This study examines the result of infrastructure vertical separation in Mongolian railway. Mongolian railway started railway reform it include a lot of steps with the aim of increase railway capacity and performance. One main step is to implement infrastructure vertical separation and to find out optimal Infrastructure charging price. We used secondary data from Ulaabaatar Railway and Authority of Mongolian railway from 2005 to 2011. In order to see the infrastructure vertical separation result we have chosen possible infrastructure charging price then forecasted necessarily variable until 2014 after that formulated LP model.
The results of this study suggest that, infrastructure vertical separation can increase the Mongolian railway capacity with less government cost compared with direct investment to UBR. Beginning of study we considered suitable infrastructure charging price important for private investment. The results also suggest that obligation level from government is another technique to promote private company investment in Mongolian case.

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