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DOMESTIC TRANSPORTATION SITUATION TO EXPORT COKING COAL TO THE THIRD MARKET Sharavdemberel E.1, Bolor B.2
'Sharctvdemberel Enkhtuul - Postgraduae Student, Lecturer; 2Banzragch Bolor — PhD in Economics, Associate Professor, MANAGEMENT DEPARTMENT, BUSINESS SHGOOL NATIONAL UNIVERSITY OF MONGOLIA, ULAN-BATOR, MONGOLIA
Abstract: investment into Mongolia's coal sector is growing and coal is being exported to some extent; however, all coal exports still remain dependent on a single buyer country at present. This article aims to expose the current and realistic potential for exporting coal to a third market and analyzes the main transport and logistics issues based on transport cost projections. This article explores the potential for the export of Mongolia's coal to third markets and identified domestic transport issues.
Keywords: logistics, transport, third coal market, coal export. 1. Mongolian coal market
1.1 Coal reserves and current export situation in Mongolia
Copper, coal and uranium currently serve as the main driving forces for the Mongolian economy. Coal has become very a significant part of Mongolia's exports; Mongolia's coal reserves are estimated at 16,300 million tonnes (10th in the world) [1].
The country exported 5.1 million tonnes of coal in 2008, which rose to 20.5 million tonnes [2] in 2012; the potential is for coal exports to rise to over 50 million by 2020, as assessed by the Mineral Resources Authority [3].
Presently, Mongolia has identified 15 major coal basins, and over 320 coal deposits are being mined. Of the estimated coal reserves, 70%' are of brown coal, 30% bituminous.
Mongolia's domestic consumption has risen consistently, from 4.7 million tonnes in 2000 to 6.8 million tonnes in 2012, while annual coal exports rose sharply in these years from 1 million tonnes to 20.9 million tonnes (Table 1).
Table 1. Coal consumption and export (2007-2012)
—■——Year Coal balance^^^^^^ 2007 2008 2009 2010 2011 2012
Thermal power stations 4,935 4,850 5,078 5,533 5,410 5,801
Industry and construction 203 190 226 180 222 337
Transport and communication 122 141 141 50 53 42
Agriculture 3 7 14 10 9 4
Housing and public utility service 455 581 632 615 641 637
Export 3,268 4,169 7,119 16,726 21,296 20,916
Other 188 174 619 519 481 561
Source: NSOM, Year book (2000-2012).
Mongolian coal exports have increased considerably since 2003, most of it being coking coal to China, which totaled 3.9 million tonnes in 2009 (12% of China's coal imports). Australian coal exports to China for the same year were 22.7 million tonnes (66% of China's total coal imports). In 2010 Mongolia exported 15 million tonnes to China (32% of China's coal imports), while Australia exported 17.4 million tonnes to China (32% of total Chinese coal imports). A TOE2 study forecasts that Chinese coal demand will rise 1.2% a year between 2008 and 2035, hitting a record 2.822 million tonnes in 2015.
1.2 Domestic roads and transport conditions.
Worldwide, there are 31 landlocked countries3, with the shared problem of remoteness from marine transport, the most cost-effective means of carrying foreign trade.
1 English terminology for this type of coal is lignite or brown coal. Due to higher moist content, such coal is of lowest value.
2 "Tonnes of Oil Equivalent" гэсэн YrHHH tobtooïï.
3 15 countries in Africa, 12 in Asia and 2 in Central and Eastern Europe.
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Mongolia has the trans-Mongolian railway along the vertical axis and a road network along the railway. The Mongolian railway from Naushki (Russia) to Erlian (China) runs 1,113 kms and can carry 21 million tonnes/year, says a study by the Mongolian Railway [4]. Ministry of Roads and Transport 2013 statistics indicate that Ulaanbaatar Railway (Mongolian Railway) carried 20.4 million tonnes in 2014, the maximum bearable capacity (Table 2). Cargo on the national railway has been increasing at an average 2-3% per year. In 2013, timber made up 55% of all transit goods, with 18% petroleum products, 15% chemicals, 1% metals and 11% other goods. A small amount of coal is carried to the power plants in winter.
Table 2. Total Amount of Transported Cargoes (2009-2012)
Cargoes transported (Thousand tonnes) 2009 2010 2011 2012
Rail 14,171.5 16,804.0 18,447.7 20,445.2
Road 10,563.8 12,610.2 25,635.3 32,898.9
Air 1.4 1.6 2.9 4.0
Total 24,736.7 29,415.8 44,085.9 53,348.1
Source: NSOM, Year book (2005-2012).
Coal is carried from the mines by truck. In 2013, Mongolia had 49,200.4km of road: 82% is dirt, 18% is improved, in three categories: paved, gravel and improved dirt.
Coal is carried directly from the mines on dirt road to the border; this has a negative effect on the local ecology, takes a long time and is cost prohibitive.
2. Issues on exporting coking coal to third markets
In response to the need for a third market for coking coal, this study explores international coking coal prices, condition of domestic transport, railways and port capacity of neighboring countries.
2.1 Present situation of exporting coking coal to third market
When coking coal price reached their height in 2011, one of domestic companies tested claims of coking coal exports [5]. In this test period, the company sold coking coal to Japan for US$282 per tonne and to India for US$225 per tonne, a total of over 30,000 tonnes of export, but found the following issues:
• Russia:
o High railway and port cost in Russia.
o Coal contamination during transport, freezing and dust concentration.
o Weak competitiveness on third market.
• China:
o In 2012, no proper legal environment for transit through the Chinese Gantsmod (Ganqimaodu) border.
o Subject to 17% VET, 10% export tax and 3% export fee in China.
o Chinese government gives a coal export quota to its 4 largest companies, but reduces coking coal exports every year.
At that time the cost of processed coal was US$210/tonne, including rail and port related costs.1 So Mongolia may feasibly export coking coal to the third market if the international coking coal price exceeds US$210 per tonne, but it is uneconomic to export coking coal to a third market at today's US$160 per tonne.
2.2 Domestic coal road and railway capacity
It is estimated that when coal mining operations at Tavan Tolgoi and Nariin Sukhait are economic and total coal mining rises from 33.3 million tonnes (2013) to 40-50 million tonnes a year, transport will become a more crucial issue. Mongolia must be able to transport to meet its coal processing capacity as a minimum. Today, there are several large processing factories: Energy Resources LLC (15 million tonnes a year); ENK LLC (300,000 tonnes a year); Mongolyn Alt-MAK (75,000 tonnes of semi coking); and NAKO LLC (50,000 tonnes a year semi-coking) [6]. If the supply of coal meets processing capacity, over 15 million tonnes will be produced, which is more than the railway can carry for export.
Mongolian trucks carrying 80-100 tonnes of export coal must be unloaded at the border crossing as China only permits loads of 40 tonnes on its roads.
1 Interview with an officer responsible for the project: "In terms of railway transport costs during the test export, the coal transport fee might be reduced considering the lessening of the burden on Siberian Railways in 2013."
2.3 Capacity of railways and ports in neighboring countries
As a landlocked country, Mongolia must export its coal through either Russia or China to reach a third market. There may be advantages to shipping through Russia as the Mongolian and Russian railways have the same rail gauge so wheels don't need to be changed, as well as the relatively low loading on Siberian Railways.1 However, the annual capacity of Nakhodka port is 80,000 tonnes, so huge investment is needed for large amounts of coal to be exported through there. Also, trucks would have to travel over 4,000km between Mongolia's Choir station to Nakhodka, much further than sending through China [7].
China's Tianjin is Mongolia's main foreign trade outlet, being relatively close and operational year-round. But the Zamyn-Uud-Tianjin rail outlet is considered unreliable and unsustainable because of high local loads through Tinajin port, with preference for Chinese exports and imports for domestic demand, the military and strategically important regions that the Erlian-Tianjin rail passes through, and its coincidence with the main coal transport line for the southern China power supply [8]. Exports through China must travel less far, but the train wheels must be changed because of the different gauges, and large amounts of coal would have to compete with high loads on Chinese domestic railway.
Rail transport costs in neighboring countries are: US$39.5 per tonne Naushki-Nakhodka (actually US$102.88 per tonne, but there is a 48% discount if Mongolia uses Russian rail and sea port); and US$35 per tonne Erlian-Tianjin. The difference is not significant, but it would be impossible to export to a third market through Russia without a discount for transit shipment.
Table 3. Railway transportation cost (in 2010)
Start point (A) Sea port (B) Distance between A and B /km/ Transportation cost /USD/ton/
Specila discount for coal transportation /%/ Reduced price /USD/
Zamiin Uud-Sukhbaatar 1,330 29.30 29.30
Naushki Nakhodka 4,047 102.88 0.48 39.50
Vladivostok 3,895 100.20 0.48 38.48
Erlian Tianjin 993 35.00 35.00
Source: NEDO p. 134.
For Mongolia to export coal to a third market, it is necessary to consider the rail and port capacity of neighboring countries, as well as international market prices and domestic transport costs. Conclusion
For Mongolia, ranked 8th in the world for coking coal exports, coal mining and exports are tending to rise year to year.
As a landlocked country, Mongolia exports coking coal only to China, which creates a dependency on the buyer. The quality of exported coking coal is similar to other countries, but the price is 2-3 times less than exports from other countries. In addition, analysis of breakdowns on transport costs and situation show that Mongolia can export coal to a third market at prevailing market rates (US$160 per tonne).
Mongolia cannot alone influence the above factors; however it must immediately resolve its domestic transport (under Mongolia's control) to add value and offer social and economic efficiency and benefits.
References
1. New Energy and Industrial Technology Development Organization (2011.03): "Current situation of Mongolian coal development and its export potential," 2010 Overseas Coal Development Survey.
2. Mining sector statistics, 2013.
3. Formal letter № 8/177 (20 May 2014) from the Mineral Resources Authority, an implementing agency of Government of Mongolia.
4. Bank of Mongolia, "Present situation and pressing issues of foreign trade transportation and logistics," 2012. P. 10.
5. Energy Resources LLC. "Report on exporting processed coal to the third markets," 2012.
6. NEDO (New Energy and Industrial Technology Development Organization). P. 113.
1 Mongolian and Russian railway gauges are 1,520mm, while China has 1,435 mm.
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7. NEDO Research on Current Situation of Mongolian Coal Development and Its Export Potential [in Japanese]. P. 2.
8. Bank of Mongolia. Department or Currency and Economy. "Present situation and pressing issues of foreign trade transport and logistics." P. 12.
УПРАВЛЕНИЕ КАЧЕСТВОМ ПУБЛИЧНЫХ УСЛУГ КАК ОСНОВА ПОВЫШЕНИЯ ЭФФЕКТИВНОСТИ УПРАВЛЕНИЯ Пушкарева Н.А.1, Артюх А.Ю.2, Рудяк И.В.3
'Пушкарева Наталья Александровна — кандидат наук по государственному управлению, доцент;
2Артюх Анна Юрьевна — студент;
3Рудяк Ирина Викторовна — студент, кафедра менеджмента строительных организаций, Государственное образовательное учреждение высшего профессионального образования Донбасская национальная академия строительства и архитектуры, г. Макеевка, Украина
Аннотация: в статье рассмотрены вопросы изучения и повышения эффективности работы органов публичного управления. Установлено, что повышение эффективности публичных услуг, предоставляемых органами государственной власти и местного самоуправления, непосредственно зависит от качества предоставляемых услуг.
Ключевые слова: органы публичной власти, публичная услуга, качество публичной услуги, эффективность публичного управления.
Актуальность. В современных условиях вопросы повышения эффективности услуг, предоставляемых органами публичной власти, занимают передовые позиции в обсуждениях ученых экономистов, управленцев, социологов и политологов. Это обусловлено тем, что низкая эффективность публичных услуг приводит к росту недовольства населения и, как следствие, недоверия к органам власти и социальной напряженности в обществе.
Анализ последних публикаций. Проблемы эффективности государственного и местного управления нашли отражение в работах Ануприенко В.Ю., Дорофиенко В.В., Пушкаревой Н.А., Сильвестрова С.Н., Соколовой Л.Г., Рыжковой И.Н., Хвалынского Д. С., Цыдыповой И.Б. и др.
Вопросами оценки эффективности публичных услуг, в разрезе тех или иных аспектов, занимались следующие отечественные и зарубежные ученые: Ахременко А.С., Герба В.А., Жигалов Д.В., Кайль Я.Я., Семенихин В.В., Сибринин Б.П., Тихомиров Ю.А. и многие другие.
Основной материал исследования. Повышение роли публичных услуг, которое отмечается в последнее десятилетие, требует использования механизмов рыночной экономики, которые смогли бы обеспечить ликвидацию негативных тенденций в секторе государственного управления и повысить степень удовлетворенности населения их качеством и количеством. При этом публичные услуги должны стать одной из основных форм социально-экономических отношений между услугополучателями и услугодателями, где юридические и физические лица будут иметь возможность пользоваться доступными качественными публичными услугами.
Следовательно, вопросы совершенствования механизмов повышения эффективности и качества публичных услуг являются особенно актуальными на современном этапе государственного строительства [2].
При реализации публичных государственных услуг, их эффективность увязана с эффективностью расходования бюджетных средств, что далеко от получения положительного результата. Не вызывает сомнений утверждение, что публичная услуга должна быть, с одной стороны, эффективной, а с другой стороны, на нее должно быть потрачено как можно меньше бюджетных средств.
Предоставление доступных, удобных публичных услуг высокого качества является критически важным для местных органов власти, поскольку во многом формируют необходимую среду жизнеобеспечения, влияющую на уровень и качество жизни населения. Наличие проблем и замечаний со стороны населения сталкивается со встречными недовольствами органов власти - отсутствием эффективного механизма обратной связи. Основной проблемой подобных разногласий можно назвать отсутствие четких и прозрачных механизмов предоставления и получения публичных услуг, а также мониторинга этих процессов.
