UNCTAD

Trade and transport facilitation Developments including UNCTAD XI

Trade Logistics Branch / SITE
United Nations Conference on Trade and Development

UNCTAD XI A Milestone
UNCTAD

Sao Paulo Consensus = Bangkok + new developments Recognition of the importance of TTF in development process Calls for appropriate policies Recognizes UNCTADs prominent role in the UN system Provides orientation to UNCTADs WP
Endorsement of GFP

UNCTAD

Transport and sustainable development

Transport determines development potential.
High share of freight cost in import value:
Dev. countries around 8.7 per cent in 2002 Developed countries 5.1 per cent Some landlocked LDCs up to and above 30 %

Multimodal transport to reduce transaction cost.

Cost of importing goods into US

UNCTAD

14 12 10

% of import 8 value 6
4 2 0 Brazil Transport Chile Tariffs China India Venezuela

Examples of transport/logistics cost

UNCTAD

Corridor-based Northern Corridor Kenya-Rwanda (Imports)

Sea Europe Mombasa: approx US $ 1800/TEU Road Mombasa Kigali:

Product-based Export of beans from Ethiopia to Europe (Indices)

Cost Retail price Importer commission Import price cif Logistics cost Export price fob Commissions/others Producer/field price 12 88 58 30 16 14 14 Index 100

approx US $ 5000/TEU (15t+)

Transport and globalization

UNCTAD

Globalization requires functioning transport systems; so does regional integration. The vast majority of international trade includes carriage by sea. South/South linkages often insufficient limiting alternative trading patterns.

New developments in transport

UNCTAD

Multimodal transport:
integration of transport;

MT is an intermediate concept increasingly supplemented by value added services

New developments in transport

UNCTAD

Logistics
Shippers looking not only at transport cost but at all cost of marketing and distribution:
optimization of total cost rather than of components more expensive transport solutions could be the optimum ones

high growth rates; shipping/transport companies moving into logistics.

E-commerce/IT applications:
Internet-based developments; legal constraints.

UNCTAD

Transport in developing countries

Global transport developments are based on East/West rather than North/South trade:
organizational changes meet needs of large shippers.

Suppliers from developing countries:

Is there a place for local transport providers?

Ports link global and national systems:

no longer terminal point but integral part of chains logical place for logistics centers providing value added services.

UNCTAD

Developing countries supply capacities

Ocean transport/logistics:
generally declining capacities; mainline versus feeder operations.

Auxiliary services/logistics:
agencies, terminal operations, etc.;

Opportunities to extend into logistics.

Security issues
UNCTAD

Developing countries need to cope with security measures adopted at national and international levels:
National initiatives International initiatives Implications and facilitation of compliance,
Other orgs developing rules and standards

Legal/regulatory framework
UNCTAD

Lack of globally accepted MT legal framework:

1980 Convention not in force; various endeavors to fill the gap - UNCITRAL draft instrument on transport Proliferation of national and regional rules and contractual solutions:
Recognition of the need but not desirable end result. UNCTAD/ICC rules; Standard term contracts.

UNCTAD

Trade and transport facilitation measures

Application of MT concepts requires appropriate
administrative arrangements and procedures:
Customs reform;
ASYCUDA

Transit agreements;
Almaty Plan of Action

Etc.

Transport policies
UNCTAD

Policy reform programmes. Supply side/fleet development policies:

market access policies (WTO); strengthening commercial capabilities:
creating level playing field; transfer of know-how.

Demand side/consumer policies:

improving sector efficiency.

Infrastructure development policies.

What support is needed?

UNCTAD

Policies are formulated at national level; but they call for international action to support:
Long-term infrastructure development; UNCTAD called to provide soft measures to optimize use of existing infrastructure and resources, including:
institutional capacity building & legal reform; sustainable technology applications through know-how transfer; HRD and training.