New China - Mongolia railway planned

By Richard High27 March 2009

Germany's state- owned railway company, Deutsche Bahn, is planning to build a 260 km-long railway to transport coal from southern Mongolia to China, said the company in a statement.

Representatives from Deutsche Bahn (DB) and Mongolia-based Energy Resources signed an accord in Berlin this week during a visit by Mongolian Prime Minister Sanjaa Bayar, said the statement.

Construction work will begin later this year, with the total cost of the project estimated to be about US$ 800 million. The first trains are expected to start running by 2011, added DB.

Mongolia is an important transit country between China and Russia and is also assuming an increasingly significant role for rail freight traffic between Asia and Europe.

DB will provide overall project planning, procurement management, monitoring of deadlines and costs, as well as quality assurance as well as management and operational support of the single-line railway, which will be used to transport coal from Ukhaa Khudag in the south of Mongolia to the border crossing at Gashuun Sukhait.

Global mining companies are keen to secure rights to mineral deposits in Mongolia. In January this year, China's state-owned Assets Supervision and Administration Commission announced Shenhua Group, China's largest coal company, was to start construction of a CNY 4.7 billion (US$ 690 million) cross-border railway to transport coal and copper from Mongolia later this year.

Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
COMMENT: Are we at the beginning of a golden decade in German construction?
Peter Gerstmann, chairman of the board of management of the Zeppelin Group discusses growing opportunities for the German construction sector
Can hydrogen engines turn construction green?
Hydrogen combustion engines move to centre stage as construction aims for zero emissions
How electrification is heating up race to meet emissions targets
The move to electric-driven access equipment seems inevitable but the journey is not necessarily straightforward.
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail:
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: