Ulaanbaatar Railways to become part of the Russia - Mongolia - China economic corridor
The Mongolian President Haltmaagiin Buttulga and the Chief Executive Officer and
Chairman of the Board of OJSC Russian Railways Oleg Belozerov have discussed current
issues regarding Russian-Mongolian cooperation in the development of railways.
The two men met in the Mongolian capital Ulaanbaatar on 2 February 2018.
During the meeting, Oleg Belozerov noted the positive results of the work of Ulaanbaatar
Railways in 2017.
Transit shipments of containers through Mongolia increased 2.7 times and labour
productivity was up 20%.
The head of Russian Railways informed the President of Mongolia about the plans
to develop the infrastructure of Ulaanbaatar Railways in order to handle the growing
transportation volumes. The major track overhaul planned in 2018 in particular will
be double that of last year, while the modernisation of the transportation management
system will be completed. As a result, the railway’s carrying capacity will
be increased by 20%.
Speaking about the infrastructure component, Oleg Belozerov said that the Central
Railway Corridor between Ulan-Ude – Naushki – Sukhe-Bator – Ulan-Bator
– Dzamyn-Uud – Erlan was a priority in implementing the programme to create
the Russia – Mongolia – China economic corridor.
Oleg Belozerov also discussed issues affecting the development of cooperation between
Russia and Mongolia in the railway sector during individual meetings with Mongolian
Prime Minister Ukhnaagiin Khürelsükh and the Secretary of the National Security
Council of Mongolia Gansukh Amarjargal.
In particular, the parties underlined the interest in increasing the transit of
freight from Mongolia towards the ports of the Far East on the infrastructure of Russian
Railways. The parties also discussed issues related to the prospects for the development
of Mongolia's railway infrastructure, including the use of state financing mechanisms.
JSC Ulaanbaatar Railways was established on 6 June 1949 on the basis of an agreement
between the governments of the USSR and the Mongolian People's Republic. Each side
had an equal holding of shares in the JSC’s authorised capital (50%-50%).
Until July 2004, the powers of the shareholder were exercised on behalf of the
Russian Federation by Russia’s Ministry of Railways then by the Federal Agency
for Railway Transport. Since December 2009, OJSC Russian Railways has entered into
the rights of trust manager for the Russian shareholding.
JSC Ulaanbaatar Railways plays a key role in providing Mongolia’s transportation
links. Rail transport accounts for over 60% of the country's freight traffic.
On 2 December 2017, a meeting of the Board of JSC Ulaanbaatar Railways in Moscow
considered a draft long-term rail development programme until 2030.
In accordance with the programme, a list of priority measures for the modernisation
of Ulaanbaatar Railways is being developed. Between 2018 and 2020, it is planned to
carry out major track repairs, update rolling stock and locomotives, build a sorting
hill at Zamyn-Üüd station and implement a number of other measures, including