COAL INDUSTRIAL DEVELOPMENT, TRANSPORT AND LOGISTICS ISSUES: PRESENTATION TOPIC: TRANSPORTATION OF THE MINING PRODUCT"

PUREVBAATAR LUVSANDAGVAHEAD, ASSOCIATION OF THE RAILWAY ENGINEERING OF MONGOLIA

INTERNATIONAL SITUATION AND COOPERATION, ROADS AND TRANSPORT

EuroAsian union /EAU/ Russia, Belarus and Kazakhstan at the summit

in Minsk confirmed their intention to form in 2015, the Eurasian Union (EAU).

EUROPEAN UNION AND EUROASIAN UNIONEU VS EAU AND EEA VS CES

CUSTOMS UNIONCOMMON ECONOMIC SPACE

"Eurasian Union" / EAU / pre-conditions are met to establish a “Customs union" created, including Belarus,, Kazakhstana, Russia, and Armenia and Kyrgyzstan to join customs duties for oil products is achievable. Turkey are interested in the Union.

"Customs Union", while from 1st july, 2012, covering countries in the territory of the “Common economic space" agreements in force.

EUROASIAN TRANSPORT LINKSUN, EUROPEAN ECONOMIC COMISSION

RAILWAYS CONNECTING TO TRANSSIBERIA AND BAIKAL-AMUR MAIN LINESRemark: planning line under sea way existing line

TRANSALTAI, TRANSMONGOLIA, TRANSEAST, TRANSMANZHURIA, TRANSAMURIA, TRANSKOREA AND ACSESS TO FAR EAST AND JAPAN

15.0

25.035.0

5.0

10.0

10.0

30.0

50.0

CUSTOMS UNION VS TRANSPORT UNION

Transport Union of the Republic of Sakha (Yakutia) was established as a nonprofit partnership. Chairman of the Union and its board unanimously elected Director General of JSC "AK" Yakutia Railways "Alexander Dudnikov. As noted in partnership Transport Union - a regional public organization created to consolidate transport community of the republic in the implementation of its transport strategy, modernization and development programs transport industries.

Coordinating Council on TranssiberianTransportationCooperation Agreement between the OSZD and CCTTNovember 2, 2007 , in St. Gallen ( Switzerland) in the 16th Plenary Session of the CCTT Treaty was signed on cooperation between OSJD and the International Association "Coordinating Council on Transsiberian Transportation" ( CCTT ) to:improving freight along transport corridors OSZhD;a joint analysis of the International Transport Corridor OSJD number 1, including the Trans-Siberian route ( all branches ) (hereinafter -Corridor № 1);

COMMON ECONOMIC SPACE VSINTEGRATED TRANSPORTATION-TRANSIT AREA

Russia, Kazakhstan and Belarus create an integrated transport and logistics company.

22.09.2013 | 15:38 President of JSC "Russian Railways" Vladimir Yakunin and DPRK Minister of Railways Jong SooGil opened after reconstruction of railway line Khasan - Rajin.

Transit tourists can stay in Russia for up to 72 hours without a visa. Russia cancels visa regime with South Korea

The Northern Sea Route is a serious competitor in the face of Transsib: expert

Far East envoy proposed to accelerate the development of railway infrastructure BAM

MONGOLIAN - A LANDLOCKED COUNTRY

Mongolian one of the world's 48 landlocked countries

"The lower reaches billion-bottom billion" who book Oxford University Professor Paul Collier, a landlocked country of: “ -If you are coastal, you serve the world. If you are landlocked, you serve your neighbors”

POSITION OF THE LANDLOCKED COUNTRY

EURASIAN TRANSPORT AND REGIONAL CONCERNINTERNATIONAL CONFERENCE 2013.11.05 STATE HOUSE

The openspeach of speaker Enkhbold.Z, Mongolian State Hural

United Nations Economic Commission for Europe, "Eurasian transport links" report

ADB "economic cooperation in Central Asia Transport and Trade Facilitation Strategy and Action Plan" report

UN “Tumengan initiative" program "Northeast Asian transport corridors" report

“Russian "Railways” "The possibility of transit transport development" Report

The Embassy of the People's Republic of China, “The Chinese-Mongolian transits the current status and future outlook" report

STRATEGIC TRAFFIC NETWORK, MINING AND TRANSPORT

Mongolian strategy of traffic network, its geographical location and transit opportunities identified.

-be used to build a railway for transporting domestic freight and passenger transport in the next few years will not be able to due to demand

- geographical right the Altai back left side Hyangan Mountains and flows east of the Amur River between Russia and China today, such as the railway crossing to be few reasons.

Current government policy and action rail features, and the amount of cargo area regardless diversification or diversity that disrupts the patterns of development.

a \ path relations diplomacy stable and per trade and economic relations that govern business noticed

b \ our neighbors know that different gauge eternal, he found a way to solvec \ Vertical Axis built later and link them to our internal problems. Export

diversification provided herewith.

RUSSIAN POSITION ABOUT TRANSITTRAFFIC

PROTOCOL ON RAILWAY COOPERATIONBETWEEN COUNTRIES MONGOLIA CHINA AND RUSSIA

Posted on 19.12.2013 Representatives of Mongolia JSC "Ulan Bator Railway", representatives of the Russian Federation OAO "Russian Railways", the representatives of the People's Republic of China Ltd. "hop Investment Management" (hereinafter referred to as "the Contracting Parties"), participating in the first trilateral workshop on rail freight transport and logistics system linking Asia-Europe via China-Mongolia-Russia, initiated by the Mongolian government.

GOVERNMENT 5 BRIDGE PROJECT: HIGH VOLTAGEPOWER LINES, GAS AND LIQUID PIPELINES, ROADS AND

RAILWAYS, AND AIR SPACE

Government of Mongolia

Ministry of Road, Transportation

State property Comittee

Ulaanbaatarrailway Co.

Мongolianrailway Co.

Private entities

Freight forwarding

design, project,expert,

companies,Terminal operatorUsers of branch

lines

GA

NZA

M

Insu

ranc

e C

o.

Special permitted companies for

- construction and use of basic structure

-manufacturing, assembling and

maintenance of basic structure

-conducting railway transportation

State owned and State shareholding Railinfrastructure and

operator companies

Railway transport sector

New

railr

oad

proj

ect C

o.

National center of the train chart

Article 16. Special permit for railway transportation services

16.1. Special permit for railway transportation services /hereinafter “special permit”/ shall have the following types:

16.1.1. construction and use of basic structure; 16.1.2. manufacturing, assembling and

maintenance of basic structure; 16.1.3. conducting railway transportation

activity.

RAILWAY TRANSPORTATION LAWJULY 5, 2007 GOVERNMENT HOUSE, ULAANBAATAR

RAILWAY TRANSPORTATION LAWJULY 5, 2007 GOVERNMENT HOUSE, ULAANBAATAR

19.1. Basic structure owner shall exercise the following rights: 19.1.1. use basic structure or have a transporter use it based on a

contract; 19.1.2. receive fees for letting use of basic structure, and other fees

for maintenance and services stated in the contract; 19.1.3. approve basic structure traffic plan following approved

regulations and make proposal to it; 19.3. If basic structure owner conducts railway transportation activity

financial settlements shall be kept separately for basic structure and transportation activities.

19.2.3. depending on carrying capacity of basic structure make contracts for use of basic structure with transporters, including transporters with own investment, with the same terms and conditions and provide with necessary conditions for conducting transportation activities;

GOVERNMENTAL 7 DATED JULY 20, 2011, NO. 36, MINUTES OF A MEETING

XXI. Topic: the restructuring of the program

ШИЙДВЭРЛЭСЭН нь: Монгол-Зөвлөлтийн хувь нийлүүлсэн “Улаанбаатар төмөр зам” нийгэмлэгт бүтцийн өөрчлөлт хийх хөтөлбөрийн төслийг хэлэлцээд тус нийгэмлэлийн нийгмийн чиглэлийн байгууллагуудыг төрийн болон орон нутгийн өмчлөлд шилжүүлэх, тээврийн бус үйлдвэрлэлийн нэгжийг төмөр замын үйлчилгээнээс ялгах, төмөр замын тээвэрлэлтийг суурь бүтэц, тээвэрлэлтийн хэсэг болгон салгах зэрэг асуудлуудыг ойрын хугацаанд Оросын талтай хэлэлцээр хийж шийдвэрлэхийг Монгол улсын Тэргүүн шадар сайд, Худалдаа, эдийн засаг, шинжлэх ухаан техникийн хамтын ажиллагааны Монгол-Оросын Засгийн газар хоорондын комиссын Монголын хэсгийн дарга Н.Алтанхуяг, Зам, тээвэр, барилга хот байгуулалтын сайд, Хувь нийлүүлсэн “Улаанбаатар төмөр зам” нийгэмлэгийн Монголын талын хувь нийлүүлэгч Х.Баттулга нарт даалгав” гэжээ

GOVERNMENTAL 7 DATED JULY 7, 2010, NO.40, MINUTES OF A MEETING

II.Topic: Mongolian public about the measures to be taken to improve access to the sea

ШИЙДВЭРЛЭСЭН нь: 5.Төмөр замын тээврийн тухай хуулийн 19.1.1, 19.1.2, 19.1.3-т заасаны дагуу “Монгол-Оросын хувь нийлүүлсэн “Улаанбаатар төмөр зам” нийгэмлэгийн эзэмшлийн суурь бүтцийг ашиглах тарифыг тогтоон мөрдүүлэх, төр ба хувийн хэвшлийн түншлэлийн хүрээнд хувийн хэвшлийн эзэмшлийн зүтгүүр вагоныг төрийн өмчит компанид үилжүүлэн ажиллуулах хүсэлтийг судлан үзэж, холбогдох хууль тогтоомжид нийцүүлэн шийдвэрлэх арга хэмжээ авахыг Зам, тээвэр, барилга хот байгуулалтын сайд Х.Баттулга, Төрийн өмчийн хороо \Д.Сугар\-нд даалгав гэжээ

MONGOLIAN EXISTING RAILWAY, MAIN AND BRANCH LINES

EXPANSION OF EXISTING LINE

MONGOLIAN STATE-OWNED LOCOMOTIVES ANDROLLING STOCKS, RAILTRACK MASHINERY

MONGOLIAN STATE-OWNED LOCOMOTIVES ANDROLLING STOCKS, RAILTRACK MASHINERY

МОНГОЛ, ОРОСЫН ХУВЬ НИЙЛҮҮЛСЭН “УЛААНБААТАР Т ӨМӨР ЗАМ” ХУВЬЦААНЫ ХАРЬЦАА 50:50

Total length of railway line, km 1810,0

Length of the main line, km /Sukhbaatar- ZamiinUud/ 1108,0Capacity of main line, mln.ton 20.0Length of Bayantumen- Ereentsav line, km 238

Capacity of line, mln.ton 0.059Darkhan-ShariingolSalkhit-ErdenetBagahangai-BaganuurHonkhor-NalaikhAirag-Bor undurSainshand-ZuunbayarTolgoit-Songino

621649614605021

Rolling stock LocomotivEmployers

2671161

16100

THE FIRST FOREIGN INVESTMENT IN RAIL

"The Boldtömör Eroo gol" mining company for self use 98 km branch line built

When connected to main line, they affected by conflict between international treaties and domestic laws

3000 by using the special design of the wagons used almost empty side

They have for main rail and shunting 20 locomotives use on self line

Public and private, domestic and international transportation issues that experience

Rail international issues EuroAsian railroute

CONSTRUCTION OF RAIL NETWORK FOR COAL IN CHINAINSTITUTE OF ECONOMIC PLANNING RESEARCH,

MINISTRY OF RAILWAYSGuidelines for rail transportation system of coal （1）Improvement of energy transportation system taking railway as

fundamental means to ensure national energy supply and long-term demand of national economy

（2）Organic link among coal transportation rails layout, capacity distribution and planning of coal bases

（3）Expansion of main rails capacity to strengthen flexibility of coal transportation means

（4）Merger in existing coal transportation lines to ensure arational route and less cost

（5）Improvement in rail techniques and equipment to realize heavy-load transportation

（6）Comprehensive management and concerted development

CONSTRUCTION OF RAIL NETWORK FOR COAL IN CHINAINSTITUTE OF ECONOMIC PLANNING RESEARCH,

MINISTRY OF RAILWAYS

SOUTH ROUTES FROM MONGOLIA Ceke-Linhe Railway: east to Linhe, Inner Mongolia

autonomous, west to Ceke port in border of China and Mongolia (within Ejinaqi, Inner Mongolia), Ceke-Linhe Railway has a total length of 708km with investment of RMB5 billion, national railway, single line, of which the main stockholders include 32.5% share for Ministry of Railway, 30% share for Shougang Group, 29% share of National Railway, 5% share of Baotou Steel, and 3.5% share of Qinghua.

Ceke Border, located within Ejinaqi, Alashan Qi, Inner Mongolia Autonomous Region, 77km from Dalaihubu town, the seat of Ejinaqigovernment, across from Xibokulun Border, Southgobi province, Mongolia, serves as the sole international channel of Alashanqiopening to the world, the land port possessing by Inner Mongolia, Shaanxi, Gansu, Ningxia, Qinhai, and the third largest port in Inner Mongolia (Manzhouli and Erlianhaote as the first and second respectively).

SOUTH ROUTES FROM MONGOLIA Ganqimaodu-Wanshuiquan Railway (owned by Shenhua Group),

starting from Ganqimaodu to Jiuyuanqu of Baotou, has a length of 366.85km, among which includes 21.62km from south of Wanshuiquan to Hexi, having been into operation, and 1050meters from Hexi to Jingquan which is planned to start construction in June 2010 and finish in June 2012.

Ganqimaodu-Xixiaozhao Railway, the national railway, invested by MOR, has a length of 58.7km and investment of 1185Mt with a construction period of 1.5 years, starting from Ganqimaodu and ending to Xixiaozhao. Xixiaozhao-Jingquan railway is the phaseD,south to Xixiaozhao station of Baotou-Lanzhou line and north to Jingquan industrial district. Ganqimaodu-Jingquanrailway is the phasel l , with a length of 175km and investment of RMB2 billion. The bidding is processing presently. Having been constructed, the Ganqimaodu-Xixiaozhao railway will serve as a large energy-transporting channel, starting from Mongolia in the north, ending to QHD port in the east, together with Baotou-Lanzhou line,

WORLD BANK MINING SECTOR INSTITUTIONAL STRENGTHENINGTECHNICAL ASSISTANCE PROJECT

FEASIBILITY STUDY FOR PRODUCT EXPORT THROUGH INTERNATIONAL SEA AND RAILWAY PORTS

PRIME ALLIANCE LLC JUNE, 2011

Indicative rates (assuming CR wagons) RMB 161/tonne ($US 23.50) from Gashuun Sukhait to

Huanghua via Baotou and Shuohuang RMB 170/tonne ($US 24.80) from Gashuun Sukhait to

Qinhuangdao via Daqin RMB 123/tonne ($US 18) from Erlian to Qinghuangdao

via Jining and Daqin Tariffs for private wagons would need to be negotiated.

NORTH ROUTES FROM MONGOLIA Export prices of steam coalFOB Vostochny and Riga

Export prices of Thermal coalDAF border of Ukrain

Findings/ Дүгнэлтүүд / :

Источник: Ж/Д ст-ка, оценки МЭК

The structure of all Goods by rail, t-km The structure of exports by rail, t-km

• Products and raw materials of ferrous metallurgy and coal account for 55% of all domestic traffic on the Rail volume and more than 70% of exports.

TAVANTOLGOI-GASHUUNSUKHAITNEW RAILPROJECT

Maximum carrying capacity

Capacity utilization trends

Losses due to overflow station tracks

Loss due to the lack of traction

resources

Ability to stop the transportation process

BALANCE carrying capacity of railway infrastructure

Park private cars

CARRYING AND RAIL CAPACITYFROM TAVANTOLGOI TO GASHUUN SUKHAIT

Capacity by design of the single line 30 Mtnand testing throuht TRC /traffic regulation and calculation/

Percentage Efficiency 80% and capacity 24 Mtn

PROPOSAL from CANARAIL to Erdenes TTCapacity Expansion Study of the Ukhaakhudag-Gashuun sukhait rail line

IMPLEMENTATION OF RAILWAY POLICY ANDSOME OF THE TECHNICAL ISSUES

- Direction of the railway line between the neighboring countries in \ a meeting point and station location \ mismatched.- Not desided the gauge, started earthworks;-- What international and domestic standards, construction of railways, and later how to not increase capacity - Don’t have any agreements with China railway and governer's organisation

ӨМНӨГОВЬ АЙМГИЙН БАЯН-ОВОО СУМ. “ХУННУ КОАЛ” КОМПАНИЙН АВТОЗАМ, ТӨМӨР

ЗАМЫН ОГТОЛЦОО

ӨМНӨГОВЬ АЙМГИЙН БАЯН-ОВОО СУМ. “ХУННУ КОАЛ” КОМПАНИЙН АВТОЗАМ, ТӨМӨР

ЗАМЫН ОГТОЛЦОО

Энэ төмөр зам Таван Толгой-Сайншандын төмөр замын газар шорооны ажилтай төстэй байна уу?