Amer Z. Durrani

Senior Regional Cooperation Specialist

The World Bank

LOGISTICS PERFORMANCE INDEX 2013/2014 SURVEY AND REPORT

FIATA World Congress Singapore

Multimodal Transport Institute Meeting

October 18, 2013

Outline

1. Why does the World Bank care about logistics?

2. What is the Logistics Performance Index (LPI) about?

3. LPI Results

4. Next steps & How to get involved

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1. Why does the World Bank care about logistics?

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Logistics costs are a driver of firm prices

LAC Logistics Costs: % of Total Value of Firm Sales

Sources: Centro Logístico de Latinoamérica, Bogota, Colombia. Benchmarking 2007: Estado de la Logística en America Latina Anexo, María Rey LogisticSummit 2008 4

Bringing logistics costs down (to 12%) creates demand and employment

Sector Growth in Demand

Growth in Employment

Agro-Industry 9% 5%

Furniture 10% 12%

Textiles 6% 7%

Leather/Shoes 12% 10%

Mining 7% 2%

Case study: COLOMBIA. Source: Guasch, Kogan (2006), World Bank.

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2. What is the LPI about?

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1. Efficiency of the clearance process

(incl. customs)

2. Quality of trade and transport infrastructure

3. Ease of arranging competitively

priced international

shipments

4. Competence and quality of logistics

services

5. Ability to track and trace

consignments

6. Timeliness of shipment delivery

LPI measures 6 dimensions of country performance in supply chain service delivery:

Supply Chain

Service Delivery

International LPI: Based on assessments by main trading partners

Domestic LPI: Based on assessments by domestic freight forwarders

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Point of Origin

Seller’s Factory

Alongside

Vessel Delivery

to Dock

Exporting Country

Delivered to

Buyer’s

Warehouse Frontier/

Border

The LPI measures on-the-ground trade logistics performance

Unloaded

on Dock

Importing Country

Customs

Infrastructure

Services Quality

Timeliness

International shipments

Tracking and Tracing

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Input and outcome indicators in the LPI

Source: LPI Report 2012

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LPI Methodology

> 5000 country assessments by > 1000 freight forwarders

Coverage: 155 countries

Partnership with FIATA is the most important one

Partnerships:

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Taking a closer look at the LPI’s Infrastructure dimension

What do we measure? Here’s a sample question:

Source: LPI 2011 Survey

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What is the role of the LPI?

Indicates problems

Stimulates public-private dialogue on

reform priorities

Triggers impetus for

reforms

Monitors progress over

time

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How is the LPI relevant to logistics professionals?

LPI as one of the World

Bank’s flagship publications helps change

policy

LPI helps the logistics sector

translate needs into

policy reform proposals

LPI results are directly based

on practitioners’

views

Some countries where the LPI has been at the origin of reforms in trade and transport facilitation:

Indonesia, Kazakhstan, Malaysia 13

3. LPI Results

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LPI 2012: Overall Results

Logistics friendly

Logistics unfriendly

Partial performers

Consistent performers

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Country LPI Rank

South Africa 23

China 26

Turkey 27

TOP 10 COUNTRIES

LOWER MIDDLE

INCOME

Country LPI Rank

India 46

Morocco 50

Philippines 52

TOP 10 COUNTRIES

LOW INCOME

Country LPI Rank

Benin 67

Malawi 73

Madagascar 84

TOP 10 COUNTRIES

UPPER MIDDLE

INCOME

LPI 2012: Ranks

Country LPI Rank

Singapore 1

Hong Kong 2

Finland 3

Germany 4

Netherlands 5

TOP 5 COUNTRIES

OVERALL

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0

2

4

6

8

10

12

Low income Lowermiddleincome

Uppermiddleincome

Highincome

non-OECD

HighincomeOECD

Pe

rce

nta

ge c

han

ge

Customs Infrastructure Quality of logistics services

Percentage change in LPI scores by LPI component and income group (2007-2012)

Source: LPI Report 2012 17

Source: lpisurvey.worldbank.org

LP

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lts W

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4. Next steps & How to get involved

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Timeline: LPI 2014

LPI Survey

October - November 2013

LPI Report

February 2014

The LPI team is especially interested in

survey participants from FIATA member companies!

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LPI 2014: What you can do

Questions on the LPI? Email us at LPI@worldbank.org

www.worldbank.org/LPI

If you work for a freight forwarding company and have received a

survey invitation:

Please participate in the survey

If you work for a freight forwarding company

and have not received a survey invitation:

Please email us at LPI@worldbank.org

If you represent a national freight

forwarding association:

Please forward our invite to your

member companies

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