COMCEC Trade Outlook 2017
41
According to OECD (2010), IMF (2010) and Teravaninthorn and Raballand (2009), restricted
logistics services, lack of adequate infrastructure, inefficiency of the ports are major problems
of transport which lead to high transport costs. Logistics Performance Index (LPI), developed by
the World Bank17 measures the efficiency of logistics sector in 160 countries. The World Bank’s
LPI is the weighted average of six components: The efficiency of customs and border
management, clearance, the quality of trade and transport infrastructure, the ease of arranging
competitively priced shipments, the competence and quality of logistics services, the ability to
track and trace consignments and the frequency with which shipments reach consignees within
scheduled or expected delivery times. The LPI is used for comparative analysis and has a score
between 1 and 5. The LPI was conducted in 2007, 2010, 2012, 2014 and 2016. Tables 6 and 7
illustrate the OIC Countries with the highest and lowest LPI scores for the last three periods. The
figures illustrate that there is a wide gap between countries. Furthermore, according to World
Bank (2016) Germany is the best performing country with an LPI score of 4.23. Among the OIC
countries UAE is the best performing country and has a score of 3.94 which is 92 percent of
Germany’s score on a scale from 1 to 5 whereas the lowest performing OIC country is Somalia18 with
an LPI of 1.75 which is 41 per cent of Germany’s score.
Table 6: Best Performing OIC Countries According to the LPI 2016
Country
2012 LPI 2014 LPI 2016 LPI
Ranking Score Ranking Score Ranking Score
UAE 17 3.78 27 3.54 13 3.94
Qatar 33 3.32 29 3.52 30 3.60
Malaysia 29 3.49 25 3.59 32 3.43
Turkey 27 3.51 30 3.50 34 3.42
Bahrain 48 3.05 52 3.08 44 3.31
Oman 62 2.89 59 3.00 48 3.23
Egypt 57 2.98 62 2.97 49 3.18
Saudi Arabia 37 3.18 49 3.15 52 3.16
Kuwait 70 2.83 56 3.01 53 3.15
Uganda N.A. N.A. N.A. N.A. 58 3.04
memo item (first three best performing country in the world)
Germany 4 4.03 1 4.12 1 4.23
Luxembourg 15 3.82 8 3.95 2 4.22
Sweden 13 3.85 6 3.96 3 4.20
Source: Word Bank
17 World Bank, Connecting to Compete 2016 Trade Logistics in the Global Economy, The Logistics Performance
Index and Its Indicators