The World Logistics Passport is an initiative by the government of Dubai to encourage trade in the emerging markets. Countries from Asia, Central America, and Africa have started to join this new trading initiative with the objective of uniting the logistics pioneers and forge a partnership focused on boosting trade. Keep reading today’s post where we have discussed all the important aspects of the World Logistics Passport. Additionally, you will also find out how this initiative will help the growth of the transportation and logistics industry.
What is World Logistics Passport?
The World Logistics Passport is the first international freight loyalty program. The WLP was first launched at the World Economic Forum in 2020 by the Prime Minister of UAE HH Sheikh Mohammed bin Rashid Al Maktoum. The express objective of launching this program was to provide greater commercial opportunities between emerging trading nations. Presently the WLP is operating as an international network of commercial hubs across over 23 countries.
The programme aims to foster development in the transportation and logistics industry by overcoming the gaps between manufacturing centres, particularly in Asia and Africa. Some of the very first members of this alliance were India, Brazil, Thailand, South Africa, Indonesia and Colombia. Several other countries including Zimbabwe, Mozambique, Botswana, Ethiopia, Malaysia, Vietnam, Kenya, Ecuador, Burkina Faso, and Paraguay soon followed suit.
The Prime Minister of Dubai explains this initiative in very simple words: “The World Logistics Passport is yet another major initiative that reflects the UAE’s vision to shape a brighter future for our world through innovative programmes that foster global trade cooperation. In just one year, we have taken the WLP from vision to reality, bringing together a number of leading nations, logistics partners and multinational corporations in a close-knit alliance focused on trade growth. The WLP demonstrates once again the UAE’s keenness to work together with other nations to enhance prosperity and expand growth opportunities for businesses at a time when global markets are seeking to renew their momentum for growth.”
How the World Logistics Passport will benefit the transportation and logistics industry
Presently UAE is working alongside its partners to initiate commercial opportunities and foster trade growth at a regional and international level. The growth of trade automatically translates to increased businesses for freight forwarders. In the words of the PM of UAE, the country is “leveraging its vast expertise in facilitating global trade and its capabilities”. Moreover, the sound commercial experience of UAE will allow them to provide augmented opportunities for developing nations thereby generating economic value.
Simply put, the World Logistics Passport is permitting freight forwarders to take advantage of greater freight movement due to more commercial activities in the hubs of the programme. Additionally, the WLP links several developing economies. Therefore the member companies now have increased chances of venturing into new markets in South East Asia, Africa and Latin America. It will also help to support domestic connectivity.
Freight forwarders and manufacturers who are receiving and sending cargoes anywhere in the above countries will benefit from this programme. It will ensure that the cargoes reach the destination at a lower cost than the market rate. Several big manufacturers including Pfizer, Johnson and Johnson, Sony and LG have already become members of the WLP.
How the WLP will benefit the governments of the member countries?
The World Logistics Programme offers several advantages to the governments of the participating nations. To begin with, they benefit from enhanced competitiveness and financial flexibility. This is specially important at a time when international markets are trying to recuperate from the aftermath of the pandemic. Moreover, it helped to lower costs and boost the efficiency of the value chain in the transportation and logistics industry. In other words, the WLP is allowing companies to be globally competitive. Additionally, it is also opening up new avenues for employment and investment. According to the Chairman and CEO of Emirates, the WLP is reinforcing UAE’s position as an international trading hub. Furthermore, it is also connecting the participating countries to boost international trade and drive economic recovery.
The Silk Road Strategy of Dubai
The World Logistics Passport will help to transform Dubai’s vision of the Silk Road Strategy into reality. Dubai’s Silk Road Strategy is a long-term project that came to light in 2019. Its aim is to promote the growth of air and ocean freight while narrowing the logistics gaps between the nascent trade and production centres in developing countries. The Jebel Ali Port in Dubai is one of the busiest container ports in the world. Over the years it has contributed towards making UAE a top player in international trade.
The growth of trading activity in this region is being fully utilized by the UAE. Moreover, in 2019 China announced a plan to invest $3.4 bn on commercial facilities in and around Dubai. This plan includes the creation of a 60m square foot storage facility for Chinese commodities. These factors along with the inflow of foreign capital is gradually converting this region into an international logistics hub.
The Dubai Silk Road Strategy was formulated by the customs, ports and free zone corporation. Its primary objective is to foster the growth of trade within the country. Its second objective is to develop logistics link between Dubai and the rest of the globe. So basically the World Logistics Passport initiative has been devised to give a concrete shape to Dubai’s Silk Road Strategy.