Patricia Veevers-Carter of the World Bank presented this document on June 18th 2013 at the 11th edition of the Mediterranean Logistics and Transport Forum and the 6th Mediterranean Ports and Shipping Summit in Barcelona in the framework of the 15th Anniversary of the International Logistics and Material Handling Exhibition (SIL 2013). Organized by the Association of the Mediterranean Chambers of Commerce and Industry (ASCAME), the Consorci of Zona Franca de Barcelona, organizers of the SIL, with the support of the Chamber of Commerce, Industry and Navigation of Barcelona, the UfM (Union for the Mediterranean), the EIB (European Investment Bank) and others, this forum represents an exclusive opportunity to meet more than 300 actors of the transport and logistics sector in the Mediterranean and explore business opportunities.

1. 11TH MEDITERRANEAN LOGISTICS & TRANSPORT FORUM
JUNE THE 18TH IN BARCELONA
The Potential of Mediterranean Transport and Logistics Integration
INFRASTRUCTURE + LOGISTICS = Economic transformation
Patricia Veevers-Carter, World Bank

2. CONTENT
• Why is regional integration of infrastructure necessary?
• Why is it not happening?
• What to do?
• IFI support, including WBG
2

3. WHY IS THE INTEGRATION OF REGIONAL INFRASTRUCTURE NECESSARY?
• Geography & proximity, density & intensity of traffic mean high returns to integrated
infrastructure investments
• Leverages assets for the region’s countries and integrate economies of the region into
new and emerging global supply chains => enhanced economic competitiveness,
economic diversification
3

4. WHY IS IT NOT HAPPENING?
3% vs 17% vs 60% 4

5. WHY IS REGIONAL INTEGRATION OF INFRASTRUCTURE NOT HAPPENING?
• Infrastructure still a serious constraint on supply chain effectiveness, including
ports and inland logistics in large urban environments, especially in Mediterranean
countries
• However, major issues confronting all MENA countries are soft side issues, namely
Non Tariff Barriers, such as Trade/customs procedures => “surcharge”
5

6. TRADE COSTS VERY HIGH FOR INTRA-REGIONAL TRADE
DZA-ESP
DZA-FRA
DZA-ITA
DZA-MAR
DZA-TUN
FRA-ESP
FRA-ITA
ITA-ESP
MAR-ITA
MAR-ESP
MAR-FRA
MAR-TUN
TUN-ESP
TUN-FRA
TUN-ITA
0%
50%
100%
150%
200%
250%
300%
350%
0% 20% 40% 60% 80% 100% 120%
Agriculture
Industrial Products
Comparison Maghreb Europe
“surcharge” explains the low level of intra-regional trade
6

7. WHY IS REGIONAL INTEGRATION OF INFRASTRUCTURE NOT HAPPENING?
• Weak public- private dialogue due to structure of the productive sector and the
small share of manufacturing, especially in oil countries => Regional integration
agenda is more government-led with less voice of the private sector.
• Cooperation between countries, and trade levels, including neighbors are
especially low in MENA. With exception of GCC, little implementation of cross
border projects, including where there is an existing REC such as the Arab Maghreb
Union (UMA) => despite Pan Arab Trade Area, countries apply more restrictions to
trade between themselves than with third countries in the form of non-tariff
barriers.
• No incentives nor mandates to prioritize regional integration, even at sub-regional
levels, eg UMA
7

8. DRIVERS FOR IMPROVEMENT OFTEN EXTERNAL TO REGION
8

9. WHAT TO DO?
Action Plan depends on which group of countries:
• Maghreb (Algeria, Libya, Morocco and Tunisia): Morocco and Tunisia have done
comparatively well in trade facilitation and logistics; Libya yet to catch up, while
Algeria at an intermediate stage.
• Mashreq (Iran, Iraq, Jordan, Lebanon, Syria): Iran, Iraq, Syria are yet to catch
up, while Jordan and Lebanon have done comparatively well in trade facilitation
and logistics.
• Egypt: intermediary stage
• GCC : much more advanced =>moving towards a customs and monetary union
9

10. WHAT TO DO?
• Regional studies have been prepared for Mashreq and Maghreb, with
accompanying action plans.
• Action plans combine parallel capacity building and plurilateral activities to be
implemented at the sub-regional level
• Examples of parallel capacity building: Trade Facilitation assessments
• Examples of plurilateral activities: Customs Integration, LOGISMED
10

11. IFI SUPPORT
• Regional Studies on Trade facilitation and Infrastructure prepared by WB - Maghreb
study prepared in liaison with UMA secretariat and participation of the five Maghreb
countries). Linkages of the proposed Maghreb Action Plan with ongoing EU/EIB/UfM
initiatives
• LOGISMED - an initiative launched by the EIB to develop the logistic sector in
Mediterranean Partner Countries (MPCs) through creation of a network of Euro-
Mediterranean Logistic Platforms (EMLP)
• TRANSTRAC – an initiative launched by the EIB enhancing economic development
and employment creation in the Transition Countries (Deauville partnership) by
building up the transport sector capacity to identify, prioritise, prepare and
implement projects that are consistent with both national and regional
objectives, and that can meet the due diligence requirements of potential
international funders and as a result help connect the region and integrate it into the
global economy, support trade, boost development and address key transport
challenges
11

12. THANK YOU
Pveeverscarter@worldbank.org