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Northern Rail Link offer coal export advantages

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Dry Bulk,

A recent study into the proposed Northern Rail Route, which would link China and Russia through Mongolia, suggest the project would provide the best route for metallurgical coal exports from the Ovoot project in Mongolia and Russia’s Elegest Coalfield to Europe and into China.

“The Northern Rail Corridor is demonstrably shorter, quicker and is expected to be a cheaper route to China for freight from Kyzyl, including the Elegest Coking Coafield,” said Aspire Mining, which is developing a section of the rail corridor through its Northern Railways subsidiary.

When in China, metallurgical coal from Mongolia or Elegest could enter the seaborne market at the port of Tianjin.

“The logistics study also confirmed that the connection of the Northern Rail Line with the Trans-Siberian Railway will provide faster and cheaper delivery of coal into Eastern Europe that transiting Mongolia through the Trans-Mongolian at Naushki,” Aspire Mining continued.

The Northern Rail Line has been included as one of the proposed rail links between China and Europe as part of the Chinese government’s One Belt One Road project. To complete the route, a number of rail projects will need to constructed, including Northern Railways’ Erdenet-to-Ovoot section.

The study was undertaken by global rail logistics consultant, TransCare GmbH, and looked at potential comparative travel times, distances, costs and existing bottlenecks along alternative rail paths included in the One Belt One Road policy.

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