Dual approach to railways looks to meet president’s request

Railway construction connecting large mining projects will begin this May. The following is an interview with J. Bat-Erdene, the State Secretary of the Ministry of Roads, Transportation, and Urban Development, and also the Chairman of the Mongolian Railway Board of Directors. Translated from Udriin Shuudan newspaper.

-A few days ago Base Structure of the Mongolian Railway was established at a Government meeting. What is the difference between this company and the Mongolian Railway?

-A legislative add-on was made to enable free competition in railway transportation. Before, there was the Ulaanbaatar Railroad, a company owned by both Mongolia and Russia. The add-on enables other parties to establish railway companies that provide transportation and related services.

That was how Mongolian Railway was established. It can provide railway transportation and use the infrastructure to provide services. The Government of Mongolia, through a loan from China, provided the Mongolian Railway with 200 train cars and road repair equipment.

The Government decided that it is correct to build two separate companies – one to carry out infrastructural operations and the other specifically for transportation. The one for dealing with infrastructure was established as the Base Structure of the National Railway.

So the Base Structure of the National Railway will own the railroad that it builds. Before, the Mongolian Railway was responsible for building and transporting. But now, the Mongolian Railway has given the duty of building the railroad to the newly established the Base Structure of the National Railway.

-The President made an urgent request to speed up overall infrastructure construction projects. The request included starting phases 1 and 2 of railroad construction within the year. How reasonable is this?

-Yes, the Government changed the decision and made it so that both phases are to begin in 2012.

-During yesterday’s Government meeting, the border port plans were passed. Can you elaborate on the plans?

-It was very disorganized because there was not enough funding provided for the border ports and gates. Since the plan is now passed, the customs, loading and unloading terminals, monitoring and administration will be appointed and all border ports will be much more organized.

During this Government meeting, out of six general plans to be passed, two of them were passed: the ports in Gashuunsukhait and Shiveekhuren. The Gashuunsukhait port plan was made for 2,100 hectares of land and the Shiveekhuren for 3,000 hectares of land. Each port will have 12 exits and entrances.

Also, an exit for railways was planned. Each exit will have 8 terminals.

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