The Rail Reform Issue: Case of Railway, Mongolia

The railway organizations� main objectives are the efficiency, productivity and competitiveness of the transport operation. In order to improve efficiency and productivity, future development of the railway, it is reasonable to develop a new policy which support the further sustainable development of organization. The evidence based study show that the railway organizations which have implemented the effective restructuring options become more developed and get the positive results. The aim of this article is to contribute the conceptual knowledge of the railway policy issue in Mongolia. The paper presented an overview of the railway reform theory, as well as other countries experience such as China railway corporation. Moreover, it has analyzed the statistical indicators of freight and passenger traffic and capability analysis of the railway transport of Mongolia in regional context. In last but not least, it formulates the need of reforming processes for railway sector of Mongolia by investigating railway top managers� opinion and some stakeholders� point of view on this issue. Findings of research are following: a) Analysis of statistic data show, there has a high correlation (R=0.87) between GDP and freight transportation of Mongolia. b) In the regional context, Mongolia�s transport statistics main indexes performance somewhat in the middle position among the CAREC country c) The result of the research show that, for further sustainable development of rail sector of Mongolia, reform is extremely important, and interest needs for different stakeholders were highlighted. As a research method used quantitative and qualitative methods, as well as the Mendeley Desctop program and SPSS programs. The data collection based on a questionnaire, interview, the analysis of strategic documents, secondary data, including statistical data obtained from the Central Statistical Office in Mongolia, Statistical Office in UBTZ (Ulaanbaatar Railway Mongolian-Russian Joint-stock Company), OECD (Organization for Economic Co-operation and Development) official site, International Union of Railway (UIC) official site and World Bank official site.