ET: What is the idea behind WLP and who are its members?
Abdulla Almulla (AA): The World Logistics Passport is an initiative aimed at reimagining how goods and services move around the world, increasing resilience in global supply chains, and removing the barriers that prevent the free movement of trade.
The global network creates opportunities for businesses and governments to improve trading routes and develop new ones through the world’s first logistics loyalty programme for freight forwarders and traders. It also fosters collaboration and innovation in moving goods and services across borders. By leveraging our partners’ knowledge in freight forwarding, customs clearance and logistics, we provide exclusive benefits to our members. The basic aim is to minimise the trade barriers between countries, particularly logistical costs, via a global, private sector-led, free-to-join initiative that unlocks market access through the creation of new trade routes, and provide economic efficiencies.
The first project was piloted in Dubai in 2019. The network is being extended across numerous trading hubs worldwide. Over a dozen countries are part of the initiative. For example, Alexandria Container & Cargo Handling Company (the first specialised container handling terminal in Egypt), Logistics Association of Chile (ALOG Chile), Dubai Chamber, Dubai Maritime City Authority and Emirates Sky Cargo, among several others.
In India, it has partnerships with Rajiv Gandhi International Airport, Chennai International Airport, Chhatrapati Shivaji International Airport Mumbai, and Delhi Indira Gandhi International Airport, as well as industry associations like FICCI and CII.
ET: What gains can network members get from WLP?
AA: The WLP encompasses all modes of transport and trading operations. It overcomes non-tariff trade barriers through the financial and non-financial benefits such as fast-tracking of cargo movement, reducing administrative costs, advancing cargo information, and facilitating trade across borders.
As per our experience in fully operational hubs, traders and freight forwarders that are members of the WLP can expect an annual increase in trade of up to 5-10%. This is because our programme offers a wide variety of benefits, including simplified airfreight operations, self-guarantees on customs accounts, advance cargo information, deadline extension on bill of entry amendments, increased threshold for weight discrepancy, extra free storage days and deadline extension for re-export declaration.
ET: What are the specific benefits members get through the WLP network?
AA: For air journeys, there is dedicated storage in cargo release areas, priority in receiving cargo, discounted rates from the standard priority product, reduction in airport landing fees, and reduction in auxiliary service rates. For sea journeys, there is container arrival tracking, dedicated inspection ramps at Jebel Ali terminal, dedicated container yard stacks, incentives on stevedoring, free storage for transhipment cargo, and the option to re-hire empty containers. In the case of a multimodal journey, members can benefit from discounts on digital platform solutions and convenient cargo delivery to customer facilities. A specific example of this is the priority inspection at Dubai Customs, which has seen the average inspection time reduced from 150 to just 20 minutes, resulting in significant time savings of 86.7%.
ET: What is the total membership for WLP and for Indian members?
AA: Currently, WLP’s strategic network has over 250 partners globally, with 23 partners in India. This network comprises a mix of government and private entities, including ports, airports, customs authorities, trade associations, and logistics service providers.
ET: What is the pace of growth for WLP membership?
AA: Over the last year, we have witnessed a growth of 60% in partners’ onboarding.
ET: What are the main sectors and product categories that WLP focuses on globally and in India?
WLP works with partners from the respective countries to study commodity-specific bottlenecks and explore solutions that help smoothen the logistics journeys. Currently, WLP is working with partners across LATAM (Latin America) and Asia to increase trade of coffee and halal meat, among others.
Specific to India, WLP is looking to understand the commodity-specific logistics journey and is working with partners to ease supply chain pressure on pharmaceutical, agriculture, and textile processes.
ET: What has been the trade impact of WLP?
AA: It’s essential to recognise that assessing the impact of initiatives like WLP can be a complex process. Results may not be immediately quantifiable. However, we are actively working towards fostering positive trade effects.
Our current efforts are aimed at creating a conducive environment for trade growth and enhancing economic relationships. We continue to monitor progress and are optimistic about the potential for a positive trade impact. However, it’s worth noting that measuring the full extent of impact often requires a longer-term perspective and comprehensive analysis, which we are committed to undertake as part of our ongoing evaluation.
The author was recently in Dubai at the invitation of the Department of Economy and Tourism, Dubai.
