India has scored number one in front of Brazil as the place to invest in logistics, according to a new report on emerging markets.
Transport Intelligence has launched its Emerging Market Logistics Index, which ranks 38 countries from the developing world in terms of the attractiveness of their logistics markets to foreign investors. It measures the scale of opportunities by way of three key indices: ‘Market size and growth attractiveness’; ‘Market compatibility’; and ‘Connectedness’.
India (1) claimed the top spot of the overall rankings, scoring particularly highly in terms of market size and growth prospects. Brazil (2) took second place, helped not only by its economic performance but also by good levels of market accessibility and improving domestic and international transport connections. Indonesia (3) also scored well with Mexico (4) and Russia (5) making up the top five logistics markets.
At the other end of the rankings, Kenya (38) performed the least well. Poor global and domestic transport connections; a weak economy; an unstable security situation as well as well as major barriers to market entry, meant low scores across the board. The countries at the bottom of the index will take many years to develop to a stage when they will be mature enough to support the modern supply chain practices present in much of the rest of the world.
In terms of ‘Connectedness’ (that is, the rating of a country’s international and domestic transport infrastructure links as well as the level of service it receives) the United Arab Emirates (1) came out top, followed by Malaysia (2). Bangladesh (38) and Paraguay (37) were the poorest performers.
The Market Compatibility sub-index, which rates the ease with which foreign logistics companies and investors can access a market and the extent to which the local market conditions are aligned to the services which global logistics companies provide, ranked Oman (1) as the leading market. At the other end of the scale Colombia (38) and Nigeria (37) were least aligned, largely due to issues of corruption and security.
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