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CHAPTER 3

The Need for a Revised Conceptual Framework to Assess the Cost of Being Landlocked Transport costs account for only part of the real cost of being landlocked. They do not factor in transit delays and unpredictability, which are critical parameters in international trade. In trying to assess what could improve the impact of logistics on landlocked countries, practitioners are generally faced with a choice between extremes: if the analysis is geared toward classic investment measures in infrastructure, they tend to use the classical approach of economic benefits based on vehicle operating cost reduction and induced traffic (using tools presented in Chapter 2, complemented by qualitative illustrations of the impacts of their activities on transit time). In rare cases, they may also check their assumptions against the trucking market structure (also as described in Chapter 2). However, such an approach would miss the economic and financial impacts of all transport intermediaries and services. However, many trade facilitation actions are measured in terms of global impact on trade, and several proxies have been used to evaluate logistics costs based on trade statistics. It is therefore important to reconstruct the operational and cost structure of international transit operations and check available macrodata toward identification of the various factors in the logistics chain. This chapter briefly discusses the limitations of the macro approach given the complexity of logistics chains. It then 25

The Cost of Being Landlocked  

This book proposes a new analytical framework to interpret and model the constraints faced by logistics chains in landlocked countries. The...

The Cost of Being Landlocked  

This book proposes a new analytical framework to interpret and model the constraints faced by logistics chains in landlocked countries. The...