Recently and unanimously elected new chairman and chief executive officer of the General Council of the Ulaanbaatar Railway V.V. Morozov announced a long-term strategy to achieve higher growth and efficiency in the Mongolian Russian joint venture.

Morozov plans to pursue an already announced project that calls for building new rail infrastructure in Mongolia to bolster domestic services and improve transit for freight through the country. He also urged the Mongolian Government and Parliament to revise all tariff rates on the railway to bring them up to an economically viable level.

Nevertheless, the CEO declared that sources of finances have to be identified before work on the plan could start and urged the two Governments to begin talks on a fresh capital investment of USusd250 million as soon as possible.

Founded in 1949, Ulaanbaatar Railway handles more than 60% of Mongolia’s freight transportation. In August 2009, the Russian Federation transferred its 50% stake in the railway to the Russian Railways for a five-year period. The other 50% stake is owned by the Mongolian Government. Mr. Morozov is the Vice President of the Russian Railways.

There has been no investment at all in the railway from the Russian side in the last 15 years, while Mongolia has spent USusd150 million.