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

October 2010WeaknessesNo strategy formodernizingoperationsInadequate size ofoperatorsLack of speed inthe portsInsufficientinternationalexperienceLack of training<strong>The</strong> <strong>Logistics</strong> <strong>Sector</strong>on the Southern Shores of the Western MediterraneanAs has happened in neighbouring countries, liberalization has occurredwithout a programme to promote the modernization of companies. InLibya’s case there is no strategy for modernizing operations, or any formof agreement between the government and the private sector on how toformulate such a strategy.Although there is a great deal of business initiative, the size of thedomestic companies in the road-transport and port industries isinadequate, particularly in terms of developing the country’s internationallogistics potential.<strong>The</strong> port system handles manual operations efficiently but suffers from amajor lack of speed in administrative processes. This is a very significantdrawback, especially for exports, and also implies an extra cost forimports.Libya’s main exports are oil products, which have much simpler logistics.Companies importing general cargo have barely started using Incotermssuch as the ex-works method, which regulate the organization ofinternational transport chains.As with other Maghreb countries, the lack of training was highlighted byevery operator. In Libya, training that meets international standards iscrucial if the country is to play a part in global logistics.4.3.2 Recommendations and Proposed Action for LibyaLooking back over the sections above, the following elements stand out as being of particularimportance:• In terms of the description of the industry, it can be concluded that logistics systems arestill handled internally and that the legislative deficit must be addressed in order tocomplete the regulatory framework and demand more from operators (who have noprofessional organizations). <strong>The</strong> ports operate efficiently but procedures are slow androad transport is not internationalized to any significant extent.• In terms of the competitiveness analysis, it is clear that there are no major limitationsslowing the modernization of the logistics industry. However, there are few factors drivingit forward, either, with the exception of the investment in infrastructure on which thegovernment is focusing its attention and resources.• An analysis of the current strategy reveals that there is no overall strategy for the logisticsindustry that covers infrastructure, services and operators. Nor is there agreementbetween the private sector and the government.• Finally, the SWOT analysis shows that Libya has the potential to become anintercontinental platform for traffic between Europe and Africa, although it lacks largedomestic operators with international experience (with the exception of the LNMTC).From these premises, the recommendations of this report are divided into three major areas:• Developing a strategy to promote quality services and helping companies modernize.• Promoting collaboration between the government and the private sector and, above all,acknowledging and prioritizing the requests of operators.176 CETMO