Inside Trinidad and Tobago’s Supply Chain Landscape
Trinidad and Tobago’s geographical location at the southernmost end of the Caribbean islands positions it as a gateway to the Caribbean Community and North America. Its central location provides direct access to distribution markets in South, Central and North America. Commercial space is available in close proximity to international shipping ports that meet the needs for easy access to distribution points. Organizations can benefit from the ability to refine and streamline their supply chain offering. Setting up Third Party Logistics here will enable businesses to benefit from efficient access to goods and services, provide ready access to international markets, decreased costs in terms of inputs and transportation as well as cost-effective, quick delivery to customers locally and regionally.
Some of the key advantages include:
- Location - The island is based at the southernmost point of the Caribbean archipelago with direct access to the Caribbean, Central and South America.
- Upfront investment costs - Results in lower costs charged by vendors and result in tighter inventory controls and lower distribution costs.
- Low electricity rates - Trinidad and Tobago has the lowest electricity rate in LAC.
- Market access - As a CARICOM member, this will offer market access to 17mn with bilateral trade agreements providing businesses with access to an additional export market of around 984 million consumers.
- Infrastructure - Trinidad and Tobago is renowned as the second most developed road network in the Caribbean and recognised as the third best for port capacity in the English-speaking Caribbean.
According to recent reports on the logistics industry, global market size is an anticipated US$1.1bn with a CAGR of 2.7% - 7% expected for the five-year period up to 2022. This growth in market size is attributed to the considerable growth in the e-commerce sector, fueled by increased penetration of high-speed internet and a rise in popularity towards online shopping. The reopening of borders worldwide is thought to see an increase in shipping and logistical activities.