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Building the Road Together: How to gain connectivity, integration and development across Eurasia

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Secretary General Keith Newton speaks at the 5th China International Logistics Development Conference in Changsha

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Building the Road Together: How to gain connectivity, integration and development across Eurasia

  1. 1. ciltinternational.org 1 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Changsha | 16 – 17 November 2018 Building the Road Together: How to gain connectivity, integration and development across Eurasia Keith Newton Secretary General, CILT
  2. 2. ciltinternational.org 2 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development • Who we are in CILT • The CILT role in Belt & Road • Aview from our Institute • The status of BRI in UK & Europe • The key development areas • Opportunities& Threats to workon What I will cover today • Connectivity, Integration & Development: areas to work together on • Stronger Together for the Future
  3. 3. ciltinternational.org 3 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development • We were founded in 1919 with our centenary in 2019 • We are defined by our Royal Charter • We have clear aims in our Charter to promote the art and science of logistics and transport • We are a Global individual professional membership body • We have Institutes in 35 countries & members in many others • We have set global membership & education standards Who we are
  4. 4. ciltinternational.org 4 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development
  5. 5. ciltinternational.org 5 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development • To encourage cooperation & partnership between professionals in the Transport & Logistics sector • To support governments & corporate bodies in the application of professional standards & knowledge in the Transport & Logistics sector Our role in the Belt and Road Initiative • To encourage the education & training of professionals and prospective career entrants in Transport & Logistics • To create mediums of exchange of ideas & best practice across the Belt & Road World My content is a CILT UK, CILT Ireland & European focus. This is drawn from our CILT UK Policy & Rail Forums, our Corporate members in the UK, CILT Ireland IVP & contacts with China / UK Business Forums /China – Britain Business Council. CILT UK & Ireland have policy input at Government level.
  6. 6. ciltinternational.org 6 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development
  7. 7. ciltinternational.org 7 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Working together across continents we are Stronger Together!
  8. 8. ciltinternational.org 8 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Views on the Belt & Road The return of Marco Polo’s world – Robert Kaplan USA Writer and Journalist The Path of Peace – President Xi Jinping The Silk Roads were never purely Chinese…these roads are shared & cannot be one way – President Macron of France
  9. 9. ciltinternational.org 9 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Views on the Belt & Road In a globalised world there are many belts & many roads – James Mattis, US Defence Secretary History gives people the opportunity to march forward in some special years…2018 is such a year – Zhang Jianmin, Chinese Ambassador to the Czech Republic
  10. 10. ciltinternational.org 10 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development The status of BRI in UK & Europe • There remain physical blockages such as efficient transshipment • There needs to be more commercial engagement such as a flexible negotiation of price across many buyers • There needs to be more systems and process alignment to enable visibility of cargoes, information exchange • The rail routes in are highly competitive in lead time & cost • Rail based freight to & from China & the East is advantaged • But the UK / China train stopped running on 31st August • The UK have not taken advantage of the concept of through trains unlike other European countries like Spain
  11. 11. ciltinternational.org 11 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Opening route from Henan to Liege in October
  12. 12. ciltinternational.org 12 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development The status of BRI in UK & Europe • There are opportunities to bring in more traffic that need to be capitalised – cars in containers, Brexit specific discussions, Corporate engagement, other routes in Europe • Early UK trains have led to lessons learnt & this now requires greater engagement between operator and client & the creation of an improvement agenda together • There needs to be more focus on loads into China as well as loads out to Europe
  13. 13. ciltinternational.org 13 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development • Infrastructure & Operations • Capital & Finance • Skills & Expertise The Key Development Areas in Eurasia
  14. 14. ciltinternational.org 14 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Strengths & Weaknesses Weaknesses • Financial investment opportunities are too focused on Chinese companies – 89% of projects • Dependence rather than interdependence at a country & investment level • Competitive market is weakened by China dominance e.g. China ownership of 66% of world’s top 50 container ports • Focus on training and skills remains low and is area of criticality Strengths • Capacity is built in & can be increased significantly • Improved lead times gives major customer benefit • Costs already advantaged for freight movements • High levels of involvement globally as China reaches out • Investment has already brought huge infrastructure improvements
  15. 15. ciltinternational.org 15 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Opportunities & Threats • Greater corporate & professional body involvement would enable application of professional rather than political skills Threats • Trade Wars and International trading situation • Financial over dependence & lack of return on investment Opportunities • Efficiencies and improvements in movement & costs are there • Use of other routes into Europe & within Europe can develop further • Brexit could bring specific UK opportunities • Development opportunities in new economic areas, ports & regions – Eurasia, Africa, Pakistan & Bangladesh
  16. 16. ciltinternational.org 16 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Areas to work together on: Infrastructure & Operations Connectivity, Integration & Development
  17. 17. ciltinternational.org 17 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development What is the supply chain environment & how is it changing? • Emerging Technologies will impact the supply chain but maybe not as quickly as many believe – e.g. AI, Blockchain • Need for integrated approaches & decision making will increase • Performance of Supply Chains will become more critical for Businesses to remain ahead
  18. 18. ciltinternational.org 18 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development
  19. 19. ciltinternational.org 19 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development
  20. 20. ciltinternational.org 20 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development UK has already over reliance on Dover - Motorway (M 20) leading to Channel tunnel Brexit will add to this! Opportunity to address this by freight entering / leaving UK via the Northern ports
  21. 21. ciltinternational.org 21 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Liverpool and Hull – two Northern key ports • Liverpool and Hull are the two key northern UK ports • They form a land bridge in a global northern European trade corridor Trade from the west Trade from the east
  22. 22. ciltinternational.org 22 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Areas to work together on: Skills & Education Connectivity, Integration & Development
  23. 23. ciltinternational.org 23 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development • Developed by the Ministry of Healthcare and Social Development and Ministry of Education in 2012 • National Qualifications System implemented in 2012 in line with European Qualifications Framework • NQF balances the labour market + education sector • 8 levels The skills challenge – skills across borders in Kazakhstan
  24. 24. ciltinternational.org 24 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Skills study – above and below the line
  25. 25. ciltinternational.org 25 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development The skills challenge across the Belt and Road What the Logistics Performance Index tells us in 2018 This means competence and quality of logistics services (e.g. transport operators, customs brokers)
  26. 26. ciltinternational.org 26 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development The skills challenge across the Belt and Road What the Logistics Performance Index tells us in 2018
  27. 27. ciltinternational.org 27 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development • Consistency and harmonisation • Core skills development and volume of qualified personnel • Innovative solutions matched with skills development • Skills capacity needs to be integrated within any Belt and Road technological, operational or physical infrastructure project • Skills and competencies working together The skills challenge – skills across borders in Kazakhstan
  28. 28. ciltinternational.org 28 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Stronger Together for the Future
  29. 29. ciltinternational.org 29 The 5th China International Logistics Development Conference | Changsha | Connectivity, Integration and Development Thank You Keith Newton Secretary General, CILT Contact Email keith.newton@ciltinternational.org

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