Global Business Special

Bodi Group: challenge and success

Updated:2023-10-18

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Girder railway bridge with a length of 430 meters - Tavantolgoi Gashuunsukhait railway project

Bodi International LLC - head company of the Bodi Group - is marking its 30th Anniversary this year. Mongolia was one of the countries of the so-called "communist world" back then, where there were no privately-owned entities under the system of government-managed planned economy. Bodi was founded in 1993 as one of the first private enterprises in Ulaanbaatar, Mongolia. Since then, the company has grown into a group company with diverse businesses covering infrastructure and urban construction, travel, banking, investment, and insurance.

Bodi International LLC acted as the EPC Contractor for the 233.6 km railway construction project of the Tavantolgoi-Gashuunsukhait rail line, executed in accordance with the decision of the Government of Mongolia, and has successfully commenced the project. Gashuunsukhait Port shares its border with China's Gantmod Port and serves as the primary gateway for the handling of over 55% of Mongolia's coal exports. Upon the completion of railway construction at the border, this railway will become the second cross-border railway between China and Mongolia, and will be the first established in more than 60 years. This infrastructure is crucial for increasing coal exports, reducing transportation costs, fostering Mongolia's economic growth, and driving social development.

The Tavantolgoi-Gashuunsukhait railway stands as Mongolia's inaugural first-class railway, featuring seamless, heavy-duty rails and boasting a remarkable capacity to transport 30-50 million tons of coal annually. The project takes pride in being the first complex project constructed by Mongolian engineers despite its complexity. Completed through the collective efforts of over 700 vendors and business partners and 15,000 employees, it serves as a tremendous inspiration for all parties involved, encouraging everyone to explore new horizons for the group vision.

The 3-year project implementation period, from 2020 to 2022, coincided with the global COVID-19 pandemic. At the outset of 2020, borders were closed due to the pandemic, resulting in the subcontractors responsible for constructing 16 bridges and the foreign labor used in the railway's construction being unable to enter the country. This marked the onset of the initial challenge, which started with the need to fully use domestic human resources. Also, due to border restrictions and curfews, foreign remittances were suspended, which resulted in a recession in the supply of goods. In addition, due to the delay in port access, the price of domestic transportation increased by 50% and the price of foreign transportation increased fourfold, leading to significant difficulties in the preparation and delivery of project supplies.

In terms of its geographical location, Mongolia is situated between two major powers, is landlocked, and lacks developed logistic transport infrastructure. Additionally, it faced new difficulties and challenges every day due to the COVID-19 pandemic and conflict in neighboring countries.

However, the project, which is of great importance to Mongolia and has been expected for nine years, has already commenced, so no backward steps shall be taken. Therefore, with the belief that even the seemingly impossible can be achieved and employing the most effective solutions while optimizing management methods, the railway was successfully put into operation as scheduled in July 2022, marking the commencement of coal transportation.

Bodi Group is currently undertaking its next major project, a 600MW power plant based on the Bureljuut lignite mine. This power plant project, which will be carried out in two phases, represents a significant advancement in Mongolia's energy sector, introducing innovative technological solutions and fostering development. The first block, with a capacity of 150MW, is scheduled for commissioning in October 2024. The EPC Contractor for the project is Sinosteel Equipment & Engineering Co., Ltd.

As a developing country, Mongolia needs to place greater emphasis on infrastructure development. Therefore, Bodi International LLC aims to continue to undertake infrastructure projects, particularly those involving roads, bridges, tunnels, railways, energy, and power plant projects based on the experience, human resources, and technology it has amassed as the EPC Contractor for the railway mega project.

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