V.V. Morozov, recently unanimously elected the new chairman and chief executive officer of the General Council of the Ulaanbaatar Railway, has said that he has a long-term strategy to achieve higher growth and efficiency in the joint venture. Sources of finance have to be identified, however, before work on the plan could start. He wanted a fresh capital investment of USD250 million as soon as possible and urged the two Governments to immediately begin talks on this. There has been no investment at all in the railway from the Russian side in the last 15 years, while Mongolia has spent USD150 million.

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 moving through the country. He urged the Mongolian Government and Parliament to revise all tariff rates on the railway to bring them up to an economically viable level.

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