1. Logistics and Regions

2. Trends The regions are becoming integrated in large-scale network economies (new markets conditions, reliance on global supply chains, relocation of production, declining of heavy industries). Growing tertiarisation of the economy (shift from manufacturing to services). External costs of the freight based economy (traffic generation, space consumption, flexible labor. Logistics efficiency vs. environmental impacts. More power of the consumer in the supply chain.

3. Key drivers: costs decrease, economic growth, globalisation, individualisation 1990 2000 2010 2020 Flows fragmentation direct shipping vertical disintegration Internal rationalization stock reduction outsourcing External collaboration multi-user hub networks horizontal bundling

4. Freight growth & changing flows Stronger growth than passenger traffic Stronger growth of international flows compared to national flows Explosive growth of Light Goods Vehicles Growth in the share of freight traffic on roads Growth of container turnover at ports

5. The regional dimension The role of freight transport and logistics (FTL): Vital component of regional economic change. Driver and subject of technology, organisation and territory. Distribution does not equal job losses in the industry. Reorganization of distribution: Convergence of logistics and intermodality Spatial shift of employment from center to periphery. Concentrations of logistics facilities

6. Raising awareness Governments are increasingly aware of the importance of an efficient and effective FTL sector in promoting and sustaining regional and national economic performance. The role that FTL can play in environmental sustainability is also becoming more prominent given air quality and greenhouse gas implications of freight movements.

7. The responsibility of public policy Emerging regional knowledge on logistics (universities, research institutes, service providers). Investment, zoning, regulation. Shift from a modal to multi-modal surface transport policy. Increased environmental accountability.

8. The agenda is becoming more complex There is a growing gap between the modernization of the private sector logistics and the stagnation of the transport infrastructures, regulations and public sector processes. The strengthening of the public authorities and the coordination with other public and private stakeholders, are necessary to implement a logistics-for competitiveness agenda. Publicly provided infrastructure Local view Publicly and privately provided infrastructure Transport services National view Publicly and privately provided infrastructure Transport and logistics services Transport externalities International view

9. Regional objectives

10. Logistics performance approaches Macro with logistics costs as a % of GDP. Micro with logistics performance based on firms’ surveys and logistics cost as a % of sales value. Recent logistics performance index based on freight forwarders perception.

11. WB Logistics Performance Indicators Quality of transport and information technology infrastructure for logistics. Ease and affordability of arranging international shipments. Competence of the local logistics industry. Ability to track and trace international shipments. Domestic logistics costs Timeliness of shipments in reaching destination. Efficiency of the clearance process by customs and other border agencies.

12. LPI for UE countries

13. Quality of transport and information technology infrastructure for logistics

14. Domestic logistics costs

15. Logistics and competitiveness Main Bottlenecks Port Customs Bottlenecks Terminals Ports Trucking industry Infrastructures Airport Firms Railroad SSS Regulations Private Public Resources H ML Impact Political and institutional difficulty High Medium-high Medium Low H M L