Costa Rica has the potential to consolidate itself as a logistics hub and strengthen its global competitiveness. This was one of the conclusions of the First National Logistics Study (ENL) 2024, conducted by the Caribbean Logistics Cluster, led by the Costa Rica Institute of Technology (TEC), Imétrica, and the Inter-American Development Bank (IDB).
The report assesses the current state of import and export logistics in Costa Rica and promotes data-driven public-private partnerships to reduce costs and improve service quality.
“By providing an overview that meets international standards, we have reaffirmed the country’s capabilities for the rest of the world. We are a country equidistant from international trade; we have a great capacity to host companies that want to distribute products to Central, North, and South America, as well as the rest of the world. Furthermore, the study provides us with information on the business wealth we have at the level of the logistics ecosystem, offering us the potential to strengthen this entire dynamic,” said Freddy Fallas, TEC Liaison Manager and Executive Director of the Caribbean Logistics Cluster.
The work also had the supervision and support of the Ministries of Public Works and Transportation, Economy, and Foreign Trade, as well as Procomer, the Port Administration and Economic Development Board of the Atlantic Slope of Costa Rica (Japdeva), and the National Council for Trade Facilitation (Conafac).
Key Findings: Strengths and Challenges
Among the virtues highlights the location
Costa Rica’s strategic location, with access to the Pacific Ocean and the Caribbean Sea, and land borders with Nicaragua and Panama.
This allows it to be an efficient distribution point for various international markets and fosters a diverse and dynamic business ecosystem.
Despite Costa Rica’s small size and high connectivity, logistics costs are comparable to those of larger economies due to bottlenecks at ports, highways, and borders, warns the ENL.
The companies interviewed indicated that logistics is still perceived as an operational rather than a strategic area, which limits regional competitiveness.
Among the challenges identified were wait times at ports of up to 10 days, traffic restrictions, and road safety issues.
Another relevant finding is the age of cargo vehicles, which can average over 10 years, affecting efficiency, fuel consumption, sustainability, and operating costs.
In response, outsourcing logistics services has taken on strategic importance for many companies.
Critical Infrastructure and Connectivity
The research identifies port, road, and airport infrastructure as the country’s main logistics challenge.
While airports receive the highest ratings for facilities, efficiency, and security, border crossings require operational improvements to ensure the transport of sensitive goods.
Overcrowding at Puerto Caldera, limited intermodal connectivity, and the condition of key corridors such as National Routes 32, 27, and 1, as well as the Inter-American Highway, directly affect the competitiveness and costs of the supply chain.
“Investing in Japdeva’s port infrastructure, equipment, technologies, and human resources is not only an operational necessity; it is a strategic decision for the country’s development,” said Sucy Wing Ching, CEO of Japdeva.
In this regard, steady growth is projected in road and air cargo transportation, with more accelerated expansion in port cargo, supported by initiatives toward a carbon-neutral economy and infrastructure improvements.
Sustainability and Institutional Modernization
The study also highlights gaps in sustainability, as 93.6% of companies, especially SMEs, do not measure their CO2 emissions.
Furthermore, it is necessary to strengthen inter-institutional coordination, digitize customs processes, and adopt international standards to create an agile, secure, and competitive logistics environment.
Economic Outlook and Exports
The report indicates that Costa Rica, classified as an upper-middle-income country and a member of the OECD since 2021, recorded a Gross Domestic Product (GDP) of approximately $90 billion in 2024, with a growth of 4.1% compared to the previous year.
The economy has shown stability, driven by foreign direct investment, private consumption, and improved employment.
In terms of foreign trade, the country experienced an increase in exports to North America (14.6%) and Europe (9.6%), driven by high-value-added manufacturing products.
During the first half of 2024, Costa Rica was the only Central American country to increase its goods exports by 7%, maintaining the lowest trade deficit in the region.
The most exported products include medical instruments (25.2%), integrated circuits (12%), orthopedic devices (9.3%), bananas (7.3%), and tropical fruits (6.9%).
“We are at a time of expanding our trade policy, where logistics is becoming a key sector to take advantage of the benefits of this trade liberalization. Therefore, this exercise of evaluating ourselves as a sector, through the National Logistics Study, is of great value,” concluded Indiana Trejos Gallo, Deputy Minister of the Ministry of Foreign Trade.
For more information about the study, visit: www.asclog.org/enl-cr/
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