CARANA Corporation: CARANA Presents Export and Supply Chain Analytical Tool At USAID

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CARANA Presents Export and Supply Chain Analytical Tool At USAID

Washington, D.C.—Always an important factor in trade competitiveness, transport and logistics (T&L) is becoming an increasingly critical success factor for producers, manufacturers and exporters wishing to become integrated into the global economy. In many developing countries, however, T&L weaknesses add costs (both time and money) that undermine the seamless movement of goods across borders to international buyers.

On September 26 2006, CARANA Corporation presented an analytical framework designed to (1) quantify transport costs for various product groups shipped from developing countries to global markets; (2) identify systemic and value-chain factors that lead to inefficiencies and higher/excess transaction costs in the movement of goods; and (3) highlight cost effective opportunities to enhance export competitiveness through transport and logistics improvements. During the presentation, which was held at USAID and attended by 20+ USAID personnel and other contractors, CARANA discussed two case studies, Bulgaria and Paraguay, where the ‘Export and Supply Chain Analytical Tool’ has been applied and used to inform improvements in transport and logistics. For the PowerPoint Presentation, click here.

The CARANA Transport and Logistics Series

The Bulgaria and Paraguay examples are part of a series of transport and logistics studies—funded by USAID and implemented by CARANA Corporation—that focus on issues related to transport, logistics and trade competitiveness. Other country studies covered Indonesia, Mali and Nicaragua. These countries provide a sample that reflects different geographic, development and export scenarios, each with unique T&L problems and challenges.

Nicaragua was selected as an example of a country with no major export port but in close proximity to the most important export market in the world—the United States.
Indonesia is a country comprised of more than 17,000 islands almost spanning the width of the U.S., with a vast domestic market and close to a large regional market.
Mali is an example of a very poor, highly indebted Sub-Saharan landlocked country with many transport and transit problems, heavily dependent on raw material exports with no significant manufacturing or value-added activities.
Bulgaria is a country located in close proximity to EU markets and to major fabric producers in the Euro-Mediterranean zone. The country’s ability to compete in the increasingly competitive apparel sector depends largely on it ability to provide low cost, rapid and reliable transport and logistics services and efficiently manage supply chains.
Paraguay is a landlocked country in South America dependent on fluvial and road transport to access ports to international destinations.

The Transport and Logistics Series also included an initial survey on the importance of T&L in the developing country context and a final report summarizing the findings of the country studies. All of the studies were carried out under the USAID Trade Enhancement for the Services Sector (TESS) Project, except for the Paraguay study, which was funded under the USAID LAC Trade III Project. Follow-up work in Bulgaria to establish a certificate program for supply chain management has been funded under the USAID Bulgaria Labor Market Project (LMP). Follow-up work is currently underway in Paraguay, aimed at enabling the national chamber of commerce to advocate T&L improvements, address critical T&L policy issues and develop an index of T&L costs.

Country Studies

Impact of Transport and Logistics on Paraguay's Trade Competitiveness (June 2006) (English Summary)

Impact of Transport and Logistics on Paraguay's Trade Competitiveness (June 2006) (Full Report in Spanish)

Impact of Transport and Logistics on Bulgaria's Textile and Apparel Competitiveness (May 2005)

Impact of Transport and Logistics on Mali's Trade Competitiveness (August 2004) (English)

Impact of Transport and Logistics on Mali's Trade Competitiveness (August 2004) (French)

Impact of Transport and Logistics on Indonesia's Trade Competitiveness (May 2004)

Impact of Transport and Logistics on Nicaragua's Trade Competitiveness (January 2004)