Road Freight in Central America : Five Explanations to High Costs of Service Provision
An efficient system to transport goods domestically and internationally is a key element of the logistics chain. Road freight transport has a direct impact on poverty as it employs millions of people and generates a significant portion of Gross Dom...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/558341468242387382/Road-freight-in-Central-America-five-explanations-to-high-costs-of-service-provision-background-paper http://hdl.handle.net/10986/27105 |
| Summary: | An efficient system to transport goods
domestically and internationally is a key element of the
logistics chain. Road freight transport has a direct impact
on poverty as it employs millions of people and generates a
significant portion of Gross Domestic Product, or GDP,
especially in low and middle-income countries. Trucking is
the primary form of transportation for domestic,
trans-border, and international cargo, in Central America.
Road freight transport is now vital to production,
distribution, and mobilization, driving economic, social,
and environmental progress. In short, trucking is the
backbone of economies around the world. In the past 20
years, the industry has advanced as technology has improved
communication, management, productivity, including vehicle
efficiency. Their objective in doing so is to expand
markets, generate wealth on the basis of efficient
specialization, introduce competition, and lower costs for
production, distribution, services, and research and
development. When road freight transport services are
efficient, they support these objectives; when they are not
they act as nontariff barriers to trade, creating delays,
raising costs, worsening congestion and pollution. Such
barriers prolong and destabilize delivery schedules, hinder
'just in time' inventory management and industrial
processes, and impede the efficient combination of factors
of production. |
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