Problems on the border with Chile cause cost overruns of $250,000 per day to Bolivian companies

Problems on the border with Chile cause cost overruns of $250,000 per day to Bolivian companies

Problems at the border crossing with Chiledue to health controls (by Covid-19), generate cost overruns of $us 250,000 per day to Bolivian companies. This was stated by Oswaldo Barriga, president of the Chamber of Exporters, Logistics and Investment Promotion of Santa Cruz (Cadex).

Problems at the border crossing with Chile cause delays in the logistics of companies and an increase in transportation costs due to the decrease in the rotation of transport units,” said the exporter.

This not only affects the load, according to Barriga, but also truck drivers, who must spend several days waiting without having the necessary conditions to feed and shelter from the inclemencies of the place.

The president of Cadex explained that companies are affected by their delivery times at the port or at buyers’ warehouses. This supposes logistical cost overruns and an increase in transport freight, with exporting companies having to assume these cost overruns and delays that make them less competitive, in addition to breaches of their commitments to their customers, a situation that can lead to penalties for companies. from Bolivia.

All sectors are affecteddue to the fact that the trucks must wait several days at the border crossings to be able to cross and deliver the cargo at the transshipment ports or with final destination in Chile”, indicated Barriga.

Cadex considers that a balance must be sought between facilitating border crossings and the health protection implemented by countries as a result of the pandemic. The solution must be agreed between the health and customs authorities of both countries, so that the commercial flow between Bolivia and Chile can be maintained, through validation and homologation mechanisms for Covid-19 tests, vaccination schemes, among other solutions.

These solutions, according to the institution, should be accelerated and they do not have to be circumstantial, but structural because the projections indicate that the pandemic will still be affecting throughout this year.

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