Energy Resources LLC has awarded Leighton Asia a USD 338 million contract to design, build and maintain for four years a 225 kilometer coal railway in the South Gobi region.

As per report the line will carry coking coal from Ukhaa Khudag where Leighton Asia has a six year mining contract, to the Chinese border at Gashuun Sukhait.

Construction is set to start in March 2010 for completion in mid-2011. The single track standard gauge line is being designed for 1•8 km long trains and 25 tonne axle loads, giving an annual capacity of 28 million tonnes of coal.

Preliminary studies were undertaken by DB International which signed a EUR 4 million contract for project planning and monitoring services in March.

(Sourced from www.railwaygazette.com)