Latin America and the Caribbean Infrastructure Services: Diagnosis and Challenges
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1 Regional Dialogue on Promoting Services Development and Trade in Latin America and the Caribbean November 2013 Room Raul Prebish, ECLAC, Santiago Latin America and the Caribbean Infrastructure Services: Diagnosis and Challenges Mr. Ricardo Sanchez Senior Economic Affairs Officer, Natural Resources and Infrastructure Division and Chief, Infrastructure Services Unit (ECLAC) This presentation is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.
2 Looking into the future Latin America and the Caribbean Infrastructure Services: Diagnosis and Challenges Ricardo J. Sánchez Senior Economic Affairs Officer Natural Resources and Infrastructure Division 0
3 Ricardo J Sanchez CEPAL Naciones Unidas Ricardo.Sanchez@ECLAC.org Diagnosis and major infrastructure challenges in LAC Physical tightness or shortage High dispersion and multiplicity of views and public action Failures or institutional and regulatory obstacles Weakness and / or lack of sustainability criteria 1
4 Investment in infrastructure in major countries of LAC, (% del PIB) Source: updates of Perrotti y Sánchez (2011) Infrastructure gap in LAC, CEPAL, Serie DRNI 153, Santiago de Chile Sánchez, Wilmsmeier and Pérez 2013
5 p 2010p Ricardo J Sanchez CEPAL Naciones Unidas Ricardo.Sanchez@ECLAC.org The infrastructural gap Estimate of the infrastructure gap in transport in Latin America (base 1995 = 100) Brecha Gap Efectivo Supply Necesario Demand Source: ECLAC,
6 GDP per cápita Ricardo J. Sánchez CEPAL Naciones Unidas Infrastructure, development and equity GDP per capita and Logistics Performance Switzerland Denmark Israel Portugal Ireland Netherlands United States Finland Belgium Sweden Australia Germany France Japan Singapore Italy Canada Spain United Kingdom New Zealand Bahrain Korea, Rep. Mexico Venezuela, RB Panama Chile Brazil Uruguay Lebanon Argentina South Africa Jamaica Costa Rica Malaysia Colombia Algeria El Salvador Ecuador Thailand China Iraq Guyana Bolivia Vietnam India Guatemala Peru Liberia Haiti Logistics Index 4
7 Efficiency of whole logistics chain? IT IS a PENDING goal! Servicios portuarios Trámites de internación Flete terrestre Uso de la infraestructura 2.3% 5.4% 42.8% 4.8% 1 1 Series1 Series1 Series2 Series2 Santos-Monterrey 0% 20% 40% 60% 80% 100% 120% 0% 20% 40% 60% 80% 100% Marítimo 5.1% 39.5% 47.6% 7.7% TRM Puerto Santos-Mexico DF 39.7% 6.4% 7.9% 46.0% Terrestre a destino 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Servicios portuarios 2.4% 5.6% 41.1% 4.9% 1 1 Series1 Series1 Trámites de internación Series2 Flete terrestre 0% 20% 40% 60% 80% 100% 120% 0% 20% 40% 60% 80% 100% Series2 Uso de la infraestructura Source: Sánchez (2013) 5
8 Ricardo J Sanchez CEPAL Naciones Unidas Ricardo.Sanchez@ECLAC.org For us, the main challenge is to align the conception, design, implementation, control and monitoring of policies related to infrastructure services in order to maximize their impact on development. A review of the current policies is required. 6
9 PARADIGM CHANGE STRATEGY OF INTEGRATED AND SUSTAINABLE POLICIES ON INFRASTRUCTURE, LOGISTICS AND MOBILITY INTEGRALITY Design, Execution and Control SUSTAINABILITY Economic, Social, Environmental and Institutional Infrastructure and logistics To organise infrastructure, logistics and mobility projects into a hierarchy To generate and preserve statistics Logistical and productive lines Monitoring of the logistical requirements of the productive system Encouragement of logistical firms I&D+i and Human Resources HHRR training Innovation in logistics, ICTs, SMEs Policies and plans Strategy definition and link to other policies Logistical planning Financing Harmonisation COMPREHENSIVE VISION AND ACTION FOR LOGISTICS AND MOBILITY Provision of transport and trade Technical regulations and simplification of procedures and documents Normative Frame Legal and regulation reforms according to the policy s strategy. Institutionality and participation Organisation and state conduction of the policies Government- Private Sector- Civil Society- Academy Interaction Economic regulations Technical Regulations CO-MODALITY Modal shift Urban Inter-cities Regional International Passengers Goods Source: Georgina Cipoletta Tomassian (2011) 7
10 Objectives and strategies Performance Indicators Unit Increased system efficiency Proportion of business national logistics logistics costs % Capacity utilization and logistics network connection Proportion of public Increase and reconstruction infrastructure logistics center construction (with planned comparison) % Railroad tracks in industrial landscape (ports and industrial % 16 (9,7) 16 (9,7) 23 (13,10) complexes) Expansion of the intermodal transport network Proportion of use of rail transport in ports and industrial complexes 1.2 Soft Assurance infrastructure to provide high-quality logistics service Progress of the quality of national Logistics Performance logistics service Index by World Bank Unit Point Improving logistics normalization Improved vacuum phenomenon in logistics transport use Assurance of professionals in the logistics sector Ratios for standard palette Proportion of empty trucks operation Proportion of logistics professionals in logistics entities % % %
11 Objectives and strategies Performance Indicators Unit Establishment of green logistics system for low-carbon Using stimulation Proportion of mass mass transit transit distribution % System Establishment Proportion of trucks in ground transportation focused commercial use in commercial use % Promoting employment Proportion of logistics professionals % National wealth generation through Proportion of gross sales logistics in logistics entities % Fostering entrepreneurship in logistics and global network Growth in sales outside the national logistics entities Ratio of sales outside logistics companies % Establishing global logistics network Fostering international logistics company Numbers of foreign branches of logistics companies (average) Numbers of logistic companies with gross sales equivalent to or more than a trillion Korean won Area Entities
12 Objectives and strategies Performance Indicators Units Stimulating the logistics industry base and national competitiveness Extending the logistics market Proportion of 3PL utilization % Improved profitability of the Proportion of reverse logistics companies logistics companies % < Improving competitiveness of small and medium enterprises in the logistics sector Sales per company Billion $
13 Cooperation framework: infrastructure and policies Challenges = Opportunities Infrastructure Gap Lack of Sustainability Regional Physic Integration Small Capital Markets Isolated Policies Institutional side Training Investment Opportunities Low Carbon & Sustainable Energy and Transport Investment Opportunities Global Experience Logistics and Infrastructure Policies Good practices Capacity Building Med/Low Logistics Performance Practices to improve 11
14 Thank You! Ricardo J. Sánchez Chief Infrastructure Services Unit Natural Resources and Infrastructure Division United Nations ECLAC Ricardo.Sanchez@ECLAC.org Client Logo 12
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