In June 2010, Parliament of Mongolia approved the State Policy on Railway Transportation, creating the framework for developing integrated railway network in Mongolia in 3 phases. In November 2011, the Government issued the Cabinet Resolution # 121 to accelerate the implementation of the Railway Policy, recognizing the socio-economic importance of the phase 1 and phase 2 (New Railway Project), and therefore resolving to consolidate them into unified railway project to be managed and implemented under Government authority and financing with participation of domestic and international investors. 

Early 2013, the GOM granted the BOT concession right for the New Railway Project to Mongolian Railway State Owned Shareholding Company (MTZ), a 100% state-owned company established in 2008 to create a national railway company in connection with the development of the mining sector and to fulfill the need for an efficient railway infrastructure in Mongolia. 

All of the pre-development studies have been completed for the New Railway Project. As of December 2014, Front End Engineering Design (FEED) on the Tavan Tolgoi-Sainshand-Khuut-Bichigt-Ereentsav line (East Line) has been completed by Nippon Koei of Japan. On the Tavan Tolgoi-Gashuun Sukhait line (South Line), Samsung C&T of Korea has been awarded the EPC contract and the construction is ongoing with 52% progress.