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

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
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World Bank, Washington, DC
Europe and Central Asia | Africa
2012-06-07T17:39:39Z | 2012-06-07T17:39:39Z | 2007-06

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.

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