Colombia ranks poorly when it comes to trade logistics, according to a new World Bank study. Its 2016 Logistics Performance Index places the Andean country 94th out of the 160 economies studied, showing that it still has a lot of work to do in terms of improving infrastructure, customs, and timeliness.
“There is no trade without logistics, and poor logistics often means poor trade,” writes Anabel González, senior director of trade and competitiveness at the World Bank Group, in the report. “We must remember that moving goods across borders is not the be-all and end-all of logistics performance, which requires the integration of many elements throughout the entire supply chain.”
The index is the World Bank’s attempt to compare nations on a variety of factors important to international trade, and the most troubling aspect is that Colombia has fallen in the rankings over the years.
In its first edition, in 2007, the country ranked 82nd overall before climbing nearly 20 spots to 64th in 2012. But now, that progress has been reversed — and then some — with Colombia falling back out of the top half.
Colombia’s Rankings in the LPI by Year
- 2016: 94
- 2014: 97
- 2012: 64
- 2010: 72
- 2007: 82
The World Bank describes the the LPI as benchmarking tool that can help countries identify the challenges and opportunities on trade logistics. More than condemning those with poor performances, it aims to provide a guide for nations to improve their rankings in categories over time.
The categories measured include: customs, infrastructure, ease of arranging shipments, quality of logistics services, tracking, timeliness, border procedures, and supply chain reliability.
Photo: Shipping containers shit in the port of Cartagena. (Credit: Pe-sa)