Mongolian National Transport Forwarding Agency reported on the decision of the Chinese railway authority to increase railway transport prices from Tianjin to Erlyan and from Erlyan to Tianjin starting August 1.Kh.Bayartsogt, a lawyer for the National Transport Forwarding Agency of Mongolia declared that the decision was reached without any notification from the Chinese side to Mongolian authorities, which he said, causes disputes between the transport intermediating organizations and customers. According to the international cargo and transport forwarding agreement signed between Mongolia, Russia and China, the sides must notify any price growth a month in advance.

Despite that Mongolia has a preference right according to the international agreement signed between landlocked countries, the decision of the Chinese railways organization breaches the above agreement, he stressed.

An explanation for the price growth was sent in Chinese language where they explained the reason due to an increase in the rates between the Swiss franc and US dollar and by transport blocking at Zamyn-Uud station. According to the increased transport tariff, USD$250-400 will now be paid for each 20 ton container, and US $500-700 for 40 ton containers.

Due to UB railways wagon shortage, the Mongolian transport mediating companies are unable to return about 2000 empty containers and are experiencing significant damage from price growth. The National Transport Mediating Agency of Mongolia criticized the position of the ruling authorities for not giving any explanation although five days have passed since the price growth.

The growing transport tariff of Chinese railways in their native land is expected to give a serious blow to the Mongolian economy, 70-80 percent of which depends on Chinese imported goods. There are 130-140 transport mediating companies in Mongolia which serve local citizens with about 20 thousand containers a year. The above-mentioned price increase causes them to pay more than US$10 million or Tg10 billion a year. In other words, the contractors will include the price growth disparity in consumer goods to pass the price difference from citizen’s pockets.

<< BACK