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Transforming Economies Through Transports & Logistics CILT International Conference, Colombo, Sri Lanka – November 2012 1 Presentation by: Mangala P. B.

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Presentation on theme: "Transforming Economies Through Transports & Logistics CILT International Conference, Colombo, Sri Lanka – November 2012 1 Presentation by: Mangala P. B."— Presentation transcript:

1 Transforming Economies Through Transports & Logistics CILT International Conference, Colombo, Sri Lanka – November Presentation by: Mangala P. B. Yapa M.Sc. (Hons.) Eng. (Astrakhan, USSR), MBA (Sri J) C. Eng. FIE (SL), FCPM, MIMarEST Managing Director/Chief Executive Officer Colombo Dockyard PLC

2 CILT International Conference, Colombo, Sri Lanka – November 2012 Emerging Markets Introduction Sri Lanka as an Emerging Market Some Terminology Characteristics Supply Chain in Emerging Markets Case Review – Colombo Dockyard PLC Transformational Logistics Questions 2

3 CILT International Conference, Colombo, Sri Lanka – November 2012 In 1970s LEDCs - Less Economically Developed Countries Term was introduced by World Bank Economists, Antonine van Agtmael in the 1980s Found in countries considered to be in a transitional phase between developing and developed status..regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization – Center for Knowledge Societies Examples: Indonesia, Iran, some countries in Latin America, some countries in Southeast Asia, South Korea, Russia, most countries in Eastern Europe and some countries in the Middle East and parts of Africa Emerging Markets are nations with social or business activity in the process of rapid growth and industrialization Markets that provide greater opportunities, but with associated risks. Sri Lanka, an Emerging Market Sri Lanka, an Emerging Market 3

4 CILT International Conference, Colombo, Sri Lanka – November

5 BRIC : Brazil, Russia, India & China BRICS : BRIC + South Africa BRICET : BRIC + Eastern Europe & Turkey BRICM : BRIC + Mexico BRICK : BRIC + South Korea BEM :Big Emerging Markets: Brazil, China, Egypt, India, Indonesia, Mexico, Philippines, Poland, Russia, South Africa, South Korea and Turkey 5

6 CILT International Conference, Colombo, Sri Lanka – November 2012 Globalization and ICT development has made the world flat. Thomas Friedman, July There really is no such thing as a free market. We have laws which regulate commerce. And the most successful economies in the world have become that way by protectionist policies. This includes the US, Japan, England, and South Korea Ha-Joon Chang

7 CILT International Conference, Colombo, Sri Lanka – November 2012 Widely different markets: EMERGING: the BRIC & the Second Eleven DEVELOPING: those with high degree of social and economic hardship; lacking the robustness to compete alone such as host of African, South American and Asian countries. DEVASTATED: those wrecked by geological or metrological phenomena and requiring humanitarian aid and international support, such as Haiti, Niger, Pakistan, Chile DISLOCATED: experiencing or recovering from warfare such as Iraq, or Afghanistan TRANSITIONAL: those moving from centrally planned to open markets like Russia, Eastern Europe and the Baltics in the 1990s One Size does not fit all! 7 Contd.

8 CILT International Conference, Colombo, Sri Lanka – November 2012 High level of informal economic activity. Hybrid and asymmetrical supply chains. Significant regional, urban and rural differences. Variable levels of hard and soft infrastructure connectivity. Inconsistent and insufficient levels of sanitation, energy and market access. Extremes of affluence and poverty; literacy and numeracy and, cultural norms on gender and social mobility. 8 Contd.

9 CILT International Conference, Colombo, Sri Lanka – November 2012 Diversity & Complexity results in asymmetrical Supply Chains linking traditional, low tech and highly fragmented supply bases. Globalization pushes the enterprises to integrate into the global markets Logistics & Supply Chain thinking is the key challenge in emerging markets. 9

10 CILT International Conference, Colombo, Sri Lanka – November 2012 Mainstream logistics and supply chain thinking will not work, as is. Adapting to the unique conditions in Emerging Markets is inevitable. Hybrid Techniques that uses available resources and able to be responsive to local context & needs. The approach – Transformational Logistics A case review from Sri Lanka 10 Contd.

11 11 CILT International Conference, Colombo, Sri Lanka – November 2012

12 Seatrade Sri Lanka Ports, Trade & Logistics S-1 Noboru Ueda Chairman & President, ClassNK The Importance of Emerging Maritime Hubs in the Indian Ocean Advancing the Continued Growth and Development of the Maritime Industry

13 S Mil. gt Japan Europe Korea China Other Shipbuildings move from West to East Source: Shipbuilders Association of Japan Construction Volumes (GT) by Country/Region

14 S-3 Shipbuildings move from West to East European Shipbuilding Asian Shipbuilding S-3

15 S-4 Shippings move from West to East CountryNo. of ShipsMil. Gross Tons Japan8, Greece4, Germany4, China P.R.6, United States5, South Korea2, Norway2, Italy1, Singapore3, Denmark1, Owned Fleet by Nationality Source: Clarksons, May 2012

16 S-5 Shippings move from West to East Europe: Shipowning Asia: Shipowning & Shipbuilding S-5

17 S-6 The Rise of Singapore

18 S-7 The Rise of Dubai and the Middle East

19 S-8 Europe Asia The Rise of Sri Lanka Middle East SE Asia Sri Lanka & India The New Map of the Maritime World S-8

20 S-10 The Rise of Sri Lanka S-9 Source: Royal Society: Interface World Shipping Routes by Traffic Density

21 The Rise of Sri Lanka S-10

22 Thank You For Your Attention! S-8 Europe Asia Middle East SE Asia Sri Lanka & India S-11

23 CILT International Conference, Colombo, Sri Lanka – November 2012 With growing populations, a rapidly surging economy, a hunger for natural resources and growing demand for new ports and other infrastructure, there is little doubt that it is the Indian subcontinent that will drive the world economy in future. And, at the heart of this new maritime region, and at the heart of world trade, is Sri Lanka. I believe that Sri Lanka could easily emerge as the new great maritime nation - joining the ranks of with Singapore and the U.A.E. as a leader in the maritime world. Noburu Ueda – Chairman and President of Class NK, Seatrade Sri Lanka 2012 Conference, Colombo, June

24 CILT International Conference, Colombo, Sri Lanka – November 2012 SHIPREPAIRS SHIPBUILDING HEAVY ENGINEERING OFFSHORE ENGINEERING 24

25 CILT International Conference, Colombo, Sri Lanka – November

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27 CILT International Conference, Colombo, Sri Lanka – November 2012 Collapse in dry bulk shipping rates unprecedented in its severity The recent (2012) months' collapse in dry bulk shipping rates has been unprecedented in its severity, the head of the body that organizes the key shipping market said yesterday, as a key market index hit its lowest level since The Baltic Dry Index has fallen nearly 65% since the beginning of This is one of the few leading economic indicators that is not subject to government or corporate manipulation giving a true economic barometer of what is to come. The index is a measure of global shipping rates mainly composed of raw materials used for other products. 27

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29 CILT International Conference, Colombo, Sri Lanka – November 2012 Singapore AHTSV x(2), MPSV x (2) India AHTS V x(2) MPSV x (2) Lakshadveep Islands Passenger V x(2) Maldives 35m, 42 m, 24 m Vessels & Other Crafts x (13) Dammam, Saudi Arabia Crew Boats x(2) Nigeria, Port Harcourt Crew Boats x(2) Jeddah, Saudi Arabia Tug Boats x(3) Jakartha MPSV Brazil MPSV x(1)

30 CILT International Conference, Colombo, Sri Lanka – November

31 CILT International Conference, Colombo, Sri Lanka – November

32 CILT International Conference, Colombo, Sri Lanka – November 2012 Diversity & Complexity results in asymmetrical Supply Chains linking traditional, low tech and highly fragmented supply bases. Globalization pushes the enterprises to integrate into the global markets Logistics & Supply Chain thinking is the key challenge in emerging markets. 32

33 CILT International Conference, Colombo, Sri Lanka – November 2012 Mainstream logistics and supply chain thinking will not work, as is. Adapting to the unique conditions in Emerging Markets is inevitable. Hybrid Techniques that uses available resources and able to be responsive to local context & needs. The approach – Transformational Logistics 33 Contd.

34 CILT International Conference, Colombo, Sri Lanka – November 2012 Transformational Logistics is; A framework for research into logistics and supply chain thinking and practices that are relevant to Emerging Markets. A forum to build better understanding and common purpose between the formal and the informal elements of the economy as a whole. A means to embed a viable, inclusive and sustainable market as an economy responds to a natural disaster, the devastation of warfare or, political and economic dislocation. and Transformational Logistics can be: An enabler to grow logistics skills standards, capacity and delivery. A facilitator to promote and share adaptable, affordable and accessible practice in all end-to-end flows (physical; information, cash and skills) relevant to effective and efficient operations in these markets. A catalyst for mature markets and established companies to access new markets and learn from them. 34

35 35 CILT International Conference, Colombo, Sri Lanka – November 2012


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