World Trade - October 2008 - (Page 12)

TRADEWINDS THE LATEST TRENDS IN THE WORLD OF TRADE Middle East to Drive Global Logistics Expansion DUBAI ONE OF WORLD’S FASTEST-GROWING AIRPORTS The Middle East region will continue to experience high growth in contract logistics despite worries that a worldwide economic slowdown would have a serious impact on volumes and revenues, say industry analysts. With an anticipated growth of between 17 and 19 percent, the region’s logistics business is expected to outgrow the entire industry, which is expected to grow at 9 percent, according to a report in Emirates Business. Bengt Ekstrond, CEO of Gulf Agency Company, notes, “With increasing cargo volumes and strategic location between the West and Far East, regional economies are developing world-unique transportation logistics infrastructure, which will eventually impact global economy in terms of trade and commerce.” The worldwide contract logistics industry grew by 9 percent to just over $140 billion in 2007, according to new ﬁgures published in Transport Intelligence’s latest benchmark report, “Global Contract Logistics 2008.” Dubai remains among the top ﬁve fastest-growing airports in terms of cargo trafﬁc with a growth rate of 11 percent compared with Memphis International, home and headquarters of Fedex Express, whose traffic grew by 4 percent, but remained number one last year in terms of tonnage handled. Dubai International Airport handled 1.6 million tons of cargo in 2007 through Dubai Cargo Village, compared with Memphis’s 3.8 million tons. According to analysts, investments in the regional logistics industry will reach $60 billion next year as new international companies set up offices and existing companies embark on aggressive expansions of their operations. Investments in warehouses alone, a key element in the logistics industry, are expected to reach $50 billion in the next two years as a result of both private and government funded developments. Progress on Mexico’s Port of Punta Colonet BIDDING OPENS TO FOREIGN FIRMS Mexican President Felipe Calderon has opened bidding on Punta Colonet—a $4 billion seaport project that could compete with major seaports in Southern California. Punta Colonet is located approximately 150 miles south of Tijuana and is expected to have a container handling capacity of 2 million TEUs annually when it opens in 2014. Maritime experts say the close proximity to the U.S. along with a wide, natural harbor and ample room for expansion make Punta Colonet a good candidate for development. The massive project will be privately funded, with the ﬁrst phase estimated to cost $4 billion to $5 billion. The Mexican government is expected to award the 45-year concession in 2009. Transportation Services Index (TSI) July 112.9 November October 110.2 August December 109.5 108.9 September 108.8 108.1 January February 111.5 111.5 March 109.4 April 109.4 May 111.4 June 111.5 U.S. Customs Reverses Course on First-Sale Rule IMPORTERS SPARED FROM HIGHER DUTY RATES U.S. Customs and Border Protection (CBP) has reversed a decision that would have eliminated the first-sale rule, which provides a favorable methodology for valuation of U.S. imports. The proposal to revoke the first-sale rule would have led to an 8 to 15 percent increase AUGUST 2007 – JULY 2008 The Freight Transportation Services Index (TSI) rose 1.2 percent in July to a level of 112.9 (2000=100), rising for the fourth consecutive month, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) ofﬁce. TSI is a single seasonally adjusted index of the month-to-month changes in the output of services provided by the for-hire transportation industries, including railroad, air, truck, inland waterways, pipeline, and local transit. 12 WORLD TRADE OCTOBER 2008

Table of Contents Feed for the Digital Edition of World Trade - October 2008

World Trade - October 2008 Contents Tune Up Your Supply Chain Globalization: The Real Competitive Threat Supply Chain Watch Tradewinds Shippers and Providers Collaborate to Take on a Challenging Economy Tweaking the Supply Chain to Optimize Value and Minimize Cost Supply Chain Software Morphs Into Enterprise Management Can Warehousing Really, Truly Be Strategic? Everybody is Global Between the Devil and the Deep The Hidden Costs of ‘Free’ Translation Blowing Smoke

World Trade - October 2008

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