“Together We Succeed”

1. Dr. Jae Hyuck Auh Ministry of Maritime Affairs and Fisheries (MOMAF) Republic of KOREA “Together We Succeed” Project Update on Nurturing an Integrated Logistics and Transportation System for the APEC Economies May 24th, 2006

2. Background Project Updates Preliminary Findings Future Works Agenda

3. Background • APEC economies have been closely working together to realize the Bogor Goal, particularly in the maritime sector, by adopting and implementing APEC Common Principles to Shipping Policy. • However, APEC economies should continue to overcome the obstacles from different levels of logistics systems and to nurture an more integrated logistics and transportation system. • Thus, Korea proposed a self-funded project of “Study on the the Costs of Non-APEC in the Field of Logistics and Transportation” at the TPT-WG 26th meeting in Vladivostok, Russia.

4. The Costs of Logistics Barriers in General - OECD (2002) Estimates … • Costs of time delay due to the increase in cycle time, paperwork and compliance related to border-crossing range from 5 to 13% of the value of the goods involved • The differing standards and technical regulations in different markets, combined with the need for multiple testing and certification, may constitute between 2 and 10% of overall costs of production

5. Identifying the costs of being separated non-APEC economies in the field of logistics, incorporating the door-to-door shipping concept • Developing strategic plans or basic directions for nurturing an integrated logistics and transportation system in APEC economies • Devising action plans for realizing the vision of nurturing an integrated logistics system Contents Research Organizations • Korea Maritime Institute (KMI) • Close cooperation with Chinese and Japanese academia Schedule • The years of 2006 – 2008 Project Updates

6. Preliminary Findings : “4–Pillars” • Besides the coordination of hardware-based aspects of maritime transportation, the facilitation and harmonization of software sides of logistics processes become more critical. • Promoting standardization of logistics equipment among trading partners should be continuously supported and implemented in a timely manner. • Information regarding the container movements across the borders must be shared and tracked electronically in the most compatible way. • Institutional supporting mechanisms should be fully structured along the integration processes of international logistics and transportation.

7. Future Works • Itemizing and refining of the cost-generating factors in the international logistics network settings (by the end of 2006) • Quantifying the costs or economic impacts of maintaining the separated logistics systems in the APEC region, starting from the northeast Asian region (by the end of 2007) • Developing the basic principles or directions towards the vision of an integrated logistics system among APEC economies; devising the action plans to realize the vision (by the end of 2008)

8. Together We Succeed ! International Logistics Center Ministry of Maritime Affairs and Fisheries (MOMAF) Republic of Korea Tel: +82-2-3674-6264~9 Fax: +82-2-3674-6673 E-Mail : jae_auh@naver.com