Future Challenges for Transport Logistics A Freight Forwarder s Perspective

Transcription

1 Future Challenges for Transport Logistics A Freight Forwarder s Perspective Issa Baluch Chairman and CEO, Swift Freight International Immediate Past President, FIATA World Bank Transport Forum March 27, 2006

2 Index Three challenges 1. Infrastructure 2. Laws, policies and procedures 3. Long-term planning and vision Changing role of the freight forwarder The quest for increased safety and security FIATA Q & A 2

3 Infrastructure Export competitiveness: a country must be able to bring its goods to foreign markets through the use of high-quality, low-cost transport networks. 3

4 4

5 Infrastructure: African Railways poor service and maintenance overstaffing lack of technical and financial discipline financial losses Railways need to be: upgraded restructured opened to private investment linked to form a Pan-African network 5

6 Laws, Policies, and Procedures Airports, seaports, and container terminals are only as efficient as the people and processes inside. Dubai: effective policies and procedures that complement the world-class infrastructure tax incentives and export promotion schemes open-sky policies paperless trade 6

7 Dubai, United Arab Emirates 7

8 Policy-related Obstacles for Exports Burundi: floriculture exports air traffic rights take 7-10 days exorbitant royalty payments Bangladesh: ready-made garments and seafood exports complex border tax regime government bureaucracy Karachi, Pakistan: transit point for Afghanistan 8

9 Long Term Planning and Vision Berlin Airlift: 2.3 million tons of cargo delivered to Berlin Allied planners spent two years preparing for the D-Day invasion in Panama Canal construction: engineers took months to upgrade infrastructure and build a railway network along the canal route 9

10 Long Term Planning and Vision governments must have a vision and a plan share it with the private sector enable supply chain players to become wheels of commerce training and development stakeholders will want to share in the vision and partner with government Singapore and Dubai clearly-articulated plans healthy partnerships between the public and private sectors 10

11 Long-term Planning and Vision incompetence and nepotism having the wrong people in the right jobs or the right people in the wrong jobs need for training and development 11

12 Forwarder s Changing Role 12

13 The Forwarder s Changing Role Demands on global transport and logistics increasing: leaner supply chains just-in-time production methods outsourcing of manufacturing Few companies need a traditional freight forwarder. Forwarders must integrate themselves into their customers global supply chains and add value. Healthy public-private partnerships create an environment where freight logistics providers are enabled to add value to the supply chain. 13

14 Quest for Increased Safety and Security It s a jungle out there WCO SAFE ISPS AMS ACI CTPAT DG TREN ESRAB PIP FAST CSI EU AEO ISO TAPA SOBCAH ESSTRT 14

15 Quest for Increased Safety and Security Major challenge: drawing up minimum standards when there are differences in the technological capabilities of different countries 15

16 Quest for Increased Safety and Security Tasks of government: identify the terrorist threat set standards certify known shippers and regulated agents create incentives for participation in such programs convince the private sector of the importance of securing their supply chains 16

17 Quest for Increased Safety and Security Responsibility of the private sector: create a culture of security in business be committed to supply chain security 17

18 International Federation of Freight Forwarders Associations (FIATA) Zurich-based since 1926 the global voice of freight logistics representing 40,000 forwarding firms in 150 countries consultative status with UNCTAD, ECOSOC, UNECE, and UNESCAP challenges: new trade conventions, security regulations, liability issues, and regional trade blocs created documents and forms to encourage uniform standards training programs: help forwarders utilize the tools of the modern logistics industry help forwarders navigate challenges and changing conventions promoting cooperation between national member associations, the training of freight forwarders, evolution within the industry, and value addition by freight forwarders 18

19 In Conclusion The freight logistics industry demands consistent, healthy, public/private partnerships in Private investment in infrastructure Advanced information and communication technologies The implementation of paperless trade and e- commerce Growth in infrastructure to be accompanied by laws, policies and procedures 19

20 In Conclusion Government must share its vision with the private sector Partner to implement trade-friendly policies and procedures: Open sky policies to facilitate air cargo Export promotion and trade incentive schemes The removal of red tape and bureaucracy The eradication of lengthy customs and border procedures Simplification of the tax/duty regime 20

21 Thank you for your attention 21