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Making Logistics a National Priority for PanamaEnabling SME Participation

Don Ratliffdon.ratliff@gatech.eduExecutive DirectorGeorgia Tech Supply Chain & Logistics Institute

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Panama’s “Logistics” Image

Panama Canal– Expansion in 2015

Logistics is one of 4 economic pillars– Finance– Tourism– Agriculture– Logistics

Goal is to be a logistics and trade hub for the Americas

Ideally Panama functions like a single port

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Georgia Tech Panama Logistics Innovation & Research Center

Goals– Improve Panama’s logistics

performance– Establish Panama as a

logstics and trade mega hub

Sponsor – SENACYT

Competitiveness Agenda

Education Agenda

Research Agenda

5 Year Plan

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Role of GT Panama Logistics Innovation & Research Center

Provide the repository for logistics and trade data Facilitate the activities of the Logistics Cabinet

– Provide an objective view of Panama’s logistics capabilities and constraints– Provide analytics to support Logistics Cabinet decision making

Facilitate logistics investment and business development in Panama– Provide an objective view of Panama’s logistics capabilities and constraints– Provide analytics to support Panama logistics stakeholders’ decision making– Enabling logistics entrepreneurship

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Research Agenda

Create Data RepositoriesCreate Data Repositories

Create Modeling Framework

Create Modeling Framework

Computational & Visualization

Methods

Computational & Visualization

Methods

Descriptive Models

Descriptive Models

NetworkModelsNetworkModels

Process ModelsProcess Models

TradeAnalysis

TradeAnalysis

Logistics AnalysisLogistics Analysis

Logistics & Trade DataLogistics & Trade Data

Composite Analytics

Composite Analytics

Competiveness Improvement

Competiveness Improvement

http://logistics.gatech.pa

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Research Agenda

Create Models of Panama’s Logistics Network

Create Models of Panama’s Logistics Network

Develop tools for Logistics Decision Support

Develop tools for Logistics Decision Support

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Research Agenda

Create Models of Panama’s current and potential trade flows

Create Models of Panama’s current and potential trade flows

Develop Tools for Performing Trade Analytics

Develop Tools for Performing Trade Analytics

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Research Agenda

Assess Trade and Logistics

Processes

Assess Trade and Logistics

Processes

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Research Agenda

Design Systems to Measure Performance and Provide Visibility

Design Systems to Measure Performance and Provide Visibility

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Panama Logistics Cabinet

Ministry of Commerce & Industry Ministry of Presidency Ministry of Economy & Finance Ministry of Public Works Panama Canal Authority Maritime Authority Aviation Authority Customs Transit and Transportation Authority National Secretary of Science and Technology Metro Secretariat

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Logistics Cabinet Activities

To promote Panama as a Center of International Logistics Development of global significance and facilitate the expansion of Global Trade exploitation

To capture information from the different entities, to identify strengths and possible weaknesses to overcome

To establish a Master Plan and coordinate the implementation of a National Logistics Development Strategy.

Very busy people Different backgrounds and knowledge of logistics and tradeNo dedicated analytical staffLimited time for information gathering and analysis

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Center Support of Cabinet Activities

Logistics Capabilities

Logistics Capabilities

Logistics Risk Assessment

Logistics Risk Assessment

Global Trade Trends

Global Trade Trends

Logistics RoadmapLogistics Roadmap

Needs Assessment

Needs Assessment

ProjectsProjects

http://logistics.gatech.pa

Identifies opportunities for large and small logistics enterprises

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Expanding Panama’s Logistics Entrepreneurship

SMEs successful in providing support services to transportation companies– Panama Canal Railroad maintenance– Servicing ships (ship chandlers

Very little logistics technology entrepreneurship– Important missing piece in providing logistics “thought leadership”

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Why focus on logistics technology entrepreneurship?

Panama aspires to be a logistics and trade hub– Entrepreneurship and thought leadership is critical to this goal

There are increasing opportunities for technology and innovationto improve logistics performance– Visibility– Decision making – Performance measurement

Panama has a strong association with logistics– Natural for logistics marketing– Collaboration with logistics stakeholders

Logistics research is primarily realized in software– Does not require major infrastructure investment– Small companies have traditionally been the primary innovators

Increasing importance of logistics to Latin America

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Dynamic Business Ventures Midterm Report

Panama incubator network has had little success in generating technology start-ups– Incubators not connected to research centers

Factors that will contribute the development of new ventures in Panama – Perception of the opportunities– Recognition and social prestige for entrepreneurs

Weaknesses– An education system that doesn’t stimulate creativity– The lack of capital for startups and weaknesses of the capital market– Lack of policies and structure for transferring research and

development to companies

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Human Capital for Logistics Software Innovation

Panama universities graduate 500+ computer science related students per year.

Some of the best and brightest students are educated in computer science because of their interest in technology and innovation and then cannot find jobs with these characteristics.

The numbers of students graduated is not large enough to support the big software companies such as Microsoft but would be great for small, innovative development operations

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Requirements for entrepreneurship?

Role models – Family influence– Job influence

Panama must find a way to “prime the pump”– Cannot rely on spontaneous flow of start-ups– Must generate interest in creating start-ups– Must expose potential entrepreneurs to successful efforts– Must marry ideas with capabilities– Must provide “hands on” experience with start-ups

Access to markets– Must build for international markets– Must get access to international markets

Access to capital– “Chicken and egg” problem

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Recommendations

“Logistics Cyber City”– Incubator co-located with Georgia Tech Panama Logistics

Innovation & Research Center– Incentives to attract logistics software entrepreneurs– Incentives to give computer science students “hands on” experience

with logistics software development– Incentives to give computer science faculty “hands on” experience

with logistics software development– Platforms for logistics stakeholders sharing needs and ideas with

incubator participants– Visibility for successful entrepreneurs– Access to markets

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Comments?Comments?

Questions?Questions?