¿Why is more expensive transport tomatoes from San josé,Costa Rica, to Managua(430 km) than to San Jose, California(5400km), that is 10 times further?
Bring tomatoes from Costa Rica to his close neighbor Nicaragua should be as easy as bringing fruit from Spain to France, but the possibility is not the fact. For big tomatoes companies, transportation costs can represent more than 30% of the selling price, even 50% for small producers.
The main factor is the bad secundary roads quality, added the costs of crossing the costums house and the losses of wasting lot of time due to the waiting time on the roads, that sum a 10% from the final price of the tomatoes.
While bottlenecks have an impact on costs in all segments of the supply chain, border procedures and the quality of roads on this area have great impact on competitiveness in Central America, particularly small producers, “said Felipe Jaramillo, Central director of the World Bank.
These impairments are the main barriers to trade among the Central American countries and other markets around the world, and affect badly to Central America competitiviness.
Logistics bottlenecks can increase the additional time of bringing a product from the protection center to the nearest port on the Atlantic coast a 21% in Panamá and 60% in Nicaragua and El Salvador.
Bridges in disrepair and congestion on roads can affect the ability of land transport connection among the Carriage, which affects negatively for international trade( export).
Cheap ways of solving this problem would be a greater joint efforts between governments. As we have seen logistics is a very important item for competitiveness around the world, so solving logistics problems would make possible for all people and companies approach among each others.
By: Mateu Caldentey Fuallana, Jordi Pla Gené and Xavier Bruch Boix
Source: The World Bank