The main artery for coal transportation from Mongolia to China: The cross-border railway project between Gashun Suhai and Ganqimuge Border Crossing is scheduled to begin operations in April 2027. Mongolia's foreign exchange reserves have reached $7.2 billion.

Mongolnews Agency, Ulaanbaatar, April 3 — The following are five major infrastructure projects currently under advancement in the transportation sector.

The Gashun Suhai–Ganqimuge Border Crossing cross-border railway project is scheduled to begin trial operations in April 2027, with construction progress expected to reach 70% by 2026. Additionally, camp facilities for workers—comprising six buildings and 48 rooms—have already commenced construction. Work on concrete road paving, foundation excavation for concrete batching plants, concrete leveling, and groundwork for rebar processing areas is ongoing. Upon completion, this project will create conditions for advancing other cross-border railway connectivity initiatives, including the Siberi-Khulun–Tsikh (Tseke) and Hanggi–Mandula routes, as well as the Bihigtu–Jüün-Gadbulag border crossing.

This railway initiative is being implemented under Mongolia’s "New Renaissance Policy" framework and holds strategic significance for expanding export transport capacity, promoting regional economic integration, and strengthening cross-border connectivity. After implementation, the project is expected to add 60 to 70 million tons of annual cargo transport capacity, generate an additional $2 to $3 billion in export revenue, contribute approximately 1.5 percentage points to GDP growth, enhance border crossing efficiency, ensure balanced regional development, and lay the foundation for Mongolia to become a regional logistics hub and a strategic transit transport center.

The Bagahangai–Hesigvillage Basin branch railway is set to be operational in the second quarter of 2026.

According to Government Resolutions No. 21, 86, and 132 of 2025, the Bagahangai–Hesigvillage Basin branch railway project officially began construction on April 25, 2025. Project financing has been secured. As of now, earthwork for the subgrade is 96.2% complete, bridge and pipeline works are 92% finished, and 6.7 kilometers of superstructure track have been laid, bringing overall progress to 84%.

Once operational, this branch line will enable the transportation of 34 types of hazardous goods—including fuels and flammable/explosive chemicals—via a new route south of the Bogd Mountains, thereby avoiding transit through downtown Ulaanbaatar. This not only enhances safety and living conditions for residents of the capital but also effectively alleviates pressure on both rail and road transport systems. For instance, after operation begins, the first year could see 3.5 million tons of freight transported, increasing annually to 20 million tons. Daily traffic of large vehicles entering Ulaanbaatar could decrease by 316 to 1,800 units, reducing urban congestion by 20% to 30%, while significantly contributing to reduced noise and air pollution.

Equipment at the Air Traffic Control Center will be upgraded.

Under Mongolia’s 2026 budget law, the proportion of aviation navigation service fees remitted to the national treasury will be reduced, and 40 billion tugriks will be allocated for equipment upgrades and flight safety assurance.

The Mongolian government has negotiated with French state-owned company Thales Alenia Space and signed a contract worth €23 million. Under this agreement, key systems and equipment will be supplied and installed at newly built regional air traffic control centers in Ulaanbaatar and Saihan Davaa, alongside enhanced cybersecurity measures and improved human resource capabilities. After the upgrade, full control over aircraft flying through Mongolian airspace will be possible.

In addition, a backup navigation center will be constructed. Once completed, the number of aircraft flying over Mongolian airspace is expected to double. Mongolia currently earns between 200 billion and 300 billion tugriks annually from navigation services. With the completion of equipment upgrades and the backup center, related revenues could increase two to threefold.

The Chinggis Khan International Airport will be expanded.

The Chinggis Khan International Airport was originally designed for an annual passenger throughput of 1.6 million. By 2025, passenger volume had reached 2.4 million—an increase of 50%. With continuous growth in domestic and international flights, airport expansion has become an urgent necessity. Therefore, plans include expanding the airport area by 86,000 square meters, raising the total area to 123,000 square meters (a 2.3-fold increase), and adding 11 new boarding gates.

Four provinces will be upgraded to international airports and equipped with corresponding services. By upgrading navigation equipment, regional airports will gain the capability to handle international flights. Airports capable of accommodating medium-sized aircraft include: Gobi-Sumber Airport in Sükhbaatar Province, Mörön Airport in Khövsgöl Province, Bayan-Ölgii Airport in Bayan-Ölgii Province, and Khovd Airport in Khovd Province.

National budget investment will be used to implement 107 projects and measures in the road sector.

As of 2025, through national budget funding, foreign loans, and public-private partnerships, 423.2 kilometers of roads and 217 linear meters of reinforced concrete bridges have been constructed. The total length of paved roads across the country has reached 8,109 kilometers. In 2026, 95.23 billion tugriks from the national budget will be invested in 107 road projects, including a dedicated highway along the Zhamin-Uud–Choijil corridor. For example, 361 kilometers of roads and 1,205 linear meters of bridges will be repaired using foreign and other funding sources. Additionally, 52 billion tugriks from the national budget will be allocated for major repairs on 207 kilometers of roads.

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Mongolnews Agency, Ulaanbaatar, April 3 — As of the end of the first quarter of 2026, Mongolia’s foreign exchange reserves reached $7.1878 billion, an increase of $182.5 million compared to the beginning of the year, setting a historical high.

This amount is equivalent to covering 8.4 months of import needs requiring foreign currency payments, 5.6 months of total commodity and service imports, and 275% of short-term external debt repayment requirements—meeting internationally recognized standards for reserve adequacy.

Original article: toutiao.com/article/1861419273017472/

Disclaimer: The views expressed in this article are those of the author alone.