ENHANCING THE LOGISTICS AND CONNECTIVITY OF THE CARIBBEAN CGF NASSAU 2013

1. Panel 1
ENHANCING THE LOGISTICS AND
CONNECTIVITY OF THE CARIBBEAN
Ede Ijjasz-Vasquez
Director Sustainable Development Department
Latin America and the Caribbean
The World Bank
Caribbean Growth Forum Regional Workshop
June 24-25, 2013 Nassau, The Bahamas

2. Underdevelopment of Stay-Over Tourism
Presents a Growth and Development Opportunity
Eastern Caribbean Countries International Tourism
Stay-over and cruise ship passengers
3,000
Visitors '000
2,500
• An average cruise-ship
passenger spends US$50/stay
• An average stay-over tourist
spends over US$1,000/stay
2,000
1,500
1,000
500
Stay Over Visitors
Cruise Ship Passengers
• Stay-over tourism has direct
impact on local economy:
– higher demand of
traditional crops, fresh
produce, fish and
seafood, and services
Source: “Connectivity for the OECS Countries: The Initial Step for an Assessment of the
Caribbean Connectivity”, World Bank (2013)

3. Connectivity Limits Tourism and Regional Integration
St. Kitts
Antigua
Nevis
Montserrat
Flight Route: 824 km
A North South Gap:
Flying from Grenada to Antigua
Guadeloupe
•
No direct flights
•
The simplest option takes three
separate flights
•
Physical direct distance 567 km
•
355 km
Flight distance 824 km (most
direct connection)
•
The connections shown may
include overnight layovers
Dominica
Martinique
Physical Distance:
567 km
St. Lucia GFL Charles
St. Lucia Hewanorra
193 km
St. Vincent
Barbados
Canouan
276 km
Grenada
Tobago
Trinidad
Based on sample taken on November 30, 2012, attempting to book
travel on December 5, 2012.
Source: “Connectivity for the OECS Countries: The Initial Step for an Assessment of the Caribbean Connectivity”, World Bank (2013)

4. System coordination is a constraint,
air transport infrastructure is not
OECS Intercontinental Air Transport System

System Reflects a systems based predominantly on
inefficient bilateral tourism agreements rather than
OECS/ Caribbean regional agreements
Source: “Connectivity for the OECS Countries: The Initial Step for an Assessment of the Caribbean Connectivity”, World Bank (2013)

5. Import Costs are a Constraint, Maritime Infrastructure is not
 Transaction time to import below peer averages while costs among the largest
Cost to Import
Time to Import
Pacific Islands
Average
Pacific Islands
Average
Caribbean Average
Caribbean Average
OECS Average
OECS Average
Singapore
Singapore
0
5
10
Days
15
20
25
30
0
500
1000
1500
2000
2500
US $/TEU
Share of Import Costs due to Customs and Document Preparation
St Vincent and
Grenadines
St Kitts and
Nevis
Grenada
St Lucia
Antigua and
Barbuda
Dominica
72%
63%
60%
53%
47%
22%

Customs inefficiencies are driving imports costs
Source: “Connectivity for the OECS Countries: The Initial Step for an Assessment of the Caribbean Connectivity”, World Bank (2013)

7. Key Connectivity Issues
Fixed Broadband Penetration Gap
Upper Middle Income countries vs.
Small Caribbean States (2001 – 2011)
Upper Middle Income 9.87
Fixed (wired)-broadband subscriptions per 100 inhabitants,
2001-2011
30
Developed
World
25
25.0
Developing
20
The gap has
increased during
last five years
15
10
8.5
5
4.9
0
2001
2002
2003
2004
Source: data.worldbank.org
2005
2006
2007
2008
2009
2010
2011
6.44
Small Caribbean States

8. Fixed Internet Broadband Subscribers (per 100 people)
Broadband and Internet
usage can be strengthened
25
20
15
10
5
0
Mobile cellular subscriptions (per 100 people)
Internet Users (per 100 people)
90
80
70
60
50
40
30
20
10
0
200
180
160
140
120
100
80
60
40
20
0

9. Low use of ICT services due to high prices
(competition is limited)
Mobile-cellular sub-basket
% of GNI per capita (2011)
Mobile telephony market share, 2011
Source: ITU Measuring the Information Society 2011, and Telegeography
Fixed-broadband sub-basket
% of GNI per capita (2011)
Fixed broadband market share, 2011

10. A Snapshot of ICT

11. ICT Solutions for Caribbean Challenges
National Initiatives
• Ensure the right legal and regulatory environment (pro-competition and cost
sharing/reducing)
• Broadband absorption capacity: training, IT Skills, innovation activities
• Universal access / Universal service
• Promote opening government data sets to increase transparency and create
new economic value
• Relevant applications and innovation ecosystems to foster demand and jobs
growth (youth and gender focus)
Regional Initiatives
• Regional harmonization and coordination of policy and regulatory initiatives
• Continue with CARCIP in countries that are interested
• Regional integrated approach towards broadband that includes supply and
demand

12. Let’s have a look at the Key Logistics and Connectivity
Solutions identified by the CGF stakeholders
National dimension
Regional Dimension
Logistics: Improve Cargo Facilities / Eliminate
cartels / Improve regulation / Improve Efficiency
Introduce Single Sea and Air Space
Logistics: Improve Trade facilities (phytosanitary
programs/customs transparency from revenue
collector to facilitator)
Introduce common rules on standards and
customs / Strengthen regional collaboration
on trade policies / Trade Facilitation Task Force
Logistics: Improve Road network / Improve Public
transportation infrastructures / Improve supply
chains
ICT: Increase access / Improve service / Reduce
Costs / Promote opening government / Develop
skills / Promote e-government / Advance
Broadband penetration
Engage regional academic institutions in
providing ICT training / Regional integrated
approach towards broadband that includes
supply and demand
ICT: Ensure the right legal and regulatory
environment (pro-competition and cost
sharing/reducing)
Regional harmonization and coordination of
policy and regulatory initiatives

13. INTRODUCING THE PANELISTS
Mr Rafael J. Díaz-Balart
Latin American Coordinator
American Association of Port Authorities
Miss Marion Daley
Assistant Commissioner
International, Trade & Industry Liaison
Jamaica Customs
Mrs Michele English
President of Flow & Chief Operating Officer
Columbus Communications
Jamaica Limited
Mr Daniel Isaza Valdes
CEO Logistic Council, Panama
General Manager
Interoceanic Cargo Carrier, S.A
Mrs Bernadette Lewis
Secretary General
Caribbean Telecommunication Union
Trinidad and Tobago