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drivers of logistics performance Lauri Ojala, University of Turku, - - PowerPoint PPT Presentation

1 The World Banks Logistics Performance Index (LPI) and drivers of logistics performance Lauri Ojala, University of Turku, Finland Dilay elebi, International Transport Forum Roundtable on Logistics Development Strategies and their


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The World Bank’s Logistics Performance Index (LPI) and drivers of logistics performance

Lauri Ojala, University of Turku, Finland Dilay Çelebi, International Transport Forum

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Roundtable on Logistics Development Strategies and their Performance Measurement 9-10 March 2015, Queretaro MEXICO

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Geographical location of Turkey

2

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50 100 150 200 250 300 350 400 450 Turkey's Foreign Trade World Trade Index

Index value

Billion USD

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Logistics Performance Index

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Customs Infrastructure Quality

  • f logistics services

Timeliness Tracking and tracing Ease of arranging shipments

”Connecting to Compete, Trade Logistics in the Global Economy” World Bank (2014)

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3.07 3.15 3.38 3.18 2007 2010 2012 2014

Ease of arranging shipments

3.38 3.94 3.87 3.68 2007 2010 2012 2014

Timeliness

3.00 2.82 3.16 3.23 2007 2010 2012 2014

Customs

3.29 3.23 3.52 3.64 2007 2010 2012 2014

Quality of logistics services

2.94 3.08 3.62 3.53 2007 2010 2012 2014

Infrastructure

3.27 3.09 3.54 3.77 2007 2010 2012 2014

Tracking and tracing

Turkey’s logistics performance

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For every

10%

increase in the LPI of a typical importer, bilateral imports increase by

54%

. For every

10%

increase in the LPI of a typical exporter, bilateral exports increase by more than

69%

.

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Germany High income: OECD Malaysia Turkey Europe & Central Asia

The LPI Score of selected regions

Trade impact of logistics performance

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Trade impact of logistics performance

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IMP +14% EXP +18%

ITF Secretariat based on LPI and Korinek & Soudin (2011), To What Extent Are High-Quality Logistics Services Trade Facilitating?, OECD.

Germany High income: OECD Malaysia Turkey Europe & Central Asia

The LPI Score of selected countries

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SLIDE 9

Trade impact of logistics performance

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ITF Secretariat based on LPI and Korinek & Soudin (2011), To What Extent Are High-Quality Logistics Services Trade Facilitating?, OECD.

0.5 1 1.5 2 2.5 3 3.5 4 4.5 Germany High income: OECD Malaysia Turkey Europe & Central Asia

Logistics competence IMP +52%

EXP +154%

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Quality

  • f logistics

services Timeliness Tracking and tracing Customs Infrastructure Ease

  • f arranging

shipments

Policy Actions Indicators

Qualitative Quantitative

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The efficiency of customs and border management clearance

3.00 2.82 3.16 3.23

2007 2010 2012 2014

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  • 20

20 40 2008 2009 2010 2011 2012 2013

Reduced variability of clearance times

hours

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  • 20

20 40 2008 2009 2010 2011 2012 2013

hours

Reduced variability of clearance times

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100%

  • f customs

transactions have been computerized.

38%

decrease in export time variability from 2010 to 2012 More than

$200,000,000

is invested for modernization

  • f border gates under BOT model.

Improvement of border facilities

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The quality of trade and transport infrastructure

2.94 3.08 3.62 3.53 2007 2010 2012 2014

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The percentage of road investment in GDP has almost

doubled in the last 5 years,

reaching up to 5.9 billion Euros in 2011 0.52 0.72 0.85 1.03 1.19 0.88 0.4 0.8 1.2 2007 2008 2009 2010 2011 2012

Road Investment as %GDP Construction of new transport links

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Sea 55% Rail 1% Road 23% Air 11% Other 10%

International Trade by Mode of Transport

Supporting dominant modes of transport

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More than

90%

  • f semi-trailers

are not craneable and cannot be loaded

  • nto standard intermodal trains.

diesel fuel accounts for over

60%

  • f total freight costs

Promoting low cost transportation modes

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Ease of Arranging Competitively Priced Shipments

Drivers of Logistics Performance: Case Study

3.74 3.45 3.54 3.64 3.50 3.18 3.32 3.31 2.57 4 26 17 10 22 48 36 37 113 20 40 60 80 100 120 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 DEU USA ITA MYS CHN TUR ROM BGR AZE Score Rank

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Quality of logistics services

3.29 3.23 3.52 3.64 2007 2010 2012 2014

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Turkey Average UMI Europe & Central Asia Malaysia Germany Consignees or shippers Trade and transport associations Quality/standards inspection agencies Customs agencies Freight forwarders

Competence and Quality of Services

Supporting logistics industry and private sector

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Ability to Track and Trace Consignments

Drivers of Logistics Performance: Case Study Findings

4.17 4.14 3.84 3.58 3.50 3.77 3.39 2.88 2.14 1 2 14 23 29 19 34 76 148 20 40 60 80 100 120 140 160 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 DEU USA ITA MYS CHN TUR ROM BGR AZE Score Rank

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Developed public information platforms for sharing trade and… Promoted companies for utilization of state of the art tracking and… Encouraged development of CIT service providers to support the… Improved telecommunications services to support logistics Introduced e-government services and e-signatures to facilitate… Increased utilization of computerized border clearance systems. Strongly disagree Strongly agree

In the last couple of years, Turkey has experienced…

Promoting utilization of ICT in Logistics Services

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3.07 3.15 3.38 3.18 2007 2010 2012 2014 3.38 3.94 3.87 3.68 2007 2010 2012 2014

Timeliness of shipments in reaching destination Ease of arranging shipments

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In 2012,

90 %

  • f the trucks
  • n Slovenia-Italy

Ro-La lines had Turkish plate

World Bank sources indicate that a one-day delay in delivery times causes a

1%

decrease in the volume

  • f trade

Trucks tend to have long waiting times at major Ro-La lines, even up to

4-6 days

Reducing transport network system vulnerability

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Findings

  • Variability is one of the main factors of efficiency of the

customs and border clearance.

  • Capacity management is vital for infrastructure efficiency.
  • A superior transport infrastructure supports vital transport

systems, including access roads to terminals and seaports, and intermodal services.

  • A thriving private sector is one of the leading factors in

providing high quality logistics services.

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Lauri Ojala

Turku School of Economics, Finland Rehtorinpellonkatu 3 FIN-20500 TURKU Email: Lauri.ojala@utu.fi

Dilay Çelebi

İstanbul Technical University Faculty of Management 34367 Maçka, Turkey Email: celebid@itu.edu.tr

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Roundtable on Logistics Development Strategies and their Performance Measurement 9-10 March 2015, Queretaro MEXICO