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

26

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

mmustra@worldbank.org

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: tradefacilitation@worldbank.org

The World Bank Group International Trade Department

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