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Logistics Performance Index: what do indicators tell us?

Logistics Performance Index: what do indicators tell us?. Virginia Tanase Sr. Transport Specialist Transport, Water and Information and Communication Technology Department The World Bank 6 th IRU Euro-Asian Road Transport Conference Tbilisi, Georgia 16-17 June 2011. This presentation.

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Logistics Performance Index: what do indicators tell us?

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  1. Logistics Performance Index: what do indicators tell us? Virginia Tanase Sr. Transport Specialist Transport, Water and Information and Communication Technology Department The World Bank 6th IRU Euro-Asian Road Transport Conference Tbilisi, Georgia 16-17 June 2011

  2. This presentation 1. LPI 2010 2. LPI Data for selected countries 3. Transport considerations 4. Key topics ahead 5. Want to learn more?

  3. 1. LPI 2010

  4. LPI 2010 www.worldbank.org/lpi • Broadindication of where problems are • Awareness raising to stimulate public-private dialogue on priorities for reform • Trigger fresh impetus for reforms • Monitor progress over time The most comprehensive data on country performance

  5. What makes logistics efficient? The six dimensions of country performance measured by the LPI • 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

  6. Where is LPI originating from? Country 1 Country 2 Country 3 Country 4 Country 5 Country A Country 6 Country 7 Country 8

  7. LPI 2010 – performance varies around the world Logistics unfriendly Partial performers Consistent performers Logistics friendly No data Countries are improving around the world

  8. LPI 2010 ranks

  9. 25 countries achieved significant improvement in LPI 25 countries improved between 2007 and 2010 • LICs: Afghanistan, Chad, Haiti, Myanmar, Niger, Tajikistan, Tanzania, and Uzbekistan • LMICs: China, Djibouti, Honduras, Philippines, and Syria • UMICs: Brazil, Colombia, Costa Rica, Dominican Republic, Kazakhstan, Lebanon, Mexico, Poland, Russian Federation, and Uruguay • HICs: Saudi Arabia and the Czech Republic Source: Logistics performance survey data, 2010 and 2007

  10. LPI: Key messages • Trade logistics is an important element of national competitiveness • A country’s performance is only as good as its weakest link • The LPI dataset can be used to identify key bottlenecks in your own country and therefore • Helps frame your needs and priorities in the trade facilitation and logistics area reform

  11. 2. LPI Data – selected countries

  12. Sub-region’s % of the highest performer Subregion: Caucasus & Central Asia

  13. Performance in the six areas of the LPI Subregion 2010 Average LPI Score

  14. Infrastructure quality Subregion

  15. Costs structure and infrastructure * return to Romania at 45 days Source: InterBiz Romania

  16. Quality of services I Subregion TRANSPORT SERVICES

  17. Quality of services II Subregion

  18. Border clearance procedures incl. corruption Subregion

  19. 3. Transport considerations

  20. WB - Transport Lending in the last 10 years(USD millions)

  21. WB - Transport Lending by Subsector

  22. WB - Regional Transport Lending by Subsector (FY10)(USD millions)

  23. Global infrastructure investment trends by sector 2009-2019 Percentage of total investment in infrastructure Source: CG/LA Infrastructure, 2009.

  24. Who invests in Infrastructure?

  25. The World Bank Group’s Transport Strategy “Safe, Clean, and Affordable…Transport for Development”, The World Bank Group’s Transport Business Strategy for 2008-2012 • The objective of the business strategy, consistent with Sustainable Transport and aligned with the principle of country ownership, remains: to help partner countries to establish the governance, strategies, policies and services that will deliver transport for development in a way that is economically, financially, environmentally and socially sustainable. • In both national and regional programs we will encourage client countries to adopt corridor approaches to investing in transport infrastructure and improving transport services, especially along multicountry regional routes. • The Bank Group will pursue a broader agenda in the roads subsector to meet principles of environmental and social sustainability, in ways that give increasing attention to four main issues including the performance, affordability, and inclusivity of transport services that use road infrastructure and that deliver the ultimate benefits of roads to people and goods. • Good freight transport services integrate developing countries into longer, more complex, and more demanding supply chains that facilitate trade.

  26. 4. Key topics ahead

  27. Climate Change – the questions Transport and Climate Change: Some BIG Questions Event: Copenhagen CC summit= agreement that developed countries should raise funds to help developing countries adapt to CC and “green” their economies What future use of energy and what GHG emissions? What impact of CC on the infrastructure? How can developing countries afford a clean transport? What is the total long-term cost of a transport mode use?

  28. Affordability (focus on food prices) Economic distance to markets Goods prices Logistical cost Administration costs, documentation, procedures etc Handling costs Packing, palletizing, labeling Profit, occasional payments, informal etc. Inventory (incl. warehouse) Direct costs

  29. A changing Trade and Transport Facilitation approach New agenda • Cross-cutting issues: • Making transit work • Collaborative border management • Quality and efficiency of service providers • Customs brokers • Road transport operators • Freight forwarders • Trade Related infrastructure • Roads • Ports • Railways • Customs reform and modernization • Fiscal focus • IT orientation Old agenda Both the old and new agendas needed

  30. Key policy issues • Expanding the traditional reform agenda beyond customs reform and infrastructure development • Improving the quality of logistics services and increase border agency coordination • Embarking on comprehensive reform—processes, services, and infrastructure—with broad public and private support • Transit corridors: regional coordination and cooperation is vital for landlocked developing countries • Infrastructure: high on the agenda • Tailoring reform to each country’s circumstances

  31. 5. Want to learn more?

  32. Logistics Performance Index (LPI) contacts • Web site with data www.worldbank.org/lpi • Availability of Trade Department for regional presentations, and discussions. • For further questions, please contact main authors: • Jean Francois Arvis; jarvis1@worldbank.org • Monica Alina Mustra; mmustra@worldbank.org

  33. International Trade Department: contacts The World Bank GroupInternational Trade Department 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: tradefacilitation@worldbank.org

  34. Transport Anchor: main contacts • Web site with resources www.worldbank.org/transport • Availability for support and technical assistance • For further questions, you may wish to contact • Marc Juhel-Sector Manager, mjuhel@worldbank.org • Virginia Tanase vtanase@worldbank.org

  35. Thank you ! Virginia Tanase E-mail: vtanase@worldbank.org www.worldbank.org/transport

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