Guyana - Brazil Land Transport Link Market Study

The Challenge

Guyana shares its borders with two northern Brazilian states, Roraima and Para, and has traditional ties with the state of Amazonas. In the light of currently limited trade activities, the governments of both countries have been working towards their enhancement of trade, economic and physical integration. One means of integration may be the establishment of a Land Transport Link connecting Guyana, Roraima and Amazonas, to facilitate foreign trade between Guyana and Brazil on the one hand and the transit of cargo to/from the landlocked states Roraima and Amazonas via a future deep-water port in Guyana. Against this background, IDB contracted HPC to establish the size and volume of the shipping market in Guyana as well as the potential cargo to/from the Brazilian states Amazonas and Roraima that may be diverted to a deep-water port in Guyana.

Tasks Performed

• Analysis of the present trade structure of Guyana, Roraima and Amazonas
• Identification and assessment of present trade corridors for Roraima and Amazonas (via the Amazon River and via Venezuela)
• Analysis of the present state of infrastructure logistics in Guyana and the present trade corridors
• Assessment of transport cost and time (shipping, ports and customs, land transport) along present trade corridors and future Guyana corridor
• Identification of measures for trade facilitation
• Forecast of trade and cargo volumes for Guyana, Roraima and Brazil in three scenarios with a forecast horizon until 2043
• Development of a route choice model (gravity model form) to assess the routing of cargoes to/from Roraima and Amazonas via the future Guyana corridor and existing corridors subject to transport cost and time (generalised cost of transport)
• Forecast of cargo and truck volumes for the future Guyana-Brazil land transport link and deep-water port
• Detailed sensitivity analysis to assess several relevant scenarios including the impact of toll levels on the transport corridor and the impact of relevant trade facilitation measures
• SWOT analysis for project implementation
• Organisation of workshops with IDB, Guyanese government, Roraima state government and relevant private stakeholders to promote the identified market potential and facilitate project implementation

Benefit 

• Detailed corridor analysis
• Roadmap for the strategic development of an urgently needed transport corridor
• Facilitation of dialogue between the two countries to get the implementation started