The Role of Value-Added Services That Provided by Logistics Centers in Ports in Economic Growth

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Arab Academy For science, Technology & Maritime transport

The role of value-added services that provided by Logistics centers in ports in economic growth

In Partial Fulfillment of the Requirements
For the Master Degree of International transport and logistics By
Mohamed Fathi Abu tabl
Research supervisor: Professor Mohamed EL Fayuomi
Date: 5/01/2013

Table of Contents
1-INTRODUCTION3
2-Background in the literature4
2.1-General view of value added services (VAS) and its history in ports4
2.2- Types of value-added services4
2.3- how logistics centers affected the economic growth in Netherlands6
3- Methodology, data collection method and reliability of the study7
3.1- Methodology, data collection method7
3.2- reliability and the ability to repeat the study:7
4- Data analysis and results9
4.1-accuracy of the study9
4.2- Correlation analysis10
5-The conclusion11
List of references12
LIST OF ABBREVIATIONS13
List of Figures14
List of tables14

1-INTRODUCTION
Now a days logistics play a significant role in our fast-moving environment, and have great significant economic impacts, If we take USA as example the total logistics U.S. cost increased from 78 billion $ in 1960 to 1,183 billion $ in 2005 as per (Murphy and Wood, 2007), According to council of supply chain management professionals (CSCMP) the Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements (CSCMP, http://cscmp.org/about-us/supply-chain-management-definitions ,2012). So according to this definition the logistics is not only about the flow of physical goods but also services and information that may add value to the transported goods, So in recent years there was a trend to increase value-added services in ports through new logistics centers as a part of the logistics chain especially in the developed countries to gain a competitive advantage over other ports, in this research my objective is trying to answer the following questions: * Does really value-added services in ports has a positive effect on countries revenues?

* Does value added services in ports has a significant effect in creating new jobs?

* Is it worthy for developing countries to invest in these services to reach to economic prosperity? This value added activities include Assembly, packaging, localizing and customizing, installation and instruction, quality control and testing of products and other services that can be provided through logistics centers in ports, In this research I will use quantitative method to analyze data about some ports like Bremen ports in Germany, Rotterdam in Netherland and Singapore in the pursuit of answering previous mentioned questions.

2-Background in the literature
2.1-General view of value added services (VAS) and its history in ports There are many definitions for (VAS) let’s take a look at this definition as per a study conducted by Supporting Association for Maritime Education and Research (MOTK), Institute of Shipping Economics and Logistics (ISL), Centre for Maritime Studies (CMS) : (The content and meaning of value added services vary according to definers and points of view. As for an example, from the wider economic perspective, a port as a whole may be considered a logistics value added service. On the other hand, logistics value added services can be defined as only those services, which are not actual logistics (transportation, warehousing and handling of goods) services. When defined in this way, logistics services include, for example, weighting, repairing, customs and documentation. Hence value added services are services, which are...
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