Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Gozde isik updated logistics presentation cgf_gozde_isik_june2012 (2)

277 views

Published on

Published in: Business, Travel
  • Be the first to comment

  • Be the first to like this

Gozde isik updated logistics presentation cgf_gozde_isik_june2012 (2)

  1. 1. Logistics in the Caribbean Current Trends and Future Prospects Caribbean Growth Forum June 19th, 2012 Kingston, Jamaica Jordan Schwartz Gözde Isik World Bank
  2. 2. Productivity losses (%) 30 OECD LAC 25 20 15 10 5 0 Merchandise losses: Share of primary goods that do not arrive at market Logistics costs as share of market value Levels of Inventory Sources: World Bank, Guasch (2004, 2008)
  3. 3. These basic goods represent 20% to 30% of household income For the poor may represent up to 70% Share of HH Budget spent on food Logistics and transport costs are 2 to 10 times higher than import tariffs for basic goods. GDP per capita (log) Source: Dessus, et al, World Bank (2008); data from household surveys .
  4. 4. 45 42 LAC Logistics Costs: % of Total Value of Firm Sales 40 35 1 2.7 30 25 18 1 5 7.31 1 .36 1 29.4 18 6.28 20 18 1 0.63 1 1 1 0 5 6.9 0 Les s than US$ 5 M US$ 5 M to US$ 50 M US$ 50 M to US$ 500 M Inventory Management &Warehous ing More than US$ 500 M Trans port &Dis tribution
  5. 5. 1.2 1 4% 6% 0.8 US$ Ct/K 36% 0.6 2% 0.4 19% 0.2 0 34% Margins Warehousing costs Transport Costs Duties, customs fees and phitosanitary certificates Handling and conditioning, packing, and other admin. Costs Farm gate price
  6. 6. Maritime transport costs as a share of Containerized Exports to the US and South America (% FOB value) to US to South America Guyana Antigua & Barbuda Cuba Guyana Dominica Haiti Dominican Rep Dominican Rep Barbados Barbados Caribbean Trinidad & Tobago Belize Belize Dominica Antigua & Barbuda Bahamas Jamaica Grenada Bahamas Grenada St Lucia St Vincent Jamaica Haiti Suriname Developed country average 0% 3% 6% 9% 12% 15% 18% 0% Source: UNECLAC 2009 5% 10% 15% 20% 25%
  7. 7. Location: At the intersection of the major east-west and north-south trade routes Lack of natural hinterlands and small domestic markets Lack of scale economies: negative trade balances and related backhaul problems Emergence of the hub and spoke system in liner services as larger ships were introduced over time for major routes
  8. 8.        Infrastructure Location Depth Reliability Competitive rates Security Critical mass
  9. 9. Port of Freeport Spain 4% 98% Other, 9% Kingston 90% Colon, 26 % Cartagena, Colon 80% 13% Port of Spain/Point Lisas Caucedo; 8% Kingston, 19% Freeport, 21% 60% Rio Haina/Caucedo 50% Cartagena 40% 0% Source: Contecar 2011 Large domestic markets 20% 40% 60% 80% Source: McCalla 2009 100%
  10. 10. Kingston Freeport Port of Spain Bridgetown Castries 300 Economic recession Maersk leaves 250 200 150 100 Source: Containerisation International 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  11. 11. Hong Kong Egypt Panama Jamaica Colombia Bahamas Dominican Republic Mauritius Fiji Cuba Barbados Haiti Cape Verde Suriname Saint Lucia Guyana Saint Vincent and the… Grenada Belize Saint Kitts and Nevis Antigua and Barbuda Dominica 0 20 40 60 80 100 120 Cost to ship 20ft container from Miami (USD) Liner shipping Connectivity Index 2011 4000 Basseterre 3500 Roseau 3000 2500 Castries PAP St Johns Paramaribo 2000 POS Bridgetwon Caucedo Cartegena Colon Kingston 1500 1000 500 0 0 Connectivity index Source: UNCTAD and shipping lines Transshipment hubs St Georges Kingstown 10 20 30 40
  12. 12. Geographic distance
  13. 13. Economic distance
  14. 14. Intra-Regional fleet deployment 700 350,000 600 300,000 500 250,000 400 200,000 300 150,000 TEUs Vessels 200 100,000 100 50,000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: CI Number of vessels Total number of TEUs 400,000
  15. 15. Efficiency scores based on utilization of infrastructure San Juan In terms of utilization of equipment and yard and berth areas, some ports have room to grow while other do not…something to think about when considering expansion Freeport Balboa Colon Cartagena Port of Spain Havana Point Lisas Kingston Rio Haina Belize City Caucedo St Johns Bridgetown Fort Vieux Roseau 0% 20% 40% 60% Source: World Bank 2012 80% 100%
  16. 16. Logistics is central to boosting the region’s competitiveness The widely accepted prognosis is that the Panama Canal expansion will increase transshipment traffic in the Caribbean Not entirely clear if capturing more transshipment traffic will help reduce logistics costs and increase efficiency of logistics services in the region as a whole (including connectivity of small non-transshipment ports) Logistics bottlenecks must be removed in order to fully reap the benefits of the Panama Canal expansion

×