The World Logistics Passport scheme was launched by Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum at last year’s World Economic Forum in Davos to create an interconnected network of trading “megahubs” in eleven nations across the world.
INCREASED TRADE TO MEGAHUBS
Among the countries currently signed up to the scheme are India, Indonesia, Thailand, Brazil, Colombia and South Africa.
It is essentially a global freight loyalty scheme, offering benefits to traders and freight forwarders in exchange for increased trade to each of the programme’s “megahubs”.
In this way, it will increase the flow of trade between the participating locations, and offer major corporations the opportunity to diversify into developing markets. Indeed, a number of multinational corporations including UPS, Pfizer, Sony, Johnson & Johnson, and LG have already registered as World Logistics Passport members.
INVESTING IN COMMERCIAL & INDUSTRIAL SECTORS
In the wake of the global economic disruption caused by the Covid-19 pandemic, it is also seen as a way to bolster competitiveness and economic resilience by reducing costs and improving efficiency.
The scheme will also help cement Dubai’s position as a major port and trading hub for multimodal trade, in particular by leveraging the city’s strong relationships with developing markets in Asia and Africa.
The World Logistics Passport will provide opportunities for firms to invest in commercial and industrial sectors in the UAE; with Dubai acting as the central hub for this new network, companies can use the port as a base to expand into the partner nations.
But the scheme is not just based around physical assets. The WLP’s progress will be showcased ruing a brand-new virtual “e-Summit” in May—already labelled the “Davos of Freight” by some commentators.
Organisers hope the World Logistics Passport will become a key element of the post-Covid-19 economic recovery.
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