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 2010documentation for customs operations. At present they have a strong trading relationshipwith Algeria via Tunisia, with whom Libya has an agreement on the free circulation of goods.<strong>The</strong>y feel that the increased competition brought about by integration would be acceptable,owing to the increase in the size of the market. Currently there exists a proposal to facilitatemultimodal transport between Arab countries but it has not yet been approved by thegovernments concerned.Shipping agentsShipping agents offer the widest range of services of all the operators in the port industry,owing to their recognition in law and their connections to shipowners which, in order to attracttraffic, put pressure on shipping agents to increase the range of services they offer to clients.<strong>The</strong> shipping agents interviewed felt that marketing is not particularly necessary in Libya,given that personal relationships with clients are more important; clients are won and theagents continue to offer them new services and ensure the services they provide are of highquality. Price, however, is still more important than anything else. Finally, for importers toenter into 3PL-type contracts, the government would have to foster the necessary levels oftrust.<strong>The</strong> main problem faced by shipping agents is the lack of efficiency and speed of portactivities. <strong>The</strong> levels of port services do not meet the standards of international companies,so although the shipowners put pressure on their shipping agents to assume moreresponsibilities for the client it is difficult for the agents to commit to anything more thanreceiving and delivering containers. As a great deal of time is required for cargo to passthrough the port (10 to 12 days), the shipowners complain that under such conditions theyare unable to import perishable products such as fruit. Nor are there good conditions for thetransportation of hazardous products, as there is a lack of knowledge and experience inhandling such cargo.<strong>The</strong> situation is different in Misurata port, however, where the customs system works betterand where there is a storage area with plug points for refrigerated containers. <strong>The</strong> port alsohas a free zone, where shipping agents have access to customs warehouses and the longwaiting times of port warehouses can be avoided.European ports do not offer good services for cargo arriving on the Far East route, unlikePort Said, which is a more efficient maritime hub for this kind of traffic.In terms of the needs of the shipping agents interviewed, what they most request from theirgovernment and the European Union is training; specifically, training that is tailored to theirneeds (and which is the fruit of visits to the country and consultations with the companiesthemselves), practical and delivered in the workplace. A particularly important factor is safetytraining, as international companies require that someone be responsible for safety andsecurity, but Libyan operators do not have employees that fit this role. In general, theprocesses of company certification should take training into account so that quality objectivescan be achieved. Thorough training in ICTs is also required.Another major deficiency is the lack of logistics zones where operators can have their ownwarehouses (as is the case in Misurata port) and enjoy direct control over the handling ofcargo. <strong>The</strong>re is also a lack of storage depots for empty containers.<strong>The</strong> regulatory framework should be modified in order to promote responsibility on the part ofevery operator along the transport and logistics chain. It is particularly import to bring inNVOCCs to increase freight-consolidation traffic, which is of particular interest to SMEimporters and exporters.CETMO 145