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    RP ranks 65th in logistics performance
     
    By Cai U. Ordinario
    Reporter
     

    THE Philippines scored low and was ranked at 65th place in the first global Logistics Performance Index (LPI) released in a new study commissioned by the World Bank (WB).

    The study, “Connecting to Compete: Trade Logistics in the Global Economy,” said the LPI is a benchmarking tool developed by the WB that measures performance along the logistics supply chain within a country.

    “Being able to connect to global markets is fast becoming a key aspect of a country’s capacity to compete, grow, attract investment, create jobs and reduce poverty,” Danny Leipziger, WB vice president for poverty reduction and economic management, said in a statement. “But for those unable to connect, the costs of exclusion are large and growing.”

    The study said the Philippines scored 2.69 in the LPI. The country also ranked 53rd in Customs, 86th in Infrastructure, and 63rd in International Shipments in the LPI.

    Compared with other lower-middle-income countries, the Philippines was second to the last and was just a notch higher than El Salvador, which was at 66th place.

    The top lower-middle-income country was China, which was ranked 30th in the world, followed by Thailand at 31st, Indonesia at 43rd, Jordan at 52nd, Bulgaria at 55th, Peru at 59th, Tunisia at 60th and Brazil at 61st place.

    “Countries performing well typically have a comprehensive approach that improves key factors in logistics performance in parallel, while countries with a piecemeal approach tend not to demonstrate lasting improvements,” the study said.

    The study said that with technological progress and worldwide trade and investment liberalization, a new premium is now being placed on the ability of countries to move goods rapidly, reliably and cheaply.

    However, the study said most logistics professionals are unsatisfied with the quality of the physical infrastructure in many developing countries.

    “Logistics performance is more and more determined by the availability of quality, competitive private services—such as trucking, customs brokering and warehousing,” the study said.

    The study urged policymakers to look beyond traditional “trade facilitation” agenda that focuses on road infrastructure and information technology in customs.

    The study said countries must also reform logistics services markets and reduce coordination failures, particularly those of public agencies active in border control.

    “This demands a more integrated, comprehensive approach to reforms all along the supply chain,” the study said.

    The study said international companies can bring global knowledge, but the support of local exporters, operators and public agencies is crucial.

    The study surveyed a total of 150 countries. The top five countries in the world in terms of logistics was led by Singapore, followed by the Netherlands, Germany, Sweden and Austria.

    The survey is based on a worldwide survey of global freight forwarders and express carriers.

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