New horizons alternative Asian markets – From OPPortUNITY to CONNECtivitY

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2. Quality of port infrastructure. This is a World Bank survey measuring business executives’ perceptions of a country’s port facilities. Scores range from 1 (port infrastructure considered extremely underdeveloped) to 7 (port infrastructure considered efficient by international standards). 3. Logistics performance index. Another World Bank survey measuring perceptions of a country’s logistics based on efficiency of customs clearance process, quality of trade and transport-related infrastructure, ease of arranging competitively priced shipments, quality of logistics services, ability to track and trace consignments, and frequency with which shipments reach the consignee within the scheduled time. The index ranges from 1 to 5, with a higher score representing better performance. 4. Distance from New Zealand. Distance to market isn’t necessarily a constraint in itself. However, when it’s combined with a lower-quality supply chain and perishable products it becomes a significant barrier to trade. 5. Shipping freight container cost for food products. This is an indicator of the efficiency of the supply chain and cost of seaborne freight. The majority of New Zealand’s primary products are shipped by sea rather than air, due to cost. SEA FREIGHT COSTS US$ per 40ft container 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Singapore Malaysia Hong Kong Indonesia China South Korea Thailand Taiwan Japan Laos Brunei Darussalam Philippines Uzbekistan Vietnam Bangladesh Bhutan Cambodia Nepal India Timor-Leste Mongolia Kazakhstan Kyrgyzstan Pakistan Tajikistan Turkmenistan Sri Lanka Armenia Source: ANZ, worldfreightrates.com 6. Air freight cost for general merchandise. This is an indicator of the efficiency of the supply chain and air linkages/connectivity with a country (i.e. a lower cost will generally indicate better connectivity and vice versa). Key results The trade hubs of Singapore and Hong Kong took the top spots, with Japan, Malaysia, Taiwan and South Korea rounding out the top six. The next group of countries then included Brunei Darussalam, China, Thailand, Indonesia, Philippines, Sri Lanka, Vietnam, Cambodia, India and Laos. Supply and cool chain development Ranking on placings for indicators Ranking on average attractiveness score for indicators Singapore 1 1 Hong Kong 2 2 Japan 3 3 Malaysia 3= 5 Taiwan 5 4 South Korea 6 6 Brunei Darussalam 7 7 China 8 8 Thailand 9 9 Indonesia 10 10 Philippines 11 11 Sri Lanka 12 13 Vietnam 13 12 Cambodia 14 15 India 15 16 Laos 15 14 Pakistan 17 20 Bangladesh 18 18 Uzbekistan 18 17 Bhutan 20 19 Azerbaijan 21 26 Kazakhstan 22 24 Timor-Leste 23 21 Armenia 24 28 Turkmenistan 25 23 Mongolia 26 22 Tajikistan 27 25 Nepal 28 27 Kyrgyzstan 29 29 1. Singapore dominated the rankings for efficiency of the supply chain, which is unsurprising given its position as a major hub for trade within the Asian region and globally. Its logistics efficiency is reflected in Singapore having the lowest sea shipping cost for a container, even when it isn’t the closest market (5th). Page 21
2. Hong Kong was very similar to Singapore and took out second position for the measures of supply chain efficiency. Hong Kong’s logistics efficiency is also reflected in a low sea shipping cost (3rd) despite being the 10th furthest away market. 3. Japan has the third-best overall perceived logistics performance, but the quality of port infrastructure is slightly lower. This appears to be a factor in the sea shipping cost being higher too (9th). However, Japan had the lowest air freight cost, highlighting good connectivity. 4. Malaysia was the opposite of Japan. Malaysia didn’t rank quite so well on its overall logistics performance (8th). However, Malaysia has slightly better port infrastructure, which appears to be a factor in it having the secondlowest sea shipping cost, which is materially below (9%) that of Japan’s. 5. Taiwan ranked well for the burden of customs procedures and quality of port infrastructure (3rd for both). Overall logistics performance and distance to market were higher though and this seems to weigh somewhat on sea and air freight costs (8th and 7th respectively). 6. South Korea ranked 15th for distance to market, which placed it lower on the accumulated ranking basis. However, it ranked very favourably on the logistics performance and quality of port infrastructure measures. The cost of air (2nd) and sea (6th) freight are both low too, implying the distance to market isn’t an impediment. Outside the top six some of the other highlights were: 7. Brunei Darussalam is one of the closer markets (3rd), but sea freight costs are relatively high, despite a solid logistics score. 8. China’s logistics ranking was high (5th) and sea freight cost low (5th) due to the higher volume of two-way trade with New Zealand. This is despite it being one of the furthest away markets (depending on final destination within the country) and air freight costs being higher (again, depending on the destination, given China’s size). 9. Thailand was very similar to China, but didn’t rank quite so well for overall logistics performance (9th) and cost of sea freight (7th). Air freight costs were slightly better (12th), probably reflecting Thailand is a major holiday destination for New Zealanders. 10. Indonesia is the second-closest market and its proximity to Singapore (major trade hub) means it has a low sea freight cost (4th). However, it didn’t score so well on the other measures. 11. The Philippines is a close market, but didn’t rank too highly on most of the other measures. Its ranking for customs procedures was notably low (26th). 12. Sri Lanka ranked reasonably well for the logistics measures and has a low air freight cost (10th). But its sea freight cost ranked 27th and is 26% higher than the average for the 29 countries analysed. 13. Vietnam ranked well for overall logistics efficiency (12th) and has a competitive sea freight cost (14th), but air freight cost (19th) and the burden of customs procedure were high (18th). 14. India ranked well for overall logistics efficiency (10th), but its a longer distance to market and has very high sea (19th) and air (21st) freight costs. RANKED ATTRACTIVENESS OF COUNTRIES FOR SUPPLY & COOL CHAIN DEVELOPMENT/ INFRASTRUCTURE (REGION'S RELATIVE ATTRACTIVENESS SCORE) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: ANZ Singapore Hong Kong Japan Taiwan Malaysia South Korea Brunei Darussalam China Thailand Indonesia Philippines Vietnam Sri Lanka Laos Cambodia India Uzbekistan Bangladesh Bhutan Pakistan Timor-Leste Mongolia Turkmenistan Kazakhstan Tajikistan Azerbaijan Nepal Armenia Kyrgyzstan In the bottom half of the table there aren’t too many surprises. Any of these countries that did show opportunity under the other measures would need to be examined further for robustness of the supply chain, as well as the cost efficiency to land product and the ability to compete against local/other imported products. Page 22
Page 1 and 2: New horizons: alternative Asian mar
Page 3 and 4: EXECUTIVE SUMMARY The ‘Asian Cent
Page 5 and 6: OPPORTUNITIES ABOUND The economic o
Page 7 and 8: So if opportunity is only a partial
Page 9 and 10: URBANISATION RATIO RELATIONSHIP WIT
Page 11 and 12: 2. CONSUMER PURCHASING POWER AND AF
Page 13 and 14: Looking across all the measures, Tu
Page 15 and 16: RENEWABLE FRESHWATER RESOURCES BY R
Page 17 and 18: RANKED ATTRACTIVENESS OF COUNTRIES
Page 19 and 20: arriers as the Indonesian Governmen
Page 21: 1. Japan has low corruption (2nd) a
Page 25 and 26: and Taiwan, the latter are currentl
Page 27 and 28: growth hasn’t been as fast as som
Page 29 and 30: Consumer aff & PP GDP per capita Wo
Page 31: India. This publication is distribu

New horizons alternative Asian markets – From OPPortUNITY to CONNECtivitY

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