Everything you need to know about the World Logistics Passport, UAE
- What is the World Logistics Passport?
- Goals of the WLP
- Members Involved
- How Does the WLP Work?
- WLP Governance
- Frequently Asked Questions
The World Logistics Passport is a one-of-a-kind initiative by the Government of UAE designed to increase trade opportunities between emerging markets worldwide. According to a recent announcement, it has now grown into a global network of trade mega hubs with eleven member nations.
Let’s take a detailed look at exactly what the WLP is and the significant impact it is destined to have on worldwide trade.
WHAT IS THE WORLD LOGISTICS PASSPORT
The World Logistics Passport was an initiative launched under the directives of His Highness Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. It is the world’s first global freight loyalty programme and was launched at the 2020 World Economic Forum in Davos, Switzerland.
GOALS OF THE WLP
With the aim of reducing barriers to trade in developing economies, the WLP aims to help reimagine how goods and services move around the world. With the introduction of the World Logistics Passport, the Government of the UAE aims to increase resilience in global supply chains and remove the obstacles that prevent developing economies from trading as freely as they might.
As the world seeks to recover from the economic impact of COVID-19, this initiative is now more important than ever. Being a part of the WLP offers over a hundred operational and financial benefits to high-performing businesses.
It hopes to build logistical bridges between manufacturing hubs in Asia, Africa, as well as Central and South America.
MEMBERS INVOLVED IN THE WORLD LOGISTICS PASSPORT SCHEME
Israel, India, Indonesia and South Africa have recently joined the World Logistics Passport, joining Thailand, Colombia, Senegal, Kazakhstan, Brazil, Uruguay and the UAE.
There are several multinational companies that are part of this initiative, including UPS, Pfizer, Sony, Johnson & Johnson and LG amongst others. Membership at the WLP is spread across a four-tier membership scheme.
India is the largest economy to join the WLP.
Together, the goal is to handle a sizable portion of future global trade with Dubai as the hub point
HOW DOES WLP WORK?
The World Logistics Passport loyalty program is based on a partnership between traders, freight forwarders and local entities to provide additional trade in exchange for direct benefits.
It is structured as a four-Tier Membership scheme: White, Silver, Gold and Platinum, each having different scales of benefits.
Every year, Tiers membership is re-evaluated based on trade performance, and WLP members can be downgraded or upgraded by up to one Tier.
To unlock Tiers, traders and freight forwarders need to reach 5% growth for silver members, outperform market growth by 10% for gold members and 20% for platinum members. As they unlock new Tiers, WLP members enjoy a wider range of rewards and bigger time and cost reductions.
WLP GOVERNANCE
The WLP governance structure is organised into three main levels of committees: Annual Assembly, Global Steering Committee and Hub Boards.
The WLP Annual Assembly meet once a year. It is chaired by H.H. Sheikh Ahmed bin Saeed Al Maktoum and Co-Chaired by the Chair people of Hub Boards. They will gather to discuss new directions and policy development opportunities on a global level.
The Global Steering Committee will meet every 3 months. Chaired by His Highness Sheikh Ahmed bin Saeed Al Maktoum they will meet to discuss the direction for the global WLP program and review quarterly development.
The WLP Hub Boards, which are the local decision-making bodies in each Hub, will meet regularly to monitor progress, approve potential new benefits and agree on actions to be taken immediately.
At the local Hub level, WLP governance is divided into three pillars.
WLP Key Partners are entities such as customs, airport/port authorities and airlines, who have registered as benefit providers in the Hub.
They sit jointly with WLP representatives on the WLP Hub Board.
Both WLP Partner Registration Agreements and Member Registration Agreements clearly detail the conditions of partnership and membership to the program.
“In just one year, we have taken the WLP from vision to reality, bringing together a number of leading nations, logistics partners and multinational corporations in a close-knit alliance focused on trade growth,” said His Highness Sheikh Mohammed bin Rashid al Maktoum, on the World Logistics Passport.
The progress of the WLP network will be presented at an inaugural World Logistics Passport e-summit in May 2021. To be held across two sessions, the e-summit will feature government ministers, global policymakers, and business leaders who will discuss the future of global freight and logistics.
FREQUENTLY ASKED QUESTIONS
WHAT IS THE DUBAI SILK ROAD STRATEGY?
The Dubai Silk Road Strategy is a part of Dubai’s goals that aim to make the city a strategic trade link between the East, West, North and South. This strategy was created by the Ports, Customs and Free Zone Corporation (PCFC), in collaboration with key government entities.
Internally, the strategy focuses on improving trade between free zones and the rest of the UAE. Externally, it is dedicated to enhancing the strategic and operational connection of logistics services between DP World terminals across the world, with Emirates Airline playing an important role.
WHAT OTHER STRATEGIES ARE BEING DEVELOPED IN THE UAE?
We recently saw Dubai reveal its plans for the next 19 years, under the Dubai 2040 Urban Master Plan. This urban plan mapped out the urban development of the city, taking sustainability, economic and population growth into consideration.
As the country reaches its 50th year, with the UAE celebrating its Year of the 50th, there are several economic and infrastructure plans that are being instigated for the development of the country. These plans are harmonious in acknowledging the exemplary leadership of the past and pledging the way forward!
We’re excited to see major developments in the logistics and trade sector of the UAE, and the positive changes the WLP will bring to the world. Businesses have estimated that the UAE’s logistics markets have benefitted from huge investments in infrastructure, with industry estimates putting its size at $30 billion.
Stay tuned to MyBayut, the region’s best property blog as we update you on all the latest developments in the UAE.
