Logistical Obstacle: Regional Freight

In Central America the cost of ground transportation is twice that compared to Africa and four times that of most competitive economies.

Thursday, March 6, 2014

From a statement issued by the World Bank:

Central America/WB: High costs of land freight transport, an obstacle to competitiveness

Costs are twice those in Africa and four times more than in OECD

SAN JOSE, March 6, 2014 - A new regional World Bank study shows that the lack of competition in the sector of road freight transport in Central America raises the cost of moving goods to being double that of those in Africa and up to four times higher than in more developed economies.

The study "What factors increase land transport prices in Central American?" Presented here today indicates that the transport of goods by road increases the costs of import and export of products and is a factor that negatively affects logistics systems in the region.

More on this topic

Blocks and Costs to the Region

October 2020

The protests in Costa Rica, which affect vehicle circulation in the country and border crossings, will have a short-term impact on intraregional trade and cargo transport costs.

In order to access the $1.75 billion credit that it intends to request from the International Monetary Fund (IMF), the Costa Rican government proposed to tax financial transactions, raise the tax on the profits of companies and individuals, and increase the tax on real estate.

Maritime Transport: Too Expensive to Be Sustainable

June 2020

Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region.

As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders.

Freight Rates in Central America

November 2018

Transporting one metric ton of goods in Central America is estimated to cost $0.17 per kilometer, while in developed countries the cost is around $0.10 per kilometer.

Transporting cargo more efficiently remains the greatest challenge that the countries of the region face to improve their competitiveness.

Logistical Problems in Central America

February 2013

Why is it more expensive to take tomatoes from San Jose in Costa Rica to Managua than to San Jose in California, which is 10 times farther away?

High transport costs and delays at border crossings are the main barriers to trade in Central America.

From an article published on Bancomundial.org:

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