Inland Transportation Improvement using Trade and Transport Data

World BankOct 26, 2010

A New Tool for Logistics Performance Improvement

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Outline

• Our Background• This Presentation

– How can we improve inland transportation using available trade and transport data

– Applications in Jordan, Syria and Pakistan– Additional potential applications in South Asia

About Us

NTELXDelivers advanced operational decision-making systemsExample Programs:– PREDICT – U.S. Food & Drug

Administration– Global Trader – U.S. Dept of

Defense– Aqaba TCS (Jordan)– TIGRE (Pakistan)

Amrinder Arora– Vice President –

Technology– Solution Lead, Nafith TCS

and PREDICT– MS, DSc - GWU– Adjunct Faculty, GWU

Larry Kahn– Director– Business Lead – Syria-

Jordan FTZ– BA - Yale Univ.; MBA - MIT– Advisor to Carlyle Group

and Thayer Capital; Former Corp Officer Northwest Airlines and Marriott;

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Where Things StandWhile past efforts have realized gains…• Expanding and modernizing infrastructure• Better management of transportation

assets• Improving regulatory regime

…performance still falls short.• Demands growing at a faster pace• Infrastructure expansion may be hitting

limits• Some root problems not addressed

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Adding Intelligent Logistics to the Mix

• Uses process, data, and technology to improve the flow of goods and equipment through logistics chain bottlenecks

• Has been applied successfully in developing economies

• Can be adapted to specific situations

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Example Applications

– Aqaba Truck Control System, Aqaba, Jordan• In production since 2006

– Syria-Jordan Free Trade Zone Truck Control System• In production since 2010

– Trade Information Gateway and Real-time Exchange (TIGRE) Port Access Control, Karachi, Pakistan

• In development– TIGRE Transit Corridor Monitoring, Pakistan-

Afghanistan• In development

ASEZA TCS Coordinates Use of Roads, Waiting Areas, and Terminals within 375 km2 Zone

• 13 terminals• Over 40 specific destinations• Hundreds of routes• Over 3000 truck moves daily

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Aqaba Truck Movement – Before TCS

• Recurring congestion problems in Aqaba city and at key port terminals

• Long, indeterminate wait times in queues due to truck/load/docs problems causing 3x longer roundtrip times than necessary

• High truck transport costs• Poor coordination between trucks

and terminal activities• Limited shipment status visibility for

government and cargo owners• Pollution and disruption of popular

tourist areas (exhaust/noise/traffic)• No performance measurements

The Problems

The ProcessTrucks queue outside Aqaba. Spillover in city.

Terminals call queue for trucks.

Trucks race to enter pick-up queues.

Indeter-minate waits

Truck picks up load and leaves Zone

• Process redesign implemented through an Intelligent Transportation System

• Clears trucks to access terminals by combining information from multiple data feeds

• Gate coordination: Manages truck access to terminals when goods and space are available

• Road capacity: Algorithms keep trucks moving and minimize congestion and chaos – starting 30 kilometers from the gates

• System designed/implemented in 3 months

Estimated 20% reduction in inland shipping costs

Same size truck fleet handles 25% more freight than in 2005

Congestion and chaos eliminated

Trucks diverted from tourist, commercial, and residential areas

Reduced fuel consumption, pollution, and accidents

Improved security, visibility, and data

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The New Process

Key Elements of the Solution Results

Create permit for entry to Zone

Enter Zone as directed by Permit

Proceed thru Zone checkpoints and pick-up load, as directed

Monitor truck, system and people performance

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TCS Capability Operational Impact

Manages capacity across the logistics network.

Prevents congestion. Ensures roads and terminals are not overwhelmed.

Enforces Ministry of Transport and Customs rules through real-time validations

Trucks only proceed after authorization – no time wasted or caused by trucks on operations they cannot complete.

Calculates and disseminates turnaround times and wait times for day and week.

Trucking companies spread operations to less congested times to realize faster turnarounds.

Supports combining operations when feasible, i.e. drop-off plus pick-up as part of same trip.

Operators combine moves to reduce non-revenue travel and improve profitability.

Environmental Impact

Analytical Findings• Estimated gas emission savings:

3,650 metric tons of CO2/year• Estimated fuel consumption savings:

365,500 diesel gallons/year

Assumptions and Caveats• Only first-order effects for regulated traffic considered• No allowance for the fact that newer trucks have lower

emissions than older trucks (1980s – 2001)

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Syria-Jordan FTZ

JordanSyria

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Syria-Jordan FTZ – Before FTZCS

• Sense of disorder and chaos concerns FTZ and Customs officials• Long, indeterminate trip times due to truck/load/docs problems• Poor coordination between trucks and businesses within FTZ• Frequent altercations between truck drivers and villagers• FTZ unable to keep up with demand• No performance measurements

The Problems

The Process

Trucks queue at FTZ and nearby villages.

No check on capacity; trucks enter FTZ.

Operations slow as trucks congest FTZ.

Indeter-minate waits

Trucks unload/load and leave FTZ.

Connects decision-making at trucking companies to operations within the FTZ

Less complex capacity management requirements than Aqaba TCS

Appointments drive capacity management at entry gate and locations within the FTZ

System suggests alternative times when capacity is not available per initial request

FTZ and Customs have greater comfort with orderliness of FTZ operations

Less variable processing times for trucks

Village councils have confirmed reduction in incidents between truck drivers and villagers

Greater volumes handled by FTZ Total time requirement for truck

operation at FTZ reduced

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The New Process

Key Elements of the Solution Results

Dispatcher requests appointment with specific FTZ business

TCS checks capacity at gate and business. Confirms request.

Trucks dispatched for appointments enter FTZ without delay

Monitor and report truck, system and people performance

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Trade Information Gateway, Real-Time Exchange (Pakistan)

USTDA supported Initial areas of focus:

Karachi ports access control

International transit corridor management (AfPak)

Working to implement systems that improve transport sector performance during 2011

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The Problems Congestion problems in Karachi and at key port terminals Overloaded trucks and miss-matched loads common Lack of visibility of truck arrival times impacts turnaround

times Limited shipment status visibility for government and cargo

owners Limited if any registration of equipment or drivers Limited utilization of trucking companies waiting yards No performance measurements Long, indeterminate wait times

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Relevant challenges in South Asia• Foreign Port Access; Transit Corridors

Guwahati (to Chittagong: 674 km; to Haldia: 1006 km) Imphal (to Chittagong: 895 km; to Haldia: 1484 km) Aizawl (to Chittagong: 454 km; to Haldia: 1600 km)

• Integrated Cross-modal Logistics Modeling and Evaluation

• Corridor Performance Management

• Others?

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Government InitiativesIndia-Bangladesh Joint Statement, January 2010– #14: The two Prime Ministers agreed to put in place a comprehensive

framework ... cooperation in water resources, power, transportation....– #22: It was agreed that Ashuganj in Bangladesh and Silghat in India

shall be declared ports of call....– #23: It was agreed that Bangladesh will allow use of Mongla and

Chittagong sea ports for movement of goods to and from India through road and rail.

– #35: The PMs agreed to operationalize land customs stations at Sabroom-Ramgarh and Demagiri-Thegamukh, including putting in place necessary infrastructure and issue necessary notifications .... agreed to take measures for strengthening infrastructure.

http://www.satp.org/satporgtp/countries/bangladesh/document/papers/indiabangjoint2010.htm

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Sample Pilot Project

• Develop a demonstration system allowing direct port access involving an international border crossing

• A 3-12 month pilot project involving a limited number of trucks taking the “control” route, and taking the “direct” route utilizing the demo system

• Analyze and Assess– Transit Time and Processing Time– Impact on trade competitiveness and cost

• Can be done in preparation of, or in parallel to an infrastructure project

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Where Intelligent Logistics Fits

• Pilot projects for port access and corridor development – both domestic and international

• Part of major port, terminal, and road infrastructure projects

• What else?

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Conclusions and Paths Forward

• Intelligent logistics works - Multiplies impact of other investments and efforts

• Time is right – ICT infrastructure now in place

• High impact – quickly and economically

• Adaptable to range of situations• Addresses a range of challenges

Dr. Amrinder Aroraaarora@ntelx.com

Larry Kahnlkahn@ntelx.com

Dhiren Pateldpatel@ntelx.com