N.

Byambatsog: It is necessary to increase the tariff price of UBTZ and

prioritize goods
2022-10-04

Member of Parliament and Minister of Road Transport N. Byambatsog held a meeting with client
enterprises and citizens of UBTZ CPP /shared society/ today at "Ganzam Palace". During the
meeting, it was announced that there is a need to increase the price of the railway tariff, as well as to
prioritize the goods. During the joint meeting, he said, "There are many problems in this
organization, which has annual sales of 1 trillion MNT. Cargo and containers from Tianjin are stuck
for more than two years, even at Zam-Ud-Ereen Road, they can't get their goods for six or seven
months, and export cargo such as fluorspar, coal, and iron ore can't be delivered for a year or two.
"Ulaanbaatar Railway" received a request to transport 71 million tons of cargo this year. However,
Ulaanbaatar Railway Company's own capacity is 14 million tons. The problem of corruption is
discussed in solving it. After taking the job on September 1, UBTZ gave him the responsibility to
solve the problem when he got acquainted with the work of the People's Republic of China. In this
context, all the containers that were stuck at Zamin-Udu were pulled out. Now more than 200
containers from September 10 are waiting. Also, the number of empty containers in Ulaanbaatar city
has been reduced by three times, and the citizens' containers that have not received their cargo are
being resolved. It can be done if you insist and work.

As for railways, there are further challenges in terms of transit. In China, we have a tariff discount,
while in Russia, we have a tariff discount. In terms of transit, there was also a load. How can it be
further reduced? I have to decide. There was one organization called UBTZ with 1,100 km of tracks,
but now there is a unified railway network with many ownerships, such as Hangi Mandal,
Tavantolgoi-Gashuunsuhait, Tavantolgoi-Zunbayan . It was necessary to provide a unified
organization for all these railways. All this is reflected in the "Railway Law" to be discussed by the
Parliament soon. These are the policy issues that we will solve in the medium and long term and
adhere to in our railways. In the short term, the meeting we are having today. "We have organized
this meeting to quickly solve the problems faced by the organizations and individuals who are
sending goods, as well as sending, brokering and transporting goods, and discussing the situation
on this issue."

There will be a change in the price of goods due to the suspension of bulk transportation and
container transportation. It is said that the Russian side made a proposal to increase the tariffs of the
UBTZ joint-stock association. In terms of passenger transport, UBTZ has been operating at a loss
tariff for many years and has reached the present day. 8100 MNT to enter Erdenet from
Ulaanbaatar, 30 thousand MNT to go by bus. Passenger transport has a 60% loss. The price of one
wagon load from Ulaanbaatar to Ereen is 100 million, and one wagon load from Choir to Eren is 70
million MNT. This is a low rate. Therefore, it was clarified that the price of imported goods did not
increase due to the wagon load tariff. Tariffs will be increased in stages. First, tariffs will be added to
export cargo and transit cargo, and the Ulaanbaatar Railway will carry out the renewal of the CPP
fleet. The next step is to increase the wages of employees.

Member of Parliament, Minister of Road and Transport Development S. Byambatsogt said, "For
railways, we had to prioritize which cargo to load first." There is a need to prioritize projects that are
more important to Mongolia's economy. For the private sector, it is important to adhere to the
principles of fairness and transparency. For example: "Mongolrostsvetmet" SOE first loading of slag,
etc. Because the state-owned company contributes real income to the state budget. At a time when
the state's economy and budget are difficult, we must pay attention to our state-owned companies."