1. 1 Professor Lauri Ojala Turku School of Economics, Finland Lauri.ojala@utu.fi Global Facilitation Partnership for Transportation and Trade International Federation for Freight Forwarders Associations The World Bank's Logistics Performance Index (LPI) Association of Customs and Trade Experts International Logistics Symposium Ankara, June 8, 2013 Turku School of Economics University of Turku, Finland

2. Prof. Lauri Ojala, Ankara, June 8, 2013 2 First report & data launched on Nov. 5, 2007 www.worldbank.org/lpi LPI 2010 launched by WB President Robert B Zoellick in Berlin on Jan. 15, 2010 Worldwide media coverage LPI 2012 out May 16, 2012 Background on the LPI

3. Prof. Lauri Ojala, Ankara, June 8, 2013 3 What is the LPI? Data for the LPI Logistics professionals in international freight forwarding operations A set of indicators that measure the performance of the trade logistics environment of economies

4. Prof. Lauri Ojala, Ankara, June 8, 2013 4 LPI 2010 & 2012 data collection Web-based Survey in: –English, French, Spanish, Chinese and Russian 1,000+ individual respondents Responses from 130-160 economies Over 5,000 international evaluations of 155 economies ”from the outside” Data from 100-140 economies for evaluation ”from the inside” All survey data is indicative due to e.g. sampling errors, subjective evaluations & confidence intervals

5. Prof. Lauri Ojala, Ankara, June 8, 2013 5 155 economies compared internationally based on 5,000+ individual evaluations on:  LPI measures measures how “easy” or “difficult”Trade Logistics is  More applicable to trade of manufactures than to bulk commodities The Overall LPI Score is composed of these six dimensions Country ranks in the International LPI

6. Prof. Lauri Ojala, Ankara, June 8, 2013 6 Overall LPI 2012 scores www.worldbank.org/lpi

7. Upper Middle Income countries a “watershed”; you find them in all performance quintiles Prof. Lauri Ojala, Ankara, June 8, 2013 7 LPI 2012 data

8. It is more how things are done than what the formal regime is Number of.. Sorted by LPI 2012 quintile Prof. Lauri Ojala, Ankara, June 8, 2013 88

9. 9 Income level alone does not explain economies’ trade logistics performance Countries by LPI 2012 overall score and GDP/capita ”Logistics Friendly” ”Consistent Performers” ”Partial Performers” ”Logistics Unfriendly” The boundaries for the four categories indicative only

10. Why Logistics Matter Result when a low income country reaches LPI of middle income average Indicator/policy areaIncrease in trade (%) Logistics Performance Index15.2 All trade barriers reduced to 10%8.4 Doing Business, cost of trading7.4 Tariffs reduced to 5%5.7 LPI = Logistics Performance Index; Tariffs = TTRI = Trade Restrictiveness Index; All barriers = OTRI = Overall Trade Restrictiveness Index. 10 Prof. Lauri Ojala, Ankara, June 8, 2013

11. Turkey ranks high in logistics compared to its peers… (LPI ranking, 2012) Prof. Lauri Ojala, Ankara, June 8, 2013 11 Rank out of 155 countries

12. : …and performs above countries with similar per capita income Prof. Lauri Ojala, Ankara, June 8, 2013 12

13. Logistics performance of Turkey at par with Southern Europe in most components in 2012… Prof. Lauri Ojala, Ankara, June 8, 2013 13

14. …and has imporved steadily since 2007 Prof. Lauri Ojala, Ankara, June 8, 2013 14

15. and…Turkey ranks 20 th in the world on UNCTAD’s container shipping connectivity Prof. Lauri Ojala, Ankara, June 8, 2013 15 Source: UNCTAD 157 countries included in 2012

16. Prof. Lauri Ojala, Ankara, June 8, 2013 Conclusion on the LPI survey A useful indicator on how ”easy” or ”difficult” a country’s Trade Logistics is Provides also domestic assessments; no. of respondents in a single economy often low Scores = Confident Intervals, not fixed points The resolution is rather low, but the LPI correlates very well with other datasets Robust & pragmatic data; useful in research, teaching, business and policy-making 16

17. THANK YOU! THE 2012 LPI IS AVAILABLE AT: WWW.WORLDBANK.ORG/LPI WWW.WORLDBANK.ORG/LPI THANK YOU! THE 2012 LPI IS AVAILABLE AT: WWW.WORLDBANK.ORG/LPI WWW.WORLDBANK.ORG/LPI Prof. Lauri Ojala, Ankara, June 8, 2013 17

18. Prof. Lauri Ojala, Ankara, June 8, 2013 18 A large national logistics survey with over 2,700 respondents in: -Manufacturing -Trading -Logistics providers by TSE Logistics research group for the Finnish MoTC Available at: http://www.lvm.fi/web/en/publication/-/view/4136894 See also:

19. A comprehensive overview By Rantasila & Ojala Discussion Paper 2012 - 04 Published at the ITF Summit 2012 Leipzig, Germany Available also at: www.internationaltransportforum.org Prof. Lauri Ojala, Ankara, June 8, 2013 19 See also: