The emerging markets in the logistics segment have been derived at after extensive research and surveys. Support data from global sources like International Monetary Fund, World Bank, UN, World Economic Forum, International Air Transport Association and other government agencies have been points of references too. The emerging markets have been ranked on the basis of growth attractiveness, compatibility, and connectedness. Here is a list of eight emerging logistics markets as per overall ranking by the Agility Emerging Markets Logistics Index 2016:
1. China – Years of substantial economic growth has given the country the edge over other nations. It has been continuously investing to enhance all modes of logistics – airways, roadways, railways, and ports to support their ever growing manufacturing sector. China has realised the significance of robust logistics networks both in terms of national and international reach out, and also the need to tackle corruption at all levels. There has been no change in ranking for China as it continues to be in the number one position.
2. UAE – UAE has jumped four places up as compared to 2015 index. Ranked 2 in the list of emerging logistics market, UAE’s geographic location and substantial capital provides all the favourable factors for the country to transform itself into a regional hub for oil-rich countries and create a global network. UAE is also known for its various initiatives to encourage investment and businesses in the country.
3. India – Ranked at 3, India has jumped two places up as compared to the 2015 index. India has been continuously expanding its manufacturing sector especially through the ‘Make in India’ initiative. However, it has been observed that for more efficient growth, India needs to further improve its transportation system to avoid delays in transit that results in loss of value of the product and logistics inefficiency.
4. Malaysia – Malaysia has leaped four places since 2015 and is currently placed at number four. On the road to shift towards a diversified economy, Malaysia has developed a strong manufacturing base along with encouraging the growth of palm oil industry.
5. Saudi Arabia – Though ranked at the fifth position, the nation has shown a downward trend by falling three places as compared to 2015 index. This is mainly due to its overdependence on the oil industry. However, the nation is taking measures to harness the maximum out of its strategic geographical location along with planning for a diversified economy.
6. Brazil – Down by three positions, Brazil is ranked at sixth in the list of emerging logistics market – yet another nation hit by global fall in oil price. The country has witnessed job losses due to the economic slowdown, despite the growth among the middle class in the past two decades. This also points towards the need to upgrade the nation’s infrastructure along with devising new frameworks to tackle corruption.
7. Indonesia – positioned at seventh, Indonesia has fallen three places in the ranking as compared to 2015 ranking. This downward trend is contributed to the nation’s infrastructure, corruption, and poor procedures. Though the government has taken steps to boost the country’s economy, the logistics sector has not shown much promising growth.
8. Mexico – Mexico has climbed up the ladder by one position thereby securing an eighth position in the list of emerging logistics market. Despite a major blow to its oil industry due to global price fall in oil, Mexico can be quite closely compared to the USA because it has been able to develop global links of trade and infrastructure. It has also brought down labour costs significantly leading to its rise as an emerging market.
Aside the overall ranking here is a snapshot of factor-wise ranking. Within the ranking for Market Size and Growth Attractiveness, the top four ranking markets are China, India, Indonesia, and Brazil. The rankings of these markets have remained unchanged for a third consecutive year. Within the ranking for Compatibility, eight of the top ten markets are located in the Middle East and North Africa region, and UAE retains its position at the top for a second consecutive year. Within the ranking for Market Connectedness, UAE, Malaysia and China continues to be at the top three positions, whereas infrastructural deficit of national and international connectivity was distinct in the low rankings of Brazil and India.

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