Eurasian integration continues with the transit system of Greater Eurasia being built between Russia, Kazakhstan, Mongolia and China
Since March, Mongolia has introduced regular freight and passenger traffic on railway lines for approximately 900 km. It was built in the south and southwest of the country. They are mainly intended for the development of transit cargo transportation between this country, Russia and China. The related task of arteries is to accelerate the growth of ore-metallurgical raw materials in the Mongolian regions.
It is specified that 876 km of new railways were commissioned in the directions of Zuunbayan – Hangi, Tavantolgoi – Zuunbayan and Tavantolgoy – Gashuunsuhayt. Introducing these highways accelerates the formation of an integrated cross-border transit network. There is the promising participation of Kazakhstan.
The program for developing the railway network of Mongolia aims to solve two main problems. The first is – the stimulation of interregional economic relations. Complementing the development of significant reserves of metallurgical, chemical raw materials and hydropower resources in different regions. The second – increase the competitiveness of the Mongolian railway network in transit. That is, in Euro-Asian freight traffic with the inclusion of new routes in the west/northwest of the country.
Complementing “One Belt – One Road”
China’s investment participation in implementing these projects is approximately 30-35%. All transit routes of Mongolia oriented to Chinese ports also form at least half of the cargo base and Sino-Mongolian-Russian transit ( in both directions ).
Kazakhstan railway – SUAR – northwest Mongolia will be virtually the southern understudy of the West Siberian sector of Transsib (Trans-Siberian). It is probably aimed, among other things, at reorienting some parts of the transit cargo flow from Transsib.
It is also associated with the plans of Ulan Bator to increase re-export, primarily to Russia. This is also due to the tightening of anti-Russian sanctions of the collective West. Accordingly, during a joint business forum with the Russian Federation in late March in Ulan Bator, the government and businesses of Mongolia made statements for the development of Mongolian re-export to Russia.
Forming a trans-Mongol railway network with access to all neighbouring countries will require a multilateral transit agreement governing cross-cutting tariffs and operational regimes in transit arteries. Only such an approach will ensure national steel lines’ interaction, not competition, in developing bilateral and Euro-Asian cargo flows.
Eurasia’s transit system connects regions that have never been connected before.