
Photos by Ts.Bayarbaatar