The Logistics Sector on the Southern Shores of the Western ... - cetmo

<strong>The</strong> <strong>Logistics</strong> <strong>Sector</strong>on the Southern Shores of the Western Mediterranean October 20102Challenges and Competitivenessof <strong>Logistics</strong>-<strong>Sector</strong> OperatorsStudy of the <strong>Logistics</strong> <strong>Sector</strong> in the Maghreb: StructureChapter 1Player ProfileDescription of ServicesWhat is the sector composition?What are the operating conditions for businesses?Chapter 2Major ChallengesCompetitive analysisWhat factors are holding back modernization?Does the current situation of the cluster fosterprofitability and the modernization of operators?Chapter 3Modernizing StrategiesSolutions put forward by the government and bypublic and private operators.Chapter 4SWOT AnalysisConclusionsTo what extent does the future scenario affectbusinesses?Recommendations and proposals.Chapter 5<strong>The</strong> Cluster ApproachFigure 2.1 Chapter 2. Major Challenges and Competitive AnalysisHow can a cluster approach help modernize logisticssectoroperators?2.1. Challenges and Competitiveness of <strong>Logistics</strong>-<strong>Sector</strong> Operators on the SouthernShoresTo improve the logistics service sector, the countries in the region need to meet a number ofchallenges, which implies overcoming the structural market weaknesses discussed inparagraph 1 of this report.<strong>The</strong> fact is that all of these countries show very high logistics costs (around 20% of GDP),along with strong pricing competition in certain markets. This contradiction is due tocompanies carrying out most transport and logistics operations in-house without subcontractingto outside operators, as well as sub-standard, highly inefficient services andadministrative procedures which exacerbate such problems, though they do not cause them.<strong>The</strong> competitiveness of the logistics sector was analysed using Michael Porter's frameworkknown as the five forces model, in order to try to evaluate where pressure is being exerted,with a number of common characteristics being noted:• Clients are not generally very demanding as regards the improvement of services, on theone hand because public-sector demand still plays a major role and, on the other hand,CETMO 105