Mongolia to build 5,000km of rail track
Posted: 14 Apr 2010 14:24
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.
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.