Sea Transport Logistics flow Supplier Send Users Sea Transport Sea Section Contribution of Sea transport • • • • • • National prestige Enhance employment ratio Improve balance of payment Spin off industries Improve local infrastructures Allow the owner’s country to participate in global trade issues National prestige • Participation of the nation in global arena • Protect commercial interest – Capture some foreign funds • Provide naval reserve • Linkage of the world – Think of some Land-locked developing country (LDC) Enhance employment ratio • Shipping is a labour intensive industry – For local or national level – Create job opportunities for unskilled workers – Offer jobs to skilled workers – Branched out jobs to work aboard, port areas Improve balance of payment • The balance of payments (or BOP) – measures the payments that flow between any individual country and all other countries. – summarize all international economic transactions for that country during a specific time period, usually a year. • The BOP is determined by: – the country's exports and imports of goods, services, and financial capital, as well as financial transfers. Improve balance of payment • The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. • GDP – one of the several measures of the size of its economy. – GDP = • consumption + investment + government spending + (exports − imports) Spin off industries • Shore side – Banking; Insurance; Warehousing; Trucking; Stevedore service, ship’s chandler; bunkering • Related to shipping industry – – – – Ship repair; shipyard Seafarer and personnel training Ship surveyors Pilot service . . . etc Improve local infrastructures • To avoid congestion in main road – Improve infrastructure adjacent to port areas – Better road/rail connection to carry heavy load – Give ample of space for future development Participate in global trade issues • With strong shipping service – Take part in trade routes deployment – Obtain strong bargaining power in trade and other activities – Induce further trade volume – as Hub and regional hub For Trainer • You must be able to show – Important of shipping to the national • In money term and national prestige levels – Show shipping has links to the national economic growth – Intangible nature of this industry – It can be a gate – It can be a bottleneck