Mongolian coal truckers go on strike, demand freight rate hike

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Mongolian truck companies that mainly engage in coal transport from Tavan Tolgoi coalfield to Gashuunsukhait border crossing went on strike on May 6, demanding increase in transport services prices, local newspaper Zasgiin Gazriin Medee reported.

There are more than 170 companies engaged in coal transport on the route. Presently, the transport service price has slumped to 65 yuan/t from previous 115 yuan/t, reducing many of them into the red, according to the Coal Transport Industry Protection Association, which announced the strike.

Among the 170 coal transport companies, 80% are controlled by Chinese investors and only 20% are Mongolian-funded firms. The association urged an expansion in Mongolian-owned market share and a public discussion on coal transport and purchase issues by May 13.

Currently, the strike had a limited impact on coal transport through Gashuunsukhait border crossing, which connects with Ganqimaodu border crossing on the side of China. On May 6, 761 coal trucks went through Ganqimaodu border crossing, almost unchanged from levels before the May Day holiday.

The strike, as learned by sxcoal.com, was also due partly to import quotas imposed by local authorities on imported Mongolian coal for further preparation into washed coal. Most of the quotas were granted into Chinese truck companies, causing dissatisfaction among Mongolian truckers.

Author : SX Coal