Minister for Roads, Transport,
Construction and Urban Development Kh.Battulga has expressed his happiness that
Parliament adopted the State Policy on Railway as proposed by the Government,
without any major change. He called it a historic event as the decision to set
up the existing Ulaanbaatar Railway had been taken in Moscow, while this time
Mongolians in Mongolia formulated and adopted a policy aimed at establishing a
railway network that will allow Mongolia to export its minerals directly
through several points, create many workplaces, and help develop processing
industries.

He clarified that many countries are likely to be involved in the construction
of the new railway. The tracks will be owned by the state, but the carriages
and locomotives can be owned by private companies. Work on the 1,100-km Tavan
Tolgoi-Sainshand-Choibalsan section of the railroad will begin as soon as
financing issues are settled. A preliminary feasibility study is ready and a
more detailed study will take 3-5 months. It is easier to build a railway in
the Gobi region than elsewhere in the country but maintenance work, especially
what will need water, will be more difficult. The construction might take two
years. The work will be done simultaneously in sections of 100 km.

The Minister revealed that offers have been received from South Korea, China,
Russia and Mongolia to build the railway and a choice will be made this year.
The gauge will generally be of the broader Russian specification, but the
National Security Council, the Government and Parliament may change this in
places where the deposit is near the Chinese border.