To enhance trade ties between emerging markets
The World Logistics Passport (WLP), a major policy initiative established to increase trading opportunities between emerging markets, has announced India, Indonesia and South Africa as members.
They join Colombia, Senegal, Kazakhstan, Brazil, Uruguay and the UAE in a club of trading nations sharing expertise to smooth trade flows around the world.
The WLP creates opportunities for business across Africa, Asia, Central and South America to improve existing trading routes, and develop new ones, through the world’s first logistics loyalty program for freight forwarders and traders.
It overcomes non-tariff trade barriers by fast-tracking cargo movement, reducing administrative costs, advancing cargo information and facilitating movement between ports and air.
Take, for instance, the cargo journey from Jakarta to Johannesburg. Transporting high-value, low-weight goods through historically established transport routes in Europe takes considerably longer, and is therefore more expensive, than if the goods pass through Dubai.
Through the WLP, traders can expect to save 25% on freight costs and 10% on transit time moving goods from Indonesia to South Africa.
Mike Bhaskaran, CEO of the World Logistics Passport. said: “The World Logistics Passport increases resilience in global supply chains and removes the barriers that prevent developing economies from trading as freely.
“Today’s announcement shows that governments and businesses are thinking differently about how goods and services move round the world, and we are delighted to welcome India, Indonesia and South Africa to the club.”
The WLP now counts Mumbai International Airport (Chhatrapati Shivaji Maharaj International Airport), Nhava Sheva International Container Terminal (Mumbai), and Emirates SkyCargo in India & Nepal as partners.
The Johannesburg Chamber of Commerce has signed a framework agreement with the WLP and bilateral negotiations with the government continue. Joining the WLP will be a key enabler of the African Continental Free Trade Agreement, opening up new market potential among countries in the region.
Indonesia is a strategically important market for the WLP, as it represents a region key to the WLP concept for its fast economic growth driven by manufacturing exports.
The WLP will compliment and reinforce the headline aims of the final stage of the Long-Term National Development Plan (RPJPN), specifically in terms of boosting national competitiveness and higher-wage job creation across all of Indonesia’s varied geographies.
The WLP now counts the Indonesia National Shippers’ Council as a partner, which will provide benefits related to navigating the local market.
Last year, the Indonesia National Shippers’ Council signed a Memorandum of Understanding with PCFC in Dubai to realise trade cooperation, thus the registration can be seen as an evolution of an already entrenched and fruitful partnership.