Presentación de Mahmood Al Bastaki, CEO Dubai Trade

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Logistics Centers as strategic areas of national development

Logistics Centers as strategic areas of national development

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  • Definition :
    A collection of logistics service providers and business logistics functions confined within one physical location such that it is of economic advantage to the location as well as for the individual companies.
    Enable cooperation on a regional level whilst retaining the internal competition so as to be profitable for companies

    Value added operations
    Specialized logistics operations and value adds to products lead to economical solutions for local production system.
    Provide intermodal connectivity
    Convenient interconnected solutions offering sea, road, air and/or rail shipping
    Foster infrastructure rationalization
    Optimize area and equipment utilization.
    Improve transportation quality & service frequency
    Facilitate logistics activities to increase transport service frequency and overall logistics quality
  • Infrastructure operators are sea port and air port operators like DP World Caucedo
    Logistics service providers are the forwarders, consolidators and brokers
    Transport providers are the Road ways, Shipping Lines and Air lines
  • To continue its dominance as a Trade Hub, UAE has been investing heavily in its trade and transportation infrastructure. By this I mean both the Hard infrastructure which comprises physical road, rail and port infrastructure and the soft infrastructure which comprises the system of governments, rules and regulation that facilitate the trade related services.
  • This slide show cases some of the key institutions that participate in creating the soft infrastructure.

    It is very important that the flow of information (both financial and transactional) is seamless, else it may cause a lot of bottlenecks for trade such as visit to multiple counters, long queues etc..
  • For trade and transport sector to fully benefit from these developments it would be imperative that the hard & soft infrastructure are seamlessly integrated to orchestrate data and information across all the entities involved in the Trade and Logistics sector.

    This will ensure near 100% utilization of the physical infrastructure that is being created for our future.
  • Redo slide.. Add #4 RANK

Transcript

  • 1. Mahmood Al Bastaki Chief Executive Officer, Dubai Trade August 26, 2014 Perspectives from Dubai, United Arab Emirates
  • 2. 0% 10% 20% 30% 40% 50% 60% 70% 80% 0 10 20 30 40 50 60 70 80 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TrillionUS$ World GDP (Trillion US$) World Trade (Trillion US$) Trade as % of World GDP State of the World Economy & Trade Share of World Trade has increased by more than 12% in World GDP, bouncing back from the slump in 2008/09 as compared to 9% growth in the previous 10 years from 1993 to 2002 Data Source – World Bank. World Trade above refers to World Merchandise Trade
  • 3. Broad Trends that fuelled Trade growth Slow growth in Local markets Increased globalisation of Multi National Companies Creation of New Global Value Chains Advancement in Shipping, Air & Railroad Innovation s in ICT Unbundlin g of Services
  • 4. Importance of Logistics Centers in the Global Value Chains Value added operations Provide intermodal connectivity Foster infrastructure rationalization Improve transportation quality & service frequency
  • 5. Core components of a Logistics Center Infrastructure Operators Logistical service providers Transport providers Trade Facilitators Trade Policy Regulators Hard Infrastructure Soft Infrastructure
  • 6. Logistics Center – Dubai Example Hard Infrastructure Soft Infrastructur e
  • 7. Logistics Center – Dubai Example Palm Jebel Ali Palm Jumeriah World Islands Jebel Ali Port Cruise Terminal Jebel Ali Free Zone Dubai World Central Cargo Village Airport Free Zone Dubai Airport Jebel Ali Port: The 9th largest in the world (2012). Planned capacity to reach 19 mn TEU by 2014 Dubai International Airport Cargo Gateway: 2nd busiest airport in the world (international passengers) and 3rd for international freight traffic. Jebel Ali Free Zone: One of the largest free zones houses 7,300 multinational companies which generated trade worth USD 100 billion in 2013. Dubai World Central: Planned to become the busiest airport city in the world, DWC handled 210,000 tonnes of cargo in 2013 Logistics Corridor Logistics Corridor Dubai World Central Master Plan
  • 8. Logistics Center – Dubai Example Hard Infrastructure Soft Infrastructur e
  • 9. Freight Forwarders & Customs Brokers Transport Companies Free Zone Companies Customs Authority Sea Port Operator Shipping Lines & Agents Company Licensing Authorities Exporters & Importers Air Cargo Handlers Financial Institutions Insurance Companies Soft Infrastructure Participants Chamber of Commerce Visit Multiple counters Long queues at counters Paper intensive Lack of transparency and standardised procedures Permit Authorities
  • 10. Dubai Trade - Single Window for Trade Freight Forwarders & Customs Brokers Transport Companies Free Zone Companies Shipping Lines & Agents Exporters & Importers
  • 11. Seamless integration between the two is a must Hard Infrastructure Soft Infrastructur e
  • 12. Key Indicators 30 entities connected 45 min transit time between Sea-Air trans- shipment 83 million transactions 85% of cargo moves without human intervention by Customs Trading across Borders rank #4 Registered Companies 100,000
  • 13. Impact on the Economy 400.04% 6 > TOTAL SAVINGS IN EXPORT AND IMPORT TO TRADERS $40.2 BN Source – Emirates Competitiveness Council Policy in Action Series, Issue 03 (Dated Jan, 2012) COST OF CAPITAL (ASSUMPTION) 0.04% PER DAY DAYS SAVED IN EXPORT DAYS SAVED IN IMPORT 3 PER TRANSACTION 3 PER TRANSACTION TOTAL MERCHANDISE EXPORT $185 BN TOTAL MERCHANDISE IMPORT $150 BN TOTAL SAVINGS IN EXPORT $22.2 BN TOTAL SAVINGS IN IMPORT $18.0 BN X X X = = TOTAL SAVINGS IN EXPORT AND IMPORT TO TRADERS $40.2 BN