1. Facilitating Trade
Alexei Oduber, MBA

2. REJECTED
This graphic shows the process of simplication and facilitating trade….. or not! The entire trade process needs to be viewed differently as it will be with the changes in the world today. Why different? What has changed?....everything!!

3. The world is simpler and flatter every day
The world is simpler and flatter every day. We are now able to: Send an entire vessel's manifest for of 8000 teus on a small, yet secured file of less than 200kb. There are capabilities for the Documentation and Electronic issues to be outsourced from any where in the world
Change is mandatory – if you are confortable…you are wrong! Get outside of your confort area!
The challenges at all growing port related growth sectors are similar (it was the case in Panama):
1. Poor Inter-agency coordination
2. Low efficiency levels – Operational (Vessel’s throughput)
3. Low efficiency levels – Commercial (Customs and “speed to market”)

4. 1. Poor Inter-agency coordination
The challenges
1. Poor Inter-agency coordination
2. Low Operational efficiency
3. Low Commercial efficiency

5. What is role of customs? How does the government fit into change
Inquisitor about the person? Non supportive of the person?
NO. NO, No. Customs has to allow the trade to occur but with the restrictions and permissions that protect the country.
The first important item to consider are the reasons for Customs Facilities :According to Andrew Grainger (2007c)
Examples of related activity
Revenue Collection - Collection of Customs duties, excise duties and other indirect taxes; payment of duties and fees; management of bonds and other financial securities
** Duties must be clearly specified in the system – public and effective Customs Code. No good is interpretation.
Safety and Security - Security and anti smuggling controls; dangerous goods; vehicle checks; immigration and visa formalities; export licences
** Strict and to avoid mis-handling of information, use risk matrixes
Environment and Health - Phytosanitary, veterinary and hygiene controls; health and safety measures; CITES controls; ships’ waste
** Strict but open to updates on new lifeforms (Genetically modified brands, new trading routes)
Consumer Protection - Product testing; labelling; conformity checks with marketing standards (e.g. fruit and vegetables)
** Dumping and quality
Trade Policy - Administration of quota restrictions; refunds; suspensive regimes
** Documentation
----- Meeting Notes (11/3/12 00:41) -----
At the same table you can have the chamber of commerce with the Customs officials; the EDI provider with the vessel's planners - there is not secret between the parties….opennes

6. The only way to succeed is with mutual support amongst all states.
You can, and should have all parties at the table working together for the important data exchange necessary to create this data

7. Keep It Simple KISS Silly KISS PRINCIPLE Avoid the first slide!! Keep

8. LOW OPERATIONAL EFFICIENCY is fixable…. Examples are:
Keys to have success
Private terminal with clear rules. Over 15 years ago MIT was handed the strip….they did the numbers and prepared for the growth of the sector to come (activate the change) and here we are now
2 Panamax cranes (13 containers across deck)
6 post-Panamax cranes (17 containers across deck)
5 super post-Panamax cranes (18 containers across deck)
4 super post-Panamax cranes (22 containers across deck)
Comparative leadership with similar setups
1997 – Volume for Panama 900k teus
2012 – 6mm (90% TS)
The terminals were moving 5 teus/ vessel/hr; now 50 teus/crane/hour!

9. 3. Sell the logistic advantage with the country slogan
The country is working on four “engines of growth”
a. Agricultural
b. Tourism
c. Service Industries
d. Logistics

10. The reward!!!

11. How do you know if it is working?
Terminals offer “flexibility” of hours and requirements in exchange for higher productivity
The Commerce sector demands more!!! When you have it, then work with improving it – Canal Expansion

12. Office Productivity To improve commercial efficiency
We must strive for a “lean and mean” organization

13. Optimize processes
The key here is to seek “cost leadership”

14. And now what?
NOW WHAT???

15. 1. Poor Inter-agency coordination
The challenges
1. Poor Inter-agency coordination
2. Low Operational efficiency
3. Low Commercial efficiency
1. Poor Inter-agency coordination
Clear Rules of What’s in and what’s out!
Determine the points that affect trade now; then either
Eliminate them
Automate it, or
Adjust it to current market conditions
2. Low Operational efficiency
Allow the private sector to jointly develop the new product that will create the new system for the trade facilitation. Get Government involved – share
3. Low Commercial efficiency
Assure that the system is constantly monitored and adjusted
Measure your success
Aim for the improvement of the region
Go for technology – this segment requires cost leadership
Speed in clearing customs;
Staff in customs / bl?;
3. Clear customs codes
4. Protect your patrimony

17. Africa – the new growth sector for 2015-2025
Why??? 1.