Construction has officially started on a new rail link connecting Zuunbayan with the Khangi checkpoint on the China border. This is another major project undertaken as part of the government’s “New Revival Policy”, and is expected to boost international trade with China. The rail line, covering 226 kilometers, is an example of effective public-private partnership as Mongolia continues economic opening and development as the world recovers from economic shocks related to the pandemic.

The railway will expand traffic at the Khangi border crossing, and is hoped to increate import and export by up to 20 million tons, 65% higher overall from current trade. This follows the successful Tavantolgoi and Zuunbayan rail connection, covering over 400 kilometers, which begins operations this month. New rail connections are planned for three additional border checkpoints, as part of a planned 5,000 kilometer nationwide rail network for Mongolia.

Also this week, a Parliamentary committee covering industrial policy hosted talks over plans for revisions to the bill on establishing special industrial and technology parks. The current Law on Industrial and Technology Parks came into effect in 2009, yet no such zones have ever successfully been established and operational. The revised bill for amendments to the law is designed to fix several problems identified with the existing law. The revised law is planned to provide a comprehensive legal foundation for the establishment and operation of these parks as well as guidelines for favorable policies to attract investments to utilize the parks.

Finally, the Cabinet of the government approved a formal resolution which would provide a subsidy to farmers for local agriculture. The resolution is designed to increase Mongolia agricultural production, specifically vegetables, to a level able to cover the countries own internal domestic requirements, which generating a sizable excess for export.

Farmers growing vegetables locally in Mongolia will be eligible for a subsidy of 100,000 Tugrik per ton. In Addition, qualified greenhouse operations will benefit from reduced electricity costs from October through April each year to facilitate sustained growing operations in the Mongolian winter.