Not entirely sure if that picture is of passport control at departures or arrivals. It's a horrible thought that one could have to deal with queues like this on arrival and again on departure!

Be that as it may, if there is a massive queue at passport control at arrivals (as seems very likely these days) then this is before baggage collection and customs. The arrivals lounge is after all of those but before you re-check your luggage. You take your luggage with you to the arrivals lounge. If you have a cart you will have to leave it outside at the elevator lobby.