Transcript Document 7421867

2006/TPT-WG-28/IEG/016
28th APEC Transportation Working Group Meeting
Vancouver, Canada
5-8 September 2006
Nurturing an Integrated Logistics and
Transportation System for the APEC
Economics
Nurturing an Integrated Logistics
and Transportation System for
the APEC Economies
Purpose: Information
September
6, 2006 of Korea
Submitted
by: Republic
Asst. Prof. Dong Keun Ryoo
Korea Maritime University
Republic of KOREA
Nurturing an Integrated Logistics and
Transportation System for the APEC
Economies
September 6, 2006
Asst. Prof. Dong Keun Ryoo
Korea Maritime University
Republic of KOREA
2006/TPT-WG-28/IEG/016
Contents

Background of the Project

Structure of the Project

Barriers & Areas in Building an Integrated Logistics Market

Research Methodology

Successful Logistics Integration

Future Work Schedule

Implications of the Survey
2006/TPT-WG-28/IEG/016
Background of the Project
 APEC economies have been closely working together to realize the Bogor Goal,
particularly in the maritime sector, by adopting and implementing APEC Common
Principles to Shipping Policy.
 Korean Government proposed a self-funded project of “The Study on the Costs of
Non-APEC in the Field of Logistics and Transportation” at the TPT-WG 26th meeting
in Vladivostok, Russia.
 The objective of the project is to overcome the obstacles from different levels of
logistics systems and to nurture a more integrated logistics and transportation
system for the APEC Economies, particularly in Northeast Asia.
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Structure of the Project
Contents
Research
Organizations
Schedule
• Identifying the costs of being separated non-APEC
economies in the field of logistics, incorporating
the door-to-door shipping concept
• Developing strategic plans or basic directions for
nurturing an integrated logistics and transportation
system in Northeast Asia
• Formulating action plans for realizing the vision of nurturing
an integrated logistics system
• Korea Maritime Institute (KMI), 7 Korean universities & GLORI
• Close cooperation with Chinese and Japanese universities
• The years of 2006 - 2008
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Barriers to Integration of a Logistics & Transportation System
 Institutional barriers
 Legal barriers
 Customs barriers
 Physical barriers
 Technical barriers
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Building an Integrated Logistics & Transportation System
 Infrastructure (Standardization)
- Logistics equipment and facility
- Logistics technology
- Logistics information network
 Operation (Harmonization & Facilitation)
- Cabotage
- Customs procedure
- Mutual recognition agreement
 Institution (Cooperative Organization)
- Joint conference on integrated transportation and logistics market
- Dispute settlement mechanism
(Jun, et al, 2005)
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Research Methodology
• Finding obstacles to integration of a
logistics and transportation system
in Northeast Asia
• Questionnaire Survey
• Evaluating the economic effects of
an integrated logistics and
transportation system
in Northeast Asia
• Computable General Equilibrium
(CGE) Models
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Questionnaire Survey
• Purpose – finding main obstacles to integration of a logistics and
transportation system in Northeast Asia
• Questionnaire design and pilot survey by September 2006
• Survey carried out by October 2006
• Survey – Government Organization, Logistics Expert Group,
Shippers, Logistics & Transportation Companies etc.
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Key Survey Questions
• What is legal barriers to logistics and transport services?
•What is key barriers to customs procedures?
• What is international barriers relating to the entry into a logistics &
transport market
• What is technical barriers to integration of a logistics and
transportation system
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Computable General Equilibrium (CGE) Models
• Beginning with the NAFTA negotiations, CGE models have become a widely used
tool for evaluating the effects of trade policy reforms in both regional and
multinational initiatives (U.S. International Trade Commission, 1992; Francois and
Shiells, 1994; Martin and Winters, 1995).
• While economic theory identifies how policy changes will affect economic
variables, it does not define the size of the impact and, in the case of RTA’s, leaves
the net effect ambiguous.
• CGE models provide an empirical foundation for policy analysis that can quantify
the magnitudes of the effects identified by theory, and suggest the likely net effect,
whether trade creating or trade diverting, of an RTA.
(http://www.ers.usda.gov/publications)
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Requirements for Successful Logistics Integration
 Successful integration of logistics and transportation system for APEC economies
is a lengthy process because of inherent economic, political and social obstacles
- Clearly identify winners and losers, and losers need to be compensated
- Maximizing the potential benefits of the integration of logistics and transportation
system while minimizing negative effects
- Joint research by the relevant countries is essential to provide the intellectual
guidance and policy supports to the integration process
- Initiating and reinforcing cooperation through institution arrangements
- Streamlining various administrative and technical procedures
(Zhang, 2005)
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Future Work Schedule
• Questionnaire survey carried out by October 2006
• Collecting macroeconomic logistics costs such as transportation costs,
inventory carrying costs & administration costs in Korea, China & Japan by
October 2006
• Preliminary survey findings by December 2006
• Make a presentation on survey findings of obstacles of integrating logistics
and transportation system in Northeast Asia at 29th APEC TPT-WG in 2007
• Results of the economic effects of an integrated logistics and transportation
system by December 2007
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Implications of the Survey
• Identification of barriers to integration of a logistics and transportation system
is important in analyzing the nature of the market and in policy-making
• Removing existing legal, institutional, technical and physical barriers
promotes freer and efficient cross-border movements of goods, people, and
information
• Achieving the ultimate goal of an integrated logistics and transportation
system in APEC Economies
2006/TPT-WG-28/IEG/016