The challenges of developing a competitive logistics industry in ASEAN countries

Tongzon, Jose L.; Cheong, Inkyo

doi:10.1080/13675567.2013.862228

Cited by 18 publications

(14 citation statements)

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“…A close relationship between logistic efficiency improvements and export performance can be found in substantial literature, including Hummels [23], Limao and Venables [24], Wei and Yi [25], Redding and Venables [26], Wilson et al [27], Anderson and Banomyong [28], Tongzon [29], Tongzon and Cheong [30], Cheong and Suthiwartnarueput [31], Arvis et al [32], and others. These existing studies analyzed the ripple impact of the reduction of logistics costs due to technical and institutional improvements, while this paper analyzes the adverse effects when the trade cost increases due to the increase in tariffs and the expansion of NTBs.…”

Section: Literature Review On Trade Conflict Ntbs and Logisticsmentioning

confidence: 80%

The Impact of Global Protectionism on Port Logistics Demand

et al. 2020

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Various risks and uncertainties are strengthening the downside of the global economy. This paper aims to estimate the impact of the US–China conflict and the World Trade Organization (WTO) Appellate Body’s shutdown on global logistics demand and to show the seriousness of the situation. Existing literature studies on protectionism or the US–China trade conflict were considered, with a focus on the effects of specific issues or impact on bilateral relations. No research has quantitatively considered the adverse effects of the Appellate Body’s shutdown. In this situation, questions can be raised whether the current global shipping logistics system can be sustainable or not. This paper attempts to estimate the shrinking demand for shipping logistics due to global protectionism. Using a dynamic general equilibrium model and trade-cargo-container conversion methodology, which differentiates this paper from previous studies, the paper suggests that the combination of tariffs and NTBs can severely reduce international trade and the demand for maritime logistics services. Depending on the scenario, port cargo is expected to decrease by 3.95 to 6.9 trillion tons, which can be half of the global cargo. Based on these estimates, this paper suggests that a catastrophe could occur in global trade order as well as global maritime logistics. Finally, underlining that the international trade order should not be severely damaged, this paper proposes that countries around the world should seriously discuss this issue at the 12th WTO Trade Ministers’ Meeting in Kazakhstan in June 2020.

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Section: Literature Review On Trade Conflict Ntbs and Logisticsmentioning

confidence: 80%

The Impact of Global Protectionism on Port Logistics Demand

et al. 2020

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“…Fourth, the survey to national ministries and private companies regarding ASEAN Connectivity suggest the lack of knowledge about the existence of MPAC and how it may promote integrated supply chain in ASEAN. However, it should also be noted the lack of knowledge on supply chain management as surveyed by Tongzon and Cheong (2014).…”

Section: Discussionmentioning

confidence: 99%

“…The MPAC is considered as a stepping stage on building the connectivity of physical, institutional and people mobility that is crucial to accelerate integrated ASEAN market through the ASEAN Economic Community (AEC) (Tongzon and Cheong, 2014). Considering its strategic geographical location, there will be much to gain from two of ASEAN's flagship transport infrastructure projects, the ASEAN Highway Network (AHN) and the SingaporeKunming Rail Link (SKRL) for Indonesia.…”

Section: Introductionmentioning

confidence: 99%

The Potential Development Effect of ASEAN Connectivity: The Case of Riau Corridor

Aritenang¹

2017

MIMBAR, Jurnal Sosial dan Pembangunan

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Abstract. The implementation of Masterplan on ASEAN Connectivity (MPAC), especially on transportation and connectivity, includes plan to connect the member countries. This paper examined the issues and potential effects of ASEAN Connectivity in Indonesia. The paper conducted qualitative analysis on literature study, policy content analysis, and interviews allowing detail information on the MPAC implementation in Indonesia. The paper findings are as follows; (i) The lack of MPAC implementation at both ASEAN and Indonesia levels. The ASEAN lacks a designated authority and leadership to carry MPAC forward the masterplan, whilst in Indonesia there is no institution to lead the MPAC delivery. (ii) The important role of a leading institution in Indonesian government is to define and determine the strategic projects with higher value added. The paper concludes that the national government should regulate and lead the MPAC projects to ensure regional-wide connectivity with ASEAN, whilst at the same time integrate local development in Indonesia.

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“…Gupta [98] found that unwieldy customs procedures and inspections, a lack of coordination, and arbitrary rulings are barriers to freer cross-border trade within ASEAN. Tongzon [99] found that the implementation of measures to improve the competitiveness of ASEAN logistics industries has been limited and characterised by a significant perception gap between logistics firms and governments.…”

Section: Cross Border Road and Rail Freight Solutions: E-border Technmentioning

confidence: 99%

Lowering Transport Costs and Prices by Competition: Regulatory and Institutional Reforms in Low Income Countries

et al. 2019

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High passenger and freight transport costs are a barrier to economic growth and social mobility, particularly in Low Income Countries (LICs). This paper considers the current state of knowledge regarding the barriers to achieving lower generalised transport costs. It considers both the road and railway modes across passenger and freight transport. These issues include a reform on the regulations for driver hours (preventing the road infrastructure from overloading), structuring rail concessions, increasing competition, and tackling corruption. Such reforms aim to deliver efficiency gains and service quality improvements at lower costs for users. This paper identifies the knowledge gap in previous research and concludes by setting out a research agenda that builds the evidence base for how the best practices from around the world can best be applied to the specific circumstances in Low Income Countries, with a particular focus on Sub-Saharan Africa and South Asia. road transport is dominant, but rail still has a non-trivial mode share in both the passenger and freight market. In LICs, experience varies. In Sub-Sharan Africa, the lack of railway infrastructure means that, for passenger flows outside of the long distance segment (which is small in any case), the road mode is dominant. As such, the rail transport that exists is biased towards freight. In South Asia, however, LICs can have substantive railway transport focused on passenger flows (for example in Bangladesh and Myanmar).More broadly, road and rail services are different because roads are open to private users whilst rails have much stronger access restrictions. Studies on the regulation, concession design, and institutional skills requirements for planning, designing, and monitoring transport services have been reviewed. Given the access restrictions in rail, these issues are more applicable to the rail sector. The situation for roads is different, where the state usually provides the infrastructure either directly or indirectly via letting tenders, but private users are also free to use the infrastructure. The issues with respect roads are more focused on regulations on driver hours, road safety, and preventing the over loading of vehicles and tackling corruption. Such reforms aim to deliver efficiency gains and service quality improvements at lower costs for users.Common to both road and rail are the long and costly clearance times at border crossings. Arvis [4] shows that the cost in the bottom three quintile LICs is three times higher, and its paperwork twice as high as that for the top two quintiles LICs. The literature also indicates that transit time and the reliability of transit impact freight choices and that cross-border delays significantly increase freight tariffs. Existing evidence on alternative technologies that can help improve cross border crossing is also considered. In many LICs, it is clear that the opportunities presented by strategic roads and rails are not being fully realised for a variety of reasons.Specific experiences in LICs...

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The challenges of developing a competitive logistics industry in ASEAN countries

Cited by 18 publications

References 14 publications

The Impact of Global Protectionism on Port Logistics Demand

The Impact of Global Protectionism on Port Logistics Demand

The Potential Development Effect of ASEAN Connectivity: The Case of Riau Corridor

Lowering Transport Costs and Prices by Competition: Regulatory and Institutional Reforms in Low Income Countries

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