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September 2018

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.

Advocating for change: When will transport have its "plastic straw moment?"

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?

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

Verónica Raffo's picture
Also available in: Español


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.

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.

Some solutions for improving pedestrian safety

Irene Portabales González's picture
Also available in: Spanish
Road with independent space for pedestrians, cyclists and cars in San Isidro. Photo: World Bank
We all have an intuitive sense that pedestrians are particularly vulnerable to road traffic crashes. After all, there is only so much the human body can take. At 30 km per hour, a pedestrian has a 90% chance to survive an impact. But if a vehicle hits you at 50 km/h while you’re walking down the street, that collision will have the same impact a falling from the fourth floor of a building.

Data from the World Health Organization (WHO) confirms that road crashes do indeed take a serious toll on pedestrians. In 2013, more than 270,000 pedestrians lost their lives globally, representing almost 1/5 of the total number of deaths.

In the United States, numbers from Insurance Institute for Highway Safety reveal a 46% increase in the number of pedestrians dying on the road, largely due to the expansion of rapid arterial roads in urban and suburban areas.

In Peru, where we’re based traffic crashes data pertaining to pedestrians are just as startling. According to the Ministry of Health, almost half of pedestrians involved in a collision sustain multiple injuries, and 22% of them suffer from trauma to the head. The chances of a fatal outcome or other serious consequences are very high.