LandEX company signs agreement for logistic trade projects

Economy | Agriculture
2018-05-02 17:10:22
Ulaanbaatar / MONTSAME/ LandEX company signed agreement for the logistic trade projects with Caofeidian Port Corp. of China during Caofeidian industrial zone’s promotion conference on April 26. It was among the 37 projects settled in Caofeidian with a total investment of over 45 billion yuan, during the conference. The conference was attended by nearly 400 merchants, investors and local authorities from China, Mongolia, Japan and South Africa.
A month earlier of the conference, Caofeidian a unit of Tangshan port, had launched a new rail freight link to Ulaanbaatar with 51 containers of raw materials, furniture and electrical appliances to Mongolia via the border crossing at Erenhot, said Sun Gui Shi, member of standing committee of the Tangshan municipal Communist Party of China.
The new link would allow not only Caofeidian to implement its ambitious plan for becoming an international hub and but also landlocked Mongolia to turn into land-linked trade hub by 2-3 times lower cost and faster route for exporters in Europe. Value of cargo sent between China and Europe by rail quintupled in last four years, according to the Economist’s report. Transit freight via Mongolia was tripled in the first quarter of this year, accounting for about 10 percent of the container shipping between China and Europe, according to the statistics.
“The increasing demand of transit freight urges us Mongolia’s logistic companies to open up new trade way, and currently Tianjin and Hong Kong’s ports are playing a major role for the flow of the goods with long queue lines,” said R.Amarbayasgalan, CEO of the Silk Road Mongolia Co., LTD. 
China and Mongolia had reached an agreement to enhance the cooperation of maritime ports in Northern China, during the Chinese President Xi Jinping’s visit in Mongolia, in 2014. Mongolian authorities have been considering to develop the partnership with Caofeidian port, said D.Amartuvshin, a director of Administration and Management Department of Mongolia Maritime Administration.
Narantungalag Enkhtur
fellow of Tsinghua University