Monthly Archives: February 2015

Why has world first hybrid terminal deployed CyberLogitec’s Terminal Operating System(TOS)? Inquiry to PNC(Pusan Newport Company) Terminal

Why has world first hybrid terminal deployed CyberLogitec’s Terminal Operating System(TOS)? Inquiry to PNC(Pusan Newport Company) Terminal


CyberLogitec’s Terminal Operating system OPUS Terminal has been already implemented both in Automated & Manual terminal as well as Parallel & Vertical Yard Layout and Various Types of CHE(Container Handling Equipment).

Major reference sites are Hanjin Newport(2009), TTI Algeciras(2010), Pusan Newport(2009), and DPW Jebel Ali CT#3(2014). We are going to inquire deeper to Pusan Newport Company (PNC) today.


The Business of PNC

Pusan Newport Company Ltd. (PNC) has constructed 2.0 km of continuous quay wall 6 berths out of the total thirty 30 berths of the overall Pusan New Port Project.

Deep berths of 16~17meters, advanced container handling equipment, automated gates, integrated terminal operating systems plus an extremely dedicated team ensures that PNC continues to handle vessel and terminal operations with efficiency and high productivity.

The company knew that automation is the key success factor in today’s container Terminal business. To safeguard and continuously improve the service quality and profitability, the company decided to introduce new ASCs for additional 1,250 meter long wharf. PNC strived to find ways to maximize its revenue potential and save operating costs.

PNC_Pusan Terminal Layout

PNC_Pusan Terminal Layout


The Challenge to CyberLogitec for TOS

PNC wanted new automated yard blocks to be integrated existing terminal operating system. The attempt took more than a year, ending up in totally different from what the company expected. Even the terminal operating system provided by the most famous TOS (Terminal Operating System) supplier in the world was not able to integrate the operation of automated yard blocks and that of existing manual yard blocks. The consequence was quite grave. There were only 8 months until the first vessel’s visiting.

The project was quite challenging to both CyberLogitec and PNC. So the decision was made to go live with the least manual blocks integrated and to start implementation of automated block independently at point of yard crane delivery in automated blocks. Based on standard project management methodology of CyberLogitec, project team was formed and started collecting user requirements. After two months of collecting requirements and six months of preparation, a new automated terminal commenced operation in June 2009.


The Solution

The best practices for this terminal include gate automation, Terminal Logistics Control (TLC), Multi User Planning, Yard Tractor (YT) Pooling, Dual Cycle and Twin/Tandem operation.

The core function for automated terminal from the above was TLC module. The performance of automated cranes was optimized by the module which consists of YT pooling, job scheduler etc. Although traffic control for YT was based on simple passive RFID which covers wider area, OPUS Terminal could manage the terminal logistics by integrated TLC Module. By giving a passive role to ASC of performing single order created by TOS, the difficulty of job optimization and interface between ASC and yard tractor was minimized.


Hybrid Operation, on a single TOS

PNC is the world’s first mega-hybrid terminal combined with automation and conventional terminal type. And it consists of 6 berths, 3 of them are operated in conventional RMG; the other 3 berths are semi-automated type. Total 6 berths terminal is operated by one single OPUS Terminal system.

Terminal Operating System for Terminal Automation @ Pusan terminal

Terminal Operating System for Terminal Automation @ Pusan terminal


Before versus After using OPUS Terminal: Drastic Advance

CyberLogitec conducts the TOS implementation, data migration from previous TOS and system interface/integration with 3rd parties like OCR, RFID, ERP and etc. After implementing OPUS Terminal, PNC has been yielding better productivity compared to previous TOS, which was provided by major TOS provider.


Performance Improvement after using OPUS Terminal

Performance Improvement after using OPUS Terminal

If you are interested in more information about our OPUS Terminal, or improving performance of your terminal as PNC(Pusan Newport Company) has, please do not hesitate to contact us via the method below in any way you would like.


TEL : +82-2-6350-2000
FAX: +82-2-6350-2050
E-mail :
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What drives to install Terminal Automation System?

What drives to install Terminal Automation System?


1. What is Terminals?



The word ‘Terminal’ is from Latin Terminus, which means the last stop on a bus or train route, where the bus or the train turns round or starts a journey in the opposite direction. In train terms, it means the last stop, in maritime, it means the last port of the route. In modern days, functional concept weighs more than locational one so Terminal is connecting spot from departure to arrival of transportation. Container Terminal, on the other hand, is a contact point between land and sea where containers are loaded and discharged, moved from or to trucks and trains, container stacks, container equipment work, and so on.

Necessary condition for Terminals



Terminals should be located at the place that makes the cost lowest for all the parties considering the traffic of goods in and out as well as distance from the other terminals. Specific conditions are as following next.

First of all, Terminal should be located on the wharf and provided with all the handling equipment needed. Beside, safe operation of the ship, berthing, unberthing, and mooring also should be available. Second, Terminal should have enough space, equipment, and organization for physical delivery, storage and customs of cargo. Third, Terminal should not only have capacity and capability to deliver containers quickly and precisely also check on container condition to react on it. Fourth, Terminal should operate systemically each container stage by stage. Fifth, Terminal has no difficulty to access inland transportation such as railroad, or motorway.


 3. Automated System for Terminals

Container shipping industry has trend to go for bigger ships to secure the cost reduction, which derives growth of size of Terminal. To run the bigger size of terminal properly that includes accomplishing all the conditions above, Automated Operating System comes up as the most important condition for Terminals. Terminal automation system also is a key for cost leadership, especially when it comes to recession as it is nowadays. Automated Terminal System also is critical to maximize your operating efficiency. How to stack containers at Terminals? How to run the stowage system? Which container goes first and later? Which load in the specific container goes first and where? All of these questions lead down to the one answer System Automation.

If you are interested in or need advice for Automation System for Terminal, we are ready to answer that. Please contact us in anyway you want below.


TEL : +82-2-6350-2000
FAX: +82-2-6350-2050
E-mail :
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Shipping and Terminal Industry Trend

Shipping and Terminal Industry Trend Ⅰ

1. Containership size growth and cascading

Probably the most significant trend affecting the global container port industry is the extraordinary increase in containership sizes. Over the last 15 years or so, there has been a repeated process in the liner shipping industry: Maersk Line breaks ranks and orders vessels for the Asia- Europe route that are significantly larger than the norm, and three to five years later, pretty much every other carrier is forced to follow suit in the endless scramble for economies of scale. It started with the 7,400 TEU Regina Maersk and the 8,200 TEU Sovereign Maersk class in the mid-1990s. Then the industry was shocked by the 15,500 TEU Emma Maersk class in the mid-2000s, and in 2013 the 18,000 TEU Maersk Triple-E class is due to come into service. It was really therefore just a question of time before it became clear which line would be the first to do the same thing and exhibit once again the herd mentality of liner shipping. The five 18,400 TEU vessels ordered by China Shipping for delivery in the second half of 2014 will be joined by five comparable vessels from alliance partner UASC. Other carriers will probably have to do something similar in due course, although the timescale is not clear.

Container Shipping Trend

2. Size of Ports and Terminals

Growth of containership size leads to size growth of ports and terminals. The most expensive implications for ports of larger ships are vessel draft and vessel length. Dredging of berths and channels and pouring concrete for quay walls come at a high cost, not to mention planning and environmental hurdles. Wider vessel beams are easier to deal with. Gantry cranes with longer outreaches do not come cheap, but they are generally a lot easier to put in place than new berths or deeper water. Even ports like Hamburg and Antwerp with significant draft and tidal restrictions due to long river passages are still very much in the big-ship game. Hamburg has seen calls by the 16,000 TEU CMA CGM Marco Polo class, for example. Antwerp has seen the 15,500 TEU Maersk E-class vessels and regularly hosts the 14,000 TEU MSC vessels. This is certainly not as straightforward and flexible as calling at Rotterdam’s almost unrestricted Maasvlakte, but certainly not ‘sized out’ of the game either.

Container Terminal in Hamburg

Container Terminal in Hamburg

3. Cranes are also getting bigger

The 18,000 TEU ships are getting wider though, so crane outreach is becoming more critical. The Triple-E vessels are 23 boxes wide, whereas the Maersk E-class is 22 wide and the CMA CGM Marco Polo class is 21 boxes wide. However, most of the major ports on the Asia-Europe route, including wayports in the Mediterranean, Middle East and Indian Subcontinent, have already deployed cranes able to cope, or are taking steps to do so. Even in the worst case, if a terminal only has outreach for 20 boxes, ships can be stowed to cope with this if necessary, which makes container stowage system very important. But crane height is also a significant consideration, along with outreach, and some key ports are currently investing in raising the height of some of their existing cranes.

Automated Container Terminal #3 at Jebel Ali Port

Automated Container Terminal #3 at Jebel Ali Port

4. Needs for higher terminal productivity

To attract large ships as above, secure of terminal productivity is top priority. If productivity is not high enough, large vessels to call at the terminal takes so much time and resources to process work that the benefit of a large ship operations offset or rather worse. As the terminals grow larger, the quantity of goods and equipment that must be managed surge and operational complexity rises exponentially. There is a great possibility that productivity dip down sharply if manage the whole terminal by the existing system or the manpower. Terminal The expansion of the terminal facilities and terminals for the large vessels, therefore, eventually will have an interest in the terminal automation system more and more.

Jebel Ali CT #3 Terminal Operating System and Eagle Eye

Jebel Ali CT #3 Terminal Operating System and Eagle Eye


If you would like to see the next post of this article “Shipping and Terminal Industry Trend 2nd”, click!


Chris Pratt and Chris Evans Are Having A Super Time at the Super Bowl. So Are CyberLogiteckers.

Chris Pratt and Chris Evans Are Having A Super Time at the Super Bowl. So Are CyberLogiteckers.

The 49th Super Bowl for NFL was captured by New England Patriots. The game was inexorably neck and neck with just 40 seconds remaining and folks in CyberLogitec offices were alternating between sighs and exultation.


  1. The Dramatic Super Bowl Upend by New England

First quarter was wrapped up in 0-0. With 9 minutes and 47 seconds left in the second quarter, New England secured its first touchdown. Afterwards, each of the two teams scored their touchdown, finishing the first half 14-14. The third quarter was dominated by Seattle. Scoring 3 more points with a field goal, Seattle began to lead New England 24-14 with Wilson’s astute pass and a touchdown by Doug Baldwin, with just 5 minutes left.

However, Seattle did not have what New England had: Tom Brady. With 8 minutes remaining for the fourth quarter, Brady delivered a fabulous touchdown pass to Danny Amendola. Chasing its rival, the Patriots finished the game 28-24 by upending the Seahawks with Julian Edelman’s touchdown scored on a pass from Brady, with 2 minutes and 2 seconds remaining.

As a result of the game, Super Bowl met its winner again in ten years. Super Bowl MVP was presented to Tom Brady, famous as the husband of Gisele Bundchen, who disclosed on Instagram a picture of herself kissing the MVP.


Gisele Bundchen kisses Tom Brady the Super Bowl MVP

Gisele Bundchen kisses Tom Brady the Super Bowl MVP(Gisele Instagram)


2. The Economic Effects of Super Bowl

A host city for Super Bowl is known to reap the economic benefits worth 600 million dollars. With wanna-be Super Bowl watchers rushing as early as one month prior to the game to book hotel rooms, hotel rates are bound to skyrocket, making it tough to get a room with a pretty hefty premium. The problem got worse with PGA Tour Phoenix Open going on in Scottsdale, which was not far away.

Major US media companies like MarketWatch, a financial information provider, and Wall Street Journal estimated that Americans spent 14.031 billion dollars to enjoy the Super Bowl match, which was held in the stadium of University of Phoenix in Glendale, AZ. MarketWatch estimated that Americans would spend 89.05 dollars on average for Super Bowl, while this year’s Super Bowl commercials were priced at 4.5 million dollars for 30 seconds.

There is a vibrant black market in Super Bowl tickets. According to a survey, a ticket can go beyond 20,000 dollars at the highest, which suggests that the average sales price for 2015 Super Bowl tickets exceeded 10,000 dollars. Precisely speaking, it is 11,195 dollars, having thus recorded a new highest price in 49 years. ESPN suggested that the extraordinarily expensive ticket price for this year was caused by the brokers’ failure to predict demand correctly.


Super Bowl ticket price surge

Super Bowl ticket price soar


  1. Chris Evans vs. Chris Pratt at CyberLogitec

At CyberLogitec, supporters’ competition was as hot as at the Super Bowl stadium.

Just as Chris Evans and Chris Pratt sided with the two different teams, Adrian Jung of Maritime Business Unit and Alan Kim of Terminal Business Unit rooted for the two different teams, thus creating rivalry among Super Bowl supporters.

Adrian Jung and Chris Evans joined hands in supporting New England Patriots, while Alan Kim and Chris Pratt hit it off as fans of Seattle Seahawks.

Chris Pratt and Chris Evans at Super Bowl

Chris Pratt & Chris Evans @ Super Bowl

Source: Chris Pratt’s twitter

As we all know, the game was a victory for Adrian Jung. In token of defeat, Chris Pratt should wear the uniform of Patriots quarterback Tom Brady and pay a visit to Christopher’s Haven Children’s Hospital where children with cancer are being treated. Then, what should Alan Kim do for Adrian Jung?

Any ideas?

Four Reasons for Lower Oil Prices that Have Reduced Ship Fuel Costs for Liners

Four Reasons for Lower Oil Prices that Have Reduced Ship Fuel Costs for Liners

With international oil prices at their lowest in four years, the shipping industry is giving a long-awaited smile.

Lower oil prices, which started last year, are stretching into this year. And its effects, which emerged in the fourth quarter of last year, are going to be more pronounced with the first quarter of this year. So, the shipping industry is looking forward to cost reduction, thanks to the lower international oil prices. On the other hand, one thinks of the negative effects of a downslide in oil prices, which should have its downside as well. Bronson Hsieh, Vice Chairman of Evergreen Group worried that reduction of slow steaming from the lowered oil prices should lead to oversupply of ships, thus exerting negative effects on the shipping industry.

Still, lower oil prices mean a blessing in the short term, as it improves profitability not only for the whole economy but specifically for the shipping industry. Then, what seems to be the reason for the unprecedentedly continuing downslide in oil prices?


Energy & Oil Price

WTI dated Nov. 28, 2014 (source: Bloomberg)

Begun last July, the worldwide downslide in oil prices has stayed the course. Futures price for crude oil WTI at New York Mercantile Exchange (NYMEX) dropped below 70 dollars per barrel, tumbling to 69.05 dollars as of Nov. 28, 2014. Now, the price is as low as 45 dollars.


The Lowest Crude Oil_WTI in five years

The Lowest Crude Oil_WTI in five years

Usually, oil prices tend to rise in winter. Why is that so, when it is summer in the Southern Hemisphere while it is winter in the Northern Hemisphere of Earth? This is because the Northern Hemisphere registers a higher concentration of countries, which burn oil through winter days. Currently, however, oil prices are falling “abnormally” when we are in winter. OPEC daily basket price, which lingered around 80 dollars per barrel, kept falling and has now dipped below 68 dollars.

Crude Oil_WTI_below 70 USD

Crude Oil_WTI_below 70 USD (Source: NYMEX)


Then, let’s take a look at the composition of international oil market, which is divided into three segments, broadly speaking.

  1. The first one is West Texas Intermediate, which is WTI, for short.
  2. The second one is Brent Crude from North Sea.
  3. The third is Dubai Crude.

WTI is mostly consumed in America (recently though, it is also exported abroad owing to sufficient supply of shale gas).

​And Brent Crude is spent mostly in Europe.

Lastly, Dubai Crude is supplied to consumers in the Middle East, Africa, and Asia.

One may safely think that the European gas price is linked to Brent Crude while the Asian counterpart is in sync with Dubai Crude.

Of course, that is not always the case. Only a fool would pay 200 won for Dubai Crude when Brent Crude is selling at 100 won close by.

Therefore, it is reasonable to believe that international oil prices are linked with one another.

​Then, shall we try to figure out what’s causing the downward movement for international oil prices?

For this, we can present four big reasons.


  1. Shale Gas Burst Out of the US, Starting in 2012.

​2012 witnessed the emergence of the much-talked-about shale gas in the United States, which took the worry out of peak oil. That’s what caused oversupply of oil.

Indeed, shale gas production led to a sharp drop in the US consumer price index.

Consumer Price in US fall on Cheaper Gasoline

The US economy experienced a continued fall in consumer prices in 2013 (source: Bloomberg).

​Even with the arrival of shale gas, however, oil prices lingered around 100 dollars per barrel. This suggests that it doesn’t make sense to try to pinpoint the phenomenon as the sole direct cause of the current levels of oil prices.


  1. Economy Retreats in Europe, China, and Japan

Experts worry about deflation in Europe, while there is concern that its GDP is possibly registering a negative growth from the second quarter of the year. So, Europe indicated possible asset purchases to pit itself against Abenomics of Japan.

Of course, it appears that such a possibility has come to nothing with the interest reduction by China, but it is an undoubted boon to the shipping industry. It is a good sign for the economy that somebody is pumping it up while trade becomes livelier.

In China, the real estate bubble is its biggest risk. And household debt and local government debt are not to be ignored, either. In Japan, Abenomics is approaching its limits, in spite of the phenomenal weaker yen. All these indicators began to pour out last July.

It is widely believed that the economic indicators for the three economies have driven oil demand to a further decline, thus influencing oil prices.


  1. Dodd-Frank Wall Street Reform and Consumer Protection Act Enacted in the US in 2010

​Dodd-Frank was signed into a law in the US in 2010 with a view to steering clear of an event like 2008 financial crisis. It was a regulatory measure imposed on the financial industry that Obama Administration came up with in order to control risky investment by depository institutions and their affiliates including banks and suppressing the aggrandization of banks and non-bank financial institutions. The law is also known as the Volcker Rule, as it reflects much of the idea of Paul Volcker, former FRB Chairman and former chairman of Economic Recovery Advisory Board under President Barack Obama. ​


Paul Volcker in Times

Paul Volcker in the early 1980s (Source: Time)


​Notably, the Volcker Rule bans commercial banks from getting involved in speculative trading with their own money or with financial leverage.

It was around last April that Dodd-Frank went into force.

And it made it legally impossible for the financial institutions in the US to engage in speculative trading.

So what happened? Financial institutions could not but remove their related divisions.

It was in July that the removal began to show its effects.

With the disappearance of so-called speculative demand, the erstwhile bubble burst.

Moreover, oil is an inelastic product. So, the impact from such demand and supply is all the more cumulative.

Oil price change caused by speculative demand has been demonstrated through its sharp rise and fall in 2008.


Oil price in 2008

Oil price trends in 2008. Owing to the fear of peak oil, oil price sharply rose to hit 140 dollars before it nosedived to bottom out at 40 dollars.


  1. The Game of Chicken between the US and Saudi Arabia

It is true that the growing US power in oil market by virtue of its shale gas was the cause of Saudi Arabia’s anxiety.

Saudi Arabia is an oil power that takes up minimum 30% of the OPEC oil output.

The US supply of shale gas to the market served to add a downpouring supply to oil market, thus pushing oil prices further down with Saudi Arabia picking up the tab.

​To follow the past practice, when oil prices drop, OPEC countries collude to cut down oil production.

Considering the cutback in the oil production, oil prices automatically rise sharply.

Now that the American shale gas is buttressing the supply side, OPEC countries led by Saudi Arabia can no longer use such a strategy.

With regard to this, Prof. Craig Pirrong of University of Houston provided an interesting insight through his column (“The Saudis: Crazy like a Desert Fox?” Nov. 2014).​

​​He argues that Saudi Arabia is actually launching a counteroffensive. Breaking from its previous policy of cutting down oil production, the country is rather increasing oil production, thus instigating oil price drop through predatory pricing strategy.

Thus, if oil price drops to 100 dollars, Saudi Arabia must sustain the damage. But if the country pumps oil and thereby succeeds in pushing oil price further down to around 50 dollars, that will speed up the fall of the American shale gas suppliers and drive them out of the market. (In fact, the production cost for shale gas is reportedly 45 dollars at the minimum.)

To sum up, what’s happening is a battle for dominance of the international oil market.

Then, what is Obama’s take on this?

The US seems to rather welcome the development.

​The US is quite likely to hike its interest this year, as FRB is going to conduct an exit strategy.

In other words, when the US economy should be buttressed, falling oil prices influence consumer price index and thereby increase consumption. This would be a boon to the US economy.

Furthermore, as mentioned above, now that economy is retreating in Europe, China, Korea, and Japan, falling oil prices would stimulate those economies.

Lastly, citing the Ukrainian crisis, the US is imposing sanctions on the Russian economy.

Russia’s largest export is natural gas.

Falling oil prices should serve to decrease the Russian export.

This development is very unfavorable to Russia. Of course, the US would be gloating.

As a matter of fact, Russia has suffered 1,400-dollar loss.

The same is true of Iran, the challenger defiant against the US. As this affects Venezuela into the bargain, the purpose served is a foregone conclusion.


Oil war between Saudis and US shale

And here’s an analysis in this regard from Reuters.


So, what will happen to the oil price?

One thing clear is that it is nearing its low and is going to rise again.

As has been suggested by our analysis, all four factors are institutional. That is, they are long-term factors.

They are all global factors and not to be cleared shortly through geopolitical dynamics.

Therefore, chances are that lower oil prices are here to remain for a while.


Super Bowl up for Logistics Consulting?

Super Bowl is all about Logistics.

University of Phoenix stadium in Glendale Arizona
University of Phoenix stadium in Glendale Arizona. Source:

Super Bowl is not just about buying tickets and watching the game. It also means boarding a flight, passing through airports, car rental, taxi, bus, train, entry into the stadium, and hotel room. Logistics is not just about transportation. It actually means a total solution from procurement to shipment. Super Bowl headquarters churn out hundreds of pages of documents that constitute a Super Bowl contingency plan. They treat everything from safety requirements to weather.

You have to brace for seating bowl due to suddenly worsening weather with snowfall or rainfall; you may have ice on the football field. You have to take into account all these eventualities. In fact, the 1967 NFL championship game came to be called the Ice Bowl, when one of such risks realized. Sometimes you have to choose the option of moving the game to some indoor football stadium. Of course, the Cardinals Stadium at University of Phoenix in Glendale, AZ is so free from weather-related risks that it is named by Business Week as one of the 10 “most impressive” sports facilities on the globe due to the combination of its retractable roof (engineering design by Walter P. Moore). Yet, you cannot be sure, particularly when you think of the snowstorm that is sweeping the Northeast America. So, staff often stock up care packages that include muffler, seat cushion, cold-proof earmuffs, lip balm, and hand warmer (actually used by quarterbacks), which may be provided to fans who come to the stadium.

The roof of University of Phoenix Stadium. Source: Wikipedia

However, this is nothing compared to the halftime show that highlights Super Bowl. The stage for a Super Bowl halftime show, which mounts hundreds or thousands of kilograms of lighting and special effects equipment, has to be installed within eight minutes, and that, not by professionals but by volunteers. (Worse, we should not forget that the field can be icy, too!)

As is the case with most Super Bowl stadiums, it is an issue how to effectively control crowded traffic conditions. Another issue is how to establish control of the tailgate party in parking lots. Super Bowl spectators flocking from coast to coast and sports fans infected with football fever who want to enjoy the game with their family in their hometown will stampede through all so many airports and public transits to the stadium. Michael Dwane, a 15-year football field security veteran, confesses, “Not everyone can see folks going this crazy with delight!” It is an enormous task to figure out how efficiently one can help fans to designated seats in the stadium in a short period of time. Medical staff and firefighters are put on a high state of alert. What makes it worse; people are facing new threats from ISIS, the fundamentalist Sunni armed group and the lone wolves as the group’s followers.

logistics for superbowl
Illustration by Peter Thomas Ryan. Source:

At least 50 agencies and organizations are usually involved in the processing. As early as ten days before a match, staffs are deployed in the field to handle the process and specific tasks. Routes and intervals for buses and trains are planned on the assumption that they will be fully loaded. While 100% safety is impossible, people work to get as close as possible. Since prostitution will spike along with safety-compromising accidents, Jeffrey Miller, NFL’s chief of security, braces for a worst-case scenario.

This is why Super Bowl needs a logistics consultant that regularly handles cramming of minimum 1.2 million people in a specific airport or seaport for Christmas or Thanksgiving. People who have experience in supply chain management are capable of running simulations to check occurrence of weak points and see where they exert influence. Thus, they research how people move from means of transport to their stadium seats and to rest room, or how crowds angry at their team’s defeat move to bars, shopping malls, and their lodging.