Description

EXECUTIVE SUMMARY

A vital industry. The competitiveness of an economy depends in large part on the efficiency of its transportation sector by allowing it to trade goods and services on a timely basis with lower transaction costs. As a region made up of island nations with small domestic markets, an efficient maritime shipping sector is particularly important for the OECS. Unfortunately, the region’s maritime shipping sector is not competitive. The World Bank estimates that transportation costs in Latin America and the Caribbean (LAC) as a percentage of GDP fall between 16% and 26% on average, which is significantly higher than the OECD average of 9%