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Logistical solutions as an answer to new needs of businesses

More than 100 alumni of Partnering in Business with Germany and representatives of the Mongolian Ministry of Economy and Development and of the German Federal Ministry for Economic Affairs and Climate Action met in Ulaanbaatar on 13 June to celebrate the 15th anniversary of the programme with Mongolia.

A panel discussion covered aspects of this cooperation ranging from the major raw materials deposits in Mongolia, to the potential of renewable energies, to the benefits a liberalised economy affords for German companies.

As a country landlocked between Russia and China, Mongolia has no direct access to the sea and is faced with logistical challenges for which German companies can offer solutions. The transport infrastructure, in particular, is in need of major modernisation.

Panel discussion; Davaadalai Tumendalai (Bodi Group), Dr Magnus Müller (German-Mongolian Business Association), Uwe Becher (Conoscope), (from left to right) ©GIZ/Barsbold Enkhbold

“The country is developing along with its roads,” affirmed Davaadalai Tumendalai, former participant of the programme and Programme Director of a fully automated coal terminal operated by Bodi International LLC, highlighting Mongolia’s potential for development. Mongolia is investing into its railway system to modernise its infrastructure and ensure the transport of raw materials. Fastening systems from German manufacturer Vossloh, a major global supplier of railway infrastructure, are used in the construction of the heavy-haul lines – a cooperation project that has its roots in Partnering in Business with Germany. Following participation in the programme, Bodi International LLC was able to get further projects off the ground, including with German manufacturers of conveyor and crushing technology for mining.

Mongolia is known for its many minerals deposits and mining is one of the most important sectors of its economy. In 2024, mining accounts for approx. 25% of the country’s GDP. There is also considerable additional potential, given that only a fraction of the Mongolian territory has been geologically surveyed.

Helmut Kulitz (German Ambassador to Mongolia), Monika Stienecker (Economic Affairs and Climate Ministry), Enkhtaivan Enkhjargal (MONEF), Sh. Margad (Mongolian Ministry of Industry and Development) ©GIZ/Barsbold Enkhbold

Beyond mining, other sectors such as energy, transport and logistics are becoming increasingly attractive for providers of modern equipment. Following the COVID pandemic, Mongolian interest in German food processing and agricultural technologies is high. This is due to an increased quest for food security and independence from food imports.

Mongolia has a young and highly skilled population. This is reflected in the workforce of local companies for whom digital transformation and process optimisation are increasingly top of the agenda in their dialogue with German companies.

German Ambassador to Mongolia Helmut Kulitz was impressed by the large turnout of former participants. He said the 500 alumni in attendance were proof of “this joint activity’s broad basis and impact. Participants in the programme hold key positions in the public and private sectors whilst, at the same time, acting as an invaluable link between our two countries,” said Kulitz. “It is obvious that this has benefitted and will continue to benefit German-Mongolian economic relations in business and commerce.”

Monika Stienecker also highlighted the importance of the programme, saying: “As an important instrument to promote Germany’s foreign trade and investment, Partnering in Business with Germany has been bringing together decision-makers from the business community for 15 years to build long-term, cross-border business cooperation with Mongolia – to the mutual benefit of both countries.”

Preview photo and photo gallery: ©GIZ/Barsbold Enkhbold