Journal of Siberian Federal University. Humanities & Social Sciences / Economic Evaluation of the International Kyzyl – Urumqi Railway Construction Project in Conjunction with the Ulug-Khem Coal Basin Development

Full text (.pdf)
Issue
Journal of Siberian Federal University. Humanities & Social Sciences. 2016 9 (12)
Authors
Dabiev, David F.; Lebedev, Vladimir I.
Contact information
Dabiev, David F.: Tuva Institute for Exploration of Natural Resources of the SB RAS 117a Internatsionalnaya Str., Kyzyl, Tyva Republic, 667007, Russian Federation; ; Lebedev, Vladimir I.: Tuva Institute for Exploration of Natural Resources of the SB RAS 117a Internatsionalnaya Str., Kyzyl, Tyva Republic, 667007, Russian Federation;
Keywords
Railway; Tuva; Mongolia; China; Urumqi; mineral resources; coal; export; evaluation; cost-effectiveness; fiscal efficiency; public-private partnership project
Abstract

The present article demonstrates that construction of a railway through Tuva and Mongolia to China is an interesting and challenging problem from both economic and geopolitical points of view. Doubtlessly, the solution of this problem opens new opportunities for commercial and economic relations, including import and export of goods both to Mongolia and China and other cross-border countries of Central Asia. The authors remark that the greatest and the most profitable share of railroad cargo is coking coal exported to China, which in the last years has been facing a huge deficit for utilization of its metallurgical plants’ capacities. Should the international railway be constructed along Kyzyl – Ulangom – Hovd – Urumqi, almost all large and medium South Siberian deposits will be highly demanded on both domestic and international mineral product markets. The research leads us to the conclusion that the optimal option for Russia China and Mongolia would be a tripartite international treaty, on the basis of which the budgets of the party states finance up to 50% of capital costs provided in the estimate for the Kyzyl – Urumqi construction as per shares stipulated in the treaty, while private investors provide the rest

Pages
2917-2927
Paper at repository of SibFU
https://elib.sfu-kras.ru/handle/2311/30306

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