Panel 1ENHANCING THE LOGISTICS AND

CONNECTIVITY OF THE CARIBBEAN

Ede Ijjasz-Vasquez Director Sustainable Development Department

Latin America and the CaribbeanThe World Bank

Caribbean Growth Forum Regional WorkshopJune 24-25, 2013 Nassau, The Bahamas

Underdevelopment of Stay-Over Tourism Presents a Growth and Development Opportunity

Eastern Caribbean Countries International Tourism

Stay-over and cruise ship passengers

20002001

20022003

20042005

20062007

20082009

20102011

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Stay Over Visitors Cruise Ship Passengers

Visit

ors '

000

• An average cruise-ship passenger spends US$50/stay

• An average stay-over tourist spends over US$1,000/stay

• 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)

Connectivity Limits Tourism and Regional Integration

St. Kitts

NevisAntigua

Montserrat

Dominica

St. Lucia GFL Charles

St. Lucia Hewanorra

Barbados

Tobago

Trinidad

Grenada

Canouan

St. Vincent

Guadeloupe

Martinique

355 km

276 km

Physical Distance: 567 km

Flight Route: 824 km

193 km

A North South Gap: Flying from Grenada to Antigua

• No direct flights

• The simplest option takes three separate flights

• Physical direct distance 567 km

• Flight distance 824 km (most direct connection)

• The connections shown may include overnight layovers

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)

System coordination is a constraint, air transport infrastructure is not

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)

OECS Intercontinental Air Transport System

Import Costs are a Constraint, Maritime Infrastructure is not

Singapore

OECS Average

Caribbean Average

Pacific Islands Average

0 500 1000 1500 2000 2500

Cost to Import

US $/TEU

Singapore

OECS Average

Caribbean Average

Pacific Islands Average

0 5 10 15 20 25 30

Time to Import

Days

Share of Import Costs due to Customs and Document PreparationSt Vincent and

Grenadines St Kitts and

NevisGrenada St Lucia Antigua and

BarbudaDominica

72% 63% 60% 53% 47% 22%

Transaction time to import below peer averages while costs among the largest

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)

Singapore

OECS Average

Caribbean Average

Pacific Islands Average

0 300 600 900 1,200 1,500 1,800

Cost to Export

US $/container

Inland Transport Emerging Constraint to Exports

Inland transport is driving export costs:Share of Export Costs due to Inland Transport

St Lucia St Vincent and Grenadines

Antigua and Barbuda

Dominica Grenada St Kitts and Nevis

55% 48% 47% 45% 13% 12%

Improving connectivity passes through improving multi-modality within each island

Quality of roads might be an issue as within island distances are very short

Source: “Connectivity for the OECS Countries: The Initial Step for an Assessment of the Caribbean Connectivity”, World Bank (2013)

Key Connectivity Issues

Upper Middle Income

Small Caribbean States

9.87

6.44

The gap has increased during

last five years

Source: data.worldbank.org

Fixed Broadband Penetration Gap Upper Middle Income countries vs. Small Caribbean States (2001 – 2011)

25.0

8.5

4.9

0

5

10

15

20

25

30

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Fixed (wired)-broadband subscriptions per 100 inhabitants, 2001-2011

Developed

World

Developing

Barbad

os

Grenad

a

St. Vincen

t & Gren

adines

St. Lu

cia

Dominica

Trinidad

and To

bago

World

Antigua &

Barbuda

Caribbea

n small

state

s

Low &

middle

income

Jamaic

a

Small

state

s

Pacific is

land sm

all st

ates

0

5

10

15

20

25

Fixed Internet Broadband Subscribers (per 100 people)

Antigua &

Barbuda

Barbad

os

Trinidad

and To

bago

Dominica

St. Vincen

t & Gren

adines

St. Lu

cia

Caribbea

n small

state

sW

orld

Jamaic

a

Low &

middle

income

Small

state

s

Pacific is

land sm

all st

ates

0102030405060708090

Internet Users (per 100 people)

Antigua &

Barbuda

Dominica

St. Kitts a

nd Nevis

Trinidad

and To

bago

Barbad

os

St. Lu

cia

St. Vincen

t & Gren

adines

Grenad

a

Caribbea

n small

state

s

Jamaic

a

Small

state

s

World

Low &

middle

income

Pacific is

land sm

all st

ates

020406080

100120140160180200Mobile cellular subscriptions (per 100 people)

Broadband and Internet usage can be strengthened

Low use of ICT services due to high prices (competition is limited)

Mobile-cellular sub-basket % of GNI per capita (2011)

Fixed-broadband sub-basket% of GNI per capita (2011)

Source: ITU Measuring the Information Society 2011, and Telegeography

Mobile telephony market share, 2011 Fixed broadband market share, 2011

A Snapshot of ICT

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

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

INTRODUCING THE PANELISTSMr Rafael J. Díaz-BalartLatin American Coordinator American Association of Port Authorities

Miss Marion DaleyAssistant CommissionerInternational, Trade & Industry Liaison Jamaica Customs

Mrs Michele English President of Flow & Chief Operating OfficerColumbus CommunicationsJamaica Limited

Mr Daniel Isaza ValdesCEO Logistic Council, PanamaGeneral ManagerInteroceanic Cargo Carrier, S.A

Mrs Bernadette LewisSecretary GeneralCaribbean Telecommunication UnionTrinidad and Tobago