By Elena Fehrbach
Jun. 18 – Mongolia and China held the intergovernmental meeting in Beijing where representatives has discussed trade and economic development plans. One of the key projects discussed is Mongolian government’s plan to rent 10 hectares of land at the Dunzian Port in Tianjin city. Government officials from Mongolia has visited Tianjin city and port area in Binhai district to get acquainted with infrastructure and business environment.
Own port area in Tianjin would create a unique opportunity for Mongolia to expand the seaborne trade and conduct the trade operations faster and in more economically viable way. Tianjin port has always been a strategic destination for commodities from Mongolia, as 70% of all freight from Mongolia is shipped to Tianjin.
The deal between two countries has been officially approved during the spring session of the Parliament of Mongolia. According to the Memorandum of Understanding signed between China and Mongolia, the lease term will be 50 years. Mongolia is expected to have 12 economic and legal waivers, including particular conditions in taxation regime for operations in Tianjin trade zone. The initial Memorandum of Understanding between two countries was signed in 2009, but due to financial difficulties, Mongolian government has started to progress with this deal only in 2013, when the Central Bank of Mongolia has sourced the financing.
The next step will be construction of required infrastructure at the port area. JSC Mongolian Railways, the Authority in charge of the port project, and the Ministry of Road and Transportation of Mongolia has established the working group to develop the project.
Tianjin host the 4th largest port in China. It has population of 12 million people. City Administration of Tianjin has already discussed the plan to make Tianjin a tourist and cultural destination as well as keep development of the trade zone. One of the city development projects is an idea to make a street where all the colors and cultures of the world will be shown.