Mongolia, June 2026 – Mongolia is expanding its railway network to support rising coal exports from the South Gobi mining region to China through new cross-border rail corridors. The investment aims to replace a significant portion of long-distance truck transport with rail, improving the speed, capacity and reliability of coal deliveries while reducing congestion at key border crossings.
The country exported a record 83.7 million tonnes of coal in 2024, with exports projected to reach 140 million tonnes by 2030 as additional railway infrastructure comes online. New rail links connecting the Gashuunsukhait–Gantsmod and Khangi–Mandal border crossings are expected to streamline freight movements, lower logistics costs and increase export volumes to China.
The shift from road haulage to rail is expected to improve supply chain efficiency for mining companies while reducing environmental impacts associated with heavy truck traffic. Enhanced rail connectivity will also strengthen Mongolia's position as a strategic supplier of metallurgical coal to China's steel industry, supporting growing demand for reliable cross-border freight transport.
The railway expansion reflects Mongolia's broader strategy of leveraging transport infrastructure to drive economic growth and deepen regional trade integration. As new cross-border rail links are completed, the country's freight network is expected to play a larger role in supporting mineral exports, improving logistics resilience and reinforcing rail as the preferred mode for high-volume bulk commodity transport.
Source: South China Morning Post
Mongolia Expands Rail Network to Strengthen Coal Export Capacity
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Rail infrastructure is becoming increasingly important in supporting bulk commodity exports and improving cross-border logistics. Mongolia is accelerating railway development to increase coal export efficiency, reduce transport costs and strengthen trade connectivity with China, its largest export market.
