Transportation is key for the development of regional supply-chains. Supply-chains demand good infrastructure, logistics and trade facilitation between borders. Without it, firms have to build up more stock reserves and working capital. This strongly affects national and regional competitiveness due to high financial costs.
Efforts to change this situation in Latin America have not been sufficient. The current economic crisis may undermine some of the regional efforts that were already facing challenges because of a lack of organizational resources, conflicting priorities, poor private sector engagement and regulatory asymmetries.
