The Costa Rica News (TCRN) – The Economic Commission for Latin America and the Caribbean (ECLAC) and the Organization for Economic Cooperation and Development (OECD) issued a report in which Costa Rica is located in the 11th position with respect to logistics performance among 19 countries in Latin America, even surpassed by Panama and Guatemala.
The most critical lag in Costa Rica is presented in the transportation sector, mainly on roads, where standards are below middle-income countries, which represented a restrictive barrier to trade.
Emmanuel Hess, director of the Georgia Tech Foundation, said the country not only has a great deal of work to do in road infrastructure, but also in devising new ways to improve efficiency in regards to transport, such as the design and location distribution centers for large companies in key areas.
The report demonstrates the high cost of transportation for companies. A prime example is the price of pineapple, which is transported from Costa Rica to Miami to St. Lucia, and suggests that the price of producing this fruit is only 10% of the final cost, while transport accounts for about 43%.
As such, the impact of logistics on the price of food in the region is between 30% and 100% of the delivered goods.
“The benefits of increased logistics performance translate into an increase in employment, support for the competitiveness of small and medium enterprises (SMEs), reducing the cost of food and improving the delivery of essential services,” reports the document.
According to the latest Global Competitiveness report released last week by the Incae ranks Costa Rica 119 out of 144 countries in roads and 115 ports in 144 countries.
The director of the Latin American Council of Competitiveness and Sustainable Development (LACCSD), Lawrence Pratt, said that although the rates are bad, infrastructure has improved slightly especially roads, ports and airports, as compared to the last two years of progress.
Luis Mesalles, an economic analyst with the Costa Rican Union of Chambers and Associations of Private Enterprise (Uccaep), mentioned that with logistics and infrastructure the priority is to compete at national or international level.
“In the 100 days of the government of Luis Guillermo Solís there have been few signs to help improve competitiveness and in particular there are priorities to issues that are key to the private sector, among which areinfrastructure and cost energy,” he said.
The Costa Rica News (TCRN)
San Jose, Costa Rica