According to a report by the World Bank (on infrastructure, roads, distribution and transportation), Chile is the region’s forerunner when it comes to efficiency. This is mostly because of the country’s heavy investments in this sector.
On a global scale, Singapore has the best credits, followed closely by China and Finland. Chile ranks number 39 on this list, a rise of 10 places compared to the same list in 2010. Brazil went down on the list, from 41 to 45. Mexico ranks number 47, Columbia number 64. Six distinctions were made in evaluating a country’s efficiency: the efficacy of border offices, custom procedures, the quality of infrastructure (in relation to foreign and domestic trade), quality of logistics, the ability to track shipments and the speed of the shipment’s arrival.
Jean-Francois Arvis, Senior Transport Economist with the International Trade Department (PRMTR) at the World Bank, states that Chile owes its growth to a more durable vision on transport infrastructure, logistics and custom dealings.
Neil Taylor, President of ALOG Chile AG, agrees that Customs has done much to facilitate foreign trade, but that “a lot still needs to be done. Digitise its procedures for instance, to increase processing and cut costs.” A big step will be the inauguration of SICEX (an online database with records of imports and exports for 26 countries) in 2013. “This will be a breakthrough in advancing international trade,” says Taylor.
Integration of technology
The integration of technology, as well as stiff competition and a dissipation in the transport sector are Chile’s notable weaknesses. Chile is a remote country, says Taylor, and this fact increases the chance of shipment delays. “Digitizing this process is likely to facilitate the shipping process, reducing the number of delays.”
Juan Pablo Fuentes, director Chile’s Institute of Logistics and Transportation, notes that the main problem is that Chile “compared to developed regions like Europe and the US, needs a big leap forward when it comes to technology.”
Source: DF