Global coalition tackles logistics costs

A new global organisation believes that it could save Middle East economies as much as $74 billion by helping to change the way global logistics is managed.

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By  Robeel Haq Published  December 6, 2006

A new global organisation that has been established to tackle soaring global logistics costs, believes that it could save Middle East economies as much as $74 billion by helping to change the way global logistics is managed. The Global Coalition for Efficient Logistics (GCEL), a Zurich-based international non-profit organisation, aims to connect every enterprise and security enforcement agency involved in the freight forwarding process worldwide, from the point-of-origin to final destination, via a single open platform operated by the twelve largest technology deplorers in the world. The World Bank expects the world’s freight bill alone to reach US $14 trillion by the year 2020 and reducing overall landed import/export costs has become a critical industry issue. “The global logistics industry is having a heart attack and the new security requirements placed on the industry as a result of recent events make existing global processes inadequate and increasingly expensive,” said Captain S. Salloum, co-founder of GCEL. “Lack of physical infrastructure, inherent inefficiencies and a multitude of IT systems that can’t communicate with each other make controlling costs extremely difficult. Unlike the $450 billion airline passenger industry, which has platforms like Sabre and Amadeus, the $4 trillion global freight industry has been without a single unified management system: until today. GCEL has launched a global initiative to provide such as system and alleviate the pressures on the heart of the global economy.” Pressures on the global logistics industry continue to build, forcing industry leaders to re-examine the structure and processes by which the interdependent global economy is connected. According to Salloum, the key issues putting pressure on the industry include lack of physical infrastructure, inefficiency of the global logistics industry, and vulnerability of legitimate commerce to acts of terrorism. “Addressing these pressures is not a luxury; it is a necessity if we are to succeed in securing a sustainable interdependent global economy,” he said. “What our industry lacks is a horizontal information system to connect all its different parts and this is why we have developed the Global Horizontal E-Logistics System (or GHELS).”

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