After incurring a loss of more than Tg20 billion so far this year, Ulaanbaatar Railway Company has decided to raise both domestic cargo tariff and passenger fares any day now. The company says the increase will not help them make a profit, but was aimed at recovering losses.

Ulaanbaatar Railway has 15,238 permanent staff and 520 temporary employees. It used to make most of its money from carrying transit cargo. This income has decreased, while the volume of low-rate high-expense transport of domestic cargo has gone up. Maintenance costs have risen and the price of diesel has increased 6.8 times since 2001, while freight rates have gone up only 82 percent during the time.

 

Source: en.news.mn