OREANDA-NEWS. November 02, 2010. Official talks were held in Ulan Bator involving Russian Railways President Vladimir Yakunin, Mongolian Prime Minister Sukhbaataryn Batbold, Mongolian Minister of Roads, Transport, Construction and City Planning Khaltmaa Battulga, and other representatives of the two countries, ported the press-centre of Russian Railways.

The meeting addressed ways of improving the effectiveness of Ulan Bator Railway’s operations, and developing the Mongolian rail network, to keep up with the development of new mines. During his working visit to Mongolia, the Russian Railways president also attended a meeting of Ulan Bator Railway’s top management.

A range of important documents aimed at developing Ulan Bator Railway were signed at the meeting, in the presence of the Mr Yakunin and the Mongolian minister of roads, transport, construction and city planning. At the session, a new loan provided by Russia’s VTB Bank to the Ulan Bator Railway was announced, for the purchase of Russian-made locomotives, track machines, and equipment. The loan is guaranteed by Russian Railways. The Mongolian company will use a share of the funds to purchase 35 2TE116UM locomotives and 13 TEM18DM diesel shunting locomotives.

The meeting also saw the signing of an agreement between Ulan Bator Railway and Transmashholding. In line with a protocol on intent signed in October 2009 in the Mongolian capital by Ulan Bator Railway and Transmashholding, a decision was taken to develop a new mainline diesel locomotive with the designation 2TE116UM, specifically for use in elevated mountain regions with high dust levels. The first of these locomotives was delivered to Ulan Bator Railway in September 2010.
 
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Ulan Bator Railway plays a key role in Mongolia’s transport system. Rail accounts for more than 60% of national goods transport. The total track length of the Ulan Bator Railway is 1815 km, and the company employs around 16,000 people. The common technical base with Russia, including the 1520 mm track gauge, gives Ulan Bator Railway an important geo-strategic role in providing transport-economic links with China. Russian Railways provides maximal technical support to Ulan Bator Railway: since 2007, 1350 goods wagons have been supplied to Mongolia, and in 2009 Russian Railways reconstructed 108 km of Ulan Bator Railway’s track superstructure.
 
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Russian Railways and the Mongolian government created the Russian-Mongolian joint venture Infrastructure Development in May 2009, with the aim of implementing a large-scale project to modernize Mongolia’s existing infrastructure and build rail lines to promising natural deposits. The purpose of the venture is to provide an effective platform for attracting investment in the development of Mongolia’s railway network.

During 2009, the work of the joint venture included drawing up a Strategy for the Development of Ulan Bator Railway and the Construction of New Railway Infrastructure in Mongolia, based on the principals of a unified national railway network with the 1520 mm gauge standard and the formation of an effective investment scheme with the parties participating on a parity basis. Total investment in the project is estimated at USD 3.9 billion up to 2015.