Mongolia : Bogdkhan Railway Bypass Investment Program

Transport / Rail transport (non-urban)

The proposed investment program will develop the railway bypass line in Ulaanbaatar, Mongolia. The impact of the investment program is an improved transport network for Ulaanbaatar. The outcome is enhanced efficiency of railway operations. The outputs of the program will be:

Output 1: Bogdkhan railway bypass line developed. The alignment of the railway bypass will start from Rashaant station of Batsumber soum of Tuvaimag, cross near the New Airport constructed in Hushig valley of Tuvaimag, and connect to Maant station.

Output 2: Capacity of Mongolian Railway in project management and implementation improved. This will support capacity building of the Mongolian railway on project implementation.

Mongolia is a vast, sparsely populated, landlocked country located between the People's Republic of China (PRC) to the south, and the Russian Federation to the north. Due to the large area, low population density, and severe weather conditions during winter, surface transportation in Mongolia is difficult. Historically, rail transport has played an important role in Mongolia's foreign trade and its overall economic progress. Rail transport carried 74% of Mongolian freight and 32% of passenger traffic in 2013. Due to cross-border trade with neighbor countries, the share of freight movement by rail in Mongolia is very high relative to other developing countries, where the majority of the freight traffic is transported by highways. The main railway line, specifically referred to as the Trans-Mongolian Railway, connects Zamyn Uud on the PRC border with Sukhbaatar on the Russian border and passes through the capital city of Ulaanbaatar. This line is part of the trans-Siberian Railway Network which connects Ulan-Ude on the Trans-Siberian railway line in Russia. It is also part of the Central Asia Regional Economic Cooperation corridor 4, which connects the Russian Federation to East Asia via Mongolia and the PRC.

Current railway operation in Ulaanbaatar is highly inefficient. The railway line alignment splits the city into two parts resulting in several problems for the city residents. Approximately 30 freight and passenger trains pass through Ulaanbaatar each day. Rail traffic contributes to road congestion because of delays at 32 level crossings through the city. This is exacerbated by the railway movements for placement of wagons at various freight terminals and sidings located across the city. Wagons carrying loaded import containers are sorted at the main railway yard and then shunted to private container yards where they are unloaded. Other negative effects of the existing rail operations also include noise and air pollution. There is also an inherent risk to public health as the railway is used to bring chemicals and other hazardous goods destined for Russia and the PRC through Ulaanbataar. The existing railway line also has several structural constraints that contribute to operational inefficiencies. The rail line has very sharp curves resulting in slower train speeds as well as excessive wear and tear of the rolling stock and track. There are also two sections with very steep gradients that are difficult to traverse and require additional locomotives for train operations.

These problems would be minimized by relocating the through-train operations to an alternative rail corridor (railway bypass line) located beyond the city area. The proposed Bogdkhan railway bypass line would connect Maanit station and Rashaant station. It is expected that rail traffic transiting through Mongolia will significantly increase in the near future and development of the bypass line will ensure that the city's population is not adversely affected by such increase. The rail bypass line is expected to reduce traffic congestion in the city by eliminating the delays at the numerous level crossings. It will also re-route hazardous material away from the population centers thereby reducing the risk of a major accident leading to spillage of hazardous material. It will also remove a major bottleneck for rail capacity in the country. Most importantly, it will release precious land for urban development by relocating existing freight infrastructure away from the city. The released land could be used for developing residential areas, health and education centers.

The development of the railway bypass line is in accordance with the State policy of Railway Transportation of Mongolia which was approved by Ordinance No. 32 of the Parliament of Mongolia in 2010. It is also prioritized in the economic and social development plan of Mongolia and Action Plan 2012-2016 of the Government of Mongolia. The Asian Development Bank (ADB) country partnership strategy for Mongolia identifies the underdeveloped transport network as a major transport sector issue. ADB's Sustainable Transport Initiative Operational Plan also highlights railway development as an important opportunity for sustainable transport operations. ADB's midterm review of strategy 2020 also emphasizes scaling up support for sustainable infrastructure.

(1) The PPTA will be implemented using an international consulting firm in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). An association with suitable domestic consultants is encouraged to complement consultant's local knowledge and experience.

(2) In August 2017, a consulting firm was engaged to undertake the alignment study covering the Mandal-Bagakhangai route.

(3) Consultants were engaged in June 2021 and a new alignment is being considered and reviewed. The inception report has been submitted and surveys will soon commence. The consulting team will refine the project scope incorporating international best practices and conduct technical, safeguards, economic, financial, and other due diligence to meet government's and ADB's project processing requirements.