Local and international specialists will analyze DR opportunities to increase volume of goods to the United States.
The Dominican-Swiss Chamber of Commerce and Tourism (CCTDS) will hold its annual THINK HEALTH logistics event, this year entitled “Transition in Supply Chains: Keys to Success”, at the JW Marriott Hotel in Santo Domingo. An activity led by the president of the CCTDS, Gaetan Bucher, its vice president Alexander Schad and supported by the Swiss Embassy in the country, with the presence of Ambassador Rita Hämmerli-Weschke.
“Logistics efficiency is key to being able to position itself as a hub in today’s global supply chains. This is based on the three pillars that make it up: infrastructure (roads, airports, logistics centers, warehouses and border crossings); services (transportation and storage) and regulatory framework (laws, standards, agreements),” says Gaetan Bucher.
In this regard, international logistics specialists such as the event’s keynote speaker, Terry Esper, Ph.D., Ph. D., Associate Professor of Logistics in the Department of Marketing and Logistics at the Fisher College of Business at Ohio State University, and national experts from the public and private sectors, such as Francisco Domínguez, CEO of DR Trade, will discuss the megatrends in supply chains that are revolutionizing contemporary logistics operations and the real opportunities for the Dominican Republic to lead supply chains based on its strengths as a regional hub. This starting from the 2019 GCR data where the Dominican Republic is among the most stable economies in Latin America, and after the analysis of maritime connectivity measured by the World Bank in 2019, where Panama and Colombia have the best connected ports in the region, ranking 30th and 33rd in the world, followed by the Dominican Republic in 45th place.
“Dominican Republic is the fourth option with great advantages over the rest of the ports in Central America and the Caribbean. The strength of the Dominican logistics platform is in the flow of cargo to and from the United States of America analyzing new models. If trade with the United States increases, it will have as a benefit an improvement in international freight rates, since the cost of transportation is the price of a service, and is determined by the demand and supply of it,” said Alexander Schad.
Opportunities with the U.S. market
According to the 2023 report of the National Trade Facilitation Committee (CNFC), adding exports and imports, the United States is the country with which the Dominican Republic trades 48% of tons, followed by China with 5.6% and Colombia with 5.1%. The origin of the goods entering the country, the United States concentrates 52% of imported tons, while Colombia 6.1% and China 5.9%. Export performance continues to maintain the United States as the main destination country with 28% of exported tons, followed by Haiti with almost 25% and the Netherlands with 6.4%.
“Lower transportation costs lead to higher levels of foreign investment, higher savings rates, greater exports of services, greater access to technology and knowledge, and finally an increase in employment,” notes Schad.
The same CNFC report notes that 36% of U.S. companies are looking to redesign their supply chain and 42% need to improve their demand planning process. In turn, 20% aim to improve their manufacturing operations. By 2025, it is estimated that 93 million m2 of warehousing space will be needed as a result of the growth of e-commerce. The most experienced Dominican companies are 100, 50 and 25 years old, and the newest ones are 3 years old. All of them have more than 200,000 m2 of warehouses.
The CNFC study shows that the industries with the highest demand for labor dedicated to warehousing operations and value-added services are telecommunications, clothing and footwear, high technology, household appliances, pharmaceuticals and cosmetics. Sixty-one percent of Dominican companies say that the technical capabilities of human resources are the main challenge. Seventy-eight percent of them are working on improving salaries and working conditions as a strategy to reduce the gap in human resources. In addition, 48% are using technology as a method of improving efficiencies.
Source: Robertocavada.com
