(Sustainable) Logistics at the World Bank

June 16-18, 2014 Transport & Mobility Fact Finding Mission 2

*World Bank Group & Logistics

* Importance of logistics

* Aspects related to logistics

* Multi-donor Trust Fund on Sustainable Logistics

* Program/progress

* Themes/projects

* Jeroen Haver

* Transport & Logistics Specialist

* Transport & ICT Global Practice (per 1 July 2014)

* [email protected]


* Primary WBG-units involved with Logistics (per 1 July 2014):

• Trade Global Practice

• Transport Global Practice

• IFC Advisory Services

• PPP Cross Cutting Solutions Area

* Focus areas and Funds:

• Low-Emission Transport

• Multi-donor-Trust-Fund Sustainable Logistics

• Trust Fund on Trade facilitation

• Private sector involvement - PPP infrastructure finance

World Bank Group & Logistics


Importance of Logistics

• Logistics cost impact the Poor1

• Logistics substantial part of costs of basic goods (up to 30%)

• Basic good represent 20-30% household income, for the poor: 70%

• Logistics costs impact small farmers disproportionately1

• Average logistic costs for small farm 40%, versus 21% for large(r) farms

• Logistics costs impact all small firms disproportionately1

• Average logistic costs for small firms 13% versus 7% for large(r) firms

• Logistics is a driver of competitiveness and jobs2

• Inefficient and inadequate transportation, logistics and trade-related

infrastructure and services can severely impede a country's ability to

compete on a global scale

1 Jordan Z Schwartz, World Bank, at Sustainable Logistics Conference, The Hague Feb 2014; & M.

Reyes, LAC Logistics Firm Study, World Bank

2 www.worldbank.org: Trade Facilitation


Aspects related to Logistics

• Infrastructure: roads, waterways, ports, airports/aviation, rail

(Transport GP, PPP-CCSA, IFC)

• Reducing emissions, improving road safety, training & education

logistical activities (Transport GP)

• Agro-logistics, Port-Cities & Urban Logistics, Green supply chains

(Trust Fund-Sustainable Logistics)

• Trade-facilitation, Customs, Regulation (Trade GP)

• Logistics Performance Index (Trade GP)

• Total Logistics lending/spending: $4 bln p.a. ≈ 7.5% of WBG (FY12)

• Total of current active Transport related projects: 199, $40 bln

• Total of current active Transport projects with a Trade Facilitation and

Logistics (TFL)-component: 147 (74%) and $32.5 bln (83%) 1

1 Actual size of TFL-component within these projects is significantly smaller (under

review)


Multi-donor Trust Fund on

Sustainable Logistics

*MDTF-SL • Developing and extending WBG’s analytical work on sustainable

logistics

• Strong partnership with Netherlands logistics sector and international knowledge network of experts

• Client-focused, bank-executed Trust Fund

• 3 Main pillars:

• Green Supply Chains

• Agro-Logistics

• Urban Logistics & Port-Cities

• www.worldbank.org/en/topic/sustainabledevelopment/brief/sustainable-logistics-trust-fund


Where are we at?

• Formal signatures in September 2013

• Initial donor: The Netherlands. $2.5mln

• Launch conference in February 2014, The Hague

• Client-focused, bank-executed Trust Fund

• 3 Main pillars:

• Green Supply Chains

• Agro-Logistics

• Urban Logistics & Port-Cities

• Knowledge development and dissemination

• Global knowledge network

• Database of experts & expertise (case studies)

• Position notes on 3 themes – on web site (Fransoo; Van der Vorst; Blanco)

• Start of initial batch of projects in June 2014

• Next round in 2015


Output

• MDTF-SL:

• Means: Pilot/case studies, research, activities (dissemination, workshops etc.)

• Output: Policy recommendations, guidelines, toolkits, best practices, database, briefs

• Focus: New / innovative insights re. 3 topics; demonstrated client needs

• Applicable to : low-to-middle-income countries, nascent and emerging economies

• Requirement: Replicable

• External Expertise:

• If handled by borrower / client country

• WBG Procurement rules and guidelines: UNDB Online, WBG eprocurement2

• If handled by MDTF-SL –team or WB TTL:

• >= $ 250,000: Full competitive selection

• < $250,000: Simplified competitive selection

• < $ 50,000: Single Source selection


MDTF-SL Themes (I)

*Green Supply Chains • Climate-related and local environmental impacts from transport

of goods

• Competitiveness of exports in ‘global value chains that are monitored for their carbon footprint’

*Examples of Pipeline projects:1

A. ASEAN – Enhancing Connectivity project

1 The examples given here and on following slides are from the initial batch of projects that have been in pipeline and have been approved recently or are about to be.


ASEAN

A. Enhancing ASEAN Connectivity Monitoring & Evaluation

• A study that includes a replicable methodology to measure impacts of improved logistics corridors on CO2 emissions and food waste.

• Part of major ACIM program

*Project Phases

• Assess the existing ACIM

• Evaluate language choice for monitoring purposes

• Develop a qualitative and quantitative assessment strategy

• Propose appropriate output and outcome indicators

• Implement a capacity building plan


MDTF-SL Themes (II)

*Agro-Logistics

• Food security and competitiveness of agricultural exports

• Sustainable reduction logistics costs

• Reduction in food losses across supply chain

*Example of Pipeline projects:

A. Indonesia project

B. Kenya Food waste


Indonesia

A. Indonesia Farm-to-Market Connectivity

• Identifying connectivity gaps contributing to food insecurity

• and hindering development of key agricultural marketing chains

• Identifying potential reduction in loss between farm and market

• Disadvantaged areas

*Project Phases

• Development of indicators

• Methodology for targeted logistics chains

• Assessing efficiencies logistics chains

(Field surveys)

• Target interventions, building local capacity


Kenya Food Waste

B. Kenya Food Waste

• Review food logistics chains in highly productive areas

• Determine effective interventions to help reduce post-harvest

losses

*Project Phases

• Trace agri-products from farm gate to market

• Measure food loss at each stage

• Recommend targeted interventions

• Survey-based methodology + interviews


MDTF-SL Themes (III)

*Urban Logistics & Port-Cities

• Urban congestion from retail distribution of goods

• Sustainable design and operation of port-cities

*Example of Pipeline projects:

A. Mombasa project

B. Casablanca project


Mombasa

A. Mombasa project

• To analyze and measure the impact of port activities on the

development of the city

• Positive and negative externalities generated by the port

• Formulate mitigation measures and design an effective urban

development plan

*Project Phases

• In-field round table

• Desk review and field visits

• Methodology development

• Disseminate results


Casablanca

B. Casablanca project

• To reduce impact of logistics to urban congestion

• Better understanding of contributing factors in local situation

(case study)

• Input for National Guidebook on Urban Logistics

*Project Phases

• Desk and field study (traffic and logistic

delivery patterns)

• Long term vision / solutions

• Comparison to other cities

• Development National Guidebook

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