Mongolia Pushes for China Deal to Revive Stalled Railway

Completing the cross-border railway promises to significantly cut costs and accelerate exports for Mongolia.

Mongolia has decided to negotiate a comprehensive agreement with China to revive the long-delayed Gashuunsukhait-Gantsmod (GSK-GMD) railway. Central to the plan is a 16-year coal sales agreement guaranteeing export volumes, doubling transport capacity to 165 million tons by 2030, and slashing transport costs by nearly four times compared to trucking.

In 2024 alone, Mongolia exported 78.5 million tons of coal to China, a 21.1% year-on-year increase—a clear indicator of the potential impact of enhanced rail infrastructure.

China’s coal market in 2025 is projected to experience modest demand growth, particularly for metallurgical coal. This comes despite headwinds in sectors like property and infrastructure.