[200112.EN.LOG] Agility Sees The Future for Logistics in BRIC Nations

EMERGING markets have been competing to become the trade hubs of the future and are not showing signs of reducing their dependency on developed markets, according to Agility's 2012 Emerging Markets Logistics Index.

The research found that in the second half of 2011 growth cooled in virtually every region of the world at a time when regimes in Egypt, Libya, Tunisia and other Middle East countries were collapsing in the face of popular unrest, a company statement said.

"In spite of the economic slowdown and political upheaval, output in powerhouse economies such as Brazil, China and India remains high, and the so-called "Arab Spring" countries are now viewed as more attractive places to do business," the study said.

The annual Index spotlights 41 emerging markets and ranks them by their investment potential and progress each year. Attractiveness is measured by: market size and growth, market compatibility (foreign direct investment, security, urbanisation and wealth distribution) and market connectedness (international and domestic transport infrastructure).

The report, sponsored by global logistics provider Agility, was compiled by Transport Intelligence. To compile the index, 550 senior logistics executives were surveyed.

"The countries that dominated the rankings continued to be those that combine size and robust growth," it said. China ranked first, India second and Brazil came in third. Saudi Arabia and United Arab Emirates (UAE) took the fourth and fifth spots, respectively, and Indonesia and Russia were in sixth and seventh place, respectively. Malaysia moved up three places from last year's rankings to become eighth, while Chile was in ninth position, and Mexico fell two places to 10.

"Emerging markets are more resilient and independent than they've ever been," said Essa Al-Saleh, Agility's president and chief executive officer, Global Integrated Logistics. "There's growing evidence that their dependence on the established markets is diminishing as new trade lanes grow and consumer demand in huge markets like China and India gathers strength. In the Middle East, where we saw old regimes fall, the Index indicates that logistics professionals see the region as 'open for business' in a way that it wasn't before."

China was considered the country that had the biggest potential to emerge as a major logistics market in coming years, and was the top nation to watch.

China dominated global trading volumes with the top two trade lanes by volume involving China. The country's exports to the European Union (by sea) are estimated to have amounted to 50.48 million tons for the year while exports to the US (by sea) totalled 48.76 million tons. Europe has overtaken the US to become China's top trading partner.

Source : HSG, 21.01.12.