Mongolia to build 5,000km of rail track

[caveatemptor]

Mongolia, a resource-rich country lacking roads or rail, has taken its first step in building the infrastructure required to be a leading commodities exporter, after it approved construction of more than 5,000km of railways.

http://www.ft.com/cms/s/0/e1662a6e-4724 ... ab49a.html

Apparently they currently only have one proper rail artery. Being a very resource-rich country, it must be very hard for them to take advantage of their natural resource deposits without a proper rail infrastructure. This should be very good for the country.

Wonder how much it'll cost though. Considering that it should increase the country's productivity, borrowing the money to build it wouldn't be such a bad idea. This would also be good for relieving the effects of the country's construction sector collapse.

It also appears that the trains will use Russian gauge, which is different to Chinese gauge. This is interesting because, although I don't actually know the trade dynamics of Asian countries, the article specifically states that Mongolia's proximity to China is a vital benefit for its resource-exporting economy, so it appears from that that China would be Mongolia's main trading partner. The decision to go with Russian gauge appears to be more political than economic.

[Kevo00]

I think the Trans-Mongolian, which runs through from Russia to China, is already Russian gauge. So it makes sense to make any new routes Russian gauge too.

[audigex]

Mongolia to build 5000km (which isn't 5000 miles, btw...)
Lib dems promise to build 1000 miles
Labour to possibly re-open a couple of branches
Tories to do bugger all.

I say we vote the mongols in, come May.

[Badger]

Mongolia to build 5000km (which isn't 5000 miles, btw...)

3107 miles actually....

[GurraJG]

i dunno, I can see the benefit of using Russian gauge, since it'd make it easier to export to Europe via the Trans-Siberian railway. But on the other hand, China is closer, and with their expanding economy, I'd imagine that they'd be a good trade partner. Either way, good for the Mongolians!

[caveatemptor]

Mea culpa re the distance. Amended to km now.

[Doorslammer]

A very interesting part of the world, I'm always having a look at the Salzburg to Pyongyang rail trip blog, an amazing story if you haven't read it.

Mongolia would make a great tourist destination, bet there's some nice scenery there.

[teccuk]

Ft wants me to register to see the article

Good on Mongolia! A friend did the trip from HongKong to Amsterdam by rail last year on his way back from Korea. The pictures of Mongolia looked fantastic. Good to see heavy rail still has a place, is still perfect for heavy haul etc.