Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis

In Central America, cargo is transported almost entirely by road. The movement of imports and exports to and from international seaports is done by truck. Rail service is almost nonexistent and air transport serves less than one percent of the carg...

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Main Author: World Bank
Format: Working Paper
Language:English
en_US
Published: Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/439631468230959321/Freight-flows-logistics-costs-and-efficiency-optimal-path-analysis-background-paper
http://hdl.handle.net/10986/27230
id okr-10986-27230
recordtype oai_dc
spelling okr-10986-272302022-09-15T16:20:13Z Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis World Bank ACCESS ROADS ACCIDENT AGRICULTURAL ZONES AIR AIR TRANSPORT AMBULANCES AVERAGE DAILY TRAFFIC AVERAGE SPEED AVERAGE SPEEDS AVERAGE TRAVEL SPEED BORDER CROSSINGS BOTTLENECK BOTTLENECKS BRIDGE BRIDGES BYPASSES CAR CAR ACCIDENTS CARGO CARS CONSTRUCTION CONSTRUCTION OF ROADS CROSSING DESIGN SPEED DRAINAGE FIRE FIRE STATIONS FIRE TRUCKS FLOODING FREIGHT FREIGHT FLOWS FREIGHT TRANSPORT GRAVEL GRAVEL ROADS HIGHWAY HIGHWAYS INCOME INFRASTRUCTURE IMPROVEMENTS INTERNATIONAL ROUGHNESS INDEX LAND TRANSPORTATION LAND USE LANDSLIDES MOUNTAINOUS TERRAIN NAVIGATION PARKING PATH PATHS PAVING PORTS PRIMARY ROADS RAIL RAIL SERVICE RANGE REMOTE REMOTE SENSING RETAINING WALLS ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD QUALITY ROAD WIDTH ROADS ROUGHNESS ROUTE ROUTES RURAL ROADS SECONDARY ROADS SPEED LIMITS SPEED REDUCTIONS SPEEDS SQUARE STREETS TERRAIN TERRAIN SLOPE TERTIARY ROADS TOLL TOPOGRAPHY TOTAL LENGTH TRAFFIC TRAFFIC VOLUME TRANSPORT INFRASTRUCTURE TRANSPORT TIME TRANSPORTATION TRANSPORTATION INFRASTRUCTURE TRANSPORTATION RESEARCH TRAVEL SPEED TRAVEL SPEEDS TRAVEL TIME TRAVEL TIMES TRUCKING TRUCKS UNPAVED ROAD UNPAVED ROADS URBAN CONGESTION URBAN TRANSIT VEHICLE VEHICLES WAITING TIME In Central America, cargo is transported almost entirely by road. The movement of imports and exports to and from international seaports is done by truck. Rail service is almost nonexistent and air transport serves less than one percent of the cargo generated within the Central American Common Market (SIECA, 2004). Intra-regional trade is much more important in Central America than it might seem at first glance. The second largest trading partner of Central America is the region itself. In 2010, one quarter of the exports from Central America were destined for final consumption within the region. Half of the exports of Central America (54 percent in 2010) correspond to agricultural products and a large proportion of them supply markets inside the region. Nearly 40 percent of intra-regional exports consist of food, beverages, animals and plants (SIECA, 2011). Perishable food products are transported on trucks, and spatially restricted by the geography and the road infrastructure. In this context, inefficiencies in the supply chain and delays in freight flows lead to economic losses and amplify the negative impact of the distance to the markets on trade. A gravity model of trade showed that the negative effect of distance1 on total intra-regional exports is 77 percent higher in Central America than in the European Union (World Bank, 2010). More precisely, an increase in distance by 1 percent is expected to reduce intra-regional bilateral exports in Central America by 1.65 percent. In terms of volume, the negative effect of distance within the region exceeds the effect in Europe by 50 percent in grains and up to 550 percent in processed food. In the latter case, an increase in distance by 1 percent is expected to reduce intra-regional bilateral exports of processed food in Central America by 2.88 percent. 2017-06-15T20:35:14Z 2017-06-15T20:35:14Z 2012-06 Working Paper http://documents.worldbank.org/curated/en/439631468230959321/Freight-flows-logistics-costs-and-efficiency-optimal-path-analysis-background-paper http://hdl.handle.net/10986/27230 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Publications & Research :: Working Paper Publications & Research Latin America & Caribbean Central America Nicaragua
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS ROADS
ACCIDENT
AGRICULTURAL ZONES
AIR
AIR TRANSPORT
AMBULANCES
AVERAGE DAILY TRAFFIC
AVERAGE SPEED
AVERAGE SPEEDS
AVERAGE TRAVEL SPEED
BORDER CROSSINGS
BOTTLENECK
BOTTLENECKS
BRIDGE
BRIDGES
BYPASSES
CAR
CAR ACCIDENTS
CARGO
CARS
CONSTRUCTION
CONSTRUCTION OF ROADS
CROSSING
DESIGN SPEED
DRAINAGE
FIRE
FIRE STATIONS
FIRE TRUCKS
FLOODING
FREIGHT
FREIGHT FLOWS
FREIGHT TRANSPORT
GRAVEL
GRAVEL ROADS
HIGHWAY
HIGHWAYS
INCOME
INFRASTRUCTURE IMPROVEMENTS
INTERNATIONAL ROUGHNESS INDEX
LAND TRANSPORTATION
LAND USE
LANDSLIDES
MOUNTAINOUS TERRAIN
NAVIGATION
PARKING
PATH
PATHS
PAVING
PORTS
PRIMARY ROADS
RAIL
RAIL SERVICE
RANGE
REMOTE
REMOTE SENSING
RETAINING WALLS
ROAD
ROAD INFRASTRUCTURE
ROAD NETWORK
ROAD QUALITY
ROAD WIDTH
ROADS
ROUGHNESS
ROUTE
ROUTES
RURAL ROADS
SECONDARY ROADS
SPEED LIMITS
SPEED REDUCTIONS
SPEEDS
SQUARE
STREETS
TERRAIN
TERRAIN SLOPE
TERTIARY ROADS
TOLL
TOPOGRAPHY
TOTAL LENGTH
TRAFFIC
TRAFFIC VOLUME
TRANSPORT INFRASTRUCTURE
TRANSPORT TIME
TRANSPORTATION
TRANSPORTATION INFRASTRUCTURE
TRANSPORTATION RESEARCH
TRAVEL SPEED
TRAVEL SPEEDS
TRAVEL TIME
TRAVEL TIMES
TRUCKING
TRUCKS
UNPAVED ROAD
UNPAVED ROADS
URBAN CONGESTION
URBAN TRANSIT
VEHICLE
VEHICLES
WAITING TIME
spellingShingle ACCESS ROADS
ACCIDENT
AGRICULTURAL ZONES
AIR
AIR TRANSPORT
AMBULANCES
AVERAGE DAILY TRAFFIC
AVERAGE SPEED
AVERAGE SPEEDS
AVERAGE TRAVEL SPEED
BORDER CROSSINGS
BOTTLENECK
BOTTLENECKS
BRIDGE
BRIDGES
BYPASSES
CAR
CAR ACCIDENTS
CARGO
CARS
CONSTRUCTION
CONSTRUCTION OF ROADS
CROSSING
DESIGN SPEED
DRAINAGE
FIRE
FIRE STATIONS
FIRE TRUCKS
FLOODING
FREIGHT
FREIGHT FLOWS
FREIGHT TRANSPORT
GRAVEL
GRAVEL ROADS
HIGHWAY
HIGHWAYS
INCOME
INFRASTRUCTURE IMPROVEMENTS
INTERNATIONAL ROUGHNESS INDEX
LAND TRANSPORTATION
LAND USE
LANDSLIDES
MOUNTAINOUS TERRAIN
NAVIGATION
PARKING
PATH
PATHS
PAVING
PORTS
PRIMARY ROADS
RAIL
RAIL SERVICE
RANGE
REMOTE
REMOTE SENSING
RETAINING WALLS
ROAD
ROAD INFRASTRUCTURE
ROAD NETWORK
ROAD QUALITY
ROAD WIDTH
ROADS
ROUGHNESS
ROUTE
ROUTES
RURAL ROADS
SECONDARY ROADS
SPEED LIMITS
SPEED REDUCTIONS
SPEEDS
SQUARE
STREETS
TERRAIN
TERRAIN SLOPE
TERTIARY ROADS
TOLL
TOPOGRAPHY
TOTAL LENGTH
TRAFFIC
TRAFFIC VOLUME
TRANSPORT INFRASTRUCTURE
TRANSPORT TIME
TRANSPORTATION
TRANSPORTATION INFRASTRUCTURE
TRANSPORTATION RESEARCH
TRAVEL SPEED
TRAVEL SPEEDS
TRAVEL TIME
TRAVEL TIMES
TRUCKING
TRUCKS
UNPAVED ROAD
UNPAVED ROADS
URBAN CONGESTION
URBAN TRANSIT
VEHICLE
VEHICLES
WAITING TIME
World Bank
Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis
geographic_facet Latin America & Caribbean
Central America
Nicaragua
description In Central America, cargo is transported almost entirely by road. The movement of imports and exports to and from international seaports is done by truck. Rail service is almost nonexistent and air transport serves less than one percent of the cargo generated within the Central American Common Market (SIECA, 2004). Intra-regional trade is much more important in Central America than it might seem at first glance. The second largest trading partner of Central America is the region itself. In 2010, one quarter of the exports from Central America were destined for final consumption within the region. Half of the exports of Central America (54 percent in 2010) correspond to agricultural products and a large proportion of them supply markets inside the region. Nearly 40 percent of intra-regional exports consist of food, beverages, animals and plants (SIECA, 2011). Perishable food products are transported on trucks, and spatially restricted by the geography and the road infrastructure. In this context, inefficiencies in the supply chain and delays in freight flows lead to economic losses and amplify the negative impact of the distance to the markets on trade. A gravity model of trade showed that the negative effect of distance1 on total intra-regional exports is 77 percent higher in Central America than in the European Union (World Bank, 2010). More precisely, an increase in distance by 1 percent is expected to reduce intra-regional bilateral exports in Central America by 1.65 percent. In terms of volume, the negative effect of distance within the region exceeds the effect in Europe by 50 percent in grains and up to 550 percent in processed food. In the latter case, an increase in distance by 1 percent is expected to reduce intra-regional bilateral exports of processed food in Central America by 2.88 percent.
format Working Paper
author World Bank
author_facet World Bank
author_sort World Bank
title Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis
title_short Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis
title_full Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis
title_fullStr Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis
title_full_unstemmed Freight Flows,Logistics Costs, and Efficiency : Optimal Path Analysis
title_sort freight flows,logistics costs, and efficiency : optimal path analysis
publisher Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/439631468230959321/Freight-flows-logistics-costs-and-efficiency-optimal-path-analysis-background-paper
http://hdl.handle.net/10986/27230
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