The Global Coalition for Efficient Logistics (GCEL), an international public/private non-profit organization based in Zurich, Switzerland, hosted a briefing at the Hay Adams Hotel in Washington D.C. In attendance were ambassadors and representatives from 15 countries around the world; representatives of the World Bank along with numerous state and federal officials, to participate in a major event triggering a global initiative to alleviate the pressures on the heart of the global economy — the global logistics industry.

    During the conference, the GCEL delegation announced the deployment of the Global Horizontal E-Logistics System (GHELS) through a multi-lane global pilot implementation program starting in the first quarter of 2007. The program will run through the Inland Port of Americas project in Robstown, Texas. The program will include the participation and cooperation with multiple shippers, carriers, logistics providers and Mexico.

    To announce the deployment, Robstown Mayor Rodrigo Ramon states, “Our regional coalition has worked to find a solution to our logistics infrastructure, efficiency and cargo security problems. This agreement with the GCEL and the Global Horizontal E-Logistics System (GHELS) will provide the solution that others have only talked about.”

    Ramon continued, “The GHELS system will protect national borders, secure and expedite free trade agreements and join the fight against cargo terrorism with no cost to governments, shippers and logistics service providers. The economic benefits extend to all countries and corporate participants in lowering landed import/export costs while meeting cargo security mandates.”

    GHELS achieves these benefits by dynamically linking every enterprise and security enforcement agency involved in the shipping process, from the point- of-origin to final destination, similar to existing systems in the passenger airline industry. GHELS is designed to provide maximum efficiency and security for the global logistics industry.

    GCEL founder Samuel Salloum states, “The world today recognizes the following main global pressures forcing us to reexamine the structure and processes by which we connect the interdependent global economy: 1) Lack of physical infrastructure preparedness for an increasing world freight volume expected to quadruple by 2020; which is creating major bottlenecks and congestion at major points of entry around the world, 2) Inefficiency of the global logistics industry that contributes to increasing the world landed import/export cost from an average 9 to 11 percent of the total value of goods, 3) Vulnerability of legitimate commerce subject to acts of terrorism. Addressing these pressures is not a luxury; it is a necessity if we are to succeed in securing an interdependent global economy.”

    John Jamian, GCEL executive member and former acting U.S.-Department of Transportation Administrator added, “Generally, governments are not in the business to provide solutions, but are responsible to resolve problems facing their countries. On the other hand, major private organizations that are in the business to provide solutions cannot be permitted to monopolize the solution for such a vital industry. GCEL represents the formula to resolve this dilemma in being a public/private coalition with a fully proven global strategy solution. What distinguishes GCEL from other initiatives is that the GCEL combines efficiency with cargo security and has developed a comprehensive global strategy solution beginning with this international expansion event at the Hay Adams and culminating in providing efficient and secure global logistics that the world so desperately needs.”

    The objectives of the Inland Port of Americas project are as follows:

    •Provide a physical infrastructure solution for projected mounting freight volume between Mexico and the United States.

    •Alleviate freight congestion pressure on Southern California ports from cargo originated from Far East destined to Southeastern United States through Mexico’s western ports, transshipped via rail to the proposed Inland Port of America for distribution to Southeastern region.

    •Corpus Christi economic diversification and job creation.

    The Inland Port of Americas plan is to address the objectives by providing a physical solution through an inland distribution logistics hub maximizing on the pre-existing and future transportation infrastructure.

    The global logistics industry (GLI) is one of the largest and fastest growing industries in the world. In year 2004 the world freight bill was $4 trillion, projected by the World Bank to reach $14 trillion by year 2020.

    The Interdependency of the global economy is forcing the change due to:

    •Lack of physical infrastructure preparedness for an increasing world  freight volume expected to quadruple by 2020.

    •Fragmentation of the global logistics industry contributing to increasing the world landed import export cost from an average 9 to 11 percent, of which every 1 percent represents hundreds of billion of dollars in losses.

    •Vulnerability of legitimate commerce subject to acts of terrorism.

    The GCEL: The Global Coalition for Efficient Logistics (GCEL), an international public/private non-profit organization based in Zurich, Switzerland, has taken the leadership role to address the urgent needs of the global economy.

    The GHELS: Unlike the $450 billion airline passenger industry, which is managed by seven horizontal systems (Sabre, Amadeus, System One, etc.), the $4 trillion global freight industry is currently without a single unified management system — until today. GHELS dynamically links every enterprise and security enforcement agency involved in the shipping process, from the point-of-origin to final destination. GHELS is designed to provide maximum efficiency and security for the global logistics industry.

    GHELS Global Network: Upon completion of the PIP, the GCEL will transition from a private/public coalition to an international private (GGN) consortium - - the GGN based in Zurich, Switzerland. The GGN will deploy the GHELS in 18 months after the PIP. The structure and the leadership of GGN will offset geopolitical and monopolistic concerns while achieving rapid global deployment. The GGN will be led by four regional headquarters from the Americas, Europe, Asia Pacific and Middle East/ Africa regions. Moreover, the GGN will consist of the top four world-renowned financial institutions, the top four insurance institutions and 12 of the largest information technology deployers. The well-established reputation, size and different nationalities of the organizations within the consortium will offset monopolistic concerns, dependency on a one-system provider and concern of a slow global deployment.