The Rail System | Freight Forwarding | Air Service | Road Service


TRANSPORTATION IN MONGOLIA

Infrastructure Challenges

During the Soviet period, Mongolia was virtually closed to all outside contact. Therefore, most current infrastructure was built to Soviet designs and intended to facilitate Soviet projects in Mongolia. Today, Mongolia struggles to cope with the increasing traffic of goods and people. Dramatic measures are currently being planned or taken to improve transportation infrastructure. These include development of new roads, completion of airport upgrades, and construction of new rail lines along with the acquisition of new train engines and passenger cars.
Mongolia receives financial assistance from international financial organizations and foreign governments for infrastructure improvement projects. Some improvements have already been made, but poor infrastructure still impedes development and challenges those who live and work in the country.

1. The Rail System

The Mongolian Railway Administration (MRA) is the government agency responsible for managing the Mongolian Railway System, the nation’s leading means of transport. The MRA transports most imports, exports, transit cargo, coal and other mineral ores as well as a large portion of domestic and international passengers. Mongolia's main rail line extends over 660 miles from Sukhbaatar Station on the northern border with Russia, through Ulaanbaatar, to Zamiin Uud on the southern border with China. Several spur lines link important mining, industrial, or military centers to the main line. An additional branch line links the eastern city of Choibalsan to the Russian Trans-Siberian line at Borzya. The main rail line joins Russia's Trans-Siberian trunk line at Ulan Ude, providing an overland link to Russia and Europe and access to the Russian Pacific port of Vostochny/Nakhodka.

Mongolia's closest link to the sea is south through the Chinese port of Tianjin, approximately 600 miles from the Mongolian border and 1,260 miles from Ulaanbaatar. The China route suffers from poor organization and overload. This generally creates long delays for containers.
Other limitations also vex the MRA:

  • There is only a single track, which greatly constricts traffic.

  • All railroad tracks and cars in Mongolia use the wide Soviet gauge of 1,520 mm, while Chinese rail lines use standard narrow gauge of 1,435 mm. The wheels on all passenger and freight cars must be changed at the Mongolian/Chinese border, creating delays.

  • There are not enough cranes to expedite the transfer of containers at the Mongolian/Chinese border.

  • Before 1990, the MRA completely relied on the Soviet Union for rolling stock, spare parts, and fuel and repair facilities. The MRA now relies on long-term loans from the World Bank to maintain its old diesels and procure spare parts and material.

MONGOLIAN RAILWAY

Train Station Information
Tel: (976-11) 94109
Railway International Ticket Office
Tel (976-11) 94133
Ticket Order
Tel: (976-11) 94137

2. Freight Forwarding and Shipping Companies

Mongolia hosts over 20 freight forwarders and one shipping company. The four largest forwarding firms that handle rail freight within Mongolia are Mongoltrans, Tuushin, International Freight Forwarding Center, and M&M. Maersk-Sealand is the only well-known shipping company currently operating in Mongolia. These firms maintain links with foreign firms to coordinate the delivery of cargo to and from the border. Through Tianjin, China, the firms generally work with Sinotrans (China's largest freight forwarding company), Sinotrans- Inner Mongolia, the Dutch-Chinese joint venture firm CBW, Crown Pacific, Crown Worldwide, Unda, Cosco Company, or the China Railway Foreign Service Corporation. For transit trade through Russia, firms work with numerous companies, including the Russian-U.S. joint venture Trans-Siberian Express Service, Militzer and Munch, Russian Foreign Transit, Maersk-SeaLand, or South Transit.

Once containers arrive in Ulaanbaatar, it is relatively easy to arrange for delivery. Both Mongoltrans and Tuushin have trucks and cranes to deliver containers. These firms generally have persons with Russian, Chinese, English and German language abilities on staff.

Shipping Options

Maersk Sealand

Maersk Sealand is the largest container shipping line in the world with over 325 offices in more than 100 countries. It is the only shipping line with an office in Mongolia. Maersk offers import and export full load services to and from all corners of the globe, through the port of Xingang, China or through Russia. Offices in Tianjin, China and in Moscow and St.Petersburg, Russia ensure that cargo to and from Mongolia is quickly and efficiently cleared. The Company provides a through service to or from its container yard in Ulaanbaatar, with through bills of lading covering transport all the way.
Maersk offers transport in 20', 40', and 40' high cube containers, and in 40' refrigerated containers. For more information, contact Maersk:
Tel: (976 11) 328-421
Fax: (976 11) 328-442
Email: mglmla@maersk.com
Website: www.maersksealand.com/mongolia

Freight Fowarding

Mongoltrans

Mongoltrans began operation as a semi-private firm in early 1991 when it was spun off from the Mongolian Railway Administration (MRA). Today, the firm is 36 percent owned by MRA and still uses MRA facilities.
Mongoltrans has five departments, including import/export, transit cargo, airfreight, economics and finance. Mongoltrans is also working with Mongolian Railways to upgrade the boarder station at Zamiin Uud. The installation of a new crane and extension of the rail lines will reduce container delays at the border.
To cope with increasing cargo demands, Mongoltrans opened a new container terminal with a holding capacity of 1,200 containers in 1994. Mongoltrans continues to develop its links to foreign transportation companies and claims to cooperate with 60 firms worldwide.

Mongoltrans
Tel: (976-11) 312 281
Fax: (976-11) 320 185

Tuushin

Tuushin pioneered freight forwarding in Mongolia. Founded in 1990 by the Ministry of Trade
and Industry and the Ministry of Transportation and Roads, the now private firm handles international rail, air and truck freight forwarding and domestic delivery. Tuushin employs approximately 100 employees, most of whom reportedly have past experience in international
and national transportation. Tuushin cooperates with more than 120 overseas freight forwarding and shipping companies. It has written working agreements with half of them. It is also a member of FIATA (Federation of International Freight Forwarders Association) and the International Container Bureau. Tuushin is also the local agent for FEDEX (Federal Express). Both Mongoltrans and Tuushin have representatives in Beijing and Moscow.
Tuushin
Tel: (976-11) 312-092, 325-907, 325-909
Fax: (976-11) 322-800

International Freight Forwarding Center

The International Freight Forwarding Center (IFFC) of the Mongolian Railways was founded in October 1993. Since its establishment, it has developed working relationships with freight forwarding organizations of China, Russia, Latvia, Estonia, Germany, Japan and other countries. The Center claims representatives in Warsaw, Moscow, Ulaan-Uud, Naushki and Erlian. Offices are located in Ulaanbaatar, Darkhan, Erdenet, and Zamiin Uud. They can deliver containers with a capacity of 20-40 tons.
IFFC
Tel: (976-11) 311-342, 312-509

Other Freight Forwarding Companies

Santrade Company
Tel: (976-11) 9919-0529
Fax: (976-11) 321-582

Mongolian Railway Freight Forwarding Center
Tel: (976-11) 312-509
Fax: (976-11) 313-165

Crown Freight Forwarding (shipping and warehousing)
Tel: (976-11) 633-263
Fax: (976-11) 631-228
Email: general.cnbjg @ crownworldwide.com
Website: www.crownworldwide.com

Rail Passenger Service
Several international trains originate in Ulaanbaatar or transit Ulaanbaatar, including the train between Moscow and Beijing. Trains leave almost daily for Irkutsk, twice weekly for Moscow, twice weekly for Beijing and Hohot in Inner Mongolia. The Trans-Siberian train passes through Ulaanbaatar southbound for Beijing on Sunday and North bound for Moscow on Thursday. Trains operate on both summer and winter schedules, usually switching schedules in May and October. Trains originating in Ulaanbaatar generally depart on time. Questions about arrival and departure times of trains should be directed to the train station information office.

3. Air Service

Domestic Air Service

Air is an important means of passenger travel within Mongolia. The country has 21 airports; most runways are a single dirt landing strip. Only eight airports have paved runways. Mongolian Peoples Air Transport (MIAT), the state owned national airline, has a near monopoly on domestic scheduled flights in Mongolia. MIAT’s fleet consists largely of Russian Antonov passenger planes. It also has one Boeing plane and one Airbus in its fleet. Private charter service is available including a Bell Jet Ranger helicopter. The government plans to privatize MIAT.

MIAT has scheduled service to its 21 provincial capitals. However, it is not unusual for flights to be canceled or delayed without warning, leaving travelers stranded. Outgoing flights from Ulaanbaatar can be guaranteed from the MIAT office, but travelers should reconfirm UB-return flights with the local MIAT agent. The general caveat: prepare alternate domestic travel
arrangements when possible. Chartered flights are an alternative to scheduled flights within the country. Blue Sky Aviation offers chartered flights to any officially opened air field in Mongolia. Tengerin Ulaach, Monmet, and Central Mongolian Air Service also offer charter services to most places in the country.

International Air Service

Ulaanbaatar's Buyant Ukha airport is Mongolia's only international airport. High elevation, short runway, and lack of maintenance facilities limit Ulaanbaatar’s capacity. An Asian Development Bank feasibility study recommended upgrading existing airport facilities in the short run and building a new international airport in the future. In 1997 a British/German joint venture completed work on the air terminal, runway and cargo terminal. Mongolia currently has four international air carriers providing service to Ulaanbaatar: MIAT, Air China, Korean Airlines, and Aeroflot. These carriers provide regular service to Beijing and Hohot, China, Seoul, Korea, Osaka and Toky, Japan, Irkutsk and Moscow, Russia, and Berlin and Frankfurt, Germany. Travelers can arrange special charter flights from other parts of Asia or Europe. All airlines flying into Ulaanbaatar offer limited international airfreight services on their regular
passenger flights.

AIRLINES

Aeroflot (Russian)
Tel: (976-11) 320-720, 323-321

Air China
Tel: (976-11) 452-548

MIAT
Tel: (976-11) 325-633, 322-273, 320-221
Foreign Relations Office – 379-935
Domestic Flight Booking Office
Tel: (976-11) 322-144
International Flight Booking Office
Tel: (976-11) 322-273

Korean Airlines
Tel: (976-11) 326-643, 323-364

Ulaanbaatar Airport
Tel: (976-11) 379-601
Fax: (976-11) 379-744


4. Road Service
Mongolia's road system is under development. Of the nearly 3,000 miles of total road, only 1,000 miles is paved. Nearly 2,000 miles is covered with poor, natural-gradation gravel. Paved, gravel, or dirt, these roads provide the key link to Mongolia's 21 provinces. Mongolia's unpaved tracks are sometimes impassable in bad weather. Foreign governments and international financial institutions fund a few projects to repair existing roads and build new ones. Although the road system has improved, it will take some time before travel by road becomes the preferred choice. However, in many cases, road travel is the only choice.
Russia remains Mongolia’s chief supplier of petroleum products. State-owned and private gas stations operate in all aimags and most regional centers. Payment is by cash only.

Trucking Services
There are an increasing number of trucking companies that offer reliable trucking services. Most trucking services are located in Ulaanbaatar where almost all production, processing and
distribution of goods are centered. Local freight forwarding and shipping companies can also arrange trucks and drivers. Mongolia primarily relies on Russian-made trucks and trailers to deliver within the country and to China and Russia. Private trucking companies in Mongolia ship to most cities and towns. In addition, many independent truck operators in UB will deliver within the city. Cost depends on the type of freight carried and distance involved.

Car Rentals
Arranging a private car and driver is generally not difficult in Ulaanbaatar. Most hotels, travel agencies, government ministries, or private businesses can assist in locating a car and driver. Rates vary from approximately $25-35 a day or $0.40 per kilometer for a short-term rental outside of Ulaanbaatar. There are no international car rental companies. Vehicles are seldom available for rent without a driver.