Last year, an opportunity for transiting Asia-Europe route freight transports through Mongolian border was enabled after the trilateral meeting between the heads of state of Mongolia, Russian Federation and People’s Republic of China. In order to prepare for transiting freight transports, the Government of Mongolia negotiated with the Asian Development Bank to finance the project. Therefore, “Regional Logistics Development Project” is being implemented in Zamiin-Uud to increase the capacity of logistics facility. The facility will have significant impact by increasing import, export and transit transports in Mongolia.

Furthermore, several necessary projects, such as a construction of overbridge above railways, auto road, water line, security fence, cable line, 10 kW sub-station, 110 kW high voltage sub-station and its extension of power transmission line have been built from the State Budget.

“China Railway 21st bureau” LLC is acting as the general contractor, while “Suson” LLC of the Republic of Korea, Mongolian “Geo Mapping” and “NBCC” LLCs are providing support as advisors. Presently, foundations for both narrow and wide gauge railroads, as well as crane sites have been finished. The contractor has informed that the project is currently 40 percent finished and presented the current issues to the Minister of Road and Transport Development.

Once the Logistics Facility starts operation, around 6 million tons of freight transports can be transited through Zamiin-Uud station annually. The construction work is expected to finish next year and start operation by 2019.