LOGISTICS PERFORMANCE INDEX CONNECTING TO COMPETE 2012 Jean-Franois - - PowerPoint PPT Presentation

WORLD BANK GROUP

November 14 2012 ISEL Douane

Jean-François ARVIS INTERNATIONAL TRADE DEPARTMENT

LOGISTICS PERFORMANCE INDEX

CONNECTING TO COMPETE 2012

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

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FIATA World Bank Governments Countries

Indicator

• rs

essential f for refo forms Beco ecome e mor

• re

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 private sector voice to governments!

Advice o ce on refo forms

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The Logistics Performance Index www.worldbank.org/lpi

The Logistics Performance Index

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• Measures the trade

logistics efficiency of a country

• Fundamental premise:

Efficient logistics drives economic performance and competitiveness

The Logistics Performance Index

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• First report 2007, every 2 years
• Source of data: online survey of

logistics service firms (freight forwarders, express carriers)

• Rate logistics performance for

up to 8 markets on a 1-5 scale

• LPI a weighted average of

scores (using principal component analysis)

• Domestic LPI data reported by

firms for own country

Built on more than 6,000 country assessments by over 1000 logistics professionals worldwide Primary data gathered for 155 countries (143 for domestic LPI indicators) 69% of respondents based in developing countries; 82% have less than 250 employees Partnership with the private sector

The Logistics Performance Index

LPI Questionnaire Structure

General module International Qualitative Performance Domestic Qualitative Performance Domestic Quantitative Performance

I nternational 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

I nternational 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:

LPI Results

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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

LPI score as percentage of highest LPI score by LPI quintile, 2007, 2010, and 2012

10 20 30 40 50 60 70 80 90 100

Bottom quintile Fourth quintile Third quintile Second quintile Top quintile

Percent 2007 2010 2012

2 4 6 8 10 12

Low income Lower middle income Upper middle income High income non-OECD High income OECD Percentage change Customs Infrastructure Quality of logistics services

Percentage change in LPI scores over 2007–2012, by LPI component and income group

LPI 2012

Countries are improving around the world

Logistics friendly Logistics unfriendly Partial performers Consistent performers

More than income: the “logistics gap”

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Low income Lower middle income Upper middle income High income non-OECD High income OECD

Percent

Top quintile Second quintile Third quintile Fourth quintile Bottom quintile

20% of LICs are in the 3rd quintile 15% of LMICs are in the 2nd 10% of UMICs are in the 1st tier, but another 10% are in the bottom tier

Country LPI Rank South Africa 23 China 26 Turkey 27 Malaysia 29 Bulgaria 36 Thailand 38 Chile 39 Tunisia 41 Brazil 45 Mexico 47 TOP 10 COUNTRIES LOWER MIDDLE INCOME Country LPI Rank India 46 Morocco 50 Philippines 52 Vietnam 53 Egypt, Arab Rep. 57 Indonesia 59 Yemen, Rep. 63 Ukraine 66 Pakistan 71 Guatemala 74 TOP 10 COUNTRIES LOW INCOME Country LPI Rank Benin 67 Malawi 73 Madagascar 84 Niger 87 Tanzania 88 Guinea-Bissau 94 Togo 97 Central African Republic 98 Cambodia 101 Zimbabwe 103 TOP 10 COUNTRIES UPPER MIDDLE INCOME

LPI Ranks

Improvements can be obtained with the right investment and engagement

10 20 30 40 50 60 70 80 90

Turkey Bulgaria Tunisia Morocco Vietnam Egypt Indonesia Pakistan Malawi Tanzania % of Highest Performer 2012 % of Highest Performer 2010 % of Highest Performer 2007

LPI Questionnaire Structure

Domestic Qualitative Performance Domestic Quantitative Performance

Domestic LPI

Evaluate Country of work

Country A

Logistics environment, Core logistics processes, Institutions and Performance time and cost data: Quality data for infrastructure, Service providers and processes Customs administration, Border procedures and time Time/cost data for import and export transactions

Environment, Processes, Institutions, Time and Cost

Domestic logistics environement Domestic LPI

Customs ahead of other border agencies

0% 10% 20% 30% 40% 50% 60% 70% Logistics friendly Consistent performers Partial performers Logistics unfriendly Customs Other border agencies Percentage of respondents indicating the quality and competence of customs and

• ther border agencies is high
• r very high

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Median import lead time and average clearance time (days), by LPI quintile

0,5 1 1,5 2 2,5 3 3,5 4 2 4 6 8 10 12 Bottom quintile (lowest performance) Fourth quintile (low performance) Third quintile (average performance) Second quintile (high performance) Top quintile (highest performance) Lead time (port/airport) - import Lead time (land) - import Clearance time without physical inspection Clearance time with physical inspection

Doing Business Important initiative by the IFC (10 years) Measure “red tape” is several areas: starting a business, payments… one section “trading across border” Three dimensions for each areas “number

• f days, cost, and number of documents”

Tries to focus on information that is

• bjective and not too variable (ideally

single respondent)

LPI and DB – separate but complementary

LPI DB

Source of data 3rd country providers of logistics services In-country entities with knowledge of business regulations Concept Performance outcomes Analytic breakdown in component procedures Frequency Every 2 years, since 2007 Yearly, since 2003 Significance Several indices of performance Metric of broader business regulatory environment Questionnaire Short online Detailed Countries 155 183

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Both indices provide basic input for policy makers. Neither are in-depth analysis.

Red tape affecting import and export transactions, by LPI quintile

0,5 1 1,5 2 2,5 3 3,5 4 4,5 5 Bottom quintile (lowest performance) Fourth quintile (low performance) Third quintile (average performance) Second quintile (high performance) Top quintile (highest performance)

• No. of import agencies
• No. of export agencies
• No. of import documents
• No. of export documents

The Logistics Performance Index www.worldbank.org/lpi

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• MERCI