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
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
Notes de l'éditeur
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.