On April 25, the government officially launched the Bagakhangai-Khushig Valley branch railway project, which marks the beginning of a major infrastructure initiative that includes building a new Transport Logistics Center 13 kilometers south of the Chinggis Khaan International Airport.  
At the opening ceremony, Prime Minister L.Oyun-Erdene declared, “Today, we have opened a new page in history. Since summer is short, if we miss one summer, it is like missing a whole year. We need to plan well in the winter and quickly carry out construction in the summer. Therefore, construction work should be started as early as possible.”  
The prime minister outlined an ambitious infrastructure agenda, announcing that work would begin next month on connecting the Gashuunsukhait-Gantsmod port border, followed by projects linking the Shiveekhuren, Bichigt, Khangi and Mandal ports. He confirmed the Erdeneburen hydropower station construction would commence in June as approved at the last cabinet meeting, with work on the Eg River station starting next week.  
In the capital region, major road projects including the Tuul highway and two ring roads will soon begin construction. The premier described the railway as “strategically important” and part of efforts to “revive” Hunnu city, noting that investment in the area over the next three years would equal the total investment in Tuv Province over the past three decades. “If we can connect, we will have money, and if we have money, we can build, and by building, we can improve our quality of life. If we can do this, we can also protect our independence,” L.Oyun-Erdene stated, framing the infrastructure push as crucial for national development.  
Minister of Road and Transportation Development J.Delgersaikhan provided technical details, revealing that the 150-kilometer railway would significantly reduce traffic congestion. “Every day, residents of the capital spend 144 minutes stuck and waiting at railway crossings. This time will be reduced to 40 minutes from next October,” he said.  
The Transport Logistics Center, to be built on 400 hectares of land allocated by Hunnu City officials, will serve as a hub for the new railway with a 25-ton carrying capacity. Private companies will be permitted to construct their own warehouses within the center.  
With an initial budget of 840 billion MNT, the project combines 100 billion MNT from Mongolian Railway’s existing funds with bridge financing arranged by the Development Bank in cooperation with five commercial banks. Officials expect increased coal exports through improved border connections to generate revenue for loan repayment. Construction challenges include building a one-kilometer columnar bridge, which is a complex undertaking given Mongolia’s limited pool of only seven qualified bridge construction companies. Some 2,500 domestic workers will build the lower structure, while 20,000 tons of rails will be imported.  
Preparatory work including geodetic and geological surveys is complete, with water wells already dug. The unique ridge-top location eliminates the need for land clearance, though a 32-meter excavation in deep land will require specialized mining equipment. Officials emphasized that all construction would use domestic capabilities except for rail imports. As the Mongolian Railway team begins round-the-clock work to complete the project within four months, the Road Development Center will monitor progress. 
Ulaanbaatar Mayor Kh.Nyambaatar highlighted how the new railway would solve long-standing urban logistics challenges, particularly the current practice of using the unsuitable and potentially hazardous Tolgoit station for unloading operations. By redirecting freight handling to purpose-built facilities along the new corridor, the project will significantly reduce congestion and safety risks in the capital while supporting broader efforts to decentralize Ulaanbaatar’s overcrowded infrastructure.  
Kh.Nyambaatar outlined comprehensive plans for Hunnu City’s development as an eco-friendly urban center, beginning with ambitious geothermal exploration set to commence in August. Drilling will reach 3,000 meters depth in the Sergelen soum area, where geological assessments suggest strong potential for tapping into sustainable heating solutions. “If successful, this initiative could allow Hunnu City to become Mongolia’s first major urban area completely free from coal dependence,” the mayor explained, noting this would represent a major breakthrough in sustainable urban development.  
Infrastructure preparations are already underway, with trunk line networks completed and tenders for branch line designs soon to be announced. The city plans to begin road construction next year while simultaneously developing a 300 MW renewable energy complex combining solar, wind and battery storage through innovative public-private partnerships.  
‘1.3 trillion MNT project secures funding through bank reforms’ 
Development Bank Executive Director Z.Narantuya provided financial details, revealing the project’s total 1.3 trillion MNT cost will be supported through enhanced bank capitalization and collaborative financing with five domestic institutions. “With 1.2 trillion MNT in receivables recently settled and plans for domestic and international securities issuance, we have established a robust financial framework for this transformative infrastructure,” Z.Narantuya stated.  
The railway itself, featuring 115 dedicated livestock tunnels and requiring 2.5 million cubic meters of earthworks, remains on track for August 25 completion. Its operational launch will initiate a phased transition of freight operations away from urban centers, with complementary highway projects to Dundgovi Province and Songinokhairkhan District already in planning stages.

Published Date:2025-04-29