This report analyses the current state of the landlocked developing countries (LLDCs) Bolivia and Paraguay. The report analyses the traditional topics (1) infrastructure at national level and connectivity towards adjacent countries; (2) the recent development in international laws and treaties and (3) cross-border operation. Beyond these traditional topics the report evaluates the level of international transport costs and the potential impact on trade. It further presents the currently induced over costs in logistic chains, which pose an additional burden to the competitiveness of the countries. This structure aims to give insight on the current situation in South America's LLDC's in relation to the five priority areas in the ALMATY Programme (2003).Transit Policy and regulatory frameworkInfrastructure developmentTrade and transport facilitationDevelopment assistanceImplementation and Review