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Trade and Commercial Law Assessment - Honduras - Economic ...

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004<br />

HONDURAS<br />

is important<br />

to note that the region has yet to come to terms with a harmonized plan for<br />

recovering<br />

international termination costs for calls between Central American countries.<br />

Curren tly, the providers initiating the calls retain all revenues. This practice creates inequities in<br />

recovering<br />

costs depending on the ratio of outgoing to incoming calls between the Central<br />

American<br />

countries. It is highly recommended that support be provided for identifying <strong>and</strong><br />

evaluating<br />

solutions for harmonizing the international telecommunications industry.<br />

g.<br />

To facilitate trade, <strong>Honduras</strong> should consider the following recommendation for its<br />

telecommunications<br />

infrastructure:<br />

♦<br />

<strong>Trade</strong> Facilitation Issues to Address<br />

Continue efforts to privatize Hondutel. The government-run telecommunications provider<br />

is one of the nation’s major sources of revenue <strong>and</strong> is a highly profitable organization.<br />

However, interviews indicate that the high profitability of the company has come at the<br />

expense of investment in the nation’s telecommunications infrastructure.<br />

Consequently,<br />

the profit margins are somewhat misleading. Efforts should be made to fully underst<strong>and</strong><br />

the financials of the company, identify investment requirements, <strong>and</strong> consider<br />

privatization of segments of the company to increase the service levels of the sector. As a<br />

government entity, Hondutel lacks the ability to operate as a private company, limiting<br />

its<br />

ability to provide high-quality, cost-competitive services. As indicated above, efforts are<br />

under way to exp<strong>and</strong> the network through private sector participation. These efforts<br />

should be supported <strong>and</strong> exp<strong>and</strong>ed following expiration of Hondutel’s exclusivity<br />

provisions.<br />

3. Supporting Institutions<br />

a. Trucking Companies<br />

Private trucking companies operate throughout the country, with significant capacity provided at<br />

seaport <strong>and</strong> inl<strong>and</strong> distribution terminals. Trucking companies provide drayage <strong>and</strong> inl<strong>and</strong><br />

distribution services for all international trade. The quantity <strong>and</strong> quality of the trucking<br />

companies available within <strong>Honduras</strong> are considered adequate <strong>and</strong> sufficiently scalable to<br />

facilitate trade.<br />

b. Airlines<br />

<strong>Honduras</strong>’s airport infrastructure is served by almost all of the major airlines currently providing<br />

services to the region. Major carriers also provide air cargo service. Air service is considered<br />

adequate <strong>and</strong> sufficiently scalable to facilitate trade; however, terminal capacity constraints exist<br />

at Tegucigalpa, <strong>and</strong> government<br />

services are provided inconsistently to meet peak dem<strong>and</strong>s.<br />

c. Ocean Carriers<br />

<strong>Honduras</strong> serves a significant number of international ocean carriers, which call at regular<br />

intervals. Services include containerized cargo, break bulk, neo-bulk, <strong>and</strong> liquid bulk cargoes.<br />

Private sector stevedoring companies provide vessel stevedoring. Private sector transportation<br />

companies provide l<strong>and</strong>side transportation. The supporting institutions participating in the<br />

maritime activities of <strong>Honduras</strong> are sufficient.<br />

XV-15

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