Apparel Logistics Dubai

Transportation InfrastructureTransportation Infrastructure in GCC States: Challenges in GCC States: Challenges

and Opportunitiesand Opportunities

Prof Philbert SureshFaculty, Business Administration

Founder – GUST Logistics Forum

WORLD BIZ CONFERENCE

April 26 – 27, 2007

www.gust.edu.kw/glf 2

Scope of the Research Paper

Three words define the research paper on development economics: investment, integration and strategy-thinking that will translate to a trade-related infrastructure; development of transportation & logistics systems; and focus on sharing scarce resources to manage the opportunity cost in the Gulf Region. The signposts are clear for a GCC Rail Link, Intermodalism and Shipping, thus creating a production possibility frontier beyond the immediate boundaries of each GCC state. Will a change of mind and heart lead to harmonization of trade and transportation policies in the region that will benefit the greater number of stakeholders – the government, business enterprises and the people in this part of the world? Actions Research is a new methodology that will provide some clues to this

development today.


Salient Points

Drive Towards Triangulation: investment, integration and strategy-thinking

Share scarce resources and manage the increasing opportunity cost

Create a production possibility frontier beyond the immediate boundaries

Redefine GCC Leadership - change of mind and heart Harmonize trade and transportation policies Profit greater number of stakeholders – the government,

business enterprises and the people in this part of the world Use Action Research: a new methodology for exploring

clues to transportation/logistics management in

development economics .


Transportation &

Logistics Issuesin

GCC States


On scrutiny T & L in GCC States

Intra-regional trade patterns – defines development economics

Harmonization of inter-regional transport policies Effective use of scarce resources – the petrodollar Better management of opportunity cost and production

possibility frontier Integration of Intermodalism and Logistics in GCC

states: Customs Union / Free Trade / Single GCC currency

Curriculum, professional training and development in GCC states


What is What is GUST Logistics GUST Logistics Forum Forum in Kuwait?in Kuwait?

“Our mission is to empower young creative minds for the 21 century

Transportation and Logistics using appropriate technology for economic

growth and leadership in GCC States”


Kuwait Bahrain KSA Oman Qatar UAE

Area

(Sq Km)

17,800 706 2.250.000 309,500 11,500 83,600

Population (mln)

2,270,865 642,972 20,665,000 2,287.642 544,031 2,776,000

GNP ($mln)

29,705 6,620 139,383 15,596 12,180 52,125

Exports ($ mln)

12,100 1,583 50,756 4,968 4,010 23,200

Imports ($ mln)

7,616 2,430 28,032 5,701 2,496 38,510

Favorable

BOT

Unfavorable

BOT

Favorable

BOT

Unfavorable

BOT

Favorable

BOT

Unfavorable

BOT

SOURCE: Gulf Cooperation Council Secretariat – August 6, 2002


GCC: Scarcity and Choice

Unfavourable BOT

EXPORTS – IMPORTS DEFICIT (-)

Favourable BOT

EXPORTS – IMPORTS

SURPLUS (+)

UAE = -15, 215 ( 28,510-23,275)

Bahrain =- 847 (2,430-1,583)

Oman = -733 (5,701 – 4918)

TOTAL = 16,795 Million USD

Kuwait = + 4,514 (12,140-7,616)

KSA = + 22,724 (50,756-28,123)

Qatar = + 1,514 (4,010-2,496)

TOTAL = 28,762 Million USD

NET GAIN GCC( mln) = US$ 11,987 (28,762 – 16,775)


A Simplified Framework of the Global Economy


Global Shifts in GDP

The reverse is happening today – re-emergence of rapidly transforming economies such as China and India with sustained high growth and oil wealth of GCC countries from 1980 to present


World Merchandise Production and Trade


The Global Triad – Concentration of World GDP and exports


The Network of World Trade


Land Utilization

Spatial Planning for Intermodal Transportation

Population to Land Ratio in GCC States– Kuwait – Bahrain– KSA– Oman– Qatar– UAE


SCARCITY, CHOICE, AND OPPORTUNITY COST IN GCC STATES

A graph that shows all the combinations of goods and services that can be produced if all of society’s resources in GCC States are used efficiently.

THE PRODUCTION POSSIBILITY FRONTIER


Production Possibility Frontier PPF – Intermodal Transportation – Two Modes

Production Possibility Frontier leverages each mode of transport and optimizes the final output – of containerized cargo movement

Sea

Rail


SCARCITY, CHOICE, AND OPPORTUNITY COST

Negative Slope and Opportunity Cost

Inefficiency from Misallocation of Land in Transportation

marginal rate of transformation (MRT)

The slope of the production possibility frontier (ppf).


Transportation &

Logistics

TECHNOLOGY


Transportation Trends of Future


Conventional vs Hybrid

CONVENTIONAL Diesel bus sale price is US$ 354,000

HYBRID bus goes for $500,000 a pop!


Comparative Cost of Technology – Trucking

Over the course of 12 years life span, a conventional diesel bus will consume 142,656 gallons, or $343,800.96 worth of diesel fuel (based on current diesel prices...which will be a distant memory by the end of the year). Our company's bus, however, will consume roughly 88,447 gallons, or $213,157.27 worth of diesel fuel.


Soaring Energy Stocks Renewable Bio Fuels : Ethanol + Solar + Bio Thermal

Hydrogen Fuel Cars – Test Market of Automakers


Transport Simulation - Intermodalism

The intermodal transportation simulation system technologically offers for a first time opportunity to electronically integrate, by modeling and simulation, the intermodal world of transportation (highway, maritime, rail, and air) using sensory modes (vision and acoustics). Virtual reality at present primarily involves the sense of vision.

However, we live in a multisensory world. The intermodal transportation simulation system offers a major sensory breakthrough which couples intermodalism with technology that can better describe present day problems, as well as develop effective solutions for the 21st century


Cash is Dead = E Payments


The Virtuous Circle: Electronic Payments

and Economic

"...the annual number of electronic payment transactions, currently at approximately 210 billion worldwide, will double by the end of the decade and is growing at a compounded annual rate equal to four times the expected growth in real domestic product (GDP)." - Global Insight,


Leading World Cargo Airports


Leading World Container Hubs


Transportation &

Logistics

ACTION RESEARCH METHODS


AR Defined

Action research aims to contribute both to the practical concerns of people in an immediate problematic situation and to the goals of social science by joint collaboration within a mutually acceptable ethical framework (Rapoport, 1970, p. 499).

This AR is very appropriate to study the collaborative nature and series of transportation and logistics activities in the spectrum of the Supply Chain Management. The presenter is involved in using AR for Intermodalism and Logistics.


Participatory AR Methods

Find and critically review secondary data

Observe directly (see for yourself)

Seek those who are experts about specific issues

Key probes (Dubai RTA study of managing traffic increase on the roads – 5m to 20 m trips per day in 2010)

Case studies and stories (retail price increase in dairy products – monopoly)

Do-it-yourself Seasonal calendars Daily time use analysis

Groups (casual or random encounter; focus; representative or structured for diversity; community, neighbourhood or a specific social group; or formal

Mapping and modelling (GIS) Local analysis of secondary

sources (Satellite Imagery GOOGLE Earth / GPS)

Transect walks(Simpson BBC program)

Timelines and trend and change analysis


More AR Methods

Institutional or Venn diagramming

Linkage diagrams Well-being grouping (or

wealth ranking) Matrix scoring and

ranking Team contracts and

interactions

Shared presentations and analysis

Contrast comparisons Drama and

participatory video making on key issues


AR Menu of Methods - Review

Transect walks: systematically walking with key informants through an area, observing, asking, listening, discussing, learning about different zones, local technologies, introduced technologies, seeking problems, solutions, opportunities, and mapping and/or diagramming resources and findings.

Transects take many forms: vertical, loop, along a

watercourse, sometimes even the sea bottom!


Simpson’s World Example of AR

BBC world affairs editor John Simpson has visited most of the world's trouble-spots


14 KM from North Rim Grand Canyon, Arizona

Panorama Google Earth


Grand Canyon SkywalkMarch 21, 2007

Members of the media and the Hualapai tribe take a preview walk on the

Skywalk, billed as the first-ever cantilever-shaped glass walkway. It extends 70 feet from the western Grand Canyon's rim more

than 4,000 feet above the Colorado River on the Hualapai Reservation

at Grand Canyon, Arizona.


A world of diversity

"Nothing is as practical as a good theory” (Kurt Lewin 1940)

YoMiM Experiment in AR (research conducted by a group of young women in management (YoWiM), initiated by Kate McArdle as part of her PhD Research }


Future Research INTERMODALISM


Mitsui wins $763m Saudi railway order

by Reuters on Tuesday, 03 April 2007

Mitsui said it is teaming up with Al Rashid Trading & Contracting Co. of Saudi Arabia and Australia's Barclay Mowlem to build an 818km (508 miles) portion of the North-South Railway, which is being built to move mineral traffic from Saudi Arabia's interior to an industrial complex to be built on the Gulf coast.


Tracing Origin Through RFID

When the origin of clothing brands becomes a concern for imposing quota liberalization and counterfeit products, smart labels is a boon to those who manage the global trade.


Technology - Poncho Knit

“ Technology is the latest accessory to hit the apparel world. By embracing technology solutions, forward-thinking apparel and footwear companies are fashioning tight, visible, integrated supply chains -- and reaping the rewards.” Amy Roach


Celebrity and Brands Impacts Retail Logistics

Such celebrity-inspired fashion crazes, as well as each year's must-have items, and standard seasonal clothing such as bathing suits and outerwear, make the apparel supply chain more time-sensitive than many other verticals.


Fulfillment in e-Logistics


Students form a windmill at Youth Energy Summit at Willim and Mary College – Nov 2006

Check your Car tire pressure Everyday – that affect CO2 emission in Dubai and everywhere


The Cube Game

By way of summary, we would emphasize that action research is not a methodology

but an orientation that shapes methodological practices.

There are no right answers, rather lots of choices,

and quality of inquiry is shaped by the appropriateness of these choices

and way they are made.

Peter Reason and Kate Louise McArdleCentre for Action Research in Professional Practice

University of Bath

Apparel Logistics Dubai

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