The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability

A large proportion of the least developed countries are landlocked and their access to world markets depends on the availability of a trade corridor and transit systems. Based on empirical evidence from World Bank projects and assessments in Africa...

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Main Authors: Arvis, Jean-François, Raballand, Gael, Marteau, Jean-François
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
AIR
CIF
GDP
WTO
Online Access:http://documents.worldbank.org/curated/en/2007/06/7726752/cost-being-landlocked-logistics-costs-supply-chain-reliability
http://hdl.handle.net/10986/7420
id okr-10986-7420
recordtype oai_dc
spelling okr-10986-74202021-04-23T14:02:33Z The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability Arvis, Jean-François Raballand, Gael Marteau, Jean-François ACCESSIBILITY AIR AIR CARGO AIR CARGO RATES AIRCRAFT AIRPORTS AVERAGE FLEET AGE BARGES BENCHMARK BONDS BORDER CROSSING BOTTLENECKS CARGO INSURANCE CARTEL CIF COMMODITY COMPETITIVENESS CONTAINERS COST OF TRANSPORTATION COSTS OF TRANSPORTATION CROSSING CUSTOMS CUSTOMS CLEARANCE CUSTOMS PROCEDURES DELIVERY SCHEDULES DEMAND FOR TRANSIT DEMURRAGE DEREGULATION DEVELOPMENT ASSISTANCE DISECONOMIES OF SCALE DOMESTIC TRANSPORT DRIVERS EAST EUROPE ECONOMIC GEOGRAPHY EXCESS SUPPLY EXPORTS EXTERNALITIES FIXED COSTS FORWARDING FORWARDING FEES FREIGHT FREIGHT COSTS FREIGHT FORWARDERS FREIGHT PAYMENTS FREIGHT RATES FREIGHT SERVICES FUEL GATT GDP GROWTH THEORIES HANDLING HIGH FUEL CONSUMPTION IMPACT OF TRANSPORT INDUSTRIAL ECONOMIES INFORMAL TRANSPORT INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECTS INTERNATIONAL TRADE INTERNATIONAL TRANSIT INVENTORIES INVENTORY LANDLOCKED COUNTRIES LDCS LOGISTICS CHAIN LOGISTICS COSTS MARITIME TRANSPORT MODAL CHOICES MODE OF TRANSPORTATION MODERN TRANSPORT MULTIMODAL TRANSPORT NEGATIVE EXTERNALITIES POLITICAL ECONOMY PORT OF ENTRY RAIL RAIL COMPANIES RAIL OPERATORS RAIL TRANSIT RAIL TRANSPORT RAILWAY RAILWAYS REGIONAL TRANSPORT RENT SEEKING ROAD ROAD CONDITIONS ROAD CONSTRUCTION ROAD QUALITY ROAD TOLLS ROAD TRANSPORT ROAD TRANSPORT MARKET ROAD USER ROAD USER CHARGES ROUTE ROUTES SHIPMENTS SHIPPERS SHIPPING SHIPS STORAGE FACILITIES SUPPLY CHAIN MANAGEMENT SURFACE FREIGHT TIRES TOLL TOLL ROADS TRADE FACILITATION TRAFFIC TRANSIT TRANSIT COUNTRIES TRANSIT INFRASTRUCTURE TRANSIT OPERATIONS TRANSIT PERFORMANCE TRANSIT POLICY TRANSIT SYSTEM TRANSIT SYSTEMS TRANSIT TRADE TRANSIT VEHICLES TRANSPORT TRANSPORT CHARGES TRANSPORT CORRIDORS TRANSPORT COST TRANSPORT COSTS TRANSPORT FACILITATION TRANSPORT INFRASTRUCTURE TRANSPORT MODES TRANSPORT OPERATIONS TRANSPORT OPERATORS TRANSPORT SERVICE TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COST TRANSPORTATION COSTS TRANSPORTATION SERVICES TRIP TRIPS TRUCK OPERATING COSTS TRUCK USE TRUCKS TRUE VARIABLE COSTS VEHICLE VEHICLE FLEET VEHICLE MOVEMENT VEHICLE OPERATING VEHICLE OPERATING COSTS VEHICLE TAXES VEHICLE USAGE VEHICLES VESSELS WAGES WAITING TIME WAREHOUSING WESTERN EUROPE WTO A large proportion of the least developed countries are landlocked and their access to world markets depends on the availability of a trade corridor and transit systems. Based on empirical evidence from World Bank projects and assessments in Africa, Central Asia, and elsewhere, this paper proposes a microeconomic quantitative description of logistics costs. The paper theoretically and empirically highlights that landlocked economies are primarily affected not only by a high cost of freight services but also by the high degree of unpredictability in transportation time. The main sources of costs are not only physical constraints but widespread rent activities and severe flaws in the implementation of the transit systems, which prevent the emergence of reliable logistics services. The business and donor community should push toward implementation of comprehensive facilitation strategies, primarily at the national level, and the design of robust and resilient transport and transit regimes. A better understanding of the political economy of transit and a review of the implementation successes and failures in this area are needed. 2012-06-07T17:39:39Z 2012-06-07T17:39:39Z 2007-06 http://documents.worldbank.org/curated/en/2007/06/7726752/cost-being-landlocked-logistics-costs-supply-chain-reliability http://hdl.handle.net/10986/7420 English Policy Research Working Paper; No. 4258 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESSIBILITY
AIR
AIR CARGO
AIR CARGO RATES
AIRCRAFT
AIRPORTS
AVERAGE FLEET AGE
BARGES
BENCHMARK
BONDS
BORDER CROSSING
BOTTLENECKS
CARGO INSURANCE
CARTEL
CIF
COMMODITY
COMPETITIVENESS
CONTAINERS
COST OF TRANSPORTATION
COSTS OF TRANSPORTATION
CROSSING
CUSTOMS
CUSTOMS CLEARANCE
CUSTOMS PROCEDURES
DELIVERY SCHEDULES
DEMAND FOR TRANSIT
DEMURRAGE
DEREGULATION
DEVELOPMENT ASSISTANCE
DISECONOMIES OF SCALE
DOMESTIC TRANSPORT
DRIVERS
EAST EUROPE
ECONOMIC GEOGRAPHY
EXCESS SUPPLY
EXPORTS
EXTERNALITIES
FIXED COSTS
FORWARDING
FORWARDING FEES
FREIGHT
FREIGHT COSTS
FREIGHT FORWARDERS
FREIGHT PAYMENTS
FREIGHT RATES
FREIGHT SERVICES
FUEL
GATT
GDP
GROWTH THEORIES
HANDLING
HIGH FUEL CONSUMPTION
IMPACT OF TRANSPORT
INDUSTRIAL ECONOMIES
INFORMAL TRANSPORT
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE PROJECTS
INTERNATIONAL TRADE
INTERNATIONAL TRANSIT
INVENTORIES
INVENTORY
LANDLOCKED COUNTRIES
LDCS
LOGISTICS CHAIN
LOGISTICS COSTS
MARITIME TRANSPORT
MODAL CHOICES
MODE OF TRANSPORTATION
MODERN TRANSPORT
MULTIMODAL TRANSPORT
NEGATIVE EXTERNALITIES
POLITICAL ECONOMY
PORT OF ENTRY
RAIL
RAIL COMPANIES
RAIL OPERATORS
RAIL TRANSIT
RAIL TRANSPORT
RAILWAY
RAILWAYS
REGIONAL TRANSPORT
RENT SEEKING
ROAD
ROAD CONDITIONS
ROAD CONSTRUCTION
ROAD QUALITY
ROAD TOLLS
ROAD TRANSPORT
ROAD TRANSPORT MARKET
ROAD USER
ROAD USER CHARGES
ROUTE
ROUTES
SHIPMENTS
SHIPPERS
SHIPPING
SHIPS
STORAGE FACILITIES
SUPPLY CHAIN MANAGEMENT
SURFACE FREIGHT
TIRES
TOLL
TOLL ROADS
TRADE FACILITATION
TRAFFIC
TRANSIT
TRANSIT COUNTRIES
TRANSIT INFRASTRUCTURE
TRANSIT OPERATIONS
TRANSIT PERFORMANCE
TRANSIT POLICY
TRANSIT SYSTEM
TRANSIT SYSTEMS
TRANSIT TRADE
TRANSIT VEHICLES
TRANSPORT
TRANSPORT CHARGES
TRANSPORT CORRIDORS
TRANSPORT COST
TRANSPORT COSTS
TRANSPORT FACILITATION
TRANSPORT INFRASTRUCTURE
TRANSPORT MODES
TRANSPORT OPERATIONS
TRANSPORT OPERATORS
TRANSPORT SERVICE
TRANSPORT SERVICES
TRANSPORTATION
TRANSPORTATION COST
TRANSPORTATION COSTS
TRANSPORTATION SERVICES
TRIP
TRIPS
TRUCK OPERATING COSTS
TRUCK USE
TRUCKS
TRUE
VARIABLE COSTS
VEHICLE
VEHICLE FLEET
VEHICLE MOVEMENT
VEHICLE OPERATING
VEHICLE OPERATING COSTS
VEHICLE TAXES
VEHICLE USAGE
VEHICLES
VESSELS
WAGES
WAITING TIME
WAREHOUSING
WESTERN EUROPE
WTO
spellingShingle ACCESSIBILITY
AIR
AIR CARGO
AIR CARGO RATES
AIRCRAFT
AIRPORTS
AVERAGE FLEET AGE
BARGES
BENCHMARK
BONDS
BORDER CROSSING
BOTTLENECKS
CARGO INSURANCE
CARTEL
CIF
COMMODITY
COMPETITIVENESS
CONTAINERS
COST OF TRANSPORTATION
COSTS OF TRANSPORTATION
CROSSING
CUSTOMS
CUSTOMS CLEARANCE
CUSTOMS PROCEDURES
DELIVERY SCHEDULES
DEMAND FOR TRANSIT
DEMURRAGE
DEREGULATION
DEVELOPMENT ASSISTANCE
DISECONOMIES OF SCALE
DOMESTIC TRANSPORT
DRIVERS
EAST EUROPE
ECONOMIC GEOGRAPHY
EXCESS SUPPLY
EXPORTS
EXTERNALITIES
FIXED COSTS
FORWARDING
FORWARDING FEES
FREIGHT
FREIGHT COSTS
FREIGHT FORWARDERS
FREIGHT PAYMENTS
FREIGHT RATES
FREIGHT SERVICES
FUEL
GATT
GDP
GROWTH THEORIES
HANDLING
HIGH FUEL CONSUMPTION
IMPACT OF TRANSPORT
INDUSTRIAL ECONOMIES
INFORMAL TRANSPORT
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE PROJECTS
INTERNATIONAL TRADE
INTERNATIONAL TRANSIT
INVENTORIES
INVENTORY
LANDLOCKED COUNTRIES
LDCS
LOGISTICS CHAIN
LOGISTICS COSTS
MARITIME TRANSPORT
MODAL CHOICES
MODE OF TRANSPORTATION
MODERN TRANSPORT
MULTIMODAL TRANSPORT
NEGATIVE EXTERNALITIES
POLITICAL ECONOMY
PORT OF ENTRY
RAIL
RAIL COMPANIES
RAIL OPERATORS
RAIL TRANSIT
RAIL TRANSPORT
RAILWAY
RAILWAYS
REGIONAL TRANSPORT
RENT SEEKING
ROAD
ROAD CONDITIONS
ROAD CONSTRUCTION
ROAD QUALITY
ROAD TOLLS
ROAD TRANSPORT
ROAD TRANSPORT MARKET
ROAD USER
ROAD USER CHARGES
ROUTE
ROUTES
SHIPMENTS
SHIPPERS
SHIPPING
SHIPS
STORAGE FACILITIES
SUPPLY CHAIN MANAGEMENT
SURFACE FREIGHT
TIRES
TOLL
TOLL ROADS
TRADE FACILITATION
TRAFFIC
TRANSIT
TRANSIT COUNTRIES
TRANSIT INFRASTRUCTURE
TRANSIT OPERATIONS
TRANSIT PERFORMANCE
TRANSIT POLICY
TRANSIT SYSTEM
TRANSIT SYSTEMS
TRANSIT TRADE
TRANSIT VEHICLES
TRANSPORT
TRANSPORT CHARGES
TRANSPORT CORRIDORS
TRANSPORT COST
TRANSPORT COSTS
TRANSPORT FACILITATION
TRANSPORT INFRASTRUCTURE
TRANSPORT MODES
TRANSPORT OPERATIONS
TRANSPORT OPERATORS
TRANSPORT SERVICE
TRANSPORT SERVICES
TRANSPORTATION
TRANSPORTATION COST
TRANSPORTATION COSTS
TRANSPORTATION SERVICES
TRIP
TRIPS
TRUCK OPERATING COSTS
TRUCK USE
TRUCKS
TRUE
VARIABLE COSTS
VEHICLE
VEHICLE FLEET
VEHICLE MOVEMENT
VEHICLE OPERATING
VEHICLE OPERATING COSTS
VEHICLE TAXES
VEHICLE USAGE
VEHICLES
VESSELS
WAGES
WAITING TIME
WAREHOUSING
WESTERN EUROPE
WTO
Arvis, Jean-François
Raballand, Gael
Marteau, Jean-François
The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability
geographic_facet Europe and Central Asia
Africa
relation Policy Research Working Paper; No. 4258
description A large proportion of the least developed countries are landlocked and their access to world markets depends on the availability of a trade corridor and transit systems. Based on empirical evidence from World Bank projects and assessments in Africa, Central Asia, and elsewhere, this paper proposes a microeconomic quantitative description of logistics costs. The paper theoretically and empirically highlights that landlocked economies are primarily affected not only by a high cost of freight services but also by the high degree of unpredictability in transportation time. The main sources of costs are not only physical constraints but widespread rent activities and severe flaws in the implementation of the transit systems, which prevent the emergence of reliable logistics services. The business and donor community should push toward implementation of comprehensive facilitation strategies, primarily at the national level, and the design of robust and resilient transport and transit regimes. A better understanding of the political economy of transit and a review of the implementation successes and failures in this area are needed.
format Publications & Research :: Policy Research Working Paper
author Arvis, Jean-François
Raballand, Gael
Marteau, Jean-François
author_facet Arvis, Jean-François
Raballand, Gael
Marteau, Jean-François
author_sort Arvis, Jean-François
title The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability
title_short The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability
title_full The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability
title_fullStr The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability
title_full_unstemmed The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability
title_sort cost of being landlocked : logistics costs and supply chain reliability
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/06/7726752/cost-being-landlocked-logistics-costs-supply-chain-reliability
http://hdl.handle.net/10986/7420
_version_ 1764402020194713600