Development of a South-South
Transcription
Development of a South-South
Development of a South-South-North Maritime Corridor John Cuttino President, Portal Commerce & Logistics Brazil Representative, Port of Houston Authority & Paulo Protasio Director, National Agricultural Society Ex. President National Association of Users of Cargo Transport Ex. President Rio de Janeiro Commercial Association United Nations CEPAL International Seminar Facilitating the Effective Integration of Developing Countries in the Global Economy through Aid for Trade Managua, Nicaragua - September 25, 2013 Seminole Plaza Hotel Points of Departure • Firms, not nations compete (Porter) • Competitiveness of supply chains • 4th Generation Port (UNCTAD) and need to link Port-Hinterland Networks • Trade Corridor as Unit for Analysis (Actor and Context) can Improve Trade Facilitation Outcomes • South-South-North as Catalyst – Commercial and Academic/Scientific Project AGENDA • Legacy of Transportation Corridor Planning: U.S., Brazil, and IIRSA • Trade Corridor as Unit of Analysis • The SSN Challenge: Opportunities for Trade, Transport, and Trade Facilitation • An Instrumental Research Solution: Actionable Research Across Trade Corridors • South-South-North Maritime Corridor as Catalyst – Commercial and Academic/Scientific Projects • Bonus: Houston Case: How IT (harbor scheduling) brought productivity increases at Port of Houston U.S., Brazilian, and South American Transportation & Economic Development Corridors Brazilian Eixos U.S. High Priority Transportation and Marine Corridors South American Ejes Initiative for Integration of Regional Infrastructure in South America (IADB, CAF, FONPLATA) 10 Development Axes •Amazon (Colombia-Ecuador-Peru-Brazil) •Andean Axis •Southern Andean Axis (North-South Argentina and Chile) •Capricorn Axis (Antofogasta/Chile-Jujuy/ArgentinaAsuncion/Paraguay-Porto Alegre/Brazil) •Guyanese Shield (Venezuela-Brazil-Guyana-Suriname) •Parana-Paraguay Inland Waterway •Central Interoceanic (Brazil-Bolivia-Paraguay-Peru-Chile) •Mercosul-Chile •Peru-Brazil-Bolivia •Southern (Talcahuano-Concepcion/Chile-Neuquen-Bahia Blanca/Argentina) Companies Associated with IIRSA ADM Asea Brown Boveri Bechtel Booz Allen Hamilton Bunge Cargill El Paso Furnas GyM Halliburton Hunt Oil Maggi Odebrecht Petrobras Pluspetrol SK Corp Siemens Sonatrach Tecgas Tractebel SUFRAMA Brazilian Axes for Development and Integration • Redefined economic space and codified in multiyear-budget plan (Avanca Brasil 99/03) • Result of public/private Eixos Study (97/98) • Consorcio Brasiliana (Booz Allen Hamilton, Bechtel International, ABN Amro Bank), Ministry of Planning, National Development Bank (BNDES) •Criteria for delimiting axes of development • multimodal transportation infrastructure network based on analysis of origin/destination matrices of freight for priority commodities (GEIPOT) •Functional hierarchy of cities based on location theory of production, consumption of goods and services (IBGE) •Dynamic centers with economic potential •Ecosystems •Policy legacies (Brazil in Action, NE Drought Assistance) •Innovations and Objectives: • Bundle projects in different sectors • Prioritize projects with dual public/private interest • Combat negative sum fiscal compensatory policies • Focus on regional/global competitiveness • Lessen rural to urban migration • Reduction of transport costs • State reform in project management, and • Address regional imbalances. Trade Corridors: Definition • From transportation-specific to more encompassing of trade process – – – – “..corridors are understood as places or axes where business is made viable, benefiting from a cluster of economic and social facilities, highlighted by the trunk transportation systems.” (Brazilian Transportation Planning Company, GEIPOT 1999) “..corridors are conceived as a group of facilities along specific axes of penetration that are associated with the nation’s economic frontier. They include, more precisely, transportation resources, considered in their multimodal dimension, storage and warehousing installations and their intra- and intersectoral interfaces.” (GEIPOT 1988) Four components of a corridor: 1) standards and commercial and financial practices; 2) governmental regulations; 3) infrastructure, vehicles, equipment and facilities; and, 4) actors. (United Nations Economic Commission for Latin America and the Caribbean 1992) “..geographically designated areas that facilitate the national and transnational movement of goods, services, people, and information.” (Arizona Executive Order 2001-05 on CANAMEX) • Regional planning units that link production functions through the transformation process to domestic and international market access (Bender) • Working Definition: • “geographical designated area over which significant trade flows from a given origin of production to a given destination across a transport infrastructure met with a variety of services and linkages to labor, capital, production, and consumption.” (Boske and Cuttino) Components of a Trade Corridor • A commercial infrastructure – – – – Distribution and warehousing facilities; Foreign trade zones; Regulatory system for customs and inspection; and Trade incentives. • An integrated regional technological infrastructure with electronic data interchange and trade databases; • Business and professional know-how and expertise; • Well-developed social, political, and business linkages; • A physical infrastructure of highways, rail, air, sea, inland waterway, pipeline, and telecommunications; • Direct access to multiple markets; and, • Specific legislation and regulations. (Boske and Cuttino) Trade Corridor as New Unit of Administration “Trade corridors are a new class of region. They are not the products, by and large, of planning theory and practice….Rather, they are increasingly the result of decentralized decision making, led by the private sector’s understanding of changing, competitive markets, comparative advantages in raw materials, production capabilities and access to markets. The private sector is in a partnership with the public sector, which is divesting itself of those activities which it does poorly or inefficiently. …Trade corridors are generating their own set of emerging issues: new models of public administration.” Defining elements: production, transformation, market access -Stephen Bender, OAS, Unit for Sustainable Development and Environment Theoretical Underpinnings: Literature Review • Economic Geography – Central place and location theory (Von Thunen, Christaller, Losch) – Growth-pole theory (Perroux and Hansen) • New Economic Geography (Krugman) – – – – Imperfect competition Increasing returns to scale Market access Transportation costs, freight flow analysis, regional infrastructure • Global City-Region – City-region as actor and spatial node in global economy (Scott) – Paradiplomacy (Friedmann) and fiscal warfare – X-Border, transborder, decentralization, governance, sustainable development (Edgington) • Business and Maritime Logistics – From “Firms, not nations compete” (Porter) to Systems • Add that firms only compete to the extent their trade corridors/supply chains compete • Brand vs. Brand to Supplier/Brand/Store vs. Suppliers/Brand/Store (Lambert) – Clusters and value-added productive arrangements (Porter) – Port-hinterland networks and governance (DeLangen) • Institutionalism – Reduction of transaction costs (North) – Institutions shape and are shaped by (Agent and Medium, Independent and Dependent Variable) THE SOUTH-SOUTH NORTH: INTEGRATED MARITIME ROUTES • OPTIMIZATION OF MARITIME TRANSPORT • RATIONALIZATION OF PRODUCTION • ACCESS TO NEW MARKETS • SAFETY AND SECURITY: MARITIME SURVEILLANCE AND MONITORING • INVESTMENTS IN TELECOMMUNICATIONS, TRANSPORT AND ENERGY INFRASTRUCTURE • RELIABILITY AND SUSTAINABILITY • STAKEHOLDER COMMITMENT Strategic Position of Houston (Production, Consumption, and Transport Logistics) • 300 miles - 22 million population • 500 miles– 50 million population • 1000 miles- 103 million population • Texas GDP: $1.22 trillion (14th globally) 300 Port of Houston Complex 500 • Port of Houston Authority and 150 private companies along 85 km Ship Channel • >95 Berths- > 8000 deep sea vessel calls per year & > 150,000 barge moves • All-Water Services from 100 carriers connecting to >1000 port terminals • >230 million metric tons and 1.9 Million TEUs • Global Center of Oil & Gas and Energy Industry Milhões TRADE BALANCE: HOUSTON/GALVESTON AND BRAZIL $18000,0 $16000,0 $14000,0 $12000,0 IMPORTAÇÕES $10000,0 $8000,0 EXPORTAÇÕES $6000,0 TOTAL $4000,0 $2000,0 $,0 2000 2001 2002 2003 Source: U.S. Bureau of the Census. 2004 2005 2006 2007 2008 2009 2010 2011 13 The Challenge CURRENT ROUTES •Heavy movement of crude and finished products from the Middle East and Asia; • Large crude move from the Middle East to the US from the Persian Gulf; •Consumer products from Asia to LA/LB, Houston, and NY/NJ FUTURE ROUTES •Brazilian pre-salt oil reserves and changing economic demographics •Opportunities for refining and manufacturing of finish products at South-South-North ports; • Offer of direct access back to the US, Asia and the expanding African market place. • A global hub in South Africa • Panama Canal Expansion Back to the Challenge Need for a Catalyst: SSN • Greater understanding: – Economic development opportunities, challenges, public policies and investments – Linkages that tie NORTH AMERICA, CENTRAL AMERICA, CARIBBEAN, SOUTH AMERICA and AFRICA economies to stimulate a greater political, social, economic and environmental integration. • Articulation and development of a South-South-North Maritime Superhighway that connects and integrates South (Africa)South (South America) and North (U.S. Gulf-Central America & Caribbean), including Intraregional Trade (Short sea). SSN SURVEY: • South-South-North Maritime Corridor: What is it? – – • • What are the critical infrastructure needs for more efficient trade and transportation? What is the potential of the SSN? – • • The industrial potential and latent trade that could take place with structural and punctual infrastructure investments How can public policies and institutions better open trade opportunities and facilitate optimization? Are there best practices among selected ports, terminals, and transportation operators that we can learn from on the SSN? – – • Mapping or delimitation of the existing trade lanes of the SSN Origin/destination of cargoes, port pairs, existing maritime and air cargo services, a study of trade flows E.g. Houston: ISO 14001, ISO 28000, Fuel Switching Brazil: National Dredging Program What is the potential role of a South African “Hub” for SSN? HOW DO WE GET THERE? •INSTRUMENTAL CROSS-NATIONAL COLLABORATIVE RESEARCH- LINKING PORT-HINTERLAND NETWORKS •VEHICLE: SHIPMENT LEVEL ANALYSES OF REGIONALLY SIGNIFICANT COMMODITIES THROUGH COMPETING TRADE CORRIDORS •HOW TRADE IS ACTUALLY TAKING PLACE? PROCESSES, INFRASTRUCTURE, REGULATIONS, COSTS SSN Maritime Corridor Research Project • Basic Objectives of the Academic Project: – Collaborative Research of Regional Universities, Thinktanks, Class Entities, Multilateral Organizations – Multi-year survey with purposive case studies designed to delimit the SSN and provide inputs and suggestions for formation of public policies to stimulate international trade and investment, trade facilitation, and cooperation. – Identify economic development and trade opportunities – Collaboration between leading institutions within the SSN Maritime Corridor (especially Port User Organizations- COMUS, Santa Catarina) – Engage/stimulate a public-private sector dialogue on critical infrastructure, public policy, and maritime security issues affecting the corridors. – Collaboration between research entities and leading trade and transportation firms critical to trade corridors (ports, terminals, project cargo/breakbulk, rail companies, and cargo owners-users of cargo transport) SSN Data Needs • Commodity Flow Data O/D – Census, Trade Ministries • Transportation Costs and Performance – University of Sao Paulo-ESALQ-SIFRECA – EPL – Federal University of Santa Catarina • Shipment-level B/L Data (Datamar/PIERS) • Survey Level Data of Actors/Stakeholders – World Bank Trade Facilitation Audit Methodology AFT Needs Expected Result of SSN Building productive capacity Identification of gaps in competitiveness by comparison of (non)functioning trade corridors. Establishment of integration roundtables representing port-hinterland networks capable of understanding entirety of intermodal transportation networks and policies. Diversification of exports Quantitative analysis of commodity flow data between regions. Harmonization of trade norms and regulations policy, Delimitation of differing national policies will allow for better understanding of opportunities for convergence. Improvements in infrastructure Shipment-level analysis follows trade through the physical movement of goods and services. Gaps made evident as shipments journey on a trade corridor through transportation and supply chains. Increased competitiveness Cross-sectional comparison of like commodities selling to the same destination markets will reveal gaps and where and why some trade corridors are more competitive than others. The potential for development of benchmarking and new performance measures. Insertion into global value chains Greater understanding of how trade takes place by encompassing entire O/D chains. Monitoring and evaluation Understanding each stage of the trade and transportation process, better processes for monitoring and evaluation can emerge. Proposal to set up integration roundtables could help institutionalize monitoring and evaluation. Policy recommendations Policymaking improves with better understanding of determinants of international trade. Promoting trade facilitation Cooperation disperses across trade corridors’ multiple jurisdictions. Reductions barriers in non-tariff trade Identification of asymmetries in treatment of different commodities provides basis for negotiation and analysis of non-tariff barriers impacts on local and regional economies. Commercial Project • Identify economic development opportunities in key infrastructure (telecommunications, transportation, energy) • Bankable feasibility studies and executive projects for infrastructure development • Increased trade volume • Development of more and regular maritime services – Short sea and cabotage • Digital integration of participating ports and business communities via IT platform • Africa, South America, Gulf of Mexico, Central America and Caribbean business cooperation: new player • Maritime electronics and monitoring in partnership with oceanographic research SSN Ports (Purposive) • Houston (USA) • Buenos Aires and Zarate (Argentina) • Port of Spain (Trinidad & Tobago) • New Orleans and South Louisiana (USA) • Kingston (Jamaica) •Panama (Colon) • Itaqui (Brazil) • Puerto Cabello (Venezuela) • Cartagena (Colombia) • Montevideo (Uruguay) • Caucedo (Dominican Republic) • Santos (Brazil) • Santa Catarina Port Cluster (Brazil) • Rio de Janeiro (Brazil) • Lagos (Nigeria) • Coega (South Africa) • Fortaleza/Pecem (Brazil) • Belem/Vila do Conde (Brazil) • Salvador/Aratu (Brazil) Top-in-Class Partners • Research Universities, Thinktanks, Class Entities, and Multilateral Organizations • Maritime Steamship Lines (Container, Liquid Bulk, Dry Bulk & Breakbulk) • Terminal Operators • International Freight Forwarders • Railroads • Trucking companies • Infrastructure Development and Project Management • Users of cargo transport: Importers and Exporters SSN Benefits to Trade Facilitation • • • • • • • • • • • • Save time and money Reduce costs and streamline procedures Integrate transportation and logistics under the multimodal/intermodal optic Coordinate stakeholder commitment across multiple jurisdictions with public and private sector participation (technology) Rationalize and optimize the transportation matrix Solve bottlenecks and resolve disputes Develop comparable micro-level data for benchmarking Trade Corridors (O/D pairs) Commitment to environment and sustainability (holistic visibility) Creation of a special interest- new institution (agent and medium) Generate economic development Facilitate trade and technology transfer through linked port-hinterlandmaritime networks Leverage position of small and medium-sized businesses TOWARDS A SUSTAINABLE SOUTH-SOUTH-NORTH MARITIME CORRIDOR Thank You! John Cuttino Brazil Representative Port of Houston Authority Email: [email protected] 29 Alexandra Morrell, Mare Liberum Consulting When is Your Ship Coming In? Integrated Billing System • Electronic pilot cards and electronic invoices • Same day invoicing • Integration into accounting software • Accurate billing information for all port entities • Customized fees and charges to port operations Results