Prior to 1921, Mongolia had primitive transportation system consisting primarily of horse relay stations along ancient caravan routes. Herd men’s household supported this relay system by paying a horse-relay duty. Draft animals carried passengers and cargo. There were no hard surface roads, railroads, or air transportation. Construction of hard surface roads also began in late 1920s. The government has been implementing the millennium road project since 2000 sand now roads are linking east west of the country. The project is a significant step in improving Mongolia’s highway network and raising living standards in remote region opening access to the central areas.

Bus service existed in major cities and towns. Ulaanbaatar is served by bus and trolleybus routes but demand far exceeds supply and overcrowding is usual. In addition to the buses and trolleybuses the city has minibuses. Most routes have conductors who sell a one – price product ticket for cash.