Connectivity Integration Development

ciltinternational.org
1 The 5th China International Logistics Development Conference | Changsha |
Connectivity, Integration and Development
Changsha | 16 – 17 November 2018
Building the Road Together:
How to gain connectivity, integration and
development across Eurasia
Keith Newton
Secretary General, CILT

• Who we are in CILT
• The CILT role in Belt & Road
• Aview from our Institute
• The status of BRI in UK &
Europe
• The key development areas
• Opportunities& Threats to
workon
What I will cover today
• Connectivity, Integration &
Development: areas to work
together on
• Stronger Together for the
Future

• We were founded in 1919 with our centenary in 2019
• We are defined by our Royal Charter
• We have clear aims in our Charter to promote the art and
science of logistics and transport
• We are a Global individual professional membership body
• We have Institutes in 35 countries & members in many
others
• We have set global membership & education standards
Who we are

• To encourage cooperation &
partnership between
professionals in the Transport
& Logistics sector
• To support governments &
corporate bodies in the
application of professional
standards & knowledge in the
Transport & Logistics sector
Our role in the Belt and Road Initiative
• To encourage the education &
training of professionals and
prospective career entrants in
Transport & Logistics
• To create mediums of
exchange of ideas & best
practice across the Belt &
Road World
My content is a CILT UK, CILT Ireland & European focus. This is drawn from our CILT UK Policy & Rail
Forums, our Corporate members in the UK, CILT Ireland IVP & contacts with China / UK Business
Forums /China – Britain Business Council. CILT UK & Ireland have policy input at Government level.

Working together across continents we are Stronger
Together!

Views on the Belt & Road
The return of Marco Polo’s world
– Robert Kaplan USA Writer and Journalist
The Path of Peace
– President Xi Jinping
The Silk Roads were never purely Chinese…these roads
are shared & cannot be one way
– President Macron of France

Views on the Belt & Road
In a globalised world there are many belts & many roads
– James Mattis, US Defence Secretary
History gives people the opportunity to march forward in
some special years…2018 is such a year
– Zhang Jianmin, Chinese Ambassador to the Czech Republic

The status of BRI in UK & Europe
• There remain physical
blockages such as efficient
transshipment
• There needs to be more
commercial engagement such
as a flexible negotiation of price
across many buyers
• There needs to be more
systems and process alignment
to enable visibility of cargoes,
information exchange
• The rail routes in are highly
competitive in lead time & cost
• Rail based freight to & from
China & the East is advantaged
• But the UK / China train stopped
running on 31st August
• The UK have not taken
advantage of the concept of
through trains unlike other
European countries like Spain

Opening route from Henan to Liege in October

The status of BRI in UK & Europe
• There are opportunities to bring
in more traffic that need to be
capitalised – cars in containers,
Brexit specific discussions,
Corporate engagement, other
routes in Europe
• Early UK trains have led to
lessons learnt & this now
requires greater engagement
between operator and client &
the creation of an improvement
agenda together
• There needs to be more focus
on loads into China as well as
loads out to Europe

• Infrastructure & Operations
• Capital & Finance
• Skills & Expertise
The Key Development Areas in Eurasia

Strengths & Weaknesses
Weaknesses
• Financial investment opportunities are
too focused on Chinese companies –
89% of projects
• Dependence rather than
interdependence at a country &
investment level
• Competitive market is weakened by
China dominance e.g. China
ownership of 66% of world’s top 50
container ports
• Focus on training and skills remains
low and is area of criticality
Strengths
• Capacity is built in & can be increased
significantly
• Improved lead times gives major
customer benefit
• Costs already advantaged for freight
movements
• High levels of involvement globally as
China reaches out
• Investment has already brought huge
infrastructure improvements

Opportunities & Threats
• Greater corporate & professional
body involvement would enable
application of professional rather than
political skills
Threats
• Trade Wars and International trading
situation
• Financial over dependence & lack of
return on investment
Opportunities
• Efficiencies and improvements in
movement & costs are there
• Use of other routes into Europe &
within Europe can develop further
• Brexit could bring specific UK
opportunities
• Development opportunities in new
economic areas, ports & regions –
Eurasia, Africa, Pakistan &
Bangladesh

Areas to work together on: Infrastructure & Operations
Connectivity, Integration & Development

What is the supply chain environment & how is
it changing?
• Emerging Technologies will impact
the supply chain but maybe not as
quickly as many believe – e.g. AI,
Blockchain
• Need for integrated approaches &
decision making will increase
• Performance of Supply Chains will
become more critical for Businesses
to remain ahead

UK has already over reliance on Dover -
Motorway (M 20) leading to Channel tunnel
Brexit will
add to this!
Opportunity to address this by freight
entering / leaving UK via the Northern
ports

Liverpool and Hull – two Northern key ports
• Liverpool and Hull are the
two key northern UK ports
• They form a land bridge in a
global northern European
trade corridor
Trade from the west
Trade from the
east

Areas to work together on: Skills & Education
Connectivity, Integration & Development

• Developed by the Ministry of
Healthcare and Social
Development and Ministry of
Education in 2012
• National Qualifications System
implemented in 2012 in line with
European Qualifications
Framework
• NQF balances the labour market
+ education sector
• 8 levels
The skills challenge – skills across borders in Kazakhstan

Skills study – above and below the line

The skills challenge across the Belt and
Road
What the Logistics Performance Index tells us in 2018
This means competence and quality of logistics services (e.g. transport operators, customs brokers)

The skills challenge across the Belt and
Road
What the Logistics Performance Index tells us in 2018

• Consistency and harmonisation
• Core skills development and
volume of qualified personnel
• Innovative solutions matched with
skills development
• Skills capacity needs to be
integrated within any Belt and
Road technological, operational
or physical infrastructure project
• Skills and competencies working
together
The skills challenge – skills across borders in Kazakhstan

Stronger Together for the Future

Thank You
Keith Newton
Secretary General, CILT
Contact Email keith.newton@ciltinternational.org

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