8/8/2019 Logistic Performance Index

1/17

WORLD BANK GROUP

Janu ary 26 , 2010

LOGISTICS PERFORMANCE INDEXCONNECTING TO COMPETE 2010

Henry SandeeWorld Bank Jakarta Office

July, 2010

8/8/2019 Logistic Performance Index

2/17

8/8/2019 Logistic Performance Index

3/17

8/8/2019 Logistic Performance Index

4/17

The Challenge

8/8/2019 Logistic Performance Index

5/17

Organization of Presentation

Brief Explanation of the LogisticsPerformance Index

Results for Indonesia and neighboringcountries

8/8/2019 Logistic Performance Index

6/17

Efficiency of the clearance processQuality of trade and transport infrastructureEase of arranging competitively priced shipmentsLogistics competence and quality of logistics services

Tracking and tracingTimeliness

The LPI measures six dimensions of country performance

Perception of international freight forwarders dealing outside thecountry but trading with it (RANKING)

8/8/2019 Logistic Performance Index

7/17

Role of LPI

Broad indications of where problems areAwareness raising to stimulate public-private dialogue on priorities for reformTrigger fresh impetus for reforms (Argentina,Tunisia and Colombia)Monitoring progress over timeReference for policy makers (KPI)

8/8/2019 Logistic Performance Index

8/17

Main findings globally 2007-2010Two surveys so far

Broadly positive trends in customs, ICTs, andprivate logistics servicesOther border agencies often lag behindcustoms in terms of efficiencyImporters in low performing countries facenearly twice as many border agencies anddocuments as in high performing countriesPhysical infrastructure remains a majorconstraint in many countries

8/8/2019 Logistic Performance Index

9/17

Country LPI Rank

South Africa 24Malaysia 27Chile 32Turkey 34Hungary 35Czech Repub lic 38Poland 40Latvia 42

Argentina 45Estonia 47

TOP 10 COUNTRIES

LOWER MIDDLE INCOME

Country LPI Rank

China 30Thailand 31Indonesia 43Jordan 52Bulgaria 55Peru 59Tunisia 60Brazil 61

Philippines 65El Salvador 66

TOP 10 COUNTRIES

LOW INCOME

Country LPI Rank

India 39Vietnam 53Sao Tome and Principe 57Guinea 62Sudan 64Mauritania 67Pakistan 68Kenya 76

Gambia, The 77Cambodia 81

TOP 10 COUNTRIES

UPPER MIDDLE INCOME

LPI Ranks 2007

8/8/2019 Logistic Performance Index

10/17

Country LPI Rank

South Africa 28Malaysia 29Poland 30Lebanon 33Latvia 37Turkey 39Brazil 41Lithuania 45

Argentina 48Chile 49

TOP 10 COUNTRIES

LOWER MIDDLE INCOME

Country LPI Rank

China 27Thailand 35Philippines 44India 47Tunisia 61Honduras 70Ecuador 71Indonesia 75

Paraguay 76Syrian Arab Republic 80

TOP 10 COUNTRIES

LOW INCOME

Country LPI Rank

Vietnam 53Senegal 58Uganda 66Uzbekistan 68Benin 69Bangladesh 79Congo, Dem. Rep. 85Madagascar 88

Kyrgyz Republic 91Tanzania 95

TOP 10 COUNTRIES

UPPER MIDDLE INCOME

LPI Ranks 2010

8/8/2019 Logistic Performance Index

11/17

Countries that improved their rankings significantly

ColombiaImplemented interagency single windowApproved national logistics action planSet up logistics observatory to assess performance and monitor

impactTunisia

Established national logistics council in 2009 involving mainagencies and private sector and reporting to Prime MinisterImplemented comprehensive action plan building on earlier

successes, notably in port facilitationRolled out key components of action plan borderprocedures, ports, and logistics services for implementation

8/8/2019 Logistic Performance Index

12/17

WORLD BANK GROUP

Janu ary 26 , 2010

8/8/2019 Logistic Performance Index

13/17

8/8/2019 Logistic Performance Index

14/17

Change in LPI scores

0.00

0.50

1.00

1.502.00

2.50

3.00

3.50

4.00

Indonesia 2010Indonesia 2007

8/8/2019 Logistic Performance Index

15/17

Indonesia will be catching up

Indonesia prepared a Logistics BlueprintPassed New Shipping LawInitiated National Single WindowExtended port operations time (24/7)However, reforms take timeNeighboring countries are alreadystructurally executing logistics reform

8/8/2019 Logistic Performance Index

16/17

Bottom Line for Indonesia

The government is on the right track andput logistics high on its agendaImplementation has started with lowhanging fruits (quick wins)Continued commitment and coordinationare key to success

Reforms will take timeExpect the LPI to improve in the comingyears

8/8/2019 Logistic Performance Index

17/17

Conclusions

Logistics matter for competitivenessLPI basic instrument to compare thelogistics performance of countries2007, 2010.time series/trendsCountries that reformed in the period2007-2010 show a better LPI score in

2010Challenge Indonesia: implementation