Progress in trade logistics performance has slowed down over the last two years of global recession, according to a World Bank survey on trade logistics released Tuesday. However, improved performance was noticed in countries which took to aggressive reforms.
Topping the list of the 155 performers in the Logistics Performance Indicators (LPI) was Singapore. Meanwhile, countries that made improvements to their perofrmance were Chile, China, India, Morocco, South Africa, Turkey and the U.S. The study is based on a comprehensive world survey of express carriers and international freight forwarders.
"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).
There has been an inverse relationship between income and performance of countries, as high income countries dominate the top logistics rankings, according to the LPI. Furthermore, the countries with the weakest economic performance are the least developed countries which also happened to be smaller, landlocked, and emerging from conflict.
"Infrastructure stands out as the chief driver of progress in top performers, followed by improvements in logistics services, and customs and border management," said Mona Haddad, Sector Manager of the World Bank's International Trade Department. "All top performers show strong cooperation between the public and private sectors, and a comprehensive approach in the development of services, infrastructure and efficient logistics."
The survey also found that logistics is important for food security, border management, customs agencies, and sanitary regulations. However, rail services dissatisfied more than 90 percent of respondents.
by RTT Staff Writer
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