Abstract

Transport and logistics infrastructure is a critical determinant of the competitiveness of a country's producers and exporters. Well-functioning transport and logistics infrastructure relies not just on hardware, but critically on the operating environment that emerges from the interaction between private sector operators; national policies and regulatory regimes; and, in many countries, state-owned owners and operators of core infrastructure. This paper looks at the case of South Africa, where constraints in access, pricing, reliability, and network interfaces, particularly in the port and rail network, are eroding the competitiveness of South African exporters. The paper draws on interviews with a wide range of exporters along with secondary research to examine South Africa's port and rail network, and explores the underlying factors contributing to these constraints, including chronic underinvestment, an inadequate regulatory environment, insufficient private sector participation, and weak regional integration. The paper concludes with a review of the reforms needed to deliver a more broadly accessible and competitive rail and port sector based on international case examples. It highlights the need for institutional reforms to promote competitive pricing; private sector participation to increase investment and improve service delivery; information and coordination to address market failures and improve access; and cooperation to improve intermodal, interregional, and institutional interfaces. Document type: Book

Abstract

Regulatory frameworks on logistics regulations are often opaque, especially in developing countries, because of the complex nature of logistics services. World Bank client countries have faced difficulty finding the issues that hinder them from improving logistics competence. Therefore, it is beneficial to understand how the logistics service industry is regulated and what should be addressed in building the regulatory framework to improve logistics competence. This note proposes questions to be addressed for beneficial regulations by reviewing existing logistics service regulations in 14 countries, particularly regulations for the freight forwarding industry. These questions will help in assessing a regulatory framework and identifying regulatory weaknesses. This note suggests that the regulatory framework should take into consideration national recognition of freight forwarding business, an institutional arrangement with clear division of responsibility among stakeholders, and streamlined but flexible regulations adapted to the country context. Document type: Book

Abstract

Can regionalism do what multilateralism has so far failed to do—promote greater openness of services markets? Although previous research has pointed to the wider and deeper legal commitments under regional agreements as proof that it can, no previous study has assessed the impact of such agreements on applied policies. This paper focuses on the Association of Southeast Asian Nations (ASEAN), where regional integration of services markets has been linked to thriving regional supply chains. Drawing on surveys conducted in 2008 and 2012 of applied policies in the key services sectors of ASEAN countries, the paper assesses the impact of the ASEAN Framework Agreement on Services (AFAS) and the ambitious ASEAN Economic Community Blueprint, which envisaged integrated services markets by 2015. The analysis finds that over this period, ASEAN did not integrate faster internally than vis-à-vis the rest of the world: policies applied to trade with other ASEAN countries were virtually the same as those applied to trade with rest of the world. Moreover, the recent commitments scheduled under AFAS did not produce significant liberalization and, in a few instances, services trade policy actually became more restrictive. The two exceptions are in areas that are not on the multilateral negotiating agenda: steps have been taken toward creating regional open skies in air transport, and a few mutual recognition agreements have been negotiated in professional services. These findings suggest that regional negotiations add the most value when they are focused on areas that are not being addressed multilaterally. Document type: Article

Abstract

The LPI has provided valuable information for policy makers, traders, and other stakeholders, including researchers and academics, on the role of logistics for growth and the policies needed to support logistics in areas such as infrastructure planning, service provision, and crossborder trade and transport facilitation. The results of Connecting to Compete 2016 point to Germany as the best performing country, with an LPI score of 4.23, and Syria as the lowest, with a score of 1.60 (equivalent to 19 percent of Germany’s score on a scale from 1 to 5). The converging trend between the top and worst performers that appeared in the previous LPI surveys (2007, 2010, 2012, and 2014) seems to have slightly reversed. The average scores in each quintile reveal that the gap between the top 2 quintiles and the countries at the bottom in performance is widening again.

Abstract

Various transport-related agencies and local governments develop their respective transport plans or strategies to address bottlenecks and improve outcomes in the transport sector. However, to be able to bring a more focused or targeted intervention that is more inclusive, these various strategies need to focus on establishing interconnectivity between key urban growth centers and between lagging and fast-growing regions, and creating supporting institutions that promote greater integration. Upon the request of the National Economic and Development Authority, a framework plan was developed to provide policy-makers with a strategic framework to help identify the transport needs of the Philippines and guide in implementing an integrated, more coordinated approach to establishing stronger transport infrastructure linkages to support the country’s inclusive growth agenda. The framework plan was developed under the guidance of a vision and goals developed by stakeholders across the Philippines. This comprehensive vision can be summarized as ‘Bringing us all closer together for prosperity.’ The geographic focus of the Framework Plan includes all of the Philippines outside of Metro Manila. This Framework Plan does not replicate the work being done by the Japan International Cooperation Agency (JICA) for Metro Manila (the JICA study covers Metro Manila with an approximate radius of 100 kilometers and is being conducted to evaluate specific transport infrastructure projects for the Metro Manila area). Future improvements and needs of transportation infrastructure to meet the demand for long-distance transport to and from Metro Manila and to other urban/economic centers in the Philippines are considered; nevertheless, national-level strategies recommended in this study affect all areas of the Philippines.

Abstract

This report presents the findings of the second edition of Connecting to Compete, a report on the new dataset for the 2010 Logistics Performance Index (LPI) and its component indicators. Based on a worldwide survey of global freight forwarders and express carriers, the LPI is a benchmarking tool developed by the World Bank that measures performance along the logistics supply chain within a country. The index can help countries identify challenges and opportunities and improve their logistics performance. The World Bank conducts the survey every two years. The 2010 LPI also provides a snapshot of selected performance indicators in nearly 130 countries, including expanded information on the time, cost, and reliability of import and export supply chains, infrastructure quality, performance of core services, and the friendliness of trade clearance procedures. The 2010 LPI and its indicators encapsulate the firsthand knowledge of movers of international trade, collected amid the economic turmoil of 2009. This information is relevant for policymakers and the private sector seeking to identify priorities for reform agendas. Findings include the following. First, except in high-income countries, the availability and quality of trade-related infrastructure is a major constraint to performance, but the specific priorities tend to vary across countries. Second, efficient border management and coordination of the various agencies involved in border clearance is increasingly important. Third, a major challenge for the international community is how to help the lowest performing countries benefit from an increasingly open global trading system.

Abstract

The Government of Benin has requested an update of the 2005 Diagnostic Trade Integration Study and has asked the World Bank to take the leading role in this exercise. The update’s objectives are to (a) take stock of progress in the mainstreaming of trade in the government’s national development strategy and of implementation of the Action Matrix recommendations; (b) complement and deepen the analysis in selected areas; and (c) revise and update the Action Matrix to take account of the evolving context since 2006. The aim of the analysis is to assist the Government of Benin in defining an overall competitiveness strategy for inclusive, job-creating export-led growth in accordance with the key priorities identified in the 2013 Plan Stratégique de Développement du Commerce (PSDC), and to further mainstream trade into the general policy orientation defined by Benin’s key policy documents, including the Growth and Poverty Reduction Strategy Paper (GPRSP) update. The DTIS Update (DTISU) offers a diagnosis, analytical framework and action plan, giving trade expansion a key role in the reduction of poverty and vulnerability. As mandated by the Paris Principles, the DTISU’s approach is strongly aligned with the MICPME’s PSDC (Trade Development Strategy Plan, henceforth TDSP) and draws also from the diagnosis in the Government of Benin’s recent poverty assessment (INSAE 2014) as well as the 2011 update of the GPRSP. It emphasizes the linkages between poverty, jobs, and trade with two key objectives: (i) reducing poverty through trade-led growth, and (ii) reducing vulnerability.

Abstract

This study aims to analyze the effects (e.g. changes of power and processes) of the e-freight initiative introduced by IATA on the air freight supply chain network by focusing on two specific cases within the U.S. and Chinese market. After identifying two representative cases (cross sectional), data was gathered using semi- structured interviews, additional data provided by the participants, as well as secondary data, such as annual reports and case studies. The findings are analyzed using key words and suitable categories. A power model based on the current situation of the air freight supply chain is developed by analyzing the circumstances while implementing e-AWB/e-freight. This model can be used to add to the existing gap within the present literature framework. Further, changes regarding the supply chain network, especially processes and information flow were identified. Lastly, mainly positive (e.g. increased sustainability of the transportation process) as well as some negative effects (e.g. investments of the dual process) are mentioned in a de- tailed manner. Limitations of the study include a research population of two major actors of the air freight supply chain network, as well as a theoretical framework primarily based on literature and the fact that the study focuses on a cross sectional time period. Future research would include an analysis of all involved actors, while including IATA as the trade association, of the air freight supply chain, and especially issues related to customs procedures. Also, a longitudinal study, a more in depth analysis of the power distribution and any related changes should be of interest.