After moving to Ulaanbaatar City as a university student, I used to receive meat and other necessities from my family in the countryside. The goods would be packed in cardboard boxes with my name and phone number written on top. Based on an estimate of when the shipment might arrive, I would go to Narantuul Market to collect it. If the driver called my mobile phone, it became even easier to determine exactly when to pick it up. Covering a distance of around 1,500 kilometers, cargo trucks would take six to seven days to reach the capital city, and we would plan accordingly. More than 20 years have passed since then. In fact, at that time, it was often easier to predict when and where a shipment would arrive.

Over the past two decades, Mongolia’s population and consumption have grown, and the country now imports goods and products from a wider range of countries. Yet there has been little meaningful progress in the transportation, logistics, warehousing, storage, and delivery sectors. Speaking on the issue, one citizen said, “I ordered several outfits for my daughter to wear during Children’s Day from a woman who sells products imported from South Korea. It has already been about 40 days. I was told the goods would arrive at my home within two or three weeks, but there has been no update so far. Whenever I ask about it, I am told that the shipment from Korea is being delayed at customs. It seems that not only Korean goods, but also shipments coming from nearby Erlian and Guangzhou are no longer arriving on schedule. I assume the delays are related to customs inspections, transportation, and distribution.”

Another person shared a similar experience, “Last month, I traveled to Erlian and purchased work clothing and tools. Since the cargo was heavy and bulky, I shipped it through a cargo service. I was told it would arrive in Mongolia and be delivered to the owner within three days, but I ended up waiting 12 days. They explained that there was a large volume of freight entering Mongolia and that customs officials lacked the capacity to inspect everything quickly, causing delays. In general, goods and cargo no longer seem to arrive and reach their owners on time. This reflects the current state of our transportation and logistics sector.”

A third individual pointed to the impact on food prices, “Although meat prices have risen sharply, herders’ incomes have not improved. For example, beef is selling for more than 35,000 MNT per kilogram in Ulaanbaatar, yet herders reportedly receive less than 18,000 MNT. Why are transportation and service costs being marked up by two times or even more? In addition, the country lacks sufficient cold-storage facilities for meat and does not have major logistics centers where herders can market and sell their raw materials and products. Under such circumstances, it is inevitable that food prices will continue to rise.”

Internationally, customs clearance capacity and cargo turnover speeds continue to improve. In Singapore, for example, the customs system has been fully digitized, enabling required documentation to be processed within 10 to 15 minutes regardless of shipment size. Rather than inspecting every shipment, authorities use artificial intelligence to identify and inspect only high-risk cargo. As a result, Singapore is recognized as having one of the fastest customs clearance systems in the world.

China, Mongolia’s southern neighbor, has also implemented extensive digital reforms. Using facial recognition technology and automated inspection systems, customs authorities process cargo rapidly. Major port cities have established integrated terminals combining rail, maritime, and road transportation, allowing large volumes of cargo to be transferred and cleared efficiently. China now ranks among the world leaders in cargo handling and transshipment capacity.

South Korea, meanwhile, has developed an integrated supply and distribution network connecting ports, factories, and warehouses. Its customs and logistics centers are fully digitalized and provide streamlined services, particularly for exporters, making the country an international benchmark in logistics efficiency.

High cargo turnover speeds and strong customs clearance capacity directly contribute to lower prices and stronger sales of goods and products. They also help maintain proper storage conditions for food products, ensure fresher deliveries, and ultimately support public health. Furthermore, efficient logistics systems encourage product consumption and increase producers’ revenues. 

Only 4 inspection terminals in operation

In contrast, Mongolia has established a system that operates in almost the opposite manner. Customs procedures remain slow, cargo inspections take considerable time, and the country has yet to develop integrated transportation and logistics centers at major border crossings. Many processes still rely heavily on manual labor. Although officials have discussed improving customs efficiency and increasing clearance capacity for years, tangible results remain limited.

Addressing the issue, B.Munkh-Amar, Head of the Public Relations Center at the General Customs Administration, said, “Many citizens, especially those whose shipments pass through the Zamiin-Uud border crossing, have become frustrated with delays and long waiting times. On average, around 500 vehicles enter Mongolia through Zamiin-Uud each day. Of these, approximately 400 complete customs procedures and pass through four inspection zones without difficulty. The remaining 10 to 20 percent of vehicles carry mixed cargo containing numerous types of products and therefore require inspection.”

B.Munkh-Amar then continued, “People transporting mixed cargo often do not know exactly what is being shipped, which makes inspection necessary. We strive to examine such cargo item by item. Otherwise, there is a risk that prohibited goods or shipments intended to evade taxes could enter the country. Customs officers are working to facilitate trade, strengthen the tax base, and carry out inspection and control responsibilities.”

Statistics indicate that more than 60 percent of Mongolia’s total imports enter the country through the Zamiin-Uud border crossing. This includes most consumer goods, electronics, automobiles, machinery, construction materials, and industrial inputs. In other words, nearly two out of every three imported products pass through this single gateway.

Yet customs officials reportedly inspect incoming vehicles through only four terminals. When necessary, cargo loaded onto trucks with capacities of 20 to 30 tonnes is inspected item by item. Expanding the number of inspection facilities could help speed up the process considerably. There also appears to be a shortage of personnel.

One citizen commented, “The current customs system is suitable mainly for large shipments consisting of a limited number of product categories. However, it is not designed for modern e-commerce cargo, which involves numerous product types ordered online and shipped from various countries. The volume of such shipments will only continue to grow. Is it really practical for customs officers to unload and inspect every item individually? That requires enormous amounts of time and labor.” “Therefore, a separate clearance channel should be established specifically for e-commerce shipments. Goods passing through such a channel could be screened using X-ray equipment, with customs inspectors conducting additional checks only when necessary. An online platform should also be developed so that individuals can declare their goods electronically. Taxes could be assessed on grouped shipments at simplified rates. This would facilitate both tax collection and oversight while significantly increasing customs processing speeds,” the citizen continued. 

Plan to establish agricultural logistics center has fallen through

As mentioned earlier, Mongolia continues to face challenges in the domestic storage and transportation of food products, particularly in the supply and distribution of meat. Although reserve meat stocks are prepared each year with government subsidies, meat prices continue to rise every spring while consumer choice remains limited.

Seven or eight years ago, the Ministry of Food, Agriculture and Light Industry announced plans to address this issue by constructing refrigerated warehouses along railway corridors for storing meat, vegetables, flour, and other food products. There were even proposals to establish an agricultural logistics hub near Bars Market, or what is commonly known as the Gurvaljin Bridge area.

Under this plan, herders would be able to store meat and raw materials, while vegetable growers could keep their produce in purpose-built warehouses. Products would then be delivered to consumers through a distribution system involving fewer intermediaries. However, when inquiries were made to the ministry regarding whether the project would be implemented, no response was received.

In reality, without establishing integrated food logistics centers and large-scale loading and unloading terminals, discussions about food security and food supply are unlikely to produce meaningful results, regardless of how long they continue.

Economist N.Enkhbayar commented on the issue, “When food production was underdeveloped and storage facilities were insufficient, meat reserves were traditionally stored as whole carcasses. In recent years, the number of meat-processing plants has increased, making it possible to cut, package, and process meat before storage. This represents some progress, albeit limited.”

“However, Mongolia still lags behind modern advancements and international developments in food production. In practical terms, a warehouse with a capacity of 20 tonnes can currently store only about 10 tonnes of meat and 10 tonnes of bones, resulting in significant inefficiencies and unnecessary costs. Moreover, storing low-quality meat using outdated methods, such as lean meat with excessive bone content, causes moisture and nutrients to be lost, reducing quality and increasing spoilage. Internationally, meat is classified according to established standards, cut into boneless or low-bone portions, and packaged accordingly. Various preservation techniques are used, including specialized packaging, freezing, and vacuum sealing. If Mongolia adopted international best practices in meat processing and storage, warehouse efficiency could improve by as much as 40 percent, significantly increasing storage capacity,” the economist concluded. 

These examples demonstrate that Mongolia’s transportation and logistics sector remains underdeveloped. Cargo deliveries are slow, while the storage and distribution of meat, vegetables, and other food products continue to rely on outdated and non-standard practices.

Furthermore, discussions about improving customs clearance capacity and transforming Zamiin-Uud into a free economic zone and an international-standard freight and logistics hub have continued for many years. Meanwhile, China has already decided to develop Erlian into one of the three major free trade zones in the Inner Mongolia Autonomous Region and has accelerated construction projects on its side of the border.

The development plan covers an area of 18 hectares and includes warehouses of various types, loading and unloading terminals, customs clearance facilities, and fully digitalized operations. China is also working to increase the volume of products transported through Zamiin-Uud and onward to Russia and Europe.

While our southern neighbor is actively expanding exports to European markets through this route, one cannot help but ask why Mongolia cannot at least improve its own cargo clearance processes, reduce delays, save time, and enhance service quality. After all, losing time is, in the most direct sense, equivalent to losing money and suffering financial losses.