1. Agreement of International Railway
carriage relations, their
implementation
Purev Narantsetseg
11 March 2008
Ulaanbaatar

2. Content
• Objective of Agreement
• Basic content and results of agreement
• Results of comparative research
(Matrix Analysis)
• Actual issues in transit transportation
(Law and Regulatory research of present conditions)
• Deciding problems
• Recommendations

3. Objective of Agreement
• Organizing carriage transportation in
international railway direct relations
-Should be perform the carriage transportation between
contracting parties on the following created conditions in this
agreement,
-Should be perform all kinds carriage transportation in
international railway carriage direct relations in railway network
limitation of contracting parties.
-Railway, sender and receiver should follow this agreement and
the agreement is serving for the contracting parties not
depending on the belonging to the any countries.

4. Result of Agreement
• Contracted between old socialist countries
– Approved in 1 November 1951
– Approved additional amendments by the railway cooperation
organizational committee in 1 November 1997
– Additional amendments are legally acceptable in 1 January 1998
• Date of signature by countries
- 5 June 1992 Belarus, Latvia, Lithuania, Moldova and Estonia
- 18 June 1993 Azerbaijan, Georgia, Kazakhstan and Uzbekistan
- 17 June 1994 Turkmenistan
- 30 May 1995 Kirgizia and Tajikistan
- 6 June 1997 Iran

5. Basic content of Agreement
• Common conception and understanding
• To sign the transportation agreement
• To implement the transportation agreement
• To change the transportation agreement
• Railway responsibility
• Complaints, sue and date to discuss sue
• Account between railway
• Common provisions

6. Comparative Analysis
Compared documentations
– Contract between the MPR Government and Soviet union Government to establish the
Mongolia-Soviet Union joint stock Association for the constructing railroad from Naushki to
Ulaanbaatar
-November 20, 1948 Moscow
– Contract between the MPR Government and Soviet union Government to pay back the loans of
stock assets payments from Mongolian side, Mongolia-Soviet Union joint stock Association
“Ulaanbaatar railway”.
-6 June 1949 Ulaanbaatar
– Contract between the Mongolian Government and Vietnam Government on cooperation in
railway field.
-25 May 2004 Ulaanbaatar
- Agreement on international railway carriage relations
1 November , 1951
Azerbaijan, Albania, Belarus, Bulgaria, Vietnam, Georgia, Iran, Kazakhstan, China, North Korea, Kirgizia,
Latvia, Lithuania, Moldavia, Mongolia, Polish, Russian Federation, Tajikistan, Turkmenistan, Uzbekistan,
Ukraine, Estonia.
Basic Documentations
- Convention on Transit Trade of Land-Locked States
8 July 1965, United Nations, New-York

7. Results of Comparative Analysis
¹ Problems Conventio
n of transit
trade of
land
locked
states
Agreement
on
internation
al railway
carriage
relations
1951
Contract
between the
MPR
Government
and Soviet
union
Government
1948
Contract
between the
MPR
Government
and Soviet
union
Government
1949
Contract
between
Mongolian
and
Vietnam
Governmen
ts, 2004
1 Do not impose tax in transit goods + - - - -
2 Right to penetrate free + - - - √
3 Do not impose special tax and dues in
transit traffic
+ - - - -
4 Transit dues and tariffs + - - - +
5 Providing transportation means and
facilities
+ + - - -√
6 Dues and charges of transportation
means and facilities
+ - - - +
7 Tariffs and Charges not be higher than
tariffs and charges of states with access
to the sea
+ - - - -√
8 Customs and administrative measures + - - - +

8. 9 To sign contract for the facilitating transit
traffic
+ - - - -√
10 To create conditions for the goods storage in
entry, exit and transit stages
+ - - - -√
11 Tariffs of storage conditions addressing to the
facilitating transit
+ + - - -√
12 Delay difficulties in transit traffic + + - - √
13 To cooperate for delaying difficulties in transit
of land locked states
+ - - - √
14 To sign contract of free zones and customs
facilities
+ - - - -
15 To provide the land locked countries on the
equal rights as a states with access to the
sea
+ - - - -
16 Ships with flying flag of land locked states
same with those countries have right to have
access to the sea and to use the sea ports
+ - - - -
17 Rights of ships with flying flag of land locked
states in transportation on the using internal
water ways
+ - - - -
18 To approve rights and discounts of land
locked states
+ - - - -

9. Actual problems
• Railway carriage relations agreement
– The transit discounts and rights of the land locked countries are not reflected in the agreement.
– Provision on the carriage transportation barrier in 21th article of 4th chapter is not fitting to
provision on the taking measures to correct and to stop barriers in transit traffic by the
contracting parties of multilateral convention.
– Provision related to cost tariff for the providing full security of carriage in transportation process
is not fitting to provision of multilateral convention.
• Bilateral agreement
– Transit discounts and rights are not reflected in the agreement.
– Signed contract with Russia is not fitting to regulations of multilateral agreement.
– Provision on transportation tariff of 5th provision of contract signed with Vietnam is not fitting to
provision of multilateral convention.
– Provisions on transit goods fees of 8th article and transportation fees of 9th article are not fitting
to provision of multilateral convention.

10. Present conditions of laws and regulations
• Research objective:
– To define difficulties and barriers in the conducting transit transportation services
for Mongolian entities.
– To define and to recommend problems relating to the implementations of bilateral
agreements on the transit transportation.
• Research scope:
- International Freight Forwarding companies
- International auto transportation companies
- International trade companies
• Time frame:
- From 15 January until 18 February 2008
• Research structure and form:
– 48 questions with total four chapters
– Direct interview
– Survey
–

11. Actual problems
• Transit transportation and foreign trade of Mongolia
– Difficulties relating to the documentations. (for timeframe and relating to the arriving countries)
– Not ratifying relevant international conventions and agreements.
– Not approving some laws relating to the foreign trade and transportation.
– Difficulties of awards of the state and administrative organizations.
• Transit transportation through territory of Russia
– The Land locked countries discounts have not in the transit transportation by railway.
– Provision to take extra discount in transit transportation and service is not implemented. (5th
artciel,3)
– Carriage and goods are lost in process of railway transit.
– The conducting transit transportation through railway is very difficult, so prefer to conduct
transit transportation through sea.
• Transit transportation through territory of China
– Land locked countries have not discounts in transit transportation through railway.
– Provision to release goods and carriage from export and import tax and other tax, preliminary
tax is not implemented. (7th article 3)
– Law and regulatory Information relating to the transit transportation is taking in the boundary
port only.

12. Implementing measures
• From side of laws and regulations
– To ratify the relevant international multilateral conventions addressing to the facilitating
international trade through railway transit.
– To reflect and to amend the land locked countries discounts and rights in railway regional and
bilateral agreements,
– To approve laws relating to the foreign trade and transportation and to create law and
regulatory favorable environment.
• Institutional sides
– To create conditions for the providing implementations of agreements with China and Russia
related to the railway transportation provisions,
– To formulate rules, procedures, norms and standards to support foreign trade and railway
transportation,
– State and administrative decisions should be optimum, easy to understand and without
difficulties for businessmen.
– To create the information intensive providing system on the international laws and regulations
of the transit transportation and trade for businessmen.
• Unofficial dues, fees and bribe
– To decide by support and participation of the international organizations ,
– To create the monitoring system for the implementing discounts and rights of land locked
states,
– To relate with relevant professionals and governments of contracting countries.

13. Explaining: + There is regulation to regulate this problem
- There is not regulation to regulate this problem
√ Bilateral agreement between government is fitting to the provision of multilateral conventions
-√ Bilateral agreement between government is not fitting to the provision of multilateral conventions
° Article of Mongolia laws is not fitting to the international conventions
THANKS