Mongolia Business and Mongolian Daily Business News

MOSCOW. May 13 (Interfax) – Russian Railways (RZD) (RTS: RZHD) has received a 50%-stake in a joint venture with state-owned companies from Mongolia that will develop Mongolia’s railway infrastructure, RZD said in a press release.

The joint venture’s founding documents were signed on May 13 during Russian Prime Minister Vladimir Putin’s visit to Mongolia.

The Mongolia-based joint venture’s equity will initially be approximately $1.8 million.

“This is the first stage in the joint project to develop the Ulan Bator Railway and build new infrastructure in Mongolia,” RZD chief Vladimir Yakunin was quoted as saying.

Railways are the main form of transport in Mongolia. They carry 80% of the country’s domestic freight and all of its international cargo.

Freight shipments grew 6.7% to 14.6 million tonnes in 2008. They are expected to rise to 20.1 million tonnes in 2010 and grow 8%-12% annually after that as new coal, copper and iron ore deposits come on stream.

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