WORLD BANK GROUP
FIATA World Congress
Cairo, Egypt
Oct 16 –21, 2011
LOGISTICS PERFORMANCE INDEX CONNECTING TO COMPETE 2010
Monica Alina Mustra
INTERNATIONAL TRADE DEPARTMENT
11/30/2011 2
Early Bank Projects
hydroelectric in Chile
bullet train in Japan
Fiscal Year Highlights
In fiscal 2011, the World Bank Group
committed $ 57.3 billion, distributed in
credits, loans, grants, and guarantees.
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THE WORLD BANK ANNUAL REPORT 2011
Where We Work
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Mapping for Results
A Dynamic Environment
Cross-cutting
issues: • Collaborative border
management
• Making transit work
Quality and efficiency
of service providers • Freight forwarders
• Customs brokers
• Truckers
Trade Related
infrastructure • Roads
• Ports
• Railways
Old focus
New focus
Customs reform
and modernization • Fiscal focus
• IT orientation
Both the old and new focus needed for success! 6
How does the World Bank help?
Border
management Improvement in border management in a broad sense:
integration of customs, product standards, tax, rules of origin, etc.
Trade
Infrastructure
Improvement in the management of key trade related infrastructure,
especially gateways and multimodal facilities
Logistics
services
Improvement of the quality/professionalism of private logistics services,
through technical/economic regulation and capacity building
Regional Regional trade facilitation including transit systems
Indicators Performance monitoring and indicators: e.g., data on time, cost,
and reliability along corridors
Action plan Development and implementation of comprehensive action plan
addressing all of the above
Advise governments on reforms
Strategic
Alliances
United Nations
World Customs Organization
World Trade Organization
World Economic Forum
FIATA
Global Express Association
Multinational Corporations
ACADEMIA
Regional Banks
Global Partnerships
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FIATA
World Bank
Governments
Countries
Indicators essential for
reforms
Become more
competitive
Logistics providers increase level of
services as they will operate in better,
faster and more reliable environments
Where does the World Bank come in?
Carry your voice to governments!
Advice on reforms
The Logistics Performance Index
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• First report in 2007
• every 2 years
• Source of data is suppliers
of logistics services
(freight forwarders,
express carriers)
• Rates logistics
performance on a scale of
1 to 5
The Role of the LPI
Most comprehensive data on country
performance
Broad indication of where problems are
Awareness raising to stimulate public-private
dialogue on priorities for reform
Trigger fresh impetus for reforms
Monitor progress over time
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Built on:
more than 5,000 country
assessments by over 1000
logistics professionals
worldwide
Primary data gathered for 155
countries
Voice of the private sector
The Role of Freight Forwarders
Utilize the World Bank to carry your voice
in advising governments
How: Take 15-20 min of your time and
Participate in the LPI 2012 Survey
Link provided through FIATA communications
When: Nov 1
Speak out
LPI Questionnaire Structure
General
module
International
Qualitative
Performance
Domestic
Qualitative
Performance
Domestic
Quantitative
Performance
International LPI
Evaluate 8 overseas markets
Domestic LPI
Evaluate Country of work
Country A
Country 8
Country 1
Country 2
Country 4
Country 3
Country 5
Country 6
Country 7
LPI Questionnaire Structure
General
module
International
Qualitative
Performance
International LPI
Evaluate 8 overseas markets
Country A
Country 8
Country 1
Country 2
Country 4
Country 3
Country 5
Country 6
Country 7
Efficiency of the clearance process
Quality of trade and transport infrastructure
Ease of arranging competitively priced shipments
Logistics competence and quality of logistics services
Ability to track and trace consignments
Timeliness of shipment delivery
Six dimensions of country performance:
A country’s performance is only as good as its weakest link
Countries are improving around the world
No data
Logistics friendly
Logistics unfriendly
Partial performers
Consistent performers
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Country LPI Rank
South Africa 28
Malaysia 29
Poland 30
Lebanon 33
Latvia 37
Turkey 39
Brazil 41
Lithuania 45
Argentina 48
Chile 49
TOP 10 COUNTRIES
LOWER MIDDLE INCOME
Country LPI Rank
China 27
Thailand 35
Philippines 44
India 47
Tunisia 61
Honduras 70
Ecuador 71
Indonesia 75
Paraguay 76
Syrian Arab Republic 80
TOP 10 COUNTRIES
LOW INCOME
Country LPI Rank
Vietnam 53
Senegal 58
Uganda 66
Uzbekistan 68
Benin 69
Bangladesh 79
Congo, Dem. Rep. 85
Madagascar 88
Kyrgyz Republic 91
Tanzania 95
TOP 10 COUNTRIES
UPPER MIDDLE INCOME
LPI 2010 Ranks
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Good News:
All countries performing better
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With the right
investment and
policies, lower
income countries
can also be high
performers
% of the highest performer
LPI 2007
Highest performer Singapore 100%
Lowest performer Afghanistan 7%
LPI 2010
Highest performer Germany 100%
Lowest performer Somalia 11%
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Positive trends since 2005
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Use of
standardized IT
solutions in
logistics is
widespread
worldwide, and
Customs reform
progressed in
most countries
LPI Questionnaire Structure
Domestic
Qualitative
Performance
Domestic
Quantitative
Performance
Domestic LPI
Evaluate Country of work
Country A
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27
28
29
30
EXW (Shipper)
FOB (Free carrier at Port
of loading or equivalent)
DDP (Delivered duty
paid)
Point of Origin
Seller’s Factory
Alongside
Vessel Delivery
to Dock
Exporting Country
Delivered to
Buyer’s
Warehouse Frontier/
Border
Time and Cost Indicators
DES (Carriage paid to
Port of discharge or equivalent)
Unloaded
on Dock
Importing Country
Lead time export Lead time import
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Logistics Performance Index (LPI)
Trade and Transport Facilitation Assessment (TTFA)
34 From global benchmarks to country-level assessments
• MEASURES the trade logistics
efficiency of a country
• Fundamental premise: Efficient
logistics drives economic
performance and
competitiveness
• Diagnostic tool for countries to
perform an in-depth assessment
and inform policy
• Plans of action to IMPROVE
logistics performance
Mashreq Corridor Program
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USD 6.8 billion
Implementation over 15
years (2 phases)
but main benefits:
Training Programs and Professional Competence Certification
Forwarders (with FIATA)
Customs Brokers (with IFCBA)
Truck Companies (with IRU)
Improved trade within the region and between the region and the rest of the world
Infrastructure (border crossings
facilities, road and rail improvements)
Thank you
Contact Us
www.worldbank.org/trade
www.worldbank.org/tradefacilitation
www.worldbank.org/tradelogistics
www.worldbank.org/lpi
www.worldbank.org/tradestrategy
Washington Office
1818 H Street NW
Washington DC 20433
Contact: [email protected]
The World Bank Group International Trade Department
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