Regional Dialogue on Promoting Services Development and Trade in Latin America and the Caribbean 12−13 November 2013 Room Raul Prebish, ECLAC, Santiago Latin America and the Caribbean Infrastructure Services: Diagnosis and Challenges Mr. Ricardo Sanchez Senior Economic Affairs Officer, Natural Resources and Infrastructure Division and Chief, Infrastructure Services Unit (ECLAC) This presentation is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations. Latin America and the Caribbean Infrastructure Services: Diagnosis and Challenges Ricardo J. Sánchez Senior Economic Affairs Officer Natural Resources and Infrastructure Division 0 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Looking into the future Diagnosis and major infrastructure challenges in LAC High dispersion and multiplicity of views and public action Failures or institutional and regulatory obstacles Weakness and / or lack of sustainability criteria 1 Ricardo J Sanchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Physical tightness or shortage Investment in infrastructure in major countries of LAC, 1980-2010 (% del PIB) Source: updates of Perrotti y Sánchez (2011) “Infrastructure gap in LAC”, CEPAL, Serie DRNI 153, Santiago de Chile © Sánchez, Wilmsmeier and Pérez 2013 The infrastructural gap 250 Estimate of the infrastructure gap in transport in Latin America (base 1995 = 100) 150 100 50 Brecha Gap Efectivo Supply 2010p 2009p 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 0 Demand Necesario Source: ECLAC, 2010 3 Ricardo J Sanchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org 200 Infrastructure, development and equity GDP per capita and Logistics Performance - 2009 70000 Switzerland 60000 Ireland Netherlands United States Finland Belgium Sweden Australia Germany Japan France Singapore Canada Italy GDP per cápita 50000 40000 Spain 30000 Israel United Kingdom New Zealand Portugal Bahrain 20000 10000 Iraq 0 2 Korea, Rep. Mexico Venezuela, RB Panama Chile Brazil Uruguay Lebanon South Africa Argentina Jamaica Malaysia Costa Rica Colombia El Salvador China Algeria Thailand Ecuador Guyana Vietnam India Bolivia Guatemala Peru Haiti Liberia 2.5 3 3.5 4 4.5 Logistics Index 4 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Denmark Efficiency of whole logistics chain? IT IS a PENDING goal! 2.3% 1 5.4% Uso de la infraestructura Flete terrestre 1 42.8% Series1 4.8% Series1 Series2 Series2 0% Santos-Monterrey 20% 40% 60% 80% 100% 120%0% 20% 60% 80% 100% Marítimo 5.1% 39.5% 40% 47.6% 7.7% TRM Puerto Santos-Mexico DF 0.0% 6.4% 39.7% 20.0% 40.0% 2.4% 1 Terrestre a destino 46.0% 7.9% 60.0% 5.6% 1 80.0% 100.0% 41.1% Series1 4.9% Series1 Series2 Series2 Servicios portuarios 0% Trámites de internación 20% 40% 60% 80% 100% 120%0% Uso de la infraestructura Flete terrestre 20% 40% 60% 80% Source: Sánchez (2013) 5 100% Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Trámites de internación Servicios portuarios A review of the current policies is required. 6 Ricardo J Sanchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org For us, the main challenge is to align the conception, design, implementation, control and monitoring of policies related to infrastructure services … in order to maximize their impact on development. PARADIGM CHANGE INTEGRALITY SUSTAINABILITY Design, Execution and Control Economic, Social, Environmental and Institutional Infrastructure and logistics To organise infrastructure, logistics and mobility projects into a hierarchy To generate and preserve statistics Policies and plans Strategy definition and link to other policies Logistical planning Financing Harmonisation Normative Frame Legal and regulation reforms according to the policy’s strategy. Institutionality and participation Logistical and Organisation and productive lines state conduction Monitoring of LOGISTICS AND of the policies the logistical GovernmentMOBILITY requirements of Private Sectorthe productive Civil Societysystem Academy Encouragement Provision of Interaction of logistical firms I&D+i and transport and Human trade Resources Technical HHRR training regulations and Innovation in simplification of logistics, ICTs, procedures and SMEs documents COMPREHENSIVE VISION AND ACTION FOR Urban Inter-cities Source: Georgina Cipoletta Tomassian (2011) Regional Technical Regulations Economic regulations Modal shift CO-MODALITY International Passengers Goods 7 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org STRATEGY OF INTEGRATED AND SUSTAINABLE POLICIES ON INFRASTRUCTURE, LOGISTICS AND MOBILITY 1.2.2 Improving logistics normalization 1.2.3 Improved vacuum phenomenon in logistics transport use 1.2.4 Assurance of professionals in the logistics sector Ratios for standard palette Proportion of empty trucks operation Proportion of logistics professionals in logistics entities Unit 2008 2010 2015 2020 % 9.1 8.0 6.4 5.5 % 0 8.9 100.0 % 16 (9,7) 16 (9,7) 23 (13,10) Unit 1.3 - 6.0 12.3 Point 3.64 3.89 3.97 % 37 42.0 50.0 60.0 % 31.3 30.0 36.0 22.0 % 0 0 3.4 16.7 8 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Objectives and strategies Performance Indicators 1 Increased system efficiency Proportion of business national logistics logistics costs 1.1 Capacity utilization and logistics network connection Proportion of public logistics center 1.1.1 Increase and reconstruction infrastructure construction (with planned comparison) Railroad tracks in industrial landscape (ports and industrial 1.1.2 Expansion of the intermodal transport complexes) network Proportion of use of rail transport in ports and industrial complexes 1.2 Soft Assurance infrastructure to provide high-quality logistics service 1.2.1 Progress of the quality of national Logistics Performance logistics service Index by World Bank Unit 2008 2010 2015 2020 % 26.9 30.0 36.0 45.0 % 36.2 45.0 53.0 % 3.4 3.4 3.6 4.0 % 3.65 3.8 4.3 5.0 Ratio of sales outside logistics companies % 15.5 20 28 40 3.1.2 Establishing global logistics network Numbers of foreign branches of logistics companies (average) Area 4.8 5.0 7.0 10.0 3.1.1 Fostering international logistics company Numbers of logistic companies with gross sales equivalent to or more than a trillion Korean won Entities 1 1 5 10 3.1.1 Growth in sales outside the national logistics entities 9 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Objectives and strategies Performance Indicators 2.1 Establishment of green logistics system for low-carbon 2.1.1 Using stimulation Proportion of mass mass transit transit distribution 2.1.2 System Establishment Proportion of trucks in ground transportation focused commercial use in commercial use Proportion of logistics 2.2 Promoting employment professionals 3. National wealth generation through Proportion of gross sales logistics in logistics entities 3.1 Fostering entrepreneurship in logistics and global network 2008 2010 2015 2020 15.5 20 28 40 < 3.0 3.5 5.0 8.0 4.1 4.5 5.5 7.0 10 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Performance Units Indicators 3.2 Stimulating the logistics industry base and national competitiveness Proportion of 3PL 3.2.1 Extending the logistics market % utilization 3.2.2 Improved profitability of the Proportion of reverse % logistics companies logistics companies 3.2.3 Improving competitiveness of small and medium enterprises in the logistics Sales per company Billion $ sector Objectives and strategies Cooperation framework: infrastructure and policies Challenges = Lack of Sustainability Investment Opportunities Low Carbon & Sustainable Energy and Transport Regional Physic Integration Small Capital Markets Isolated Policies Institutional side Training Med/Low Logistics Performance Investment Opportunities Global Experience Logistics and Infrastructure Policies Good practices Capacity Building Practices to improve 11 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Infrastructure Gap Opportunities Chief Infrastructure Services Unit Natural Resources and Infrastructure Division United Nations ECLAC +56 2 210-2131 Ricardo.Sanchez@ECLAC.org http://www.eclac.org/transporte Client Logo 12 Ricardo J. Sánchez | CEPAL | Naciones Unidas Ricardo.Sanchez@ECLAC.org Thank You! Ricardo J. Sánchez