MONGOLIA AND RUSSIA HAVE SIGNED AGREEMENT ON STRATEGIC PARTNERSHIP FOR MODERNIZATION AND DEVELOPMENT OF ULAANBAATAR RAILWAY

Ulaanbaatar /MONTSAME/ In frames of the working visit of the Russian President Putin to Mongolia, the Ministry of Roads and Transport of Mongolia signed an agreement on outlining a strategic partnership for the modernization and development of Ulaanbaatar Railway (UBZD) with the Russian Railways. The document was inked by Mr A.Gansukh, the Minister of Roads and Transportation, and by the president of Russian Railways Vladimir Yakunin. The main goal of the agreement is the strategic development of JSC "UBZD" to ensure growth in the export and transit of goods and strengthen its role in the Eurasian transport and logistics system. According to the document, by March 1 of 2015 the parties will agree to terms of reference and determine specialized engineering companies to conclude the agreements with JSC "UBZD" for the preparation of investment feasibility studies, including market research, financial and legal models, and a feasibility study on construction projects and the modernization of the railway infrastructure in Mongolia. Funding will be done by JSC "UBZD", using their own and borrowed funds. The main projects being considered include the centralized modernization and development of the route Sukhbaatar–Sainshand–Zamyn Uud (1,100 km), including the electrification and/or construction of a second track; the northbound construction of the Erdenet–Ovoot railway (545 km) from the perspective of developing the mining industry of northwestern Mongolia; and a construction of the Ovoot–Arz sur route (215 km) with access to Russia and contiguity to Kyzyl–Kuragino. In the west, a railway line linking Russia and China through Mongolia to export from Russia to China, India, Pakistan, and other countries in the region will be developed, and in the east the possibility of using the Choibalsan–Erentsav railway section (239 km) from the perspective of transit to Khut–Bichigt is being considered. The agreement also reflects the interest of parties to work with China to build up traffic from Russia to China in the opposite direction using UBZD, which includes the development of competitive tariffs and technological conditions for such shipments.