Seoul, 22nd of Mar 2013
Emma Enkhriimaa NyamosorEmail: [email protected]
The Way to Forward
Mongolian Logistics Association
2
Content
Infrastructure , transport corridors for Mongolia and gate ways
2 Competitiveness of Mongolia
3 Major challenges on Mongolia’s transport sector
4 “Mongolian Vector” brand product & Ulaanbaatar New Logistics terminal Project initiated by Tuushin company
1
5 Conclusion
ROAD
• The road network is limited . • The total length of state and local owned road is ‐ 49250 km , of which the paved only 2597 km ,
unpaved – 46653 km • Asian Highway corridors AH4 : 743km
AH32 : 2325.1km AH3 : 1041.0 km
• AH‐3 is crossing through Mongolia and connecting Russia with China from Altanbulag to Zamyn Uud , it’s construction will be finished in 2015 .
RAIL
• Rail and air services serve areas of vital role in commerce and as the main gateways to the country.
• Sukhbaatar‐Zamyn Uud existing railway main line
‐1100 km
• Transsiberian line from Nauskhi to Erlian 1113 km
• Ulaanbaatar Railway JSC (UBTZ) has carried
in 2012 : 20mln ton freight as a “Record” when ever
• Estimated freight in 2013 : 26.0 mln ton
New Railway Construction
• In Mongolia,appr.5683.5 km railway lines will be built in 3 stages :
• 1st stage , 2nd stage will cover the construction of 1800‐ 1933 km new railway lines from the Gobi region to East region. This link will have a short journey to China’s Yellow sea ports enabling Mongolian exports to reach the wider world , like a potential export markets, in Korea , Japan and beyond.
• The 3rd stage over 3600 km railway lines will be constructed , connecting the Western region and Gobi region
• Planned for capacity to ship coal output of up to 100mln tones per year, total cost of projects ‐ 5.2 bln US$ Total
• Rail is returning as a key mode of transport , especially for mining
AIR
• Europe and North America , with East and South East Asia ,
connected over Mongolian territory : 10 over flights
• Government plans to construct a new airport for a capital
• Mongolian Civil Aviation Authority ‐MCAA has certified at the begin
of 2012 : 10 air operators , including 3 domestic Air lines and
5 foreign operators – Air China, Aeroflot, Korean Airlines ,
Tianjin Airlines and Turkish Airlines , all of which have a regular
flight to Ulaanbaatar
. .
Sea /Rail Multimodal
Mongolian Sea gates in China via TCR • Xingang port ‐ Zamyn Uud
‐ the nearest , the only port for Mongolian transit cargo since 1990, block trains per day.
• Dong Jian port – Zamyn Uud ‐ new terminal in North East, just close to TEDA, is fixed to be the port for transit cargo to Mongolia. Now Korean shipments are calling that port. Also needed to haulage the container to railway CY then dispatch.
• Lianyungang port – Zamyn Uud ‐main port Central Asia including Mongolia .‐ busy port with 6‐7 block trains per day.
• Qingdao port – Zamyn Uud also open for Mongolian transit cargo
Mongolian Sea gates in Russia via TSR • ‐ Vladivostok, Vostochny , Nakhodka , Vanino ,
‐ not popular used , not competitive transport mode for containerized cargo ‐ but related to future new railway line construction in Mongolia for bulk mining products exported from Mongolia through TSR , Russian East ports are always in a consideration
Competitiveness of Mongolia
The lack of infrastructure in the country restricts the growth of Mongolia’s domestic demand, while leading to, an unofficial trade barrier in many regions , as goods and services from outside become too costly and thus uncompetitive to deliver , while goods produced in those regions can not be smoothly brought to market .
Transit Time for containerized shipment from : • Inbound by sea/rail 55 days from Europe to Mongolia • Inbound by sea/rail 21 days from Korea to Mongolia• Inbound by rail/rail 21 days from East Europe to Mongolia
using MV block train
Containerized cargo from Korea Inbound to Mongolia via TCR
• Example 1 Route :Busan – Xingang(Tianjin) - Zamyn uud – Ulaanbaatar T/T 12-14 days
• Example 2 Route : Busan - Lianyungang –Zamyn Uud - Ulaanbaatar( 3 days by sea + 1-2 days transshipment, c/c + 4 days waiting wagon + 5 days by rail , + 2 days from Zamyn Uud to Ulaanbaatar T/T 14- 16 days
• Example 3 Route : Inchon – Qingdao – Zamyn Uud – Ulaanbaatar T /T days 16-18 days
Comparison of transport implementation Comparison of transport implementation via Trans China Route via Trans China Route
Variable Destination /Cost
Alma Ata Kazakhstan
Tashkent Uzbekistan
Dushanbe Tajikistan
BishkekKyrgyzstan
Ulaanbaatar
Export
UlaanbaatarImport
Destination to nearest sea port in km
3,380 2,720 2,040 3,100 1,700 1,700
Cost US$ /TEU/ km
0.37 0.35 0.59 0.34 0.61 0.87
ComparisonComparison
Countries LPI clearance process
infrastructure
competitively
shipments
logistics services
track and trace
Timeliness of shipments
1.Singapore 4.09 4.02 4.22 3.86 4.12 4.15 4.23
26.China 3.49 3.16 3.54 3.31 3.49 3.55 3.91
95. Russia 2.61 2.15 2.38 2.72 2.51 2.60 3.23
68. Botswana 2.32 2.09 2.09 1.91 2.29 2.59 2.99
140. Mongolia 2.25 1.98 2.22 2.13 1.88 2.29 2.99
LPI
Major challenges in transport & logistics sector
1. Lack of infrastructure and limited railway line‐ urgent exponential increase in rail transport capacity along corridors ‐ urgent start to construct new rail line Phase 1, 2 for 1800 km
from South (where mine deposits ) to East
2. Substantial enhancement of terminal capacity and infrastructure in Ulaanbaatar and at border Zamyn Uud . ‐ increase transshipment capacity in Zamyn Uud , invest to rolling stocks,‐ decrease cross border time
3. Adequate landside connectivity crucial ‐ at mine site , establish a loading and discharging places
4. Need industrial clusters – economic hubs of high promise ‐ Sainshand Industrial Park , processing of mineral raw materials , mineral deposits into economic circulation ‐ Choir , mining logistic park loading iron ore as conventional
Major challenges in transport & logistics sector
5. Need establish Economy Free Trade Zone at border in Altanbulag and Zamyn uud
6. Need establish of a specialized logistics parks within the country‐ Mining Logistics /carriage, choice of routing discharging yard, tradeagreement , supply of import, export product selling, information technology /
‐ Construction Logistics /transportation, storage, transshipment facilities
logistic center / ‐ Agro product Logistics /production, storage , transportation, selling, logistic center /
‐ Transport , Freight Forwarding Logistics / Logistic hub , ICD’s , 3PL, 4 PL logistics /
Private sectors involving in International logistics solution: Mongolian Vector MV ‐ International Railway Brand product !
MV‐ is block train service
• Mongolian Vector “MV” container block train service is ‐ International Railway Brand product !
• Support by the UN ESCAP
The demonstration Run of MV‐ 1, under the auspices of the UN ESCAP was successfully completed in the record time of 8 days 15 hours in June , 2004.
• Advantages:
‐ Speed, frequency and stability of delivery –
‐ Regular schedule shipment with promised transit time
‐ Technical reliability of the train and wagons
‐ Cost competitiveness
/discounted through freight rate offered by operators based o volume
MTO’s logistics solutions, initiated by private sector
• MV‐1 Route : Europe‐ Brest – Ulaanbaatar , via TSR , at present regular scheduled 3 times amonth , since 2002
• MV‐2 Route : Huhe Hoto – Zamyn uud – Nauskhi‐ Brest – Duisburg, Germany , via TSR , available at any time , fixed route, service since 2005 , available upon request
• MV‐3 Route : ‐ Europe‐ Brest – Ulaanbaatar ‐ Zamyn uud – Xingang Port – further to Busan Korea , via TCR
*** under project ***
• MV‐4Route: Korean export to Europe and to Russian Sibyrean cities ( Ulan Ude, Irkutsk, Novosibirsk, Krasnoyarsk) via Mongolian transit
*** under project , soon start with trail shipment ***
• MV‐5Route : Russian export to Korea , Japan , Guangzhou , China via Mongolian transit *** under project , soon start with trial shipment ***
MTO’s logistics solutions, initiated by private sector
Trans-Asian Railway (TAR)
Asian Highway (AH)
Air Transport
HUB
ULAANBAATAR MULTIMODAL FREIGHT TERMINAL,LOGISTICS CENTER – Project
22
MTO’s logistics solutions, initiated by private sector
Location
– Logistics center will occupy 130 hectare land between Bumbat and Bayan station of existing railway main line.
– Very close to road and railway lines.
– 10 km distance from Halaikh city / settlement area / суурьшлын бүс/
– 34 km distance from Ulaanbaatar city at the east side
– Close to the industrial area of Baganuur and Bagahangai
– It will connect to the new airport by access road.
China
RussiaUlaanbaatar
Suhbaatar
Zamyn Uud
AH3
AH32
North‐South railwayUB Logistics
Center
MTO’s logistics solutions, initiated by private sector
A
C
D.2
FEH
G
U B
D.1
Area Layout A Railway freight
B Road C Container
D.1 Domestic bulk cargo and storage area
D.2Customs and state inspection area, guaranteed warehouses
E Bulk cargoF Heavy cargoG Service
H Warehouse/ wholesale trade
U infrastructure
Tamsagbulag
Altanbulag
Jargalant ULAANBAATAR
Khandgait
DARKHAN
DALANZADGAD
Khanbogd
Tsogt Ovoo
Gashuun Suhait
MANDALGOVY
Matad
Bichigt
Havirga
Ereentsav
Yarantai
ULGII Ulgii
Uench
Burgastai
ALTAI
Naranbulag
CHOIR
MURUN
Khatgal
BAYANHONGOR
Khankh
ERDENET
Tsahir Battsengel
TSETSERLEG
ARVAIHEER
Khar-Khorin
Lun
ULAANGOM
ULIASTAIKHOVD
UVS
BULGAN
SAINSHAND
CHOIBALSAN
BARUUN- URT
UNDURKHAANZUUN MOD
Baga-Ilenh
Oyutolgoi
Tavantolgoi Tsagaan suvarga
Shivee huren
TO AND FROM NORTH AMERICA
TO AND FROM EUROPE
TO AND FROM SOUTH‐EAST ASIA
TO AND FROM NORTH‐EAST ASIA
PROPOSED ULAANBAATAR MULTIMODAL FREIGHT TERMINAL,
LOGISTICS CENTER
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MICA
Говьсүмбэр аймгийн Баянтал сумын нутаг дэвсгэрт орших хуучнаар ЗХУ‐ын агаарын цэргийн аэродром ньThe new air port in Khoshigtiin Hundii will have a complete logistics park with modern equipped warehouses for storage and distribution, cargo terminals for receiving , trans loading , loading, packaging , labeling etc. with all necessary services to clients
MICA
Conclusion
1. Continuously needed support by UNESCAP and also by CAREC , to develop a railway corridor No.2 via Mongolian transit using “Mongolian Vector” container block train service in cooperation frame of national and international level within OSJD and NEA countries . Corridor ‐2 : /Busan‐/Incheon‐ Tianjin‐ Beijing‐ Zamyn uud‐
Ulaanbaatar – Ulan Ude / TAR – Trans Asian Railway Network 1100 km via Mongolia , enables to use “Mongolian disadvantage as landlocked country “ turn to an advantage as transit country connects Asia ‐ Europe continents.
2. According to the Privatizations Law in CIS countries for Railway wagon platform equipments in near future, it’s considerable to set up joint companies among interesting parties in NEA countries , who will play in logistics market, to invest in private railway owning /operating sector. Related law or legacy and official government or ministerial units that controls the national logistics, should be worked together.
Conclusion
3 Further governmental support at national level needed to Private sector , PPP mode of cooperation Governmental support need to private sector in terms of Development of logistics , new project implementation, to UBLC. To create national strategic logistics program, sub programs to develop all fields in more independently, such as mining logistics, transport logistics, trade, service logistics, construction logistics, agriculture logistic etc and support .
4. Support from neighbor countries at Sea gates . especially at Xingang port in Tianjin , China with supply empty wagons for loaded containers , smooth transit customs clearance in Xingang and Dong Jian terminals etc.
5. To re‐construct and invest Vanino port in Russia at modern level, so that can receive Mongolian out bound bulk shipments, according to Newrailway line construction projects in near future.
Actual market player in logistics private sectors in Mongolia
• Freight Forwarders , MTO’s, Railway operators, Air way operators, Customs Brokers, Trucking companies and brokers . the leading and pioneer Freight Forwarder is Tuushin LLC www.tuushin.mn
• According to the Railway Department of the Ministry of Transport of Mongolia there’re totally 98 local forwarders , as at 02.03.2012 /www.railway.gov.mn /
• Foreign Freight Forwarders in Mongolia: Russian ‐6, German ‐3, Korean ‐11 companies
• National Associations : Mongolian National Freight Forwarders Associations with 24 members www.mnffa.mn
• Mongolian Logistics Association with 54 members www.monlogistics.mn
Thank You for the attention
www.tuushin.mn
- An ordinary member of International Federation of Freight Forwarders Association (FIATA) in 1991 and then an individual member since 1998
- An accredited member of International Air Transport Association (IATA) in 2003 - An ordinary of member of International Coordinating Council on Trans Siberian Transportation
Committee (CCTST) in 1998 - A presidium member of the Mongolian Chamber of Commerce and Industry (MNCCI) in 1993 - A lifetime special member of Consideration of Asian Chambers of Commerce and Industry (CACCI)
in 2001