Dr Carlos M Gómez R Senior Researcher Week of Knowledge April 08, 2013

Transcription

1 What Panama needs to become the Singapore of Latin America? Dr Carlos M Gómez R Senior Researcher Week of Knowledge April 08, 2013

2 Economic Outlook 2009 Crisis influenced the world economic growth. The Panama Miracle 2 A Member of the Productivity for Progress Institute

3 Panama s today vision Panama is a growing economy Increasing direct foreign investment and Multinational Head Quarters Growth rate Panama's GDP growth rate: 2008/ / Year Source: INEC, Contraloria General de la Republica (2013) Direct Foreign Investment in Panama: (million of US Dollar) 2500 Number of MHQ Multinational Head Quarters established in Panama: Year US Dollar Year Source: INEC, Contraloria General de la Republica (2013) Source: MICI, Multinational Head Quarters Office 3 A Member of the Productivity for Progress Institute

4 Government s National Economic Plan Four Pillars Four Pillars Agroindustries Turisms Financial Services Logistics (Canal, Ports, Airport, SEZ, VAS) 4 A Member of the Productivity for Progress Institute

5 5 A Member of the Productivity for Progress Institute

6 An Overview of Singapore Area of 710 km 2 Population 5.31 million (June 2012) GDP (total) $ 327,557 million (2) GDP per capita $ 61,046 (2) A Republic with a Parliament System Foto courtesy of SEDB (1) Singapore Department of Statistics (June 2012) at current market price (2) International Monetary Fund (April 2012) at current market price 6 A Member of the Productivity for Progress Institute

7 Some facts 17 of top 25 global 3 PLs have a significant presence in Singapore World s 2nd Logistics Hub (World Bank, 2010) World s easiest place to do business (World Bank, 2010) 90% of electronic permit applications processed within 10 minutes All physical cargo cleared within 13 minutes Changi International Airport is served by over 80 airlines operating over 4500 weekly schedule flights linking Singapore to 200 cities in 60 countries. PSA Singapore Terminal handle about one-fifth of the world s total container transshipment throughput. Over 25 million TEUs in Source: Singapore Economic Development Board (2010) 7 A Member of the Productivity for Progress Institute

8 Comparing Singapore and Panama: what they have in common? Strategic geographic location Global & Regional connectivity Business & Finance Centers Attractiveness for Global Players 8 A Member of the Productivity for Progress Institute

9 Comparing Singapore and Panama: In what they differ? Singapore looks toward one ocean with all ports next to each other, facilitating transshipment Panama deals with 2 oceans requiring interconnection (rail/road) which is sensitive to externalities. Panama has 15 years in port expansion and 10 in aviation. Singapore has over 50 years orienting its economy as a global platform. National Strategy for utilizing resouces and developing capabilities in a long term agenda. Cultural differences. 9 A Member of the Productivity for Progress Institute

10 Does International Ranking suggest something? 2012 World Ranking Indexes Country Population World Bank Connecting to Compete (LPI) World Bank Liner Shipping Connectivity Index 10 A Member of the Productivity for Progress Institute million Rank Score Rank Score Singapore 5.3 (2012) Panama 3.4 (2010) Jamaica 2.7 (2011) Country World Bank Ease of Doing Business Report Report (The Networked Rank Rank Score Rank Score Singapore Panama Jamaica Sources: World Bank (2013) Doing Business Report 2013 World Bank (2012) Connecting to Compete World Economic Forum Global Competitiveness UNCTAD (2012) Liner Shipping Connectivity Index Worl d Economi c Forum (2011) Gl oba l Competi ti venes s Report ( ) Worl d Economi c Forum (2012) Gl oba l Informa ti on Te chnol ogy Report (2012) World Economic Forum Global Information Technology

11 Panama Logistics Network 11 A Member of the Productivity for Progress Institute

12 Panama s Service Models Transit Model Transshipment Model Value Added Model 12 A Member of the Productivity for Progress Institute

13 13 A Member of the Productivity for Progress Institute Transit Model

14 Transshipment Model 87% transshipment (Sept 2012) Colon Free Zone Tocumen 30,793 millon (2012) 7.0% (12/11) 6.9 millon pax (2012) 19.4% 116 mil tons (2012) 4.7% 14 A Member of the Productivity for Progress Institute

15 15 A Member of the Productivity for Progress Institute Value Added Model

16 16 A Member of the Productivity for Progress Institute Value Added Model

17 Key Questions (1) What are the benefits to use Panama Logistics Network vs other alternatives? What is the value proposition for companies using Panama as their Regional Center? What kind of infrastructure and services need Panama to become a Regional Hub? Do we need a single window for trading processes? 17 A Member of the Productivity for Progress Institute

18 Key Questions (2) What kind of tools exist in Panama to measure its logistics performance? How can we improve infrastructure and logistics services? How does Panama attracts new companies and logistics services? Can Panama become a Regional Hub for Education in logistics and trade? 18 A Member of the Productivity for Progress Institute

19 It is not only Singapore Panama should look to different global models more suitable to the country actual conditions: Besides Singapore Germany Hong Kong Netherland Luxemburg New Zealand Denmark 19 A Member of the Productivity for Progress Institute

20 Information is key for success 20 A Member of the Productivity for Progress Institute

21 21 A Member of the Productivity for Progress Institute

22 22 A Member of the Productivity for Progress Institute

23 23 A Member of the Productivity for Progress Institute

24 Panama Logistics Portal (logistics.gatech.pa) 24 A Member of the Productivity for Progress Institute

25 25 A Member of the Productivity for Progress Institute

26 Need for Efficiency and Competitiveness Decision making process must be supported by Thought Leadership, and Scientific and analytical thinking to improve capacity and quality of the services. All process should be efficient and less bureaucratic Supported by new technologies: e-commerce and e- logistics All stakeholders are part of an integrated system, therefore for a continuous process: collective knowledge 26 A Member of the Productivity for Progress Institute

27 Need for Efficiency and Competitiveness (2) Based on above Do we know in what is Panama competitive? In what not? How can Panama be more competitive? Need to aim for better performance and continously reinvent ourselves 27 A Member of the Productivity for Progress Institute

28 Georgia Tech Panama Logistics Innovation & Research Center Goals Improve Panama s logistics performance Establish Panama as the Logistics & Trade Hub of the Americas Sponsor 28 A Member of the Productivity for Progress Institute

29 29 A Member of the Productivity for Progress Institute Improving Human Capital

30 Education and Professional Development Dual Mater Program sponsored by SENACYT Two generations 23 Panamanian students with Master in Engineering in Supply Chain All working in prestigious companies in Panama 9 students returning to Panama in May for their Capstone Projects 30

31 Education and Professional Development Executive and Professional Courses in: Lean Supply Chain Series (2011, 2012) More than 115 participants in different classes of the serie and 33 people certified in Lean Supply Chain by Georgia Tech Supply Chain Management Series (2011) More than 65 participants and 6 certified professionals in Supply Chain Management by Georgia Tech Principles of Supply Chain & Logistics Series (2013) 45 participant and 8 certified professionals by Georgia Tech 31

32 Competitiveness: Facilitate Logistics Thinking Creation of National Logistics Council Facilitator for the Logistics Cabinet Participant at the Logistics Business Council (COEL) 32

33 Final Comments Historical opportunity for developing a logistics platform and trade Improvement will be driven by emerging I+D+i, this requires Public and Private sector support This PP relationship need formal and structured forums for a continuous discussion Information is valuable for the decision making process Define short, medium and long term strategies for national scale up 33 A Member of the Productivity for Progress Institute

34 Thank You Ocean Business Plaza (507) A Member of the Productivity for Progress Institute