SLIDE 1 One Belt – One Road – Three Dimensions –
Jan.Hoffmann@UNCTAD.org Hong Kong, May 2016
SLIDE 2 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 3 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 4 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 5 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 6 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 7
Why “connectivity”?
SLIDE 8 Introducing containerization leads to more trade
(Bernhofen et al, 2013)
18 May 2013
SLIDE 9 Better connectivity leads to lower freight rates
y = 1814.9e-0.0671x R2 = 0.4348
500 1'000 1'500 2'000 2'500 3'000 3'500 2 4 6 8 10 12 14 16 18 20
Number of Carriers providing direct services Freight rate
(Wilmsmeier and Hoffmann, 2008)
SLIDE 10 (Wilmsmeier et al 2006)
Better connectivity leads to lower freight rates
SLIDE 11 More trade
- > More shipping supply
- > More competition
- > lower freights
- > More trade
SLIDE 12 Better services
- > More trade
- > More income to
finance infrastructure
SLIDE 13 Lower Transport Costs
- > More trade
- > Economies of scale
- > Lower Transport Costs
SLIDE 14 To capture a country’s connectivity…
UNCTAD developed the Liner Shipping Connectivity Index – LS LSCI CI – using the following 5 components:
- Companies
- Services
- Largest ship
- Number of ships
- TEU
Source for components: Lloyds List Intelligence
SLIDE 15 To capture a country’s connectivity…
UNCTAD developed the Liner Shipping Connectivity Index – LS LSCI CI –
http://stats.unctad.org/lsci
SLIDE 16 (Arvis et al, 2013)
SLIDE 17
SLIDE 18
SLIDE 19
SLIDE 20 http://stats.unctad.org/Maritime
SLIDE 21
SLIDE 22
SLIDE 23
SLIDE 24
SLIDE 25
What can policy makers do to improve maritime connectivity? (e.g. Africa)
SLIDE 27 Seaports and transit cargo
Transit trade is good for the transit countries!
ports’ business
importers and exporters, because it helps improve connectivity
SLIDE 28 Facilitating transit trade and its transport
The good news: The increasing awareness that transit trade is good for the transit countries!
- It is good for my own ports’ business.
- It is good for my own country’s importers
and exporters, because it helps improve shipping connectivity.
SLIDE 29 Facilitating transit trade and its transport
The good news: The increasing awareness that transit trade is good for the transit countries!
- It is good for my own ports’ business.
- It is good for my own country’s importers
and exporters, because it helps improve shipping connectivity.
SLIDE 30 Facilitating transit trade and its transport
The good news: The increasing awareness that transit trade is good for the transit countries!
- It is good for my own ports’ business.
- It is good for my own country’s importers
and exporters, because it helps improve shipping connectivity.
SLIDE 31 Inland connections
- Infrastructure
- Transit facilitation
- Competition
e.g. trucking markets
SLIDE 32 Recommendations
- 1. Facilitate transit
- 2. Facilitate competition
SLIDE 33 Competition
Seek to benefit from competition and economies of scale
Avoid unnecessary restrictions
SLIDE 34 Recommendations
- 1. Facilitate transit: More cargo for your port
- 2. Facilitate competition
- 3. Continue with port reforms
SLIDE 35
Inter-port competition
SLIDE 36 Recommendations
- 1. Facilitate transit: More cargo for your port
- 2. Facilitate competition
- 3. Continue with port reforms
SLIDE 37 Challenge
Ideally, I want both:
- 1. Economies of scale, and
- 2. Competition
SLIDE 38
SLIDE 39 Source: UNCTAD Liner Shipping Connectivity Matrix, on the basis of data from Lloyds List Intelligence
SLIDE 40 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 41
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
http://stats.unctad.org/Maritime
SLIDE 42
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
Ch China, a, Korea rea an and Jap apan an 91.2% .2% of GT GT
SLIDE 43 % of GT, Review of Maritime Transport 2016, forthcoming, based on Clarksons Research Studies
Ship building – total of 2015
China Japan Republic of Korea Philippines Rest of World Oil Tankers 32.0% 9.9% 53.3% 0.0% 4.7% Bulk Carriers 49.7% 40.2% 5.9% 3.2% 0.8% General Cargo 43.2% 12.4% 20.4% 0.0% 24.1% Containerships 30.9% 1.2% 57.8% 6.2% 4.0% Gas Carriers 2.8% 15.8% 81.1% 0.0% 0.3% Chemical Tankers 23.2% 30.0% 28.7% 0.0% 18.0% Offshore 25.4% 1.4% 43.9% 0.0% 29.4% Ferries and Passenger Ships 11.1% 3.0% 0.6% 0.0% 85.3% Other 3.2% 26.6% 57.0% 0.0% 13.1% Total 36.1% 20.9% 34.3% 2.9% 5.9%
SLIDE 44
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
Greece eece, , Jap apan: an: 29.1% .1%
SLIDE 45
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
Pa Panam ama, a, Liberia beria, , Mar arshall shall Isla lands: nds: 41% 41%
SLIDE 46
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation (container ships)
Globalized production of "maritime transport"
Den enmark ark an and Sw Switze zerland rland 29% 29%
SLIDE 47
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
India dia, , Ban angladesh, ladesh, Ch China, a, Pa Pakista stan 90.6% .6%
SLIDE 48
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
Fi Finan ancial cial an and other er ser ervi vice ces: s: UK, , Sc Scan andina dinavia via
SLIDE 49
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
Ph Philippi ippines nes, , Indon donesia, esia, …
SLIDE 50
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
Hong ng Kong ng, , Net ether herland lands, s, Si Singapo apore, e, UAE AE: ~ 30%
SLIDE 51
- 8. Insurance services (P&I)
- 10. Container terminal operators
- 9. Seafarers
- 6. Financing
- 7. Classification
1. Building 5. Scrapping 2. Owning 3. Registration 4. Operation
Globalized production of "maritime transport"
SLIDE 52
Countries specialize in different maritime businesses
SLIDE 60
- More maritime country profiles
http://stats.unctad.org/Maritime
SLIDE 62
In what maritime sector should I specialize?
Synergies and trade-offs
SLIDE 63 Trade-offs
–ports versus –nationally flagged fleet?
Example: Should a country liberalize cabotage (coastal shipping)?
SLIDE 64 Trade-offs
–shippers versus –carriers?
Example: Anti-trust immunity of liner shipping companies?
SLIDE 65 Trade-offs
–trucking versus –shipping?
Example: Tax regimes for different modes of transport?
SLIDE 66 Synergies
–officers and –classification societies?
Example: Many on shore maritime specialists have previously worked on board
SLIDE 67 Synergies
–ship building and –ship recycling?
Example: Steel from scrapping is used in construction
SLIDE 68 Synergies
–ship owning and –services ?
Example: Maritime service clusters in Hamburg, London, Hong Kong, or Singapore
SLIDE 69
Food for thought for OBOR
SLIDE 70 1) Maritime development
There is a trend that maritime sectors are increasingly located in “developing countries”
SLIDE 71 2) Specialization
- We can identify which countries have similar
“maritime profiles”
- Clusters: We can identify which sectors are
likely to be located in the same country
SLIDE 72
Clustering of maritime sectors
SLIDE 73 One Belt – One Road
Liner shipping connectivity The maritime supply chain
trade and transit
SLIDE 74 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 75
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SLIDE 80
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SLIDE 85
Trade and transit facilitation
A balance? Or trade-off?
SLIDE 86 TF measures help!
- Improve revenue collection
- Improve controls
- Improve security
SLIDE 87
Risk Management
SLIDE 88
SLIDE 89 Advance information; internet publication; post clearance audit; electronic submission;
SLIDE 90 The WTO Trade Facilitation Agreement (TFA)
- A key tool to advance with
One Belt, One Road
- Implementation and ratification requires
technical assistance
SLIDE 91
Trade Facilitation and Development: The Chicken and the Egg
SLIDE 92 Source: UNCTAD Trade Facilitation & Development Forthcoming
SLIDE 93 Source: UNCTAD Trade Facilitation & Development Forthcoming
SLIDE 94 Source: UNCTAD Trade Facilitation & Development Forthcoming
SLIDE 95 Source: UNCTAD Trade Facilitation & Development Forthcoming
SLIDE 96 Source: UNCTAD Trade Facilitation & Development Forthcoming
SLIDE 97 TF measures and Doing Business
Source: UNCTAD Trade Facilitation & Development Forthcoming
SLIDE 98 Clusters of TF measures
Source: UNCTAD Trade Facilitation & Development Forthcoming
SLIDE 99
OBOR: Many challenges, and solutions, require bilateral or regional cooperation
SLIDE 100 Possible criteria for a regional programme
- 1. The measure requires collaboration
SLIDE 101 Possible criteria for a regional programme
- 1. The measure requires collaboration
- 2. Countries have the same categories
SLIDE 102 Possible criteria for a regional programme
- 1. The measure requires collaboration
- 2. Countries have the same category
- 3. Countries have
the same priorities
SLIDE 103 Possible criteria for a regional programme
- 1. The measure requires collaboration
- 2. Countries have the same category
- 3. Countries have the same priorities
- 4. Members of same RTA
SLIDE 104 Possible criteria for a regional programme
- 1. The measure requires collaboration
- 2. Countries have the same category
- 3. Countries have the same priorities
- 4. Members of same RTA
- 5. Potential of South-South cooperation
SLIDE 105 Possible criteria for a regional programme
- 1. The measure requires collaboration
- 2. Countries have the same category
- 3. Countries have the same priorities
- 4. Members of same RTA
- 5. Potential of South-South cooperation
- 6. Benefits from common standards
SLIDE 106 Possible criteria for a regional programme
- 1. The measure requires collaboration
- 2. Countries have the same category
- 3. Countries have the same priorities
- 4. Members of same RTA
- 5. Potential of South-South cooperation
- 6. Benefits from common standards
SLIDE 107 One Belt – One Road
connectivity
supply chain
trade and transit
SLIDE 108 One Belt – One Road – Three Dimensions – Thank you
Jan.Hoffmann@UNCTAD.org Hong Kong, May 2016