Monthly Archives: November 2014

Types of Automated Container Terminals

An automated container terminal can be defined as a terminal that runs as an automated process some or all of discharging of ships, transport, and yard equipment operations.
 

Categorization of container terminals by automated zone

Automated container terminals are classified into full and semi automation according to the degree of automation. Full or semi automation is determined by whether the sector from discharging to transfer is automated using a second trolley and unmanned AGVs (automated guided vehicles).
 

Type

Automated zone

Major terminals

Discharging of ships

Transport

Loading & unloading vehicles

Fully automated terminal

Discharging from ships: manned operation

On-land discharging: unmanned operation

Unmanned AGV

ARMGC

ARTGC

- CTA in Germany

- ECT in the Netherlands

Semi-automated terminal

Manned operation

Manned Y/T

ARMGC

ARTGC

- HJNC in South Korea

- PNC in South Korea

- TMP in the UK

- HIT in Hong Kong

While those automated terminals that operate in Europe tend to pursue full automation, the automated terminal being run at Pusan New Port (PNC), which has its operating system supplied from CyberLogitec, has adopted semi automation focusing on its yard.
semi-automated container terminal HJNC terminal in Busan

HJNC terminal, the semi-automated container terminal

 

Categorization of container terminals by target of automation

An automated container terminal is composed of terminal operating system (TOS) for software and automation of equipment for hardware.
 
Automation of a terminal operating system consists in automating gate control system, stacking area control system, and equipment control system that can improve productivity through linkage to automation of berth assignment, ship planning, and yard planning with a view to shortening time and maximizing turnover.
 
And equipment automation seeks to save labor and shorten time by automating the gate and ensuring unmanned operation of discharging equipment such as cranes and transfer equipment.
 
Automation that is limited to software is called manned automation, while automation that includes hardware as well is called unmanned automation.
 
In addition, for operating an automated terminal, one should consider wired/wireless network, database, and EDI communication.

 

Posted by In-Chon Park, a Business Analyst who has investigated container terminal market for several years and conducted TOS projects recently.

 

Have something to say about automated container terminals? Leave a comment below. We’ll get back to you as soon as we can.

 

EU Customs Declaration: Entry Summary Declaration

Global Customs Trends – Entry Summary Declaration (ENS)

 

1. Pre-Arrival / Pre-Departure Declarations including Security Data

(1) Pre-Arrival / Pre-Departure Declarations

All cargoes departing from or arriving to EU must file pre-arrival / pre-departure declarations in accordance with the amended EU customs law related to security, which stipulates that they electronically submit safety and security data to the customs.
 
i. Cargo imported to EU customs
• Pre-arrival declaration must be electronically submitted within the time limit specified in the Customs Code, in either a) Entry Summary Declaration (ENS) that is electronically submitted to the member country’s system or b) Import Customs Declaration that includes security data sent to the customs declaration system of the relevant member country.
ii. Cargo exported out of EU customs
• Pre-departure declaration must be electronically submitted within the time limit specified in the Customs Code, in either a) Export Customs Declaration that includes security data sent to the customs declaration system of the relevant member country or b) Exit Summary Declaration (EXS) that is electronically submitted to the member country’s system (applicable only in case Export Customs Declaration is not required for customs procedure).
iii. Transit goods going through EU customs
• Declaration of cargo coming into EU customs can be filed either a) by submitting Transit Customs Declaration that includes security data or b) by submitting Transit Customs Declaration that focuses on customs clearance and does not include security data or submitting ENS that focuses on security.
• Declaration of cargo going out of EU customs can be filed either a) as a responsible person (carrier) submits Transit Customs Declaration that includes security data, in case Export Customs Declaration or EXS has not been submitted before a specific cargo is set for customs clearance, or b) by submitting Transit Customs Declaration that focuses on customs clearance and does not include security data or submitting EXS that focuses on security.
 

(2) Specifics of security data and time of transmission

i. Specifics of data related to prior security
<Table 1: EXS and ENS requirements for sea, air, inland waterways, and other means>

Name

EXS

ENS

Number of Items

Y

Y

Unique Consignment Reference Number

X/Y

X/Y

Transport Document Number

X/Y

X/Y

Consignor

X/Y

X/Y

Person lodging the Summary Declaration

Y

Y

Consignee

X/Y

X/Y

Carrier

 

Z

Notify Party

 

X/Y

Identity and Nationality of Active Means of Transport Crossing the Border

 

Z

Conveyance Reference Number

 

Z

First Place of Arrival Code

 

Z

Date and Time of Arrival at First Place of Arrival in Customs Territory

 

Z

Country(ies) of Routing Codes

Y

Y

Customs Office of Exit

Y

 

Location of Goods

Y

 

Place of Loading

 

X/Y

Place of Unloading Code

 

X/Y

Goods Description

X

X

Type of Packages (Code)

X

X

Number of Packages

X

X

Shipping Marks

X/Y

X/Y

Equipment Identification Number, If Containerized

X/Y

X/Y

Goods Item Number

X

X

Commodity Code

X

X

Gross Mass (kg)

X/Y

X/Y

UN Dangerous Goods Code

X

X

Seal Number

X/Y

X/Y

Transport Charges Method of Payment Code

X/Y

X/Y

Declaration Date

Y

Y

Signature / Authentication

Y

Y

Other Specific Circumstance Indicator

Y

Y

* X: Declaration Item of Goods Level
* Y: Declaration Header Level
* Z: Conveyance Report Level
* Combination of X, Y, and Z: pre-arrival / pre-departure information is provided at all levels indicated by X, Y, and Z.
 
ii. Submission time for different means of transportation
 
<Table 2: Security data submission time for different means of transportation>

Origin & destination of transport, distance of transportation, and type of cargo

Import

Export

Maritime transport

Container cargo (excluding short-distance maritime container cargo)

24 hours before shipment from each foreign port

24 hours before shipment of cargo to be transported out of EU

Bulk / Break bulk cargo

(short-distance maritime bulk / break bulk cargo excluded)

4 hours before arrival to the first EU port

4 hours before departure from an EU port

Short-distance maritime transport*

2 hours before arrival to  the first EU port

2 hours before departure from an EU port

Air transport

Short-distance air transport (less than 4 hours)

Before the actual take-off of the aircraft

30 minutes before the take-off of the aircraft

Long-distance air transport (4 hours or longer)

4 hours before arrival to the first EU airport

30 minutes before the take-off of the aircraft

Rail transport

2 hours before arrival to the EU customs office of first entry

2 hours before departure from the customs office of first entry

Inland waterway transport

2 hours before arrival to the EU customs office of first entry

2 hours before departure from the customs office of first entry

Road transport

1 hour before arrival to the EU customs office of first entry

1 hour before departure from the customs office of first entry

*) Short-distance maritime transport
1) Transport from an origin to a destination in the EU customs jurisdiction excluding Greenland, Faroe islands, Ceuta, Melilla, Norway, Iceland, Baltic Sea ports, North Sea ports, Black Sea ports, Mediterranean Sea ports, French overseas departments, Azores, Madeira, and Canary islands.
2) Transport shorter than 24 hours from an origin outside the EU tariff jurisdiction and a destination in French overseas departments, Azores, Madeira, and Canary Islands.
Next, we will take a closer look at the entry summary declaration (ENS) regarding goods coming into EU.
  
 

2. Entry Summary Declaration (ENS) regarding goods imported to EU

(1) The purpose of lodging the ENS

The pre-arrival information on all goods coming into EU must be sent to the customs in the form of ENS before the cargo arrives to EU. The purpose of lodging the ENS is to carry out an effective risk assessment before cargo arrival and guarantee that there is no delay in the logistics network. In other words, as cargo that has been confirmed through a prior risk assessment to include no hazards is going to be promptly processed on its arrival, it contributes to smooth logistics.
 

(2) Time to lodge the ENS

The ENS must be electronically submitted within the deadlines as shown on Table 2. Basically, it is to be submitted to the customs office of first entry, that is, the first port of call within EU tariff jurisdiction. If electronic connection is not available with the customs office of first entry, however, one may submit the ENS to some other customs office. Still, the customs office of first entry shall be responsible for assessing the risks of the arriving cargo.

(3) Eligible ENS lodger

The operator of the means of transportation that delivers goods into the EU tariff jurisdiction is responsible for lodging the ENS. The operator (or carrier) is the person who moves goods into the EU tariff jurisdiction or is responsible for carrying cargoes. Someone else may replace a carrier in lodging the ENS, but this doesn’t exempt the carrier from responsibility. So, the ENS can be lodged by some other person than the carrier, only with the carrier’s acknowledgement and agreement.
 

(4) Goods eligible for ENS

As for goods that are eligible to be included in the ENS, the general principle of EU legislation stipulates that all goods coming into the EU tariff jurisdiction must be included in the ENS regardless of their destination. This means that all cargoes must be declared, whether they are sent to EU or they are Freight Remaining on Board (FORB).
i. Items not eligible for declaration
• Personal stuffs: travel bags, letters, postcards etc.
• Military materials and equipment: weapons and other military equipment used in national defense.
• Energy: if imported through electric cables (for electricity) or pipeline (for natural gas).
ii. Unit used for lodging the ENS
In lodging the ENS, maritime carriers are to choose the unit, but most companies as WSC members adhere to the method of lodging a single ENS for each bill of lading.

(5) Data modification after the ENS is lodged

An ENS must be complete and accurate. But, sometimes one has to modify data after the ENS has been sent out. In this regard, Customs Act has no special limitation, but one is not allowed to modify such items as ENS lodger, agent, and the customs office of first entry for technical reasons.
As ENS serves as the basis for risk assessment, all modifications are accompanied by related risk assessment. In case modification is done just before cargo arrival, the competent customs authority should need extra time for risk assessment, which would affect the checkout of the cargo
However, submitted ENS cannot be modified in the following cases.
 
i. The lodger of the first ENS has been notified by the customs office of first entry that it will inspect the cargo.
ii. The customs authority finds out that the specific item is wrong.
iii. As the cargo is shown, the customs office of first entry has authorized the removal of the cargo.
iv. Route change notice has been recognized by the customs office of first entry.
 

(6) Risk analysis and action by the customs and penalties for failed lodging

The customs office of first entry that receives the ENS carries out a risk assessment based on it. Actions in accordance with the risk assessment are divided into maritime container cargo and others.
i. Container shipment (excluding short-distance transport).
About an ENS that is lodged 24 hours before shipment, a risk assessment is carried out, and if a very grave security risk is reported, a ‘Do Not Load (DNL)’ message is issued to the declarer.
ii. Bulk / break bulk cargo that should submit ENS 4 hours before arrival to the first EU port of entry and short-distance maritime transport cargo with a deadline set 2 hours before arrival.
A risk assessment must be carried out before a ship’s arrival, and if risks are confirmed, the competent customs authority will intervene immediately in proportion to the involved risks. While it is not mandatory, the customs will notify the carrier whether the authority wants to inspect suspicious cargo at the port of first entry, or as an alternative, at the port of discharge.

3. Other required submissions

• Before or as soon as a ship arrives to the port of first entry, the ship operator must submit arrival notification to ensure that the customs authority can check all copies of ENS that have been submitted to the customs regarding the entire shipment. As before, the manifest too must be submitted for a container that needs to be loaded to the port of first entry.
• ENS is just for assessment of any risks involved in cargo, and, even if it should include the same information as the ENS, a manifest must be submitted as well and has to include extra data that is specified in transport laws of the EU member states that the specific ship arrives to.

 
4. Do you want to import or export goods or move them in transit?

For more information on How to Import / Export / Transit, please visit European Customs Information Portal:
• European Customs Information Portal – Model Transactions

 
 
Global Customs Trends Series:

(5) Europe – Entry Summary Declaration (ENS)
Posted by Ki-Nam Kim, a solution specialist, who has researched and developed a business solution related to customs and logistics.
  
For additional information on how you can prepare for Entry Summary Declaration, please leave a comment below or contact us here.

Improving Efficiency of Container Terminal Operation as Large Ships Increase

1. The need to increase efficiency of container terminal operation

Large ships have continuously increased to reduce the cost per TEU and thereby enhance profitability by taking advantage of the economy of scale. Especially, as many containers have gotten larger, the multimodal transport of cargo by containers has increased the speed and lowered cost of maritime transport.
 
As ships are getting bigger, the shipping company’s strategy for operating a port of call focuses on the small number of hub ports, while for other areas, the emerging transport mode is linked to feeder service or land transport. It’s because companies operating large ships are bound to choose as their ports of call those ports that can smoothly handle arrival of ships and discharging with excellent size, facilities, and operating techniques.
 
Under such circumstances, terminals have found a great source of competitiveness in the efficiency of port operation in order to be a port of call serving big ships; especially, automated container terminals are looming as an important success factor in increasing the efficiency of a terminal. 
 
Container terminal automation ensures comparative advantage over other ports in no-holds-barred competition by increasing yard efficiency compared to the existing container terminals, and through well-organized placement of devices in step with increasing cargo volume and advanced information change among equipment units. It saves labor cost and operating cost, improves productivity through reduced operational stoppage, greatly reduces occupational disasters, and enhances reliability of ports.
 

2. Increased investment in terminal facilities

The size of a container ship decides that of port facilities and discharging equipment. Also, the growing size of container ships makes it important how long a specific ship stays at a port. Worldwide increase in container cargo volume, increasing size and speed of ships, and growing operating costs for terminals are stirring up interest in automated container terminals.
 
- Deep-water berthing facilities should be secured through massive investment in port facilities.
- Discharging equipment to be acquired must be appropriate for handling large ships.
- Automated information system must be upgraded to improve efficiency of port operation.
 
It takes a large quantity to develop a port and it takes a lot of money and time to remodel an existing terminal. Also, one should take into account the opportunity cost that is incurred from the long-time disuse of the existing facilities. Of the above three efforts, improving an automated information system brings in the greatest effect while requiring the smallest investment. The effect available from upgrading an automated information system not only increases efficiency of terminal operation but also secures stability in between sessions.
 
 
Posted by In-Chon Park, a Business Analyst who has investigated container terminal market for several years and conducted TOS projects recently.

 

Learn more about container terminal automation and our automated information system
 

Have something to say about container terminal operation? Leave a comment below. We’ll get back to you as soon as we can.

Integrated Work System for Logistics Company: Case of A.I.F. Global Network

international freight forwarding company A.I.F. Global Network

Image Source: http://www.aifcompany.com/aifnew_en/

A.I.F. Global Network (A.I.F hereafter) is a logistics company specializing in the forwarding of freight that provides international logistics services of air and sea transport, project cargo, and customs clearance, based on its own global network through the US, Europe, and Japan. Since it began its business in Los Angeles in 1990, the company expanded its operation in the US, which includes branches in Chicago and New York. Further, the company has so far created its international network that includes branches in Japan, Germany, and Italy, thus providing logistics services to a number of customers around the world.
 
As the company grew in size and its services expanded, it perceived an increasing need to acquire an IT system that could flexibly respond to the changing managerial environment including marketing management and customer service.
 
For such internal and external reasons, A.I.F came to undertake in 2011 the project for creating OPUS Forwarding in partnership with CyberLogitec. The project lasted for total six months, and based on OPUS Forwarding, our forwarding solution, we carried out replacement of the global operating system, linkage for an integrated accounting system, EDI linkage with German customs etc.
 
The toughest part of the project was concerned with minimizing the confusion in the field from the system replacement by accurately figuring out and applying work process in different overseas branches.
 
For this purpose, we heard requirements and performed an analysis on any discrepancies with our solution through video conference etc. with the international branches of A.I.F. And the entire project proceeded on a two-phase implementation, which consisted in the first trial designed for on-spot training and on-site feedback, and then the second legitimate start of the service.
 
Notably, to integrate the work and accounting data in the application that provides independent operation with different overseas branches, we adopted and applied the data replication of MSSQL and provided such features as global revenue and profit calculation based on the integrated data.
 
With the creation of the forwarding system, our customer has overcome the limitations with the previous operating system and now expects effects including an accurate company-wide performance calculation that encompasses its overseas branches. Besides, now the web-based operating system is created, A.I.F has secured an infrastructure that can register a flexible response to future expansion of IT features such as customer portal.

 
If you would like to know more about this logistics management software, leave a comment below. We’ll get back to you as soon as we can.  

How we Made King Abdullah Port Differently with Terminal Operating System

In opening or expanding container terminals, operators hope to see their terminals register a high level of efficiency and productivity. Creators of such terminals start their planning by examining various factors needed for their operation such as estimated demand, operating procedure, size and quantity of equipment. Terminal operating system (TOS), par exemple, takes up a small portion of the total investment in a terminal, when compared to the cost for procuring terminal equipment or infrastructure. However, terminal operation largely depends on what kind of TOS is selected and applied. For even a terminal that has pricey equipment and high-caliber manpower should make them worthless if it comes without a system for their efficient operation. In this essay, we are going to take a look at those terminals that have chosen as their TOS CyberLogitec’s OPUS Terminal, and see how they have successfully carried out their project of building their TOS.
 

TOS implementation project at KAP

1. Tell us the size of the project and the meaning that the container terminal has for the specific operator or Saudi Arabia.

- It is the first container terminal that is built and operated in Saudi Arabia’s first free economic zone (King Abdullah Economic City; KAEC). It began to use OPUS for operating the container terminal in late September 2014, and currently running three berths.
The seaport of KAEC will expand for the forthcoming years to handle 10 million TEUs.
 
Phase 1a Phase 1b
Completed by 4Q 2013 4Q 2014
Container berths 2 2
Quay length (m) 700 740
Capacity (TEU) 1.3 million 2.7 million
With a total development area of 173 km² (66.8 sq mi), the city is located along the coast of the Red Sea, around 100 km north of Jeddah, the commercial hub of the kingdom, the city will also be approximately an hour and 20 minutes away from the holy Islamic city of Mecca and 3 hours from Medina by car and an hour away of all Middle Eastern capital cities by plane.
 
- Seaport plan for KAEC
The seaport is estimated to cover 13.8 square kilometers, it will be the largest in the region with a capacity of over 10 million twenty-foot equivalent units (TEU) of containers per year. The port will have facilities to handle cargo and dry bulk, and will be equipped to receive the world’s largest vessels. Another key component of the Port will be a custom-built Hajj Terminal with a capacity to handle up to 300,000 pilgrims on their way to Mecca and Medina, the holy Muslim cities.
 

2. How is it that CyberLogitec’s TOS was chosen for the terminal?

As the first container terminal in KAEC of Saudi Arabia, KAP terminal needed the standard terminal operating procedure of KAEC. Furthermore, it needed a guarantee for the short project schedule from the creation of the terminal operation system to its opening and local support for the project from Saudi Arabia and Lebanon.
Based on its experience in successfully implementing various projects and operating container terminals, CyberLogitec could accommodate the customer’s needs in creating a standard process, offer a competitive price, and still accept a tight project schedule, which seemed to solidify customer trust.
 

3. Tell us about your experiences (difficulties and how you overcame them) involved in performing the project.

Most of our terminal operating staff had no prior experience and the yard workers were incommunicado in English with the staff even about numeric data. And since employees frequently left their jobs due to severe working conditions, we had to repeat the training.
By continuously checking customer requirements and assigning full responsibility for workforce training through reinforced training for managers, we aptly addressed the problem of frequently replaced workers and strengthened our relationship with the field operators with a view to more speedily and accurately figuring out possible problems with the operating method.
 

4. Now the project is completed, how is the container terminal coming on?

After its opening, operational issues kept QC productivity as around 10, but through CyberLogitec Workshop that has identified the problems and provided relevant training, currently the terminal registers pretty stable operation at a QC productivity of minimum 30.
The terminal is now run by yard operators recruited from India and Pakistan and a manager from the Middle East. As it is set in Saudi Arabia, the terminal will have new operating staff every couple of years, which is expected to pose a permanent problem. However, the Global Help Desk of CyberLogitec ensures 24-hour support for a stable system operation.

 

Interviewer: Ho-Seok Lee (General Manager, CyberLogitec)
Interviewee(Project manager): Hyun-dong Kang (Terminal IT Expert, CyberLogitec)

 

To learn more about Cyberlogitec’s software solution, receive a FREE consultation by leaving questions at this page.

Terminal Operating System: What Factors led Successful Operation of Tanjung Priok Terminal #3

In opening or expanding container terminals, operators hope to see their terminals register a high level of efficiency and productivity. Creators of such terminals start their planning by examining various factors needed for their operation such as estimated demand, operating procedure, size and quantity of equipment. Terminal operating system (TOS), par exemple, takes up a small portion of the total investment in a terminal, when compared to the cost for procuring terminal equipment or infrastructure. However, terminal operation largely depends on what kind of TOS is selected and applied. For even a terminal that has pricey equipment and high-caliber manpower should make them worthless if it comes without a system for their efficient operation. In this essay, we are going to take a look at those terminals that have chosen as their TOS CyberLogitec’s OPUS Terminal, and see how they have successfully carried out their project of building their TOS.
 

TOS implementation project at ILCS (Indonesia Logistics Community Service)

1. Tell us the size of the project and the significance that the container terminal has to the operator or Indonesia.

<IPC Tanjung Priok 3>
The name of the terminal, which is owned by Port Authority of Jakarta, is Tanjung Priok Terminal 3 International Port. Terminal 3 is divided into the domestic port and the international port, and the latter has run on OPUS Terminal since Dec. 2013. The domestic port won’t use OPUS Terminal until after it has performed the project for standardizing its operating procedure. Tanjung Priok Terminal 3 International Port has 6 berths, a 1,000-meter inner wall, and RMGC 5ea, RTGC 10ea, with the domestic port handling 500,000 TEUs and the international port about 300,000 TEUs per year.
 
Located in North Jakarta, Tanjung Priok is the busiest port in Indonesia. It handles more than 30% of non-oil-and-gas cargo in the country, and around 50% of the entire flow of goods into and out of Indonesia. Tanjung Priok therefore is a barometer of the Indonesian economy.
 

2. How is it that CyberLogitec’s TOS was chosen?

Standard Terminal Operating System for IPC
IPC needed a ‘standard’ terminal operating system for the several terminals it owned. And in order to be selected as such a standard operating system, one had to have experience in successfully building diverse-ranging container terminal projects and had to be capable of providing support for business consulting, hardware and system software (like Oracle DBMS). CyberLogitec was able to secure IPC’s trust through major references that it successfully created such as HJNC, PNC, and TTI-A.
 
Trusted Partnership
We further believe that not only user training but also partnership program like Knowledge Transfer was an attracting suggestion to our customer. The purpose of the partnership program is to upgrade understanding of OPUS Terminal by conducting technical training for the IT team of IPC and thus ensure in the long term IPC’s independent creation of OPUS Terminal on its new sites.
 

3. Tell us about your experiences (difficulties and how you overcame them) involved in performing the project.

Two new systems and interface
IPC Tanjung Priok Terminal 3, which was an old terminal running on an in-house system, had to migrate to a new TOS. This time, however, it required many efforts in managing changes, as the project wasn’t simply about changing its TOS, but it had to change its billing system to a New Billing System (NBS). It was very important to provide real-time interface for all the data of the two new systems and process it without any error, which took a long time to stabilize.
Trial System Operation
IPC, ICLS (an IT subsidary of IPC), and CyberLogitec ran a dual system (legacy & new system) during over a month of trial operation and figured out most of the latent issues, which they together addressed successfully. While the dual system operation was tough enough to require not only IT Department but also the entire staff, everyone worked hard. We give our thanks to all the members of the project from IPC, ICLS, and CyberLogitec, users, supporters, and sponsors.
 
User Training
One more important thing in this project was training. As is the case with most instances of business software, user training plays a crucial part in making the best use of the system. IPC clearly understood this and took two measures. On the one hand, the company formed PMO with ample experience in operating terminals and got it to lead the entire project, and on the other hand, it selected super-users from regional terminals and assigned them to the project team. CyberLogitec implemented training in OPUS Terminal for these people in Seoul, Busan, and Jakarta. It was a very useful and interesting opportunity, and those trainees eventually turned into trainers and conducted end-user training themselves. Especially because the field operators of IPC Tanjung Piok Terminal 3 had never used mobile devices for VMT (vehicle mounted terminal) or YT (yard truck), they had to shell out more time and effort in end-user training.
 

4. Now the project is completed, how is the container terminal coming on?

IPC Standard System
Currently, Tanjung Priok Terminal 3 is registering a pretty stable operation, and its users show satisfaction and trust with OPUS Terminal. Also, as IPC’s representative terminal, Tanjung Priok Terminal 3 has established operational and technical standard for sites. In short, all IPC’s other terminals will eventually adopt the same system as with Tanjung Priok Terminal 3 and follow the same operating procedure.
Central System Architecture
OPUS Terminal installed in Jakarta is going to expand into all container terminals scattered across Indonesia. Namely, with its central system and multi-terminal operation architecture, it will perform the role of a control tower that is perched at the center and controls planning and monitors operation for all terminals. Now considered as the second IPC site for application of OPUS Terminal, Pontianak system on Kalimantan Island will also use as its remote the OPUS Terminal server located in Jakarta.
 
Interviewer: Ho-Seok Lee (General Manager, CyberLogitec)
Interviewee(Project manager): Jake Kim (Terminal IT Expert, CyberLogitec)
 
 
To learn more about Cyberlogitec’s software solution, receive a FREE consultation by leaving questions at this page.

Container Terminal Automation Trends and Why It is Unavoidable

As freight space increases with growing ship size, automation is now inevitable with container terminals. Terminal automation is expected to become more pronounced as it follows the following trends.
 

1. With their P3 alliance blocked by China, Maersk and MSC are now focusing on 2M VLS.

Forced by China to drop P3, Maersk and MSC recently reached a long-term agreement for 10-year vessel sharing. The agreement is not limited to a specific part of the world but covers a vast area including 21 routes in transpacific and transatlantic regions, plus more in Asia and Europe. While Maersk will operate 110 ships, MSC will deploy 75 of them, totaling 2.1M TEUs. And this is comparable to 2.6M TEUs to be served by P3 with 255 ships operating in 29 routes.
 

2. Cascading is a foregone conclusion for major routes.

According to Drewry, 23 ships to be delivered to 2M by 2016 have an average freight space of 17,583 TEUs. While the market leaders wage a price war with their large ships, followers have no choice but to join it. If maritime transport follows the current trend for large ships, a cascade of vessels will further intensify in other routes. While the global economy does not see a rapidly growing demand, it seems that the hub-and-spoke strategy will be adopted by those ports that can accommodate large ships.

3. Not only major ports but even those in South America and Africa cannot resist the investment incentives for terminal automation.

So far, automation has been led by the large terminals in Europe, Asia, and the Middle East. In other areas, even those terminals which take up relatively major positions haven’t been under great pressure to go for automation, because they have handled a cargo volume that is not large enough. Even in those regions, however, if cargo masses to those major ports, automation in a certain mode should be inevitable.
 

4. A higher-level automation of container terminals will come along.

If existing terminals get to handle 1.5 or 2 times as much cargo per vessel as before, this does not mean that its stacking area is doubled, while twice as many cranes and transportation vehicles are deployed. As twofold machines means fourfold complexity, a system should be capable of handling even larger increase of complexity in order to ensure mutual optimization between machines and their proper operation. Moreover, since a crashed system creates great spillover effects, even greater dilemma is involved in having to handle complexity and ensure stability at the same time. That’s the reason why investment in terminal automation and TOS should be done with greater care. 
 
container terminal market trends causing needs of automation 
Posted by Ho-Seok Lee, a general manger, who has developed business plans and sales strategy in technology business. Be sure to follow me on Linkedin.
 
Have something to say about container terminal market trends or want to know more about the automation software solution? Leave a comment below. We’ll get back to you as soon as we can.
 

2014 Bulk Carrier Shipping Trend and Vessel Management System

BDI, which ran 11,000 in 2008, has long fallen down to 1,000, but there is no sign of the business improving. The biggest reason should be the surfeit of vessels, which is aggravated by delivery of those ships ordered in good times in the face of the shrunken demand in this bad economy. 
 
So, in this issue, we will check the bulk carrier trend that draws a lot of attention from bulk shipping companies in a bad economy and bring light on features that may catch the attention of shipping companies.
 

1. Latest trends in bulk shipping market

1) Strengthened environmental regulation

- Regulation of GHG emissions from ships
In 2013, IMO announced a global regime for reduction of GHG emissions from the ships and thereby made it mandatory to reduce carbon dioxide by 30% by 2015. Announcing its plan to restrict the operation of those ships that come below the standard in Energy Efficiency Design Index (EEDI), the IMO regime made it clear that it would apply strict screening on GHG emissions from the ships. 
 
- Expanding SECA
Since the Baltic region was selected, Sulfur Emission Control Area (SECA) has included the North Sea, the English Channel, and EU ports, increasing its coverage year after year. With not only areal expansion but also strengthening regulation of sulfur emissions, SECA has loomed as one of the regulations that deserve shipping companies’ attention.
 
- Competition for Eco Ship
As Eco Ship certification spreads around the world, technological competition for Eco Ship is accelerating among countries. Europe is developing solar ships and the US is developing vessels based on wind power, while other countries took much interest in eco-friendly fuels and ship engines.
 

2) Increased interest in upgrading the efficiency of ship operation

- Protracted period with low freight rates
Excess supply of freight space makes it difficult to predict when freight rates will perk up, while the global economy stands still and thus keeps lowering freight rates. Since this also creates a trend for preferring long-term contracts, we expect that low freight rates will be an extended experience.
 
- Persistence of high oil prices
As environmental regulation strengthens, more and more shipping companies use high-priced fuel, while oil prices continue to go up.
 
- Reduced cost of ship operation
Fuel is a major factor that takes up about 20% of a ship’s operation cost, and so shipping companies are paying a lot of attention to fuel cost reduction through reduced-speed operation.
 
2014 Bulk Carrier Shipping Market Trend

2. Predicting future bulk shipping market

Starting in 2015, the market will begin to show signs of recovery, and from 2017, it will have a full-blown recovery. Following is market forecast for different vessel types.

1) Cape

  • Iron price will stabilize lower with increased production from Australia and Brazil.
  • No hike factors with excess supply amassed for last 5 years.
  • Iron price largely depends on the economic policy and the growth rate of China, which depends hugely on imported iron ores.
  • Since transatlantic freight space is swinging low, a European economic recovery should have major a influence on the market.

2) Panamax

  • India’s coal import increases by 10%.
  • While 25% of fuel coal will be taken up by maritime transport, this will take up only 12% of the entire increase in ships.
  • While cargo volume increases, increasing available vessels make it difficult to expect freight rate recovery.

3) Supramax

  • Vessel type that is the most sensitive to global economy.
  • Ordering too many vessels is feared as there is an increasing demand for Eco Ship.
  • There is a growing demand for coal in China and India, and a growing demand for nickel and bauxite in China.

         => Pointing to a short-term recovery in freight rate.

4) Tanker

  • Oversupply of freight space forecasts continuation of overall depression.
  • Freight rate is expected to rise after 2015 as oversupply is mitigated.
  • Overall, the market will be better for smaller than larger ships, in the ocean than coastal waters, and in Asia than in Europe and North America.

bulk carrier market forecast for different vessel types

※ source : Korea Maritime Institute

 

3. Increased interest in vessel management system that can flexibly respond to changing bulk market.

As bulk carrier market is now in an extended depression, shipping companies need to adapt to the change in maritime environment from competition in size/freight/speed to competition for low cost/eco ship. Therefore, carriers need a high-level vessel management system and should be capable of smartly responding to the change.
 
1) Supporting effective management of fuel
bulk carrier effective management of fuel by vessel management system
 
2) Analyzing volatility in ship operation through management of phase-specific calculation and analysis of voyages.
Analysis of voyage mobility by vessel management system
 
3) Providing real-time location data to strengthen competitive of a ship in operation.
realtime location data supporting bulk shipping operation
 
 
Posted by Seung-Hee Seo, a Business strategist, who has made business plans and researched the maritime industry including container and bulk shipping.

 

Want to learn more about efficient bulk shipping operations? See the related posts below. 

Have something to say about bulk shipping trends or want to know more about the vessel management system? Leave a comment below. We’ll get back to you as soon as we can.

How Terminal Operating System Changed Container Terminal Operation of Jebel Ali CT #3

In opening or expanding container terminals, operators hope to see their terminals register a high level of efficiency and productivity. Creators of such terminals start their planning by examining various factors needed for their operation such as estimated demand, operating procedure, size and quantity of equipment. Terminal operating system (TOS), for example, takes up a small portion of the total investment in a terminal, when compared to the cost for procuring terminal equipment or infrastructure. However, terminal operation largely depends on what kind of TOS is selected and applied. For even a terminal that has pricey equipment and high-caliber manpower should make them worthless if it comes without a system for their efficient operation. In this interview, we are going to take a look at those terminals that have chosen as their TOS CyberLogitec’s OPUS Terminal, and see how they have successfully carried out their project of building their TOS.
 

TOS implementation project at Jebel Ali Container Terminal #3

1. Please describe the project details (size, scope, duration etc.). And what is the role/position of the container terminal for DP World or in the UAE? 

Jebel Ali terminal 3 is DP World’s latest venture to expand the capacity at their flagship Jebel Ali Port precinct. Terminal 3 will be an automated container terminal that uses parallel stacking to the quay, fully automated ARMG’s and Internal Transfer Vehicles (ITV’s) for horizontal transport for container transfer from quay to stack and stack to quay.

Total Area  720,000 sqm Gantry cranes 19 SPP  
Capacity 4 million TEU RMG/RTG 50(ARMG)
Stack capacity 103,764 TEU Empty container handler 7
Reefer points 1,620 Reach stacker 2
Berths 6 Tractors 190
Length 1,862 m Trailers 178
Depth 17 m
<Jebel Ali Container Terminal 3’s facilities (source: DP World)>
 
DP World (DPW) is one of the “Big 4” Global Terminal Operators (GTOs) with interests on all continents around the globe.
 
The DPW T3 project is expected to run for about 3 years from the very first turn of sand to a fully working operational terminal.
 
An initial soft go live has been done and DPW is finalising its operational requirements before going “fully live”, which will be very soon.
 
 
2. Why do they deploy/select CyberLogitec’s TOS solution?
 
DP World chose CyberLogitec because CyberLogitec has a very strong and competent pre-sales effort, better understands DPW’s needs, is flexible enough to accommodate them without any “dominant player arrogance,” and places a very competitive submission for the business. Upon analysis of CyberLogitec’s bid, DPW felt it was the most suitable system solution that best accommodates their business needs by possibly meeting and exceeding needs with its leading edge system architecture that can scale exponentially with the rapidly expanding Jebel Ali Port precinct.
 
DPW also felt that their existing TOS vendors in Jebel Ali, which currently use “legacy systems” with persistent legacy issues were not something they wanted to continue to deal with on a daily basis going forward — not to mention the continual operational outages from rebooting systems multiple times a week.
 
Also DPW felt that the newer version of the current TOS vendor system was not ready for mega terminals with widely reported on-going go-live issues, so they wanted to try a new vendor with newer systems written on more current platforms and not a 30-year-old system re-hashed with “makeup” to mimic a new TOS system.
 
CyberLogitec’s more modern system architecture which OPUS Terminal is based on, does not suffer from any legacy system issues and so does not require frequent and inconvenient system reboots.
OPUS Terminal TOS is “always more”
 
 

3. What have you experienced while you are performing the projects (problems, how to solve them etc.)?

There have been the usual minor rounds of issues to be fully expected with any large scale software project that has multiple vendors, suppliers, and a high number of key stakeholders.
 
These have been well documented, discussed and mutually agreed fixes, workarounds and solutions proposed and agreed to by both sides making issues “non-issues”.
 
As for Terminal 3, we have been extremely fortunate to work with such a highly experienced and competent team of individuals working around the clock in conjunction with the DPW Project Teams and senior management.
 
This has ensured consistent and open communication, better mutual understanding and empathy from both sides and has produced a more cohesive and collaborative team that has led to the Terminal 3 project’s high-level success.
 

4. Now the project is completed, how is the container terminal currently operating/working?

Terminal 3 will be the new flagship terminal and “centre of excellence” for terminal automation in the DP World portfolio.
 
We can expect to see DPW set new operational automation precedents, once T3 is finally fully live and operational.
 
CyberLogitec is very much looking forward to being “the leading edge TOS vendor of choice” and being part of this historical journey with DPW as it charts new territory and sets a new “high bar” for “operational standards of excellence” that will be the envy of the industry and other TOS vendors.
 
Interviewer: Ho-Seok Lee (General Manager, CyberLogitec)
Interviewee(Project manager): Paul Bourke (Global director, CyberLogitec)

 
To learn more about CyberLogitec’s software solution, receive a FREE consultation by leaving questions at this page.

NACCS Signed Agreement regarding Japan Advanced Filing Rules and Why

3 Main Factors We Are Chosen as a Service Provider for Japan Advance Filing Rules

 

Japan Advance Filing Rules went into force in March 2014. The program is designed to promote safety by checking in advance any hazardous materials in containers that are going to be offloaded in Japanese ports. Shippers and shipping companies that export goods to Japan are now required to file an electronic customs declaration with Nippon Automated Cargo and Port Consolidated System (NACCS) Center 24 hours before a ship’s departure from a port of origin. NACCS Center selected 19 companies that would provide related services. In choosing one of them, a customer should consider the following.
 
1. Does it have experience with EDI in Japan Customs?
2. Does it have a system for disaster response, rescue, and related services?
3. Does it have a global service network?
 
Meanwhile, CyberLogitec signed in January a work agreement with NACCS Center for providing services related to Advance Filing Rules for cargoes exported to Japan. CyberLogitec was rated highly for its involvement for over ten years in EDI customs in Japan and its preparedness against natural disasters such as earthquake and tsunami with Disaster Recovery Center and backup for the service.
 
NACCS agreement regarding japan advanced filing rules 
Posted by Ho-Seok Lee, a general manger, who has developed business plans and sales strategy in technology business. Be sure to follow me on Linkedin.

 

For additional information on how you can prepare for Japan Advanced Filing Rules, please leave a comment below or contact us here.