It has been previously agreed that the equity fund of the Ulaanbaatar Railways, a Mongolia-Russian Joint Venture, would be increased by USD 250 by the Mongolian and Russian parties, each contributing USD 125 Million. The Minister for Road and Transportation introduced at the latest Cabinet Meeting of the results of a government research conducted to renovate the alert system and automated devices, using funds to be provided by Mongolian side.
The Cabinet agreed to spend USD 70 Million out of the USD 125 Million raised by Mongolia for the equity fund of the Ulaanbaatar Railways for the renovation of its equipments. Once the system is upgraded, the freight forwarding capacity will be increased by 15-20%, and it would be possible to transport 28-30 Million tons of freight per year. Also, the out dated transmission system, installed in 1951, will be completely renewed.