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Impact of Transport and Logistics on Trade

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Title: Impact of Transport and Logistics on Trade


1
Impact of Transport and Logistics on Trade
July 23, 2003
2
Transport and Logistics Providers
Countries Dont Compete Thousands of Players Do
International transport process is made of many
players each acting in their best interests.
Governments provide the environment for them to
succeed.
3
Why Do Transport Logistics Matter?
APEC estimates trade facilitation would
generates 0.26 of real GDP which is double
expected gains from tariff liberalization.
Tariff reduction success requires a new focus
4
Defining Todays Transport Costs
  • Transport
  • Inland transport
  • Ocean Freight
  • Infrastructure
  • Cargo transfer
  • Cargo handling
  • Customs and Border Procedures
  • Customs inspection
  • Banking and Finance
  • Insurance
  • Bank processing and Letter of Credit
  • Transport Intermediaries
  • Documentation forwarding
  • Time cost of goods

5
Transport and Logistics Cost Variation
Source Shipping Agent quotes, June 2003
Source World Bank (2001)
There can be wide variation in country
transaction costs by mode
Source World Bank (1996)
6
Changing Logistics Environment
  • Distributed manufacturing environment
  • Just-in-time logistics
  • Door-to-door control
  • Intermodal networks
  • Increased shipment volumes
  • Smaller size shipments
  • Complex regulatory environment

Cost efficient supply chains require coordination
and control in complex environments
7
New Security Considerations
  • CSI is short for Container Security Initiative,
    a program that was started by the Customs Service
    in early 2002.
  • CSI puts teams of Customs professionals in ports
    around the world to look for weapons of mass
    destruction in sea-going shipping containers.
  • Intensify targeting and screen containers at
    ports worldwide, before those containers are
    loaded and sent to their final destinations.
  • US Customs and Border Protection Requirements
  • 24 hour rule
  • C-TPAT Certification

Competitive advantage has new dimensions and new
transaction costs.
8
Phase 1 Scope of Work
  • Collect literature on role of transportation in
    trade and competitiveness
  • Collect shipping and related logistics costs
  • Comparative air freight costs
  • Comparative sea freight costs
  • Comparative inland trucking and railroad costs
  • Storage costs at inland, port and airport
    facilities
  • Insurance costs per unit
  • Point to point cost of shipping similar products
    from 5 developing countries to New York,
    Amsterdam and Singapore.
  • Review transportation and logistics policy issues
    and constraints
  • Prepare preliminary report based on the data
    gathered above. Hypothesize key trade
    liberalization issues.

This presentation includes preliminary report
hypotheses based on sample data collected.
9
Research Focus
The study undertaken in Phase 1 has concentrated
on collecting data in the following highlighted
areas from which the initial hypotheses were made.





10
Maritime Transport Rate Drivers
The tramp liner or bulk commodity shipping market
is already highly liberalized and competitive
where rates are driven by a global spot market.
11
Sample Ocean Freight Rates
Ocean Freight 2400
Inland Rates 1800
Chassis Surcharge 60
Panama Canal Transit Fee 30
Emergency Bunker Surcharge 100
BAF American Service Surcharge 310
Central American Documentation Fee 50
Cargo Declaration Data Charge 25
Total 4775
Origin Destination Commodity Rate (US/40 DC)
Santa Cruz, Bolivia New York, NY FAK freight all kinds 4775
Guatemala City, Guatemala New York, NY FAK freight all kinds 4019
Dar es Salaam, Tanzania New York, NY FAK freight all kinds 4705
Hanoi, Vietnam New York, NY FAK freight all kinds 7941
Manila, Philippines New York, NY FAK freight all kinds 7603
Alexandria Egypt New York, NY FAK freight all kinds 2537
Dakar, Senegal New York, NY FAK freight all kinds 5794
Manila, Philippines Singapore FAK freight all kinds 1023
Dakar, Senegal Singapore FAK freight all kinds 3016
Colombo, Sri Lanka New York, NY FAK freight all kinds 7019
Colombo, Sri Lanka Rotterdam FAK freight all kinds 2144
Aqaba, Jordan Rotterdam FAK freight all kinds 1459
Ho Chi Minh City, Vietnam Rotterdam FAK freight all kinds 3723
Manila, Philippines Rotterdam FAK freight all kinds 3873
New York, NY Santa Cruz, Bolivia FAK freight all kinds 7230
New York, NY Guatemala City, Guatemala FAK freight all kinds 3784
Ocean Freight 3400
DHC- Rotterdam 159
OHC-Philippines 138
BAF 138
DDF-Netherlands 18
Origin Documentation Fee 20
Total 3873
  • Landlocked countries high rates (Tanzania
    Bolivia)
  • Directional Imbalances (Bolivia, Guatemala
    to/from New York
  • Distance from trading partners (Senegal to New
    York vs. Manila to Singapore

12
Transshipment Implications
Miami Hamburg Singapore Cartagena
Barbados 1,900 2,300 3,600 1,700
Guyana 1,455 1,900 3,400 1,815
Jamaica 900 1,500 1,200 2,300
Suriname 2,000 2,100 3,300 -
Trinidad and Tobago 1,400 1,700 3,000 1,100
Evidence
Source ECLAC (2000).
Jamaica is the largest transshipment hub with
regularly scheduled liner service while Trinidad
and Tobago is a major regional shipping hub
providing efficient feeder services.
Causes
Intervention
  • Develop transshipment hub capacity and efficiency
  • Provide incentives for liner carriers to call
    port directly? increase volume

13
Directional Imbalances
Evidence
72 of containers from Port of Spain to the US
are empty
Causes
  • Import driven trade lane
  • Low percentage of manufactured containerized
    exports
  • Liberalize cabotage rights for equipment
    repositioning

Intervention
The imbalance can actually help exporters who
receive lower costs through subsidies from the
importers
14
Conference Agreements
40 dc rates, FAK commodities Conference Non-Conference
Newark - Guatemala 2,000 1,750
Newark - Vietnam 1,800 1,700
Newark - Tanzania 3,900 3,300
Evidence
Source Freight forwarder quotes, June 2003
Causes
  • Higher quality service and standards
  • Price fixing and cargo allocation
  • Published transparent rates
  • Anti-trust exemption

Intervention
  • Encourage port calls by non-conference carriers
  • Eliminate anti-trust exemption through
    multilateral institutions such as WTO
  • Enter into private contracts

15
Maritime Handling and Admin Costs
Origin Destination Base freight Admin, handling and surcharges Admin, handling and surcharge of transport charge
Santa Cruz, Bolivia New York 4200 575 12.0
Guatemala City, Guatemala New York 3394 625 15.6
Dar es Salaam, Tanzania New York 3600 1105 23.5
Hanoi, Vietnam New York 6550 1391 17.5
Manila, Philippines New York 6050 1553 20.4
Alexandria, Egypt New York 2000 537 21.2
Dakar, Senegal New York 4700 1094 18.9
Colombo, Sri Lanka New York 5550 1559 21.9
Manila, Philippines Singapore 675 348 34.0
Dakar, Senegal Singapore 2600 416 13.8
Colombo, Sri Lanka Rotterdam 1700 444 20.7
Aqaba, Jordan Rotterdam 1200 259 17.8
Ho Chi Minh City, Vietnam Rotterdam 3400 323 8.7
Manila, Philippines Rotterdam 3400 473 12.2
Note Admin, handling and surcharges includes
Bunker Adjustment Factor (BAF) covering fuel
surcharge Includes 1800 for inland fee to
port in Arica, Chile Includes 484 for inland
fee to Santo Tomas de Castilla port
16
Argentine Port Case Study
  • Key Liberalizations
  • Open bid for port concessions
  • Free terminal contracting arrangements
  • Pilotage, towing deregulated
  • Cabotage rights granted to carriers
  • Ship-owners allowed foreign registries
  • Abolished productivity hampering labor agreements

Selected Performance Indicators for the Port of Buenos Aires Selected Performance Indicators for the Port of Buenos Aires Selected Performance Indicators for the Port of Buenos Aires

Indicator 1991 1995
Cargo (thousands of tons) 4,000 6,000
Containers (thousand of teus) 300 540
Capacity (thousand of containers per year) 400 1,000
Operational area (hectares) 65 95
Productivity (tons per worker per year) 800 3,000
Average stay for full containers (days) 2.5 1.5
Cost for container imports (US per ton) 450 120
Port tariff for exports (US per ton) 6.7 3.0
Port tariff for imports (US per ton) 2.1 1.5
Source World Bank 1996
  • Results
  • Shipping rates decreased from 30 to 70 per cent
  • Port service rates decreased towage fell by 40
    pilotage rates decreased stevedoring tariffs
    decreased
  • Port capacity greatly increased ?no accompanying
    upgrade of other modes to supply containers
    to/from port

17
Drivers of Air Freight Rates
  • Lift Capacity
  • Seasonal variation
  • Reliance on passenger traffic
  • Volume commitments
  • Directional imbalances
  • Bilateral agreements
  • Cargo handling facilities and operations

18
Sample TACT Air Freight Rates
Destination Origin Origin Origin Origin Origin Origin Origin
Destination Dar es Salaam, Tanzania Dakar, Senegal Hanoi, Vietnam La Paz, Bolivia New York Singapore Amsterdam
Dar es Salaam, Tanzania - 8.77 10.08 14.42 11.98 11.12 13.35
Dakar, Senegal 5.93 - 16.37 9.15 8.01 19.78 7.96
Hanoi, Vietnam 7.51 16.20 - 10.88 5.94 3.06 17.77
La Paz, Bolivia 15.10 11.23 12.58 - 5.66 17.44 11.26
New York 5.20 4.91 6.94 2.99 - 7.49 3.87
Singapore 6.52 16.43 2.97 9.83 4.88 - 4.52
Amsterdam 3.61 4.75 10.55 6.76 2.49 4.74 -
Source June 2003 TACT Manual based on 400 kgs shipment Source June 2003 TACT Manual based on 400 kgs shipment Source June 2003 TACT Manual based on 400 kgs shipment Source June 2003 TACT Manual based on 400 kgs shipment Source June 2003 TACT Manual based on 400 kgs shipment Source June 2003 TACT Manual based on 400 kgs shipment Source June 2003 TACT Manual based on 400 kgs shipment Source June 2003 TACT Manual based on 400 kgs shipment
  • Outbound rates from developing countries
    cheaper due higher demand of services for high
    value export products
  • Rates between developed countries are cheaper
    due to more supply of lift capacity.

19
Freight Forwarder Quotes Fresh Flowers
Origin (Airport) La Paz (LPB) La Paz (LPB) La Paz (LPB)
Destination (Airport) New York (NYC) Amsterdam (AMS) Singapore (SIN)
Airfreight / Flat Rate 2.45 2.65 2.95
Fuel 0.15 0.15 0.15
Security 0.15 0.15 0.15
Handling 50.00 50.00 50.00
Documentation 60.00 60.00 60.00
local pick up (LPB) 0.10 / kg (Min 85) 0.10 / kg (Min 85) 0.10 / kg (Min 85)
Export clearance (LPB) 15.00 15.00 15.00
Transfer MIA 0.15 / kg (Min 70) 0.15 / kg (Min 70) 0.15 / kg (Min 70)
Origin (Airport) Guatemala City (GUA) Guatemala City (GUA) Guatemala City (GUA)
Destination (Airport) New York (NYC) Amsterdam (AMS) Singapore (SIN)
Airfreight / Flat Rate 1.50 1.65 1.95
Fuel 0.10 0.10 0.10
Security 0.15 0.15 0.15
Handling 45.00 45.00 45.00
Documentation 40.00 40.00 40.00
local pick up (GUA) 0.04 / kg (min 50) 0.04 / kg (min 50) 0.04 / kg (min 50)
Transfer MIA 0.15 / kg (Min 70) 0.15 / kg (Min 70) 0.15 / kg (Min 70)
Hanoi (HAN) Hanoi (HAN) Hanoi (HAN)
Destination (Airport) New York (NYC) Amsterdam (AMS) Singapore (SIN)
Airfreight / Flat Rate 3.65 3.90  NA
Fuel 0.15 0.15  NA 
Security 0.15 0.15  NA 
Handling 75.00 75.00 NA 
Documentation 50.00 50.00 NA 
20
Air Cargo Handling and Operations
Cairo Airport Cargo Handling Costs Cairo Airport Cargo Handling Costs
Loading one 40 ton freighter US 6,800 to 8,000 / 172 per ton
Cargo Handling
Warehouse handling 4.42 per ton
Dolly rental 250 per hour
Heavy forklift rental 177 per hour
Labor
Bearers, porters and security guards 35 per hour
Estimated cost of loading 1,500
Flight delays force additional cargo storage
requirements and additional dolly rental time.
Delays can eliminate all profits
Profitability Example 800 kgs shipment 1/kg
rate 800 gross revenue 4 hour dolly rental all
revenue lost
Aircraft loading and unloading rights are granted
to airline companies but they must invest in all
new equipment and provide their own maintenance
services leading to excessive capital
requirements. Alternatively they may rent
equipment from two state sanctioned providers.
The rental costs are extremely high.
Loading costs raise base cost per kilo rates
21
Air Express Couriers The Integrators
Air Express Courier Rates 5,000 per month 5,000 per month 20,000 per month 20,000 per month
Rates are inbound and outbound from the US including door-to-door pickup and delivery and clearance. There are two sets of rates based on the shippers qualification based on monthly spend amounts US/Kg Outbound US/Kg Inbound US/Kg Outbound US/Kg Inbound
Rates based on 100 Lbs or 45.3597 Kgs shipments
Belize 14.28 17.34 6.73 13.57
Bolivia 14.28 17.34 6.73 13.57
Guatemala 14.28 17.34 6.73 13.57
St. Lucia 8.05 5.82 3.79 7.64
Vietnam 9.39 11.40 3.79 8.92
Philippines 9.39 11.40 3.79 8.92
United Republic of Tanzania 18.02 21.88 8.49 17.12
Mozambique 18.02 21.88 8.49 17.12
Egypt 9.39 11.40 4.43 8.92
Jordan 9.39 11.40 4.43 8.92
Kazakhstan 15.84 19.24 7.47 15.05
Singapore 6.95 8.45 3.28 6.60
Netherlands 6.95 8.45 3.28 6.60
Source Airborne Express Quotes, June 2003 Source Airborne Express Quotes, June 2003 Source Airborne Express Quotes, June 2003 Source Airborne Express Quotes, June 2003 Source Airborne Express Quotes, June 2003
Courier Special Requirements
  1. Electronic filing capabilities of customs
    documentation.
  2. Expedited clearance for all non-dutiable goods.
  3. Expedited clearance for cargo arriving under the
    status of express shipments.
  4. Elimination of mandatory customs inspections
    subjecting express shipments to random
    inspection.
  5. Harmonization of customs documentation and
    customs data requirements.
  6. Increases transparency of customs regulations and
    procedures for simplified clearance including
    expedited mechanisms for appeal of administrative
    decisions and determinations.

22
Drivers of Road Transport Rates
Country Cost per ton/km
Cameroon US0.12 to 0.93
Pakistan US0.02 to 0.03
France US0.07 to 0.09
Mozambique US0.20 to 1.00
Source World Bank (1996) Source World Bank (1996)
  • Competitive in many countries
  • The domain of the private entrepreneur
  • Industry owned private fleets
  • Poor infrastructure
  • Equipment shortage
  • Equipment breakdown
  • Congestion
  • Cross border impediments
  • Cargo immobilization
  • Safety standards
  • Visa
  • Customs procedures
  • Transit corridor agreements
  • Maputo Johannesburg vs. Durban -Johannesburg
  • Directional imbalances

Country Cost per 40 DC
Alexandria, Egypt US80.00
Santa Cruz, Bolivia US120.00
Dar es Salaam, Tanzania US160.00
Hanoi, Vietnam US215.00
Oakland, USA US204.00
Source Quotes from freight forwarders and shipping agents, June 2003 Source Quotes from freight forwarders and shipping agents, June 2003
No 40 containers allowed in Santa Cruz.
Container must be unloaded in Santa Cruz Customs
warehouse and transported via smaller trucks.
Transit is from HaiPhong port to Hanoi. Due to
city congestion trucks are only allowed in city
limits at night.
23
Rail Transport Impediments
  • Lack of intermodal connections
  • Cargo immobilization
  • Track integration
  • Customs procedures
  • Documentation

Although a cheaper form of transport, railways
have been losing cargo share to road transport.
24
Infrastructure
  • Inland Cargo Depots
  • Avoid Congestion
  • Intermodal linkages
  • Improved equipment utilization
  • Expedited inspections
  • Cargo handling
  • Customs and Border facilities
  • Storage
  • Refrigerated storage

Poor infrastructure may account for 40 per cent
of predicted transport costs
25
Storage Rate Data
Seaport Storage Rates
Airport Storage Rates
Country Charge per 40/day Free days
Namibia 0.75/m3 3 days free
Philippines 9.01 5 days
UAE 6.79 30 days
Los Angeles 65 (5-10) 130 (10) 5 days
Korea, P.R. 2.31 10 days
India 6.50 (4-15), 13.00 (16-30), 26.00 (30) 3 days
Country Charge per kg/day Free days
Vietnam 0.02 (3-6) 0.05 (6-10) 0.08 (10) 2 days free
Guatemala 0.25 per 100 import duties 12 days
Philippines 0.02 None
Jordan ..28 per 100kg 7 days
Mozambique 0.01 2 days
Senegal 0.01 2 days
Private Warehouse
Country Charge US per day Free days
Vietnam 0.35 weight/measure 7 days free
Bolivia
Kazakhstan 25/day container None
  • Storage rates are not prohibitively expensive
    in developing countries but their importance is
    immense for intermodal networks
  • Availability not cost is the major barrier
  • Clearance procedures and timeliness are
    important determinants of overall storage costs.

26
The Inland Depot Example
Consignment Attributes Consignment Attributes
Commodity type Carpets Carpets
Shipment Size 1x40' Dry Container 1x40' Dry Container
Origin Katmandu, Nepal Katmandu, Nepal
Destination Bremen, Germany Bremen, Germany
Via Calcutta Mumbai via IDC in Moradabad
Mode Ocean Ocean
Shipment value 25,000 25,000
  Cost (US) Cost (US)
Transport Handling
Inland Transport 480 740
Cargo Handling 260 463
Ocean Freight 1200 750

Cargo transfer 261 125
Customs inspection 405 202
Trade-related logistics
Insurance 675 675
Documentation Forwarding 450 450
Bank Processing 360 360
Time Cost of Goods 1252 864
Total 5343 4629
Freight, time cost of goods and customs
procedures can be reduced with IDC usage.
Source World Bank (2001)
27
Customs and Border Crossing
  • Reducing corruption
  • Procedures
  • Customs procedure simplification
  • Document harmonization
  • Simplified clearance
  • Training and Professionalism
  • Computer automation
  • Transit Corridors
  • Goods, transport and people expedited
  • Transit regimes, harmonized environmental and
    safety standards and multiple entry visa systems.

The average air shipment takes 8-10 days to move
from origin to destination of which only 2 days
are in transit.
Trade facilitation measures are increasingly
important in the multilateral trade negotiations.
Trade liberalization should go hand in hand with
trade facilitation.
28
Banking and Financial Practices
Banking and financial practices add costs to
transactions and retard domestic development of
advanced logistics providers.
29
Insurance Rates
From/To Asia Africa, Middle East, New Guinea Europe North America South America Australia New Zealand
Asia 0.1100 0.1650 0.1650 0.2475 0.2475 0.1650
Africa, Middle East, New Guinea 0.1650 0.1210 0.2090 0.2475 0.2475 0.2475
Europe 0.1650 0.2090 0.1210 0.2475 0.2475 0.2475
North America 0.2475 0.2475 0.2475 0.1210 0.1210 0.2475
South America 0.2475 0.2475 0.2475 0.2090 0.1210 0.2475
Source TACT Manual, June 2003, General Cargo Source TACT Manual, June 2003, General Cargo Source TACT Manual, June 2003, General Cargo Source TACT Manual, June 2003, General Cargo Source TACT Manual, June 2003, General Cargo Source TACT Manual, June 2003, General Cargo Source TACT Manual, June 2003, General Cargo
From/To General Merchandise Computer Hardware Software (excluding chips memory modules) Non-Perishable Foods Precision Instruments Chemicals and Hazardous Materials
Bolivia 0.46 2.41 0.98 1.76 0.85
Mozambique 0.46 2.41 0.98 1.76 0.85
Vietnam 0.46 2.41 0.98 1.76 0.85
Jordan 0.46 2.41 0.98 1.76 0.85
Senegal 0.46 2.41 0.98 1.76 0.85
St. Lucia 0.46 2.41 0.98 1.76 0.85
  • Insurance rates driven by commodity and/or
    trade lane
  • Insurance premiums impacted by cost of freight
    (high FOB costs have downstream consequences)
  • Insurance issuers dictated by payment terms and
    title transfer - collect charges issued by
    consignee, prepaid by shipper - may cause
    fragmented coverage with additional cost.

30
Transport Intermediaries
  • Eliminate Licensing and permit restrictions of
    foreign entrants
  • Increase foreign participation
  • Global networks
  • Advanced know-how
  • Build professional organizations with
    international standards of quality and service
  • Integrate in new logistics system

31
The Role of WTO and GATS
  • Reducing barriers to competition and improving
    national treatment
  • Maritime Transport Services
  • 3 pillar strategy (add fourth covering intermodal
    providers)
  • Maritime transport, port services and auxiliary
    services
  • Air Transport Services
  • Repair and maintenance, selling and marketing,
    computer reservation systems.
  • Remains dominated bi bilateral agreements
  • Land Transport Services
  • Already highly entrepreneurial driven
    ?Deregulated
  • Services Auxiliary to all Modes of Transport
  • To date, no developing countries have completely
    opened their markets to foreign service providers
    maintaining limits on foreign equity
    participation and joint venture agreements.
  • Some liberalized sub-sectors of auxiliary
    services. Future rounds of liberalization will
    seek to extend these rights to more countries and
    across more sub-sectors.

There needs to be a new framework that addresses
the realities of the new multimodal logistics
networks that cross all of these service schedules
32
Case Studies The Value of Actuals
  • Transport and Logistics Costs are highly variable
    by mode, product and location
  • Transport cost planning and actual reconciliation
    differ greatly
  • There is significant value in measuring actuals
    such that hidden costs are exposed and cargo
    immobilization may be measured
  • The shippers perspective
  • Invoice auditing
  • Targeted country recommendations

A review of checklist issues against actual
shipment data allows exposes true bottlenecks and
distorted cost components
33
Transport and Logistics Checklist Case Study
Guide
Maritime Impact of conference carrier agreements Empty backhaul and equipment utilization patterns Transshipment patterns and feeder service impacts Intermodal connectivity and inland delivery costs Port capacity and infrastructure condition affecting service efficiency Port privatization and cargo handling costs Shipping agent performance and vessel dwell time Port clearance procedures and EDI connectivity - Elimination of price fixing and capacity allocating conference carriers with enforcement of anti-trust provisions - Dissolution of cargo reservation schemes Encouragement of competitive private sector port service handling and auxiliary service provision Development of transshipment feeder service hubs Liberalize cabotage rights for equipment reposition and efficient utilization Implement electronic customs clearance systems, EDI connectivity and collaborative communication between transport providers shippers, agents and customs authorities. 3 - 10 carrier agreements 3 - 10 transshipment hub 2 - 6 equipment utilization 5 - 15 for port services
Air Lift capacity and supply of service capabilities Seasonal variation and demand fluctuation Cargo handling restrictions and costs Cargo facility adequacy and impacts Preferential commodity rate development Liberalization of civil aviation restrictions Specialized air express courier intermodal requirements Encourage open skies agreements for cargo operations Develop programs to mange the need for increased seasonal lift capacity Non-carrier private sector operators allowed to provide handling services to all airlines Reduce capital requirements and equipment rental requirements on handling providers Upgrade storage and cargo management infrastructure 3 - 10 supply and demand management 3 -7 cargo handling 1 - 2 expedited clearance
Transport Mode
34
Transport and Logistics Checklist Case Study
Guide
Road Road congestion Impacts Vehicle repair and maintenance provision Road network design Safety and environmental standards Transit corridor rights Driver visa procedures Review and implement road design improvements and focus on intermodal connectivity points Review road maintenance and traffic control procedures particularly in port gate entry areas Implement bilateral and regional transit corridor rights Implement appropriate safety standards to promote streamlined border crossing Integrate customs goods procedures with movement of people procedures for cross border truck drivers Simplify multiple entry visa requirements for drivers 1 3 improved operating efficiencies 5 - 20 transit corridor rights and procedures
Rail Intermodal connectivity Documentation procedures Border management procedures Develop greater usage of intermodal rail connectivity between inland clearance depots and ports Implement simplified document procedures for multiple country transits Harmonization of rail cars to eliminate loading and unnecessary loading and unloading of freight Requires additional studies
Intermodal integration Inland Clearance Depot development Cargo handling Storage capacity Customs and border facilities Computer systems integration Develop inland clearance depot areas, investment and procedures Finance and install adequate cargo handling, storage and loading/unloading equipment to increase capacity and reduce congestion Improve foreign access to competitive maintenance and repair of infrastructure and facilities Improve sustainable financing arrangements of infrastructure 2 - 5 handling costs 5 - 20 intermodal integration and inland clearance development
Transport Mode
Infrastructure
35
Transport and Logistics Checklist Case Study
Guide
Customs and Border
Corruption Automation Professionalism and training Procedure harmonization and simplification Regulation and legislation transparency Customs procedures simplification programs Document harmonization and electronic collaboration implementation Innovative clearance procedures including pre-clearance, selective inspection, international best practices training Legislative requirements transparency and timely information dissemination programs Professionalism development and procedure training programs to reduce corruption Co-location of customs facilities and other border agencies to promote the smooth transit of goods and persons 5 - 15 improvement of time cost of goods 2 -5 of document preparation costs
Local insurance requirements Currency controls Letter of Credit and Documentary Credit procedures Elimination of local insurance requirements Eliminate price controls that reward poor service and quality Improve access to credit for credit payment instruments 1 - 2 of export transaction cost through reduced premiums
Value added service development Global network coverage License and permit procedures of foreign providers Entrenched state monopoly providers - Increase legal and regulatory transparency Restrict state intervention to crisis situations Implement financial guarantee programs and bankruptcy laws Limit licensing requirements and eradicate preferential treatment programs Create independent standards associations to monitor and develop standards of quality and service Foreign entrant attraction programs to disseminate advanced know-how Guarantee protection from harassment and institute judiciary reforms Increased quality and scope of services offered
Banking and Financial
Transport Intermediaries
36
Transport / Logistics Cost Improvement
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