Transcript 1- Sea Transport

Sea Transport
Logistics flow
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Sea Transport
Sea Section
Contribution of Sea transport
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National prestige
Enhance employment ratio
Improve balance of payment
Spin off industries
Improve local infrastructures
Allow the owner’s country to participate in
global trade issues
National prestige
• Participation of the nation in global arena
• Protect commercial interest
– Capture some foreign funds
• Provide naval reserve
• Linkage of the world
– Think of some Land-locked developing country
(LDC)
Enhance employment ratio
• Shipping is a labour intensive industry
– For local or national level
– Create job opportunities for unskilled workers
– Offer jobs to skilled workers
– Branched out jobs to work aboard, port areas
Improve balance of payment
• The balance of payments (or BOP)
– measures the payments that flow between any individual
country and all other countries.
– summarize all international economic transactions for that
country during a specific time period, usually a year.
• The BOP is determined by:
– the country's exports and imports of goods, services, and
financial capital, as well as financial transfers.
Improve balance of payment
• The GDP of a country is defined as the market
value of all final goods and services produced
within a country in a given period of time.
• GDP
– one of the several measures of the size of its
economy.
– GDP =
• consumption + investment + government spending +
(exports − imports)
Spin off industries
• Shore side
– Banking; Insurance; Warehousing; Trucking; Stevedore
service, ship’s chandler; bunkering
• Related to shipping industry
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Ship repair; shipyard
Seafarer and personnel training
Ship surveyors
Pilot service . . . etc
Improve local infrastructures
• To avoid congestion in main road
– Improve infrastructure adjacent to port areas
– Better road/rail connection to carry heavy load
– Give ample of space for future development
Participate in global trade issues
• With strong shipping service
– Take part in trade routes deployment
– Obtain strong bargaining power in trade and other
activities
– Induce further trade volume – as Hub and regional
hub
For Trainer
• You must be able to show
– Important of shipping to the national
• In money term and national prestige levels
– Show shipping has links to the national economic
growth
– Intangible nature of this industry
– It can be a gate
– It can be a bottleneck