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Logistics Infrastructure Along the Belt and Road Initiative Economies (English)

Logistics is the network of services that support the physical movement of goods, trade across borders, and commerce within borders. It comprises an array of activities beyond transportation, including warehousing and storage, terminal operations (e.g. in ports and airports), express delivery, customs brokerage, as well as data and information management. The global turnover generated by logistics exceeds USD 4.3 trillion. A country’s logistics performance is key to a country’s productivity and its attractiveness to outside investment. Inefficient logistics raise the cost of doing business and reduce the potential for international and domestic market integration, especially for developing countries. The gains from improving logistics performance are especially high in poorer countries. Increasing the logistics performance of a low-income country to the average performance of a middle-income country can increase trade by 15 percent or more. Better logistics allow more market access and can thus foster trade. Failing to move goods seamlessly hampers trade: a one-day delay at the border leads to an average 1 percent decrease in trade. Better logistics have a greater effect on trade promotion than tariff cuts: Logistics costs influence trade costs more than tariff barriers in most countries. Global production chains also depend on a robust logistics sector. Coordinating the various stages of product development, component production, and final assembly requires the ability to move goods across borders quickly, reliably, and at low cost. A lack of logistics infrastructure is one of the main reasons for companies to abstain from extending their procurement network to emerging and developing countries. This note summarizes information relevant to understanding the logistics infrastructure related bottlenecks impeding international and intra-regional connectivity along the Belt andRoad Initiative (BRI) economies. Data originates in the Logistics Performance Index, published by the World Bank.

Details

  • Author

    Wiederer,Christina Katharina

  • Document Date

    2018/12/18

  • Document Type

    Brief

  • Report Number

    133058

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2018/12/18

  • Disclosure Status

    Disclosed

  • Doc Name

    Logistics Infrastructure Along the Belt and Road Initiative Economies

  • Keywords

    Cost of Doing Business; logistics performance; transport service provider; movement of good; rail infrastructure; air transport services; trade policy agenda; international freight forwarder; individual country assessments; global production chain; supply chain performance; growth and development; inland container depot; container freight station; maritime transport service; rail transport service; road transport service; infrastructure performance; transport mode; public transportation mode; airport infrastructure; logistics cost; infrastructure quality; international shipment; international procurement; transit trade; road infrastructure; income economy; logistics system; high share; comparator country; qualitative assessment; express carriers; waterway network; dry port; buffer stock; uninterrupted flow; low consumption; customs authority; market integration; maritime shipping; ict infrastructure; environmental footprint; modern production; Trade Logistics; transportation network; global economy; country ranking; high infrastructure; country rating; logistics process; cost data; trading partner; clearance process; average score; tariff cut; operations management; shared growth; customs brokerage; express delivery; tariff barrier; trade costs; terminal operation; trade promotion; Learning and Innovation Credit; average performance; market access; Telecommunications

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Citation

Wiederer,Christina Katharina

Logistics Infrastructure Along the Belt and Road Initiative Economies (English). MTI Practice Note,no. 5 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/259561545148936579/Logistics-Infrastructure-Along-the-Belt-and-Road-Initiative-Economies