Just before the end of the year, the Government submitted a draft resolution to the State Great Khural to increase the efficiency of certain state-owned enterprises through public offerings on the stock exchange and privatization. However, companies that are well-managed and profitable naturally remain outside the scope of privatization. One such example is the “Mongolian railway company”.
Exactly one year ago, following the transfer of then-Executive Director L. Otgonsukh to another position, the Board of Directors appointed O. Batchuluun as his successor. Eschewing the cliché of immediately overhauling internal structures upon arrival, the new management focused directly on employee efficiency and achieving the company’s annual targets.
By applying a professional, business-like approach—rarely seen in state institutions—and implementing bold, precise management reforms, the company achieved unprecedented results. One year later, these efforts have culminated in a historic performance for “Mongolian railway company”. In business, success follows good management and smart leadership as if by law, and “Mongolian Railway company” has proven this among its state-owned peers.
Freight Transportation Surges by 192%
Last year, “Mongolian Railway” SOSC transported a total of 8.7 million tons of freight, exceeding its annual plan by 13%. This represents a 192% increase compared to 2024—effectively doubling the transport volume and setting a new historical record.
Doubling Contributions to the State Budget
In terms of financial performance, the company led the state-owned sector by doubling its revenue within a single year. Consequently, it contributed 49.6 billion MNT to the state budget, a figure that also doubled from the previous year. This performance has effectively challenged the stereotype that state-owned companies are inherently loss-making.
Key achievements include:
8 million tons transported across the Tavantolgoi–Zunbayan, Tavantolgoi–Gashuunsukhait, and Tumurtei–Khandgait routes.
3.5 million tons of coal transported in a short period on the Tavantolgoi–Gashuunsukhait route under a long-term contract with the "China Energy" Group, marking another historical milestone for the company.
Construction and Innovation
A major highlight of the past year was the intensive progress on the strategically significant Bagakhangai–Khushig Valley railway. The overall project completion has reached 84%, with the lower structure work at 98%.
Furthermore, the company demonstrated innovative financial management by issuing the first-ever state-owned corporate bond program on the over-the-counter (non-exchange) market. This allowed the project to be financed intelligently without placing a burden on the state budget. These combined efforts have increased the company's overall efficiency two-to-threefold within a year.
Overcoming the Past
Only a year ago, the railway sector was marred by reports of high-level corruption and court sentences involving employees. In a sector where many deep-seated issues had accumulated, bold leadership decisions were as vital as "water and air." The results of this shift are evident in how one of Mongolia’s oldest industrial sectors has been transformed in just twelve months.
Looking ahead, “Mongolian Railway” SOSC has solidified its role as a key contributor to Mongolia’s economic growth and budget revenue. Under its new management team, the company aims to further consolidate its construction projects and transport growth in the coming years.