Russia, Mongolia and China are continuing work on the Western Railway Corridor, which is planned to connect Tuva to northwestern China via Mongolia. The project, currently in the preparatory phase, will begin at the Arts-Suuri border crossing on Russia’s border with Tuva and reach China through western Mongolia.
Joint mechanism for the route and financing
Mongolian Deputy Prime Minister Nyamtaishiryn Nomtoibayar and Russian Deputy Prime Minister Alexey Overchuk discussed the corridor’s future in mid-September. They agreed to establish a trilateral working group to determine the route, investment terms and construction financing.
The corridor was also discussed during a meeting between Mongolian President Ukhnaagiin Khurelsukh and Russian President Vladimir Putin in September on the sidelines of the Shanghai Cooperation Organisation summit.
The three countries are also working on another railway route running through Altanbulag and Zamyn-Uud. The line is being developed as part of an economic corridor programme that Russia, Mongolia and China plan to establish by 2031.
Capacity increase targeted for the Ulaanbaatar line
Gotov Dugerjav, a professor at the School of Mechanical and Transportation Engineering at the Mongolian University of Science and Technology, said Mongolia needs to improve its competitiveness to make better use of its geographical position between Russia and China.
Dugerjav said that, according to data from the International Institute for Management Development, Mongolia ranked 65th among 69 countries in the 2025 World Competitiveness Ranking. Mongolia fell four places compared with the previous year.
According to the professor, developing the western and eastern railway corridors, building new lines, modernising existing routes and increasing freight capacity could strengthen Mongolia’s role as a transit hub. Upgrading stations and equipment could also improve the efficiency and safety of transport.
Ulaanbaatar Railway’s freight capacity is expected to increase from approximately 30 million tons to 50 million tons over the next five years. The increase could strengthen Mongolia’s trade with China and Russia and its position in regional supply chains.
Multimodal Eurasian logistics network
Dugerjav said diversifying trade routes would reduce dependence on a single line and increase the resilience of the logistics system. With greater capacity, Mongolia could transport processed products, industrial goods, electronics and consumer goods in addition to raw materials such as coal, copper and rare earth minerals.
Greater railway capacity could strengthen connections with Kazakhstan and countries farther afield, while contributing to the creation of new trade routes and partnerships. Although the work focuses on freight transport, developing railway infrastructure could also support passenger transport and tourism.
For Mongolia to become a regional logistics hub, customs procedures need to be simplified, regulations harmonised with neighbouring countries and border crossings made more efficient. Establishing a seamless multimodal transport network that combines rail, road and air transport is also considered essential.
Diplomatic relations and regional stability
Dugerjav said strong diplomatic relations with Russia and China were important for trade agreements and logistics cooperation. Political stability, market demand, investment and business-friendly regulations are among the factors that will determine Mongolia’s capacity to become a transit hub.
The professor said expanding the railway network could affect the transportation map of Northeast Asia over the next five to 10 years. Aligning Mongolia’s infrastructure with regional initiatives such as China’s Belt and Road Initiative and the Russia-led Eurasian Economic Union could strengthen connections and attract investment.
The expansion of the railway network could also lead to the establishment of logistics centres providing storage, cargo handling and distribution services. These centres could attract companies seeking to establish centralised logistics operations in Northeast Asia.
