The recently adopted railway transportation policy raises visions of Mongolia breaking the shackles of being landlocked and of its trade options being limited to its two great neighbors. The prospect of more entry points to China and access to sea ports there and in Russia makes it certain that the country will be exporting its apparently boundless natural resources to new markets. Many other countries are also happy that they will now be able to forge trade and economic relations with Mongolia. There are reports that Russia will agree to provide preferential tariff for transit transportation, and Japan, South Korea, and Germany all have indicated their willingness to invest in building the new railway. Incidentally, Korean investors have stated that they will divert the money planned to be invested in Kenya to “the forthcoming substantial projects in Mongolia”.
However, the proof of the pudding is in the eating. There is no knowing who will finally invest how much even though serious negotiations are said to have begun. The Government’s public stand still is: “The project will be financed through acquiring advance payment for marketing minerals products, raising money from selling government bonds, public private partnership, and taking advance payment from investors who will jointly utilize substantial deposits owned by the State.”
Source: Onoodor
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