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Transport

How Much Will the Belt and Road Initiative Reduce Trade Costs?

Michele Ruta's picture
The Belt and Road Initiative (BRI) is a development strategy proposed by China to improve cooperation on a trans-continental scale. The range of projects and activities that will be part of the BRI is very wide, including policy coordination, infrastructure, trade and investment, financial and people-to-people exchanges. But a key goal of the Initiative is to boost connectivity and reduce trade costs through new and improved transport infrastructure projects.
 

Building up Bhutan’s resilience to disasters and climate change

Dechen Tshering's picture
Building Bhutans Resilience
Despite progress, Bhutan still has ways to go to understand and adapt to the impacts of climate change. And with the effects of climate change intensifying, the frequency of significant hydro-meteorological hazards are expected to increase. Photo Credit: Zachary Collier


The 2016 monsoon was much heavier than usual affecting almost all of Bhutan, especially in the south.
 
Landslides damaged most of the country’s major highways and smaller roads. Bridges were washed away, isolating communities.
 
The Phuentsholing -Thimphu highway which carries food and fuel from India to half of Bhutan was hit in several locations, and the Kamji bridge partially collapsed, setting residents of the capital city and nearby districts into panic for fear of food and fuel shortages.
 
Overall the floods drove down Bhutan’s gross domestic product by 0.36 percent.

While not as destructive as the 2016 monsoon, flash floods, and landslides are becoming a yearly occurrence along Bhutan’s roads.

What can African countries learn from China about transport and logistics?

Bernard Aritua's picture
Qiulongpo Port Container Terminal in Chongqing. Photo: Li Wenyong/World Bank

The 2018 Forum on China-Africa Cooperation (FOCAC) held in Beijing concluded on a high note with a pledge of $60 billion of development assistance from China to countries in Africa – together with the $60 billion pledged 3 years ago, it means China is investing $120bn over 6 years in Africa. Most of this assistance is directed at financing infrastructure. Several African leaders were featured on local and international media, and policy makers are no doubt contemplating the various dimensions of the China-Africa relation.

Logistics: Building skills to prepare for the jobs of tomorrow

Yin Yin Lam's picture


As one of the key foundations for manufacturing, trade and growth, logistics is a strategic component of every economy. The sector can also contribute significantly to job creation. For example, in the UK, logistics is a $120billion industry that employs about 8% of the workforce. In India, it is a $160billion industry accounting for 22 million jobs, with employment growing 8% annually.

In 2016 and 2018, the World Bank’s Logistics Performance Index found that many developing countries face a significant skills gap in the logistics sector, especially at the managerial level. Similarly, several studies conducted in emerging economies such as China, India, and South Africa report shortages of supply chain talent.

In that context, emerging economies must tackle two critical challenges in order to develop a competitive logistics sector:
  • How can governments plug the skills gap in logistics?

  • How can the sector cope with the rapid changes brought about by technology, such as warehouse automation “freight uberization” or online platforms matching demand and supply, and their impact on the labor market?
Let’s look at three countries that consistently rank high in various global logistics rankings—Germany, the Netherlands, and Singapore—to see how they manage these challenges.

When will transport start making headlines?

Shokraneh Minovi's picture
Photo: Phil Wong/Flickr
In case you haven’t heard, plastic straws are bad news for the planet. This much was made clear over the summer as a surge of anti-straw sentiment spread across many countries. News channels all over the world highlighted how this small and light piece of hollow plastic has been contaminating the oceans and posing a risk to the environment. Outcry was swift and decisive. Practically overnight, countless individuals vowed never to use them again. Even beverage industry giant Starbucks decided to eliminate plastic straws by 2020!  
 
Interestingly, straws make up a fairly small share of the overall plastic pollution in our oceans, especially compared to other sources of plastic waste such as fishing nets and gear. Still, every small piece of plastic that does not end up contaminating the environment is a win. But what’s truly remarkable here is how the global community rallied behind a simple and impactful change, and then followed through with it.
 
The whole campaign about plastic straws and the quick reaction that ensued got me thinking about what a “plastic straw moment” could look like for the transport sector. What small change can we all take to get the world to rally behind transport?

The economic case for investing in road safety

Dipan Bose's picture

Despite considerable progress in traffic enforcement and medical care, the road crash mortality rate in Thailand remains rather high and has been increasing since 2009. More than 24,000 people lose their lives on the road every year, and traffic injuries are a major public health burden for the country. The human toll and individual loss caused by this epidemic are clearly exposed by the media, and many organizations are actively advocating solutions for this important public concern.

Transport and climate change: Putting Argentina’s resilience to the test

Verónica Raffo's picture
Also available in: Spanish


Would you imagine having to evacuate your village by boat because the only road that takes you to your school and brings the goods is flooded?

In February 2018, the fiction became reality for some residents in the province of Salta, northern Argentina, after heavy rains caused the Bermejo and Pilcomayo river to overflow. The flooding resulted in one fatality, required the evacuation of hundreds of residents, and washed a segment of Provincial Route 54, leaving the village of Santa Victoria del Este completely stranded.

Similarly, a segment of National Route 5 in one of the main corridors of Mercosur has been impassable for more than a year because the level of the Picassa lagoon keeps rising due to extreme rainfall and lack of coordination among provinces on how to deal with excess water flows. The expansion of the lagoon is forcing 4,000 vehicles a day to make a 165-km detour, and adds one transit day for the 1,560 freight trains running every year between Buenos Aires and Mendoza. The flooding is dragging the economy behind and inflating already high logistics costs.

As a matter of fact, a recent World Bank study put the cost of damages and disruptions like these at an estimated 0.34% of GDP a year for riverine flooding, plus 0.32% of the GDP for urban flooding.

To address these risks, Argentina’s Ministry of Transport started a dialogue with the World Bank to explore ways of reducing the vulnerability of the network.

Beyond Infrastructure: Trade Facilitation Priorities for the Belt and Road Initiative

Marcus Bartley Johns's picture
Countries participating in the Belt and Road Initiative face a major challenge in facilitating trade. While large investments in trade-related infrastructure capture global headlines, transaction costs generated by inefficient border clearance and trade-related regulatory requirements are one of the major policy risks facing the BRI.
 

Improving urban transportation for upward social mobility in Malaysia

Wei San Loh's picture
Access to transportation is essential for improving the upward social mobility of low-income communities in Kuala Lumpur, especially residents of low-cost public housing units. (Photo: Samuel Goh/World Bank)

Over the years, Malaysia has demonstrated great improvements in enhancing upward social mobility as the country continues to advance toward becoming a developed nation. However, this success has not been evenly distributed among the population. A 2016 Khazanah Research Institute study found that 24% of children born to low-skilled parents in Malaysia remained low-skilled as adults. Likewise, 46% of children born to parents in the bottom 40% of the national income distribution remained in the bottom 40%.

India: A logistics powerhouse in the making?

Karla Gonzalez Carvajal's picture
Photo: Daniel Incandela/Flickr
The numbers are in: India now ranks 44th in the latest edition of the World Bank’s Logistics Performance Index, a relatively high score compared to other countries at similar income levels. This number matters not just to the logistics sector, but to India’s economy as a whole. Indeed, logistics can directly impact the competitiveness of an entire market, as its ability to serve demand is inextricably linked to the efficiency, reliability and predictability of supply chains.

Broadly defined, logistics covers all aspects of trade, transport and commerce, starting from the completion of the manufacturing process all the way to delivery for consumption. To say that it is a complex business is an understatement.

First, there is always a delicate balance between the public arm, which provides the roads, railways and waterways, and lays down the rules and regulations, and the private sector, which has responsibility for carrying out logistics operations in a smooth and seamless manner. This fine interplay is further complicated by the globalization of manufacturing which—with many more ports of call in the logistic chain—is putting ever-increasing pressure on the sector. In addition, there are very practical challenges in integrating different modes of transport, in speeding up border crossings, and in dealing with trade protections–all of which impact external trade.

But as difficult as it might be, creating a well-functioning logistics sector is essential to any nation looking to compete in the global economy. India is a case in point. To fuel its global ambitions, the country has taken active steps to up its logistics game.

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