papc conference iaph africa-europe regional meeting pmaesa council meeting djibouti date: 3/11/2008
TRANSCRIPT
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PAPC Conference
IAPH Africa-Europe Regional Meeting
PMAESA Council Meeting
Djibouti Date: 3/11/2008
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National Infrastructure
A country’s trade efficiency relies on the processes that it carefully builds for its trade supply chain
A country’s infrastructure capacity / demand may experience in spikes, ramp-ups, surges, …etc., while its infrastructure grows in steps
Solutions for capacity / demand growth does not always lie in a matching increase of infrastructure
Non capital-intensive projects may prove to be more effective than concrete laden projects
PPP is vital to “non capital–intensive” projects, since services are driven by HR, technology, efficiency and effectiveness
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Port Congestion’s Other Face
The immediate solution to any port congestions is: building another port
Investments in new ports take time
Investment in these economic down-turns could delay decision for years
Immediate focus is usually on quay side and in-terminal operations
Limited maneuvering room for getting cargo out of the terminal
Off-port yards are a costly, difficult solution
Coordinating truck operations with cargo availability is key to immediate improvements
Hence, NAFITH TCS…
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NAFITH Profile
NAFITH (National Freight Information and Transportation Hub) is a freight transportation logistics service to facilitate cargo movement countrywide, or through transport corridors
Concept developed by FreightDesk Technologies (USA) and Nafith Logistics PSC. Jordan
Has been adopted by Jordan through a Public – Private Partnership with Nafith Logistics PSC., operated as privately-funded, publicly-chartered utility, financially supported by users and beneficiaries
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• More than 2000 truck transits per day
• Recurring congestion problems in Aqaba city and at key port terminals
• Long, indeterminate wait times causing 3x longer roundtrip times than necessary
• Poor coordination between trucks and terminal activities
• Limited shipment status visibility for cargo owners
• Pollution and disruption of popular tourist areas (exhaust/noise/traffic)
• High truck transport costs
• No performance measurements
The Situation (2005)
• Government support and legal authority required for improvements
• Pervasive corruption problems
• Incumbent trucking cartel resistant to changes to status quo
• Limited use of computer-based systems in transportation sector
• Limited infrastructure to support 24x7 operation of computer systems
The Challenges
ASEZ Truck Movement – Before NAFITH
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Before NAFITH TCS
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Other Objectives of TCS
Enhancing security and safety
Decreasing truck emissions and pollutants
Decreasing cost of freight from and to ports
Abiding by national regulations
Providing information on transportation and freight nationally
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Main Stakeholders
Ministry of Transport Port Authorities Terminal Operators Customs Trucking Companies, Truckers Border Control Authorities NAFITH
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Yards – after TCS
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INTERNET
Truck/cargo statusBilling/payment
info
Request entry &
routeTime &
route assignment
Time & route
assignment
Verify truck, driver, route,
cargo
Provide truck ticket with routing instructions
Track truck enroute and
at marshalling
yards
Record cargo pickup at terminal Record
truck exit
Nafith Truck Control System
FDfolio™
GovernmentRegulatory complianc
e and status
reports
Truck Company Manager
Dispatcher
ASEZA Truck Movement – The Solution
Electronic validation and compliance checks
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TCS IT Systems
Automation of Business Flow implemented by NAFITH Developing a Web Based, Multiple Language system, including
Arabic Automated and manual capture of detailed logistics event data
across cargo and vehicle movement life cycles Flexible management of Capacity of the marshalling yards,
destinations and roads through Advanced Queuing Algorithms Verification of Trucking Companies and Availability of Cargo
through integration with MoT and National Customs Creating an easy-to-use matrix of adding/removing destinations and
roads on a need basis Complete Transparency and Control between ground operation
and administrators An information Hub to retrieve Statistical Information on truck flow
within the ASEZ through an extensive reporting module for future projections (congestions areas, truck turn over, truck flow, … etc)
High Volume of Transactions and Large User Base
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Logistics Event Capture
Screen based entry System to system integration RFID GPS Barcode
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Detailed Operational Data
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Planning Statistics
Monthly Permits by Cargo Type
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
CARGOCARS
Chemica
ls Tan
ks
EMPT
Y CONTA
INER
FROZE
N GOODSFU
EL
GRAINS
HEAVY LOAD
LIVE S
TOCK
Load C
ONTAINER
MANUAL
Off Load
Container
PETROLE
UM
PHOSPHATE
POTASH
Petroleu
m and G
as Ta
nks SALT
SULF
UR
VEGETABLE
OIL
2008-01
2008-02
2008-03
2008-04
2008-05
2008-06
2008-07
2008-08
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• Avg. 3000+ permits daily/18,000+ daily events• Validates truck, driver and cargo information and
routes traffic to reduce congestion and enhance security
• Freight rates dropped 20% due to improved efficiencies and trucking company profits rose
• Transparent, automated system removes manual decisions thereby reducing corruption
• Improved visibility of information used to support cargo tracking, equipment/driver utilization and regulatory compliance
• Fully localized user interface
• Requirements gathering began mid-August; system operating three months later by mid-November 2005
• Received 10-year services contract to operate business and manage 200 people and IT systems
ASEZA TCS – After NAFITH
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National Impact of TCS
Quantum increase in transport efficiency Terminal operators focus on terminal operations Coordinated moves, e.g. drop off/pick up, on the rise With TCS, regulators are removing operational constraints on trucking
companies System keeps traffic moving with seasonal and other spikes in
volume
Data from TCS facilitates better short and long term planning TCS can give priority to strategic supplies, e.g. fuel, grains, when
necessary Better environment with less pollution Improved road safety and incident management More investments materialized in the trucking and logistics
sectors because it simply became more transparent and feasible
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Toppings
Pre-notification of containers and shipments
Coordination of express permits
Appointment system for containers and bulk cargo, enabling stakeholders to have longer term planning
Terminal operator staff planning for overtime or higher than usual loads
Implement RFID network and tags to capture events more efficiently
More timely information for all stakeholders (clearing agents, truck companies, shipping agents, and ports)
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NAFITH: Conclusion
TCS in Jordan, like PierPASS in Los Angeles and GEM in New Orleans, is leading the way to improve truck logistics around ports
NAFITH is well-suited to implement solutions that can work in the cargo transport environment in Africa
Our experience with coordinating and monitoring transit cargo can enhance services to land-locked countries and through corridors
NAFITH TCS approach can increase capacity without major new physical infrastructure
Advanced services needed more cutting edge technological investments in a short period of time