Mongolia ranks 109th out of 139 countries in the 2023 Logistics Performance Index with 2.5 points. Out of 139 countries included in the 2023 logistics performance index, 14 countries received a rating of more than four or “Excellent”. Singapore, Finland, Denmark, Germany, the Netherlands, Switzerland, Austria, Belgium, Canada and Hong Kong are among the top 10 countries on the list.
The 2023 list is characterized by improved scores for middle-income countries, according to the World Bank report. Researchers point out that countries with low scores are landlocked, affected by armed conflict, frequent natural disasters, and detached from global supply chains.
Mongolia has a relatively underdeveloped transportation infrastructure. There are few paved roads, and the existing ones are often in poor condition. Railways are also limited, with only a few lines connecting Mongolia to neighboring countries. This can lead to difficulties in moving goods and people quickly and efficiently.
The country’s climate and geography also pose logistical challenges. The country experiences extreme weather conditions, with long, cold winters and short, hot summers. Much of the country is covered by rugged terrain, including mountains and deserts. This can make transportation difficult and increase the cost of logistics.
As a landlocked country, Mongolia is dependent on its neighbors for access to seaports and other international transportation routes. This can increase the cost and complexity of logistics, as well as create political and economic dependencies.