Panel III • Albert Veenstra, Erasmus University, Rotterdam, The Netherlands • The Development of a Network Analysis Tool (Application to the position of Curacao in the Caribbean Region) • John Cuttino, University of Texas, Austin, USA • Economic Impacts of Trade Corridors
DRI•WEFA is now Global Insight • Name change comes after 18 months of operations as DRI•WEFA • Global Insight has been the holding company from the start • Resolved potential trademark and URL issues • Substantially completed the integration of DRI and WEFA
New Web Site Address www.globalinsight.com NOTE: DRI-WEFA.com will still work; GII.com will work too!
A Short History of an Exciting New Company Global Insight • Acquired DRI and WEFA on May 7, 2001 • Has integrated both companies • Created the world’s leading economic information business WEFA • Founded in 1963 • Merged with Chase Econometrics in 1987 • Acquired Primark (now part of Thomson) in 1997 DRI • Founded in 1967 • Acquired by McGraw-Hill in 1979 McGraw-Hill and Thomson continue to: • supply and distribute information • have financial interest in our company
Global Coverage Other Initial Acquisitions • GlobalInTech: Software Development • DAFSA: European Industry Market Research • Decision Economics: Partial Ownership Subsequent Acquisitions • PlanEcon (Feb ‘02): Eastern Europe/FSU since 1984 • CIEMEX (Sep ‘02): Mexico since 1969 Complete In-depth Global Coverage • Countries • Industries • Markets
Our Clients Decision Makers, Planners and Analysts • Business • Finance • Government SOLUTIONS Bringing You Insight to Success! We Provide You With • Data • Software • Models • Analysis • Scenarios • Consulting
We Are Larger Than Any Other Firm in Our Industry • Over 3,000 Clients in Finance, Industry and Government • 500 Professional and Support Staff • 23 Offices, with a Presence in 12 Countries (US, Canada, Latin America, Europe, Asia, Middle East & Africa) • 2001 Annualized Revenues of over $65 Million
Global Trade Forecasting Model • Linked to 125 Macroeconomic Models • 77 Commodity Groups = Total Merchandise Trade • 54 Countries and 16 Regions = Total World • Dry Bulk, Liquid Bulk, Containerized (TEUs)
World Container TradeSmaller increases this year 4.5% 4.1% 3.8% 3.2% 2002-05: 4.1%
NA Trade with Latin America Northbound Southbound
John Cuttin – Economic Impacts of Trade Corridors • Corridors are the new units of administration • “International delivery chains” • All players involved along the way • Impacts are NOT based on Input-Output models or procedures • Brazil: Integration Roundtables (focused on corridors) • Non-Profit: All pay dues to be members • Members: Producers (e.g. soy), railways, truckers, ports, shipping lines • Goal: reduce costs, eliminate bottlenecks, enhance trade, stimulate economic development, educate all parties involved
Successes • Negotiated new trackage rights in Brazil (soybeans) • Reduced costs from $70/ton to $27/ton through port of Victoria • Houston has now adopted the INTEGRATION ROUNDTABLE perspective • Victoria – Houston relationship now growing THE FUTURE – • IR’s can find the cargo to fill the corridor • Negotiate transshipment arrangements on behalf of shippers/producers • Consolidate shipments • Lower transport costs and reduce headaches!
Thank you - Albert Veenstra John Cuttino