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Mechel starts rail shipments to China

RUSSIAN miner Mechel has begun utilizing an old rail route between China and Mongolia that has be...

Staff Reporter

Part of the Trans-Siberian Railway, the new border checkpoint between Makhalino in Russia and Hunchun in China has just resumed shipping after being closed for almost 10 years, Russian Railways told Platts.

Mechel said in a statement Tuesday that the first 30-wagon convoy delivered Yakutugol Holding Company’s coal to Chinese recipients in early August.

Yakutugol Holding Company is Mechel's miner in Russia's far eastern republic of Sakha.

The opening of this railroad route will allow the company to diversify its logistics and shorten delivery times to China, Mechel said.

“Until now, Mechel made major coal deliveries to Chinese customers only through sea ports,” Mechel Mining Management Company CEO Pavel Shtark said.

“The opening of this railroad route will enable Mechel to diversify its logistics and make better time on deliveries to China, which is the world’s largest consumer of this type of fuel.”

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