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Brief description

High transport and trade transaction costs remain a major stumbling block for integration of LLDCs into the global economy and their overall development.

The first outcome of this UN-OHRLLS led project focuses on data on transport and trade costs to better inform policies to address the structural challenges faced by the LLDCs. It involves the development of an improved methodology to estimate transport and trade costs, undertaking data collection, and delivering associated trainings.

The second outcome focuses on capacity building, development of bankable infrastructure projects and on enhanced use of digital solutions to improve transport and trade facilitation.

Background

LLDCs face challenges related to their geography that deprive them of direct access to seaborne trade. This is compounded by cumbersome transit and border procedures and inadequate transport infrastructure of both the LLDCs and coastal transit countries. As a result, the LLDCs face high transport and trade costs that undermine their competitiveness and reduce their trade, limiting their ability to fully capitalize on trade-related benefits such as investment finance, technology, and essential services. This, in turn, significantly hampers their overall sustainable development.

The transport and trade-related challenges that LLDCs face include physical and non-physical barriers, delays and inefficiencies associated with transit, border crossings and ports – including customs procedures and documentation requirements – along with uncertainty and imperfect competition in logistical services, weak institutions and a widespread lack of productive capacities. Recent global crises, such as COVID-19 and geopolitical tensions, underlined the importance of supply chains and transportation and logistics for LLDCs.

Improved data on transport and trade costs is crucial for better informed policies to address the structural challenges faced by the LLDCs. Data is needed to understand the policy-actionable aspects of transport and trade costs and to mobilize dedicated support to LLDCs to deal with the challenges associated with landlockedness. Efforts to reduce the transport and trade costs faced by the LLDCs require a multi-dimensional and multi-stakeholder approach to enhancing physical infrastructure and connectivity and addressing transport and trade facilitation issues, including digitalization of trade procedures.

The project takes place in an important broader context in which the General Assembly of the United Nations, in its resolution 79/233 of December 2024, adopted a new Programme of Action for Landlocked Developing Countries for the decade 2024-2034. This project is an important contributor to the implementation of the new Programme of Action. The new Programme of Action emphasises the need to reduce trade and transport in LLDCs.

Strengthening the capacity of LLDCs to estimate transport and trade costs and to design and implement policies that promote connectivity and enhanced utilization of digital solutions for transport and trade facilitation for the achievement of the SDGs.

Project Activities

Output 1.1 A methodology to estimate transport and trade costs for LLDCs.

Involving developing an improved methodology for assessing country-specific trade and transport costs that will culminate in an easily reusable tool that can be applied in different countries. The methodology is to be tested and implemented through the national-level collection of country-specific data for insights and analysis on transport bottlenecks.

Timeline: Year 1.

Output 1.2 2-day country-level capacity building workshops for policymakers and relevant stakeholders in selected LLDCs on estimating transport and trade costs.

This focuses on an introduction to trade costs as well as training for policymakers on the methodology to estimate transport and trade costs. The workshops will review the methodology to estimate transport and trade costs and aims to ensure that policymakers in the target countries have acquired the capacity to use the methodology for continued estimation of associated costs.

Timeline: Year 1.

Output 1.3 2-day global-level capacity building workshop for policymakers from all LLDCs on estimating transport and trade costs.

Involving an introduction to trade costs as well as training for policymakers on the methodology to estimate transport and trade costs. The workshop focuses on sharing experiences, best practices, and peer-learning from the target LLDCs, with the aim of improving the understanding of policy focal points on estimating transport and trade costs and building their capacity to use the methodology in their countries.

Timeline: Year 2.

Output 2.1 One 4-day global level capacity building workshops for policymakers on developing bankable projects and on enhanced utilization of digital solutions for transport and trade facilitation.

Involving using and building upon the training materials and case studies developed during Project Ref. No. PDF-SDG-2018-07.

Timeline: Year 2.

Contacts and Further Information

Co-operating Entities within the UN system: UNCTAD, ECA, ESCAP, ECE, UN Resident Coordinators.

Other partners: National Focal Points responsible for the LLDC Programme of Action, development banks, relevant regional economic communities.

Contacts:

Tomás Manuel González ?lvarez

Senior Programme Management Officer, UN-OHRLLS

T: +1 917 367-3474

Email: gonzalezt@un.org

Ms. Nnana Pheto

Economic Affairs Officer, UN-OHRLLS

Email: pheto@un.org

Mr. Jamie MacLeod

Economic Affairs Officer, UN-OHRLLS

Email: Jamie.macleod@un.org

Acknowledgement

The 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Trust Fund (UNPDF) generously provided funding for the project: “Strengthening the capacity of LLDCs to estimate transport and trade costs and to design and implement policies that promote connectivity and enhanced utilization of digital solutions for transport and trade facilitation for the achievement of the SDGs”.