The Baku–Tbilisi–Kars Corridor is being relaunched at full capacity

1. In early June, one of the most significant railway investments in the Eurasian region entered a new operational phase, following the completion of modernization work on the 180-km Marabda–Kartsakhi section—the part of the railway that crosses Georgia—and the construction of a bogie-changing terminal using state-of-the-art European technology and equipment.

2. Of the total length, 153 km of existing railway track has been modernized, and a section of over 30 km is a completely new line, built to European gauge, connecting the towns of Akhalkalaki and Kartsakhi in southern Georgia with the border of Turkiye.

3. Akhalkalaki is the main railway hub of the Baku–Tbilisi–Kars project. This is where the transshipment terminal is located, where freight is transferred between the 1,520 mm gauge and the 1,435 mm gauge. Kartsakhi is situated right on the Georgian-Turkiye border, and this is where the new section built for the BTK project begins, connecting to the Turkiye railway network toward Kars.

4. Modernization work on the Georgian section of the Baku–Tbilisi–Kars railway corridor was carried out in five stages, from Marabda to Kartsakhi, including the development of the logistics and railway complex at Akhalkalaki. As part of the project, 13 stations, 55 bridges, eight traction substations, and over 320 buildings and engineering structures were modernized, while new snow protection facilities, nearly 18 km of catenary, and modern train operation facilities were also constructed.

5. Following the completion of the works in Georgia, the Baku–Tbilisi–Kars corridor was reopened at full capacity, strengthening the role of the Middle Corridor as a strategic alternative for freight transport between Asia and Europe.

McKinsey : Supply chains: Still vulnerable

1. Supply chain disruptions keep on coming. From missile attacks on commercial shipping in the Red Sea to automotive production delays following floods in Europe, global supply chains continue to experience instability. Meanwhile, trade tensions are choking the movement of semiconductor products, manufacturing equipment, and critical materials.

2. The latest McKinsey Global Supply Chain Leader Survey suggests that problems like these remain the norm, not the exception, with nine in ten respondents saying they have encountered supply chain challenges in 2024 (see sidebar, “About the research”). More worryingly, there are signs that, when it comes to supply chain resilience, companies are taking their foot off the gas. The survey results identify considerable gaps in the ability of organizations to identify and mitigate supply chain risks, with few new initiatives aimed at addressing those weaknesses.

3. The biggest gap could be the one at the top of the organization. Few surveyed supply chain executives believe that their boards have an in-depth understanding of supply chain risk. Only a quarter have formal processes in place to discuss supply chain issues at board level. All this could leave companies dangerously exposed to future disruptions.

Supply Chain Cost Reduction Strategies

 At this point we've seen natural disasters, geopolitical tensions, and economic uncertainties constantly threaten the seamless flow of necessary components. With this, the cost to maintain a solid supply chain has continued to inflate, leaving procurement experts on a constant search for reduction opportunities. It's stressful, we know. But we can help. Let's go over a few strategies that are worth exploring.

Singapore & Australia E-Commerce Logistics Market Forecast

1. Australia E-commerce Logistics Market is expected to generate USD ~ 10 Bn by 2026F owning to rising demand of door step delivery, increasing digitisation, reducing cost of packaging along with favorable government initiatives.

2. Singapore E-Commerce Logistics Market revenue is expected to generate USD ~2 Bn by 2026F largely due to high internet penetration & emergence of new players.

Moving from a Just-in-Time to a Just-in-Case

1. Just-in-Time or JIT inventory management is a lean procurement methodology originally invented in Japan. By only ordering what they need, when they need it, companies reduce waste such as obsolete or expired stock, drive efficiency, and reduce holding costs (warehousing). Importantly, JIT frees up operational cash flow.

2. JIT management requires a constant stream of robust data, such as having accurate and frequently updated sales forecasts and knowing your peak demand periods. It also requires a sophisticated inventory system to tell you exactly how much stock you have on-hand in real-time.

3. Unfortunately, JIT only works properly in a seamless, well-oiled supply chain. As we all know, COVID-19 brought this crashing to the ground all over the world. The pandemic caused shipping delays, port congestion, panic buying, and shortages of crucial medical equipment and PPE. Businesses everywhere rapidly ran out of stock and had to scramble for alternative sources of supply, pay higher prices, and wait for the global supply chain to recover.

Smart Container Market & E-Commerce Logistics Outlook & Forecast

1. The smart container market is projected to grow from USD 3.9 billion in 2022 to USD 9.7 billion by 2027, at a CAGR of 19.6% during the forecast period. Increasing focus on end-to-end supply chain visibility, high demand for monitoring and control of internal container conditions, and increasing adoption of IoT devices by shipping companies are the key factors expected to drive the growth of the smart container market in the next five years.

2. The global e-commerce logistics market is expected to grow from $476.34 billion in 2021 to $568.85 billion in 2022 at a compound annual growth rate (CAGR) of 19.4%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term.

Future of Supply Chains 2025

1. This primer provides a new way of thinking about the future of supply chains—bringing together the top procurement priorities of leading global businesses and the key forces of change reshaping the very business models that have given rise to global supply chains—to enable supply chain leaders to envision and manage future-fit supply chains.

2. Deepening our understanding of both sets of drivers and their potential implications for supply chains creates a powerful lens through which to reimagine the ways that all parties to global supply chains create value and contribute to a more just and sustainable world. 

3. Supply chain leaders, and the organizations with which they work, should seize this moment of significant change to design and implement new supply chain management models. This primer sets out five specific recommendations to help supply chain leaders build future-fit supply chains that both drive progress on top procurement priorities and advance the sustainable business agenda.

4. To design a supply chain that is fit to flourish in 2025, supply chain leaders should anticipate how key forces of change will impact their supply chains and look to evolve their supply chain management approaches accordingly. This inflection point is an opportunity for forward-thinking supply chain leaders to build future-fit supply chains that both drive progress on top procurement priorities and advance the sustainable business agenda.

Boosting European Rail Freight - Part 1 - Transformation Required, Steady Decline in Western Europe

1. Europe’s big aspiration to reverse the decline of its rail freight industry will require significant effort, with substantial investment and smart thinking. Governments and industry players can help to achieve this goal, as there are examples of success to draw on and some key levers to pull.

2. The European freight rail industry has seen a steady decline over the past 70 years. Freight rail’s modal share has decreased from around 60 percent in the 1950s, and 30 percent in the 1980s, to roughly 15 percent today, driven mainly by large industry shifts.

3. This prompted a vicious circle of increasing fixed costs, leading to loss of competitiveness and loss of volume, and consequently increasing fixed costs again—with little hope for a thriving future. The rise of new small and agile entrants worsened the situation for freight rail incumbents that were left with unhealthy structures and often faced political pressure to maintain unprofitable businesses.

4. The European Union has set a bold ambition to reverse this trend. It plans to double freight rail’s modal share by 2030, both to reduce the transport sector’s CO2 emissions and to ease the congestion of major road connections.2 Achieving this ambition would see freight rail volumes grow by around six percent a year in ton-kilometers (tkm).

5. A massive shift in trajectory would be required to achieve this ambition. A European strategy to transfer a large proportion of transport from road to rail could focus on several key elements, including major long-distance freight flows, key connection points such as ports, and new industries that can replace volumes lost in declining sectors. Regulators and operators could also play a role in rethinking the regulatory model and reorienting the industry to become more customer focused, and more profitable.

Rail-Served Warehouse

1. Railroads are nothing new in the US. They were one of the first ways of moving cargo from place to place. The United States has one of the largest freight networks in the entire world. 

2. If you’re looking to boost your company’s revenue, save money and improve the efficiency of what you do, it’s time to consider a rail-served warehouse in your future.

Considerations for a Rail-Served Industrial Property

1. Developers who are looking to build rail-served industrial parks must consider a few questions.

2. Does it make sense to provide freight rail service to this development and is there a market for it? What must be accounted for when it comes to logistics, internal and external operations, cost and design?

3. After determining the facility type, identify the transportation access the site will require. Is the site near a major highway, port or inland port? Is there existing access to rail onsite?

4. The Transportation Research Board(TRB)’s National Cooperative Freight Research Program study recommends the goals of delivering goods with speed and accuracy that meets or exceeds the competitive standards in the market and establishing a set of logistics costs that are as low as possible within the delivery standards. In other words, the site’s location should help lessen operating time and monetary commitments.

Malaysia listed among top ten in global logistics ranking

1. In February 2021, Malaysia has been named among the top ten attractive nations to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.

2. Freight forwarding and contract logistics provider Agility said Asia-Pacific nations led all emerging market regions with China, India and Indonesia being the world’s top emerging markets in the 12th annual Agility Emerging Markets Logistics Index, a broad gauge of competitiveness based on logistics strength and business fundamentals.

3. The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.

Authorized Economic Operator

1. AEO stands for Authorized Economic Operator. Different countries have different versions of this program. In the United States it's called the Customs Trade Partnership Against Terrorism (CTPAT). 

InCoTerms 2020

1. Incoterms are universally recognised rules. They guide buyers and sellers when formulating and fulfilling a contract for the shipment of goods. A careful study of INCOTERMS 2020 will repay the effort by enabling more favourable trade terms.

2. It allows the manufacturer and buyer to open the doors to more effective trade finance. Trade Finance helps importers and exporters with international commerce activities.

3. The definition of InCoTerms (International Commercial Terms) was first introduced in 1936 by the International Chamber of Commerce (ICC). Incoterms 2020 marks the first update since 2010 to keep pace with the continually evolving global trading landscape.

4. The latest version of the rules came into effect on 1st January 2020. It consisted of eleven separate Incoterms, with some specific revisions that are worth addressing.

5. Incoterms 2020 rules make security more prevalent by listing import and export requirements. Also, they help in distinguishing whether the buyer or seller is responsible for meeting each of those requirements.

6. The two main categories are Any Mode of Transportation and Sea & Inland Waterway

TATLO: Transparency and Traceability for Logistics Optimization

1. Fragmentation of systems and lack of common documents in international trade cause significant inefficiencies and resultant loss of revenues.

2. Improving both B2B and business-to-government (B2G) information exchange through the supply chain could increase global trade volumes and GDP.

3. The obstacles to implementing such exchanges are not technological, but rather are caused by lack of standardization and incentives for information sharing.

4. For a broader roll-out of e-supply chains, global leaders in each supply chain step should work together on practices for sharing information and agree on joint standards.

5. While initial e-customs efforts are a step in the right direction, they need to accelerate, be more ambitious and include businesses to deliver maximum benefits.

6. The TATLO concept is not new, and many of the technologies exist for implementing it. However, a lack of standardization and sharing of norms is preventing the seamless flow of information and the use of protocols, both of which could turbocharge the process.

Logistic Provider Models (1PL - 7PL) and Transparency and Traceability for Logistics Optimization (TATLO)

 1. Supply Chain and Logistics terminology can seemingly not keep up with the rapid evolution of the industry. For years we have become accustomed to organisations adopting 3-or-4PL business models, but of late abbreviations such as 5, 6 and even 7PL beginning to become part of the logistics lexicon, but what exactly to do these terms mean?

Consolidation Warehouses

 1. Utilizing consolidation warehouses can improve your supply chain’s performance while reducing costs.

2. This form of warehousing involves combining small shipments bound for a similar destination into a single truckload.

3. As a result, you can reduce transportation costs, ship more frequently, and, eventually, boost your profitability.

Shifting from Air to High Speed Rail Post Covid-19

A long-term shift in attitudes around climate change, travel, and work triggered by the Covid-19 pandemic could serve to significantly curb aviation growth in the next decade

Africa’s First High Speed Line is on Track to Cover its Costs

1. Named Al Boraq after a magical winged creature of Islamic lore, it is the first train service of its kind in Africa, running along the Atlantic coast for 200 kilometres between the port of Tangier and the commercial hub of Casablanca.

2. The Al-Boraq high-speed rail service is a key project for Moroccan infrastructure.

3. It was launched in November 2018 between Rabat and Tangier and carried three million passengers in its first year of service, according to figures from the national railway office ONCF.

4. Al Boraq’s rail stock includes 12 trains. Each service or trip has two locomotives and eight cars with a capacity for 533 passengers.

Export consortia

 SME CONSORTIA
1. SMEs usually have difficulty in exporting to foreign markets: they may lack the necessary knowledge and financing, may not meet foreign regulatory requirements, or may produce products in quantities or quality that are not adequate for foreign buyers, among many other potential problem.

2. However, these problems can often be overcome through cooperation among SMEs. 

3. By combining their knowledge, financial resources and contacts within an export consortium, SMEs can significantly improve their export potential and reduce the costs and risks involved in penetrating foreign markets.

Rail and Air Co-operates to Provide Seamless Service

1. The Dutch carrier is taking more concrete steps towards a greener future with the announcement of a high-speed rail replacement service for one of its popular short-haul routes between Amsterdam Airport Schiphol (AMS) and Brussels (BRU).

2. KLM has teamed up with NS Dutch Railways and French-Belgian high-speed train operator Thalys to promote the service to connecting passengers who would otherwise take what Business Traveller dubbed Europe’s most expensive (on a per-mile basis) flight.