WORLD BANK GROUP

LOGISTICS PERFORMANCE INDEX

CONNECTING TO COMPETE 2010

Monica Alina Mustra

INTERNATIONAL TRADE DEPARTMENT

FIATA World Congress Oct 16 –21, 2011

Cairo, Egypt
 Early Bank Projects
bullet train in Japan

hydroelectric in Chile
11/30/2011 2
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THE WORLD BANK ANNUAL REPORT 2011

Fiscal Year Highlights

In fiscal 2011, the World Bank Group

committed $ 57.3 billion, distributed in
credits, loans, grants, and guarantees.
Where We Work
Mapping for Results

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 A Dynamic Environment

New focus

Quality and efficiency Cross-cutting

of service providers issues:
• Freight forwarders • Collaborative border
• Customs brokers management
• Truckers • Making transit work

Trade Related Customs reform

infrastructure and modernization
• Roads • Fiscal focus
• Ports • IT orientation
• Railways

Old focus

Both the old and new focus needed for success!

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 How does the World Bank help?

Advise governments on reforms

Border Improvement in border management in a broad sense:
management integration of customs, product standards, tax, rules of origin, etc.

Trade Improvement in the management of key trade related infrastructure,

Infrastructure especially gateways and multimodal facilities

Logistics Improvement of the quality/professionalism of private logistics services,

services through technical/economic regulation and capacity building

Regional Regional trade facilitation including transit systems

Performance monitoring and indicators: e.g., data on time, cost,

Indicators
and reliability along corridors

Action plan Development and implementation of comprehensive action plan

addressing all of the above
 Global Partnerships
United Nations
Regional Banks

World Customs Organization

Strategic
World Trade Organization
Alliances
FIATA
Global Express Association
World Economic Forum
Multinational Corporations
ACADEMIA
 Where does the World Bank come in?

Logistics providers increase level of

services as they will operate in better,
faster and more reliable environments

Countries
Become
Governments more
Advice on competitive
reforms
World Bank
Indicators
essential for
reforms
FIATA

Carry your voice to governments!

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The Logistics Performance Index

• 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

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 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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Voice of the private sector

Built on:
more than 5,000 country
assessments by over 1000
logistics professionals
worldwide
Primary data gathered for 155
countries
 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

International LPI Domestic LPI

Evaluate 8 overseas markets Evaluate Country of work

General International Domestic Domestic

module Qualitative Qualitative Quantitative
Performance Performance Performance

Country 1
Country 2
Country 3
Country 4
Country 5
Country 6 Country A
Country 7
Country 8
 LPI Questionnaire Structure

International LPI
Evaluate 8 overseas markets Six dimensions of country performance:

Efficiency of the clearance process

Quality of trade and transport infrastructure
Ease of arranging competitively priced shipments
Logistics competence and quality of logistics services
General International Ability to track and trace consignments
module Qualitative Timeliness of shipment delivery
Performance

Country 1
Country 2
Country 3
Country 4
Country 5
Country 6 Country A
Country 7
Country 8
A country’s performance is only as good as its weakest link
 Countries are improving around the world

Logistics unfriendly
Partial performers
Consistent performers
Logistics friendly
No data
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 LPI 2010 Ranks

TOP 10 COUNTRIES TOP 10 COUNTRIES TOP 10 COUNTRIES

UPPER MIDDLE INCOME LOWER MIDDLE INCOME LOW INCOME

Country LPI Rank Country LPI Rank Country LPI Rank

South Africa 28 China 27 Vietnam 53

Malaysia 29 Thailand 35 Senegal 58
Poland 30 Philippines 44 Uganda 66
Lebanon 33 India 47 Uzbekistan 68
Latvia 37 Tunisia 61 Benin 69
Turkey 39 Honduras 70 Bangladesh 79
Brazil 41 Ecuador 71 Congo, Dem. Rep. 85
Lithuania 45 Indonesia 75 Madagascar 88
Argentina 48 Paraguay 76 Kyrgyz Republic 91
Chile 49 Syrian Arab Republic 80 Tanzania 95

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 Good News:
All countries performing better

With the right

investment and
policies, lower
income countries
can also be high
performers

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 % of the highest performer

LPI 2007 LPI 2010

Highest performer Singapore 100% Highest performer Germany 100%

Lowest performer Afghanistan 7% Lowest performer Somalia 11%

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Positive trends since 2005

 Use of
standardized IT
solutions in
logistics is
widespread
worldwide, and

 Customs reform
progressed in
most countries

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LPI Questionnaire Structure
Domestic LPI
Evaluate Country of work

Domestic Domestic
Qualitative Quantitative
Performance Performance

Country A
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 Time and Cost Indicators
Lead time export Lead time import

EXW FOB DES DDP

(Shipper) (Free carrier at Port (Carriage paid to (Delivered duty
of loading or Port of discharge or paid)
equivalent) equivalent)

Delivery Alongside Unloaded

to Dock Vessel on Dock

Point of Origin
Seller’s Factory Delivered to
Buyer’s
Frontier/ Warehouse
Border

Exporting Country Importing Country

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 Logistics Performance Index (LPI)
Trade and Transport Facilitation Assessment (TTFA)

• MEASURES the trade logistics • Diagnostic tool for countries to

efficiency of a country perform an in-depth assessment
and inform policy
• Fundamental premise: Efficient
logistics drives economic • Plans of action to IMPROVE
performance and logistics performance
competitiveness
From global benchmarks to country-level assessments 34
 Mashreq Corridor Program

USD 6.8 billion

 Implementation over 15
years (2 phases)

Infrastructure (border crossings

facilities, road and rail improvements)

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
 Thank you

mmustra@worldbank.org
 Contact Us

The World Bank Group

International Trade Department
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

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