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Latin America Investment News on Viva Tropical

Panama Ranked #5 in World for Available Infrastructure, Falls in Logistics

Article Summary:

While Panama is ranked No. 5 in the world for availability of infrastructure it falls to the 51st spot in infrastructure logistics competitiveness. This inconsistency causes internal transport costs to be 30% and 40% higher in Panama than other areas in the region.

Photo Credit: La Estrella

Original Article Text From La Estrella via Google Translate :

Panama’s response to growing logistical One feature of globalization has been the growing decline in tariff barriers has reduced the final price of goods in international markets.

Just have had substantive impact of technological improvements by the shipping industry, rail, aerospace and terrestrial has resulted in more efficiency, speed and safety of these media that have generated significant reductions in logistics costs.

However, in practice all this has meant that the cost of moving and re-distribute the goods has taken on greater weight in the final cost thereof. Viewed in relative terms, the final value of the items has now become more sensitive to variations in the cost of transportation, this has led to an incentive from the government and businesses to improve competitiveness of the logistics and transport International, which obviously has encouraged greater investment in infrastructure sector.

Panama is an example of how this activity has expanded especially after 1997 when given the privatization of ports and the new port of Evergreen, date from which there has been a steady increase both investment and the flow of cargo and passengers.

CHALLENGES
Despite this, it is also true that Panama still requires significant improvements in expanding its physical structure (ports, handling cranes Container, patios etc.) but especially in improving logistics (involving the dynamics of the system in general).

In fact, during several presentations made ​​by experts in the framework of the so called ‘World Business Forum’ held in Panama in April past, it was noted that our industry faces a curious duality.

First is at number 5 in the world ranking in terms of availability of infrastructure, but ranks in logistics competitiveness level 51. This is the result of several aspects.

First, there are still ‘bottlenecks’ associated with the institutional and administrative management, particularly in customs matters.

In addition, and so acknowledged by the Government Strategic Plan 2010-2014, in Panama costs (or tariffs) are internal transportation average between 30% to 40% higher than in other countries in the region. Some argue that because of its high competitiveness Maritime Panama can ‘afford’ that carriers maintain restrictions on new deals.

Link to Original Article:

From La Estrella

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