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Seamless transport could increase trade by billions

Sapporo, Japan | 03 June 2010
Sapporo, Japan, 3 June 2010 - Improving overall multimodal performance would increase intra- and extra-regional trade up to $500bn annually, says a report* exploring the potential impact of enhanced multimodal connectivity in APEC.
The report comes in the run-up to a meeting of APEC Trade Ministers this weekend and draws from analysis of air, land, and maritime transport, as well as logistics performance, to capture an economy's ability to manage complex multimodal linkages.
 
According to the report, while individual transport modes are important, making them work together through an efficient logistics system is even more important. Moreover, while the benefits of transport efficiency would be most visible in consumer goods, every sector performs better in direct relation to transport connectivity and efficiency.
 
The report therefore recommends that:
  • Investment in trade- and transport-related infrastructure development and maintenance should remain a priority for APEC member economies. Regional or sub-regional collaboration may be appropriate.
  • Regulatory reform based on cost-benefit analysis can help increase connectivity and improve the quality of service provision in vital areas, such as transport logistics.
  • The private sector should be engaged as a partner in infrastructure development and regulatory reform. Development of private sector competence in areas such as logistics should remain a key priority for member economies.

According to Dr. Ben Shepherd, lead author of the report, these observations are particularly important for developing member economies. Achieving the right balance between infrastructure investment, maintenance, and private logistics sector development remains crucial to enhancing overall competitiveness and boosting trade performance. Moving forward on all fronts simultaneously is likely to bring the greatest rewards.

The study was commissioned by APEC's Committee on Trade and Investment which is tackling chokepoints in the regional supply chain. It was undertaken by the APEC Policy Support Unit which conducts research and analysis to better inform policy-makers. To access the entire report, go to: http://www.apec.org/etc/medialib/apec_media_library/downloads/psu/2010.Par.0004.File.tmp/10_cti2_018rev1_PSU_Multimodal_ReportFIN.pdf

*The Economic Impact of Enhanced Multimodal Connectivity in the APEC Region, APEC Policy Support Unit, June 2010

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