Cabinet Meeting held on November 3rd, 2012, discussed the implementation of the state policy on the railway transportation in Mongolia. It is critical for the nation’s economic and social development to build the rail tracks and related infrastructure described the first and second phases of the State policy on railway transportation, approved by the Parliament. Therefore, it was decided that the fore-mentioned railway and its infrastructure to be constructed by a government agency with state funding.
Following the decision, Mongolian Railway, a state owned company, will be provided with the special license to build rail tracks and related structures, and are tasked to raise the financing of the projects with local and international partners with a condition where government share is dominant.
According to the state policy, ratified by the Parliament Act No.32, has a goal of establishing a national railway network and linking strategically important mineral deposits to the industrial parks, making it possible to move goods between the locations. Within the framework of the policy, a total of 5,683 kilometers of railway is to be constructed within three phases of development. It is planned that the first phase of the project involves building tracks for Dalanzadgad-Tavan Tolgoi-Sainshand-Hoot-Choibalsan destination, lasting 1,100 kilometers. The second phase will be focused on connecting East and Southern border points with the railroads built during the initial stages. The length of the tracks in this phase is projected to be 800 kilometers.