The recently adopted railway transportation policy raises
visions of Mongolia breaking the shackles of being landlocked and of its trade
options being limited to its two great neighbors. The prospect of more entry
points to China and access to sea ports there and in Russia makes it certain
that the country will be exporting its apparently boundless natural resources
to new markets. Many other countries are also happy that they will now be able
to forge trade and economic relations with Mongolia. There are reports that
Russia will agree to provide preferential tariff for transit transportation,
and Japan, South Korea, and Germany all have indicated their willingness to
invest in building the new railway. Incidentally, Korean investors have stated
that they will divert the money planned to be invested in Kenya to “the
forthcoming substantial projects in Mongolia”.

However, the proof of the pudding is in the eating. There is
no knowing who will finally invest how much even though serious negotiations
are said to have begun. The Government’s public stand still is: “The project
will be financed through acquiring advance payment for marketing minerals
products, raising money from selling government bonds, public private
partnership, and taking advance payment from investors who will jointly utilize
substantial deposits owned by the State.”