Insecurity Costing Us More and More

Paying for armed custody, satellite tracking and “tolls” to armed gangs are some of the additional costs that must be paid when transporting goods in Central America.

Wednesday, July 8, 2009

Some transportation companies state that $14.000 must be paid each year in security related costs for a single truck carrying goods within the Central American region.

An executive from a Costa Rican company with regional operations confirmed that they pay an $80 toll to Guatemalan gangs to ensure safe circulation within that country’s capital city.

These surcharges are paid by the producing company, the importer or the exporter. Transportation companies pay for GPS tracking and monitoring. But in the end, as stated in a Nacion.com article, “these costs are transferred to the consumer, said Gastón Monge, from Grupo M, a regional company who has suffered the effects of crime in the isthmus”.



More on this topic

Private Companies Spend More on Security than State

April 2013

In El Salvador, the state budget allocated to security is $500 million a year, while the total amount invested by private enterprises for self-protection is $600 million.

"The combined budgets (National Civil Police, the Attorney General's Office and the Armed Forces of El Salvador) total about $500 million and the private sector invests over $600 million annually on security issues," said Jorge Daboub, president of the National Association of Private Enterprise (ANEP).

The Cost of Insecurity in Logistics

September 2012

Insecurity in the Central American countries increases the costs of land freight transport; in the last year alone it required an additional $20 million.

Hiring private security guards, patrols and assisted GPS satellite systems are some of the costs that need to be paid in order move goods in Central America.

Costa Rica: Growth in Private Security Spending

June 2011

Firms spent $174 million in security for their businesses in 2009, however in 2010 the expenditure amounted to $190 million.

A study by the Costa Rican Chamber of Commerce reveals that 42% of those surveyed said they had been a victim of violence.

"... We are convinced that the government has not fulfilled its part, ...

El Salvador: Security Costs Reach 11%

September 2009

Security costs at Salvadoran companies are on the rise, together with recent increases in crime.

The American Chamber of Commerce of El Salvador (AmCham), showed its concern for the issue, which generates expenses unrelated to the natural cost structure of each activity.

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