The first train to Tianjin departs
The very first train carrying coal from Mongolia to the Tianjin seaport in the People’s Republic of China departed on March 23 from the OlonOvoo railway station in Dornogovi Province’s Dalanjargal soum.
This first train to the seaport was 20-foot open-top train cars that will transport 19,600 tons of coal to Tianjin.
The train departed as part of the Olon-Ovoo railway station expansion project, which has the potential to yield 8.865 billion MNT in revenue for Ulaanbaatar Railway. The departure also marks an important step in opening Mongolian coal up to new markets via sea transport.
A direct route to Tianjin’s seaport will eliminate the need to stop and unload export items at the Erenhot port in Inner Mongolia, making transportation and transactions smoother for both the supplier and the purchaser.
Many people attended the send-off ceremony for the train. Participants included Mongolian Minister of Roads and Transport Development D.Ganbat, advisor to the Chinese Ambassador in Mongolia Wang Qing Dong, Head of Foreign Cooperation at the Mongolian Ministry of Roads and Transport Development B.Bolor-Erdene, Head of Ulaanbaatar Railway and Mongolian-Russian Shareholder Association member D.Jigjidmaa, members of Dornodgovi Province’s local government, and representatives from nearby coal mines.
As part of the Olon-Ovoo Station expansion project, a new terminal at the Olon-Ovoo station was built by Ulaanbaatar Railway.
The construction of the new terminal, which is not yet complete, will increase the Olon-Ovoo station's capacity to fulfill orders for up to 200-400 train cars per day. The new Olon-Ovoo terminal's tracks were laid during the winter with the support of Ulaanbaatar Railway company workers, customers, and industry representatives.
The new terminal currently has nearly 400 meters of track and cost 1.6 billion MNT, with another 2.6 billion to 5.6 billion MNT planned for further expansion. Further expansion is planned to commence on June 15, 2017, and will include housing for 24 workers and their families, a new train weighing system, and a customs inspection area.
In accordance with the development program being initiated by Ulaanbaatar Railway through 2030, expansion of the Olon-Ovoo station's loading area will begin in 2018.
D.Jigjidmaa spoke about the expansion of the terminal and said, “Many years ago, the Olon-Ovoo Station wasn’t a station, but a crossroads. However, as a result of economic developments, the OlonOvoo Station, located in the vast central Gobi, has developed to become a major center for industry”. He noted, “Mongolian Gold Company is ready to commence work on building a cement factory, and another four or five companies are also preparing to contribute to coal export.”
The Olon-Ovoo railway station plays a pivotal role in Mongolia's coal exports as it is situated approximately 20 km from the Alagtolgoi coal mine and the operations of Mongol Gold Company (MAK Ltd.), Friendship Ltd., and the Shtankoil Ltd., who all mine and supply coal to domestic and foreign markets. These companies have 10 million tons of reserves between them and place orders at the Olon-Ovoo railway station for 200-300 cars of coal per day to be loaded and transported.
The opportunity for the expansion of the Olon-Ovoo Station has largely been made possible by Chinese coal prices substantially rising in 2016 and increased orders for coal exports from Mongolia.
In 2016, 2,847 train cars transported 189,000 tons of coal from the Olon-Ovoo Station to China. However, in just three months since its opening, the new terminal has serviced 3,780 train cars transporting 249,000 tons of coal.
The Olon-Ovoo Station first opened in 1975 as a railway crossroads. In 1987, the station became a Grade 3 station, and in 2009 it became a Grade 2 station by transporting MAK coal.