WORLD BANK GROUP

LOGISTICS PERFORMANCE INDEX

CONNECTING TO COMPETE 2010

Henry Sandee
World Bank Jakarta Office

January 26, 2010

July, 2010
 What is Logistics?

Logistics encompasses an array of

essential activities to move goods across
borders:
 Transport
 Warehousing
 Cargo consolidation
 Border clearance
 Distribution
 Payment systems
The Challenge
 Organization of Presentation

Brief Explanation of the Logistics

Performance Index

Results for Indonesia and neighboring

countries
 The LPI measures six dimensions of country performance
Perception of international freight forwarders dealing outside the
country but trading with it (RANKING)

Efficiency of the clearance process

Quality of trade and transport infrastructure
Ease of arranging competitively priced shipments
Logistics competence and quality of logistics services
Tracking and tracing
Timeliness
 Role of LPI

 Broad indications of where problems are

 Awareness raising to stimulate public-
private dialogue on priorities for reform
 Trigger fresh impetus for reforms (Argentina,
Tunisia and Colombia)
 Monitoring progress over time
 Reference for policy makers (KPI)
 Main findings globally 2007-2010
Two surveys so far

 Broadly positive trends in customs, ICTs, and

private logistics services
 Other border agencies often lag behind
customs in terms of efficiency
 Importers in low performing countries face
nearly twice as many border agencies and
documents as in high performing countries
 Physical infrastructure remains a major
constraint in many countries
 LPI Ranks 2007

TOP 10 COUNTRIES TOP 10 COUNTRIES TOP 10 COUNTRIES

UPPER MIDDLE INCOME LOWER MIDDLE INCOME LOW INCOME

Country LPI Rank Country LPI Rank Country LPI Rank

South Africa 24 China 30 India 39
Malaysia 27 Thailand 31 Vietnam 53
Chile 32 Indonesia 43 Sao Tome and Principe 57
Turkey 34 Jordan 52 Guinea 62
Hungary 35 Bulgaria 55 Sudan 64
Czech Republic 38 Peru 59 Mauritania 67
Poland 40 Tunisia 60 Pakistan 68
Latvia 42 Brazil 61 Kenya 76
Argentina 45 Philippines 65 Gambia, The 77
Estonia 47 El Salvador 66 Cambodia 81
 LPI Ranks 2010

TOP 10 COUNTRIES TOP 10 COUNTRIES TOP 10 COUNTRIES

UPPER MIDDLE INCOME LOWER MIDDLE INCOME LOW INCOME

Country LPI Rank Country LPI Rank Country LPI Rank

South Africa 28 China 27 Vietnam 53

Malaysia 29 Thailand 35 Senegal 58
Poland 30 Philippines 44 Uganda 66
Lebanon 33 India 47 Uzbekistan 68
Latvia 37 Tunisia 61 Benin 69
Turkey 39 Honduras 70 Bangladesh 79
Brazil 41 Ecuador 71 Congo, Dem. Rep. 85
Lithuania 45 Indonesia 75 Madagascar 88
Argentina 48 Paraguay 76 Kyrgyz Republic 91
Chile 49 Syrian Arab Republic 80 Tanzania 95
 Countries that improved their rankings significantly

 Colombia
 Implemented interagency single window
 Approved national logistics action plan
 Set up logistics observatory to assess performance and monitor
impact
 Tunisia
 Established national logistics council in 2009 — involving main
agencies and private sector and reporting to Prime Minister
 Implemented comprehensive action plan building on earlier
successes, notably in port facilitation
 Rolled out key components of action plan – border
procedures, ports, and logistics services – for implementation
WORLD BANK GROUP

January 26, 2010

 Changes LPI in region 2007-201

 Malaysia 27  29
 China 30  27
 Thailand 31  35
 Indonesia 43  75
 Vietnam 53  53
 Change in LPI scores

4.00
3.50
3.00
2.50
2.00
1.50
Indonesia 2010
1.00 Indonesia 2007
0.50
0.00
 Indonesia will be catching up…

 Indonesia prepared a Logistics Blueprint

 Passed New Shipping Law
 Initiated National Single Window
 Extended port operations time (24/7)
 However, reforms take time
 Neighboring countries are already
structurally executing logistics reform
 Bottom Line for Indonesia

The government is on the right track and

put logistics high on its agenda
Implementation has started with low
hanging fruits (quick wins)
Continued commitment and coordination
are key to success
Reforms will take time
Expect the LPI to improve in the coming
years
 Conclusions

Logistics matter for competitiveness

LPI basic instrument to compare the
logistics performance of countries
2007, 2010….time series/trends
Countries that reformed in the period
2007-2010 show a better LPI score in
2010
Challenge Indonesia: implementation