Mongolia: Transport Sector Fact Sheet

Abstract

The underdeveloped road network in Mongolia has substantially constrained the country’s access to external markets and economic opportunities. This constraint has been particularly severe for the landlocked country, which is highly dependent on external trade and investments from its two large neighbors, the People’s Republic of China (PRC) and the Russian Federation. Today, most of Mongolia’s external trade is carried through the north–south railway line between Altanbulag and Zamyn-Uud border crossing points. While suitable for carrying long-haul and bulk cargoes compared to roads, the railway system is less effective for private traders engaged in smaller freight over shorter distances. In addition, railway transport is subject to delays caused by the different width of railway gauges used in Mongolia and the PRC, which requires transfer of the cargoes from one gauge to another at the border. Hence, development of the country’s road network is one of the government’s priorities.