ULAANBAATAR, December 2025 — Mongolia is undertaking major investments in railway infrastructure to unlock its vast coal export potential, particularly for trade with China. In 2025, construction began on the Gashuunsukhait–Gantsmod cross‑border railway, a dual‑gauge line connecting Mongolia’s coal‑rich interior to China. This route is designed to carry up to ~40 million tonnes of cargo annually and represents the second rail crossing between the two countries in nearly 70 years.

This new link complements the existing railway from the Tavan Tolgoi coal deposit to Gashuun Sukhait (operational since 2022), substantially reducing Mongolia’s dependence on trucking. Once fully operational, the expanded rail network including planned future linkages through additional border checkpoints aims to raise Mongolia’s coal export capacity from around 83 million tonnes per year to as much as 165 million tonnes annually.

By replacing expensive, slow, and capacity‑constrained road transport, the railway expansion is expected to lower transit costs and improve reliability, facilitating more efficient resource exports. While this robust infrastructure upgrade is a cornerstone of Mongolia’s strategy to leverage its mineral wealth and support economic growth, fulfillment of export‑capacity targets will depend on timely completion of all rail/border projects and favorable global demand for coal.

Source: South China Morning Post