Deficiency in transport and communications infrastructure is one of several supply chain barriers that act as obstacles for speeding up global economic growth. That is the conclusion of a report entitled “Enabling Trade: Valuing Growth Opportunities”, prepared by the World Economic Forum (WEF) in collaboration with the World Bank, and Bain & Company, a Boston-based global management consulting firm.
The report was made public at the opening of the 11th Annual World Economic Forum in Davos, Switzerland.
The report highlights a variety of identified supply chain barriers – ranging from poor physical and technical infrastructure to border controls, customs paperwork, lack of coordination between national agencies and regulations favouring local products over imported ones.
“This report makes clear that transportation infrastructure investment can have a very positive and immediate impact on trade growth and economic and social development, particularly in emerging market areas”, notes APM Terminals CEO Kim Fejfer, a participant in the gathering of the world’s political and business leadership in Davos. A.P. Moller-Maersk, the leading Danish transportation and energy conglomerate and parent company of APM Terminals, is an active participant in the World Economic Forum that prepared the report.
The WEF estimates that global trade would increase by an estimated US$1.6 trillion, or approximately 15%, while global GDP would rise by US$2.6 trillion, or approximately 5%, if every country improved two key supply chain barriers just halfway to the world’s best practices: improving inadequate infrastructure and adopting modern communications technology such as electronic freight releases, and by streamlining and simplifying border administration procedures.
APM Terminals, one of the world’s leading global operators of container terminals and inland services, has invested US$3 billion in new infrastructure over the past two years, including major new port and expansion projects in West Africa, Central and South America, the Middle East and Asia.