Inside Trinidad and Tobago’s Logistics Landscape
Trinidad and Tobago’s geographical location at the southernmost end of the Caribbean islands positions it as a gateway to the Caribbean Community and North America. Its central location provides direct access to distribution markets in South, Central and North America. Commercial space is available in close proximity to international shipping ports that meet the needs for easy access to distribution points. Organizations can benefit from the ability to refine and streamline their supply chain offering. Setting up Third-Party Logistics here will enable businesses to benefit from efficient access to goods and services, provide ready access to international markets, decreased costs in terms of inputs and transportation as well as cost-effective, quick delivery to customers locally and regionally.
Some of the key advantages include:
- Location - The island is based at the southernmost point of the Caribbean archipelago with direct access to the Caribbean, Central and South America.
- Upfront investment costs - Results in lower costs charged by vendors and result in tighter inventory controls and lower distribution costs.
- Low electricity rates - Trinidad and Tobago has the lowest electricity rate in LAC.
- Market access - As a CARICOM member, this will offer market access to 17mn with bilateral trade agreements providing businesses with access to an additional export market of around 984 million consumers.
- Infrastructure - Trinidad and Tobago is renowned as the second most developed road network in the Caribbean and recognised as the third-best for port capacity in the English-speaking Caribbean.
According to recent reports on the logistics industry, global market size is an anticipated US$1.1bn with a CAGR of 2.7 per cent - 7 per cent expected for the five-year period up to 2022. This growth in market size is attributed to the considerable growth in the e-commerce sector, fueled by increased penetration of high-speed internet and a rise in popularity towards online shopping. The reopening of borders worldwide is thought to see an increase in shipping and logistical activities.
Canoo Awards Manufacturing Contract to VDL Nedcar
Canoo, a trailblazing company in the electric vehicle (EVs) manufacturing industry, has officially announced owned and contract manufacturing plans that will ensure the company manages to deliver on its promise to consumers of production and delivery of vehicles in Q4, 2022.
During the company’s first Investor Relations Day, Chairman & CEO of Canoo, Tony Aquila, named VDL Nedcar as its contract manufacturing partner. VDL Nedcar, which I’m sure many of you will already have heard of, is the only independent Vehicle Contract Manufacturer in the Netherlands and has enjoyed fifty years of growth under owners, including Mitsubishi Motors and Volvo cars. According to the report, Nedcar will manufacture the Lifestyle Vehicle for the United States and European Union markets, while Canoo builds a US-based mega micro-factory.
"We conducted an exhaustive search, invested significant amounts of time and resources that span the globe, in our search for our Phase 1 contract manufacturer. VDL Nedcar is the right partner," said Tony Aquila, Investor, Chairman and CEO of Canoo, Inc. "They are the top trusted European manufacturer building high-quality products for leading OEMs, and they significantly outcompeted the other contenders. VDL is also independently owned by the van der Leegte family of entrepreneurs - which aligns with our commitment to support businesses that form the backbone of communities. This strategic partnership will enable us to deliver vehicles to market while we build our Phase 2 factory in Oklahoma. It also strongly positions us for geographic expansion in Europe and builds a lasting relationship with VDL Groep of companies. Our investment will help us scale quickly and fulfil our mission to bring affordable, purpose-built EVs to Everyone."
Canoo and VDL have already gotten to work on vehicle manufacturability and production planning so that Canoo can successfully lay the groundwork for its upcoming US manufacturing operations expansion, which will be completed in Oklahoma in 2022. The Nedcar facility currently expected to produce around 1000 units for both the US and European markets in 2022, with an additional 15000 targeted for the following year.
"Canoo's bold approach to designing and building electric vehicles makes them an ideal partner as we work together to shape the future of mobility," said John van Soerland, CEO of VDL Nedcar. "This partnership advances our strategic vision to provide a contract manufacturing solution and expand our expertise in the EV arena."
Currently, Canoo is entering its GAMMA phase of development and is on track to start production soon. The company intends and expects to launch its Lifestyle Vehicle in Q4 2022, closely followed by the Multi-Purpose Delivery Vehicle and Pickup Truck.
Watch this space.