World Bank applause for SA logistics performance

South Africa is among a handful of countries whose global trade logistics performance has improved during the recession, according to the World Bank’s latest survey on trade logistics. According to the ‘Connecting to Compete 2012: Trade Logistics in the Global Economy’ report, South Africa, Chile, China, India, Morocco, Turkey, and the United States all improved their previous performance. The study is based on a world survey of international freight forwarders and express carriers. South Africa is ranked 23rd. This is up from its ranking of 28 in 2010, and ahead of China, Turkey and Malaysia in the group of top 10 upper middle income performers in the 2012 survey. Top performer of the 155 countries surveyed is Singapore, followed by Hong Kong, Finland and Germany, which slipped to fourth from first in 2010.The bottom three are Burundi (155), Djibouti (154), and Haiti (153). Rankings of South Africa’s neighbours are Botswana (68), Namibia (89), and Zimbabwe (103). Mozambique and Zambia were excluded due to an insufficient number of responses. Of the countries whose logistics systems are improving, Chile is up to 39th from 49th position in 2010, China 26th from 30th, India 46th from 47th, Turkey from 39th position to 27th, and the United States from 15th to 9th. Morocco is one of the star performers, with its LPI rank jumping from 113 in 2007 to 50 in 2012, having implemented a comprehensive strategy to improve logistics and connectivity and take advantage of the country’s proximity to Europe, according to the report. Morocco combined border management reform with large physical investments in the Tangier-Med Port. The strategy fostered the emergence of Morocco’s just-in-time exports to Europe (especially textiles, electronics, and automotive components). The LPI identifies strong links between development and logistics. High income economies dominate the top logistics rankings, while the economies with the worst performance are least developed countries that are also often landlocked, small islands, or post-conflict states. “Trade logistics is key to economic competitiveness, growth, and poverty reduction,” said Otaviano Canuto, World Bank vice president for poverty reduction and economic management (PREM). “Unfortunately, the logistics gap between rich and poor countries continues and the convergence trend experienced between 2007 and 2010 stalled as events like the global recession, and the European debt crisis shifted attention away from logistics reform.” At a time where food prices are at historic highs, the survey also found that logistics was important for food security. In developing countries, particularly in landlocked and poor ones, transport and logistics account for 20-60% of delivered food prices.