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Making sense of IT issues in the ports and transportation sectors is ITinerary's aim. Contributor Leo V. Morada has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries.

 

You are now viewing: ITinerary Archives : 2003 Q4

 

 

IT wish list for the Christmas season and new year (December 22, 2003)

CHRISTMAS is just around the corner and for today's column I have come up with an information technology wish list for the entire ports, shipping and transport industry.

The items I shall enumerate below are not necessarily in order of priority but all of them will definitely impact our technology landscape for next year.

Wish # 1 - for the MIS computerization project of the Philippine Ports Authority to successfully complete its ongoing roll-out in North Harbor, gain wider utilization of its e-Port facility for electronic submission of ship arrival notices & berth/anchorage application, and subsequently commence pilot implementation outside of Metro Manila early next year such as at the port of Batangas.

Wish # 2 - for the Bureau of Customs to finally undertake in 2004 its long-awaited new computerization initiative to acquire new hardware systems, upgrade its network infrastructure, and commence migration to the new web-based technology platform of AsycudaWorld which - upon full implementation - will enable all transactions with customs to be done through the Internet.

Wish # 3 - for Asian Terminals, Inc. and International Container Terminal Services, Inc. to continue enhancing the functionalities of their e-Commerce front-ends: ATI WebTrack and MICT iBox.

Wish # 4 - for ATI and ICTSI to further implement more automation in other aspects of their business operations (such as cargo yard management in ATI subsidiary firm Aries Arrastre Services in Batangas port and the new computerized CFS system in MICT).

Wish # 5 - for the remaining foreign shipping lines and shipping agents operating in the country to fully implement web-based shipment tracking in their web sites, an initiative undertaken a few years back by the pioneering examples of APL, Hanjin, Maersk Sealand, and several others.

Wish # 6 - for shipping lines with existing web-based shipment tracking capabilities to sustain further enhancement of these facilities leading towards more sophisticated features such as those currently found in APL Homeport-Trace, COSCON e-service, and Hanjin e-service.

Wish # 7 - for more industry players to implement SMS text messaging-based shipment tracking, service inquiry and event notification (available examples are Aboitiz Express e-Trace, Negros Navigation Ferry Info, Maersk SMS, Delbros TextTrack and EventTrack, ATI WebTrack SMS).

Wish # 8 - for Internet broadband Digital Subscriber Line (DSL) services of both PLDT and Eastern Telecoms to really work as intended and operate with very minimal system interruptions and downtime specifically in their areas of coverage in South Harbor, North Harbor and MICT.

Wish # 9 - for more banks to follow the lead of United Coconut Planters Bank, UnionBank, and Equitable PCI in making their electronic payment facilities available to port users in paying cargo and vessel charges in South Harbor and MICT.

Wish # 10 - for the entire cargo transport industry to fully realize that ongoing cargo security initiatives such as C-TPAT, CSI and ISPS Code implementation are further expected to shift into high gear early next year and potential vulnerabilities in end-to-end supply chain will become focal points of action and compliance.

Wish # 11 - for more IT managers and specialists to abandon their "MGM complex" when talking to business decision-makers and non-technical business users (in a previous issue of this column I defined "MGM" complex as the uncontrollable propensity to talk in terms of megahertz - unit of measure for computer processor speed, gigabyte - unit of measure for computer storage or memory capacity, and middleware - software that connects 2 or more software applications across networks or the Internet).

Wish # 12 - for IT software developers who want to further improve their careers to start learning IT project management skills so that they can acquire the capability to lead and manage applications development projects.

Wish # 13 - for computer hardware suppliers and vendors to actively promote lease-to-purchase or rent-to-own hardware ownership offerings so that small companies (customs brokers, freight forwarders, warehouse operators) will find it easy to invest in PCs and low-end servers and be able to gain some level of competitiveness.

Wish # 14 - for web developers who design and maintain web sites to really improve content management (such as more useful information or web-based transactions) instead of remaining satisfied with publishing static (non-dynamic) corporate information or brochures.

I think the abovementioned "wishes" are already more than enough to reflect real business needs of our industry to day.

Since this is the last issue of our ITinerary column for this year, I would like to take this opportunity to thank my editor for her unwavering support to this column and to all our PortCalls readers for whom it is always a professional challenge to write about technology issues and developments in a manner that they can fully appreciate and understand.

This columnist is likewise grateful for the continued encouragement of many of my friends, colleagues and mentors in our industry who regularly give valuable feedback on what topics or developments can be the topic in subsequent issues of ITinerary.

Merry Christmas and may everyone have a joyful holiday season!

The author has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries. For comments or inquiries, email him at leo@morada.name.

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The US General Accounting Office study on container security (Decmber 8, 2003)

I recently came across a report prepared by the US General Accounting Office which reviewed ongoing implementation of the US Customs Service programs on Container Security Initiative (CSI) and Customs-Trade Partnership Against Terrorism (C-TPAT) and examined the critical success factors for their long-term success.

The 57-page report dated July 2003 and entitled "Container Security - Expansion of Key Customs Programs Will Require Greater Attention to Critical Success Factors" is intended as reference for US government policymakers and legislators.

The report contains numerous important information which - from the viewpoint of Philippine port users - will help in further understanding the impact that such initiatives have on local shippers, exporters and transport services providers.

Why the study was conducted?

According to the report, concern has increased since 11 September 2001 that terrorists could smuggle weapons of mass destruction in the 7 million ocean containers that arrive annually at US seaports. In response to this concern, the US Customs Service (Customs) implemented the CSI to screen for high-risk containers at overseas ports and CTPAT to improve global supply chain security in the private sector.

The GAO study (1) describes the purpose and elements of these new programs, (2) examines US Customs' implementation of CSI and C-TPAT during the first year, and (3) assesses the extent to which US Customs has focused on factors critical to the programs' long-term success and accountability.

Findings

Announced in January 2002, CSI places US Customs staff at designated foreign seaports to screen containers for weapons of mass destruction. In November 2001, Customs also initiated C-TPAT, in which private companies improve the security of their supply chains in return for the reduced likelihood that their containers will be inspected for weapons of mass destruction.

The GAO report mentions that US Customs quickly implemented both programs in the first year. It concluded bilateral arrangements with foreign governments to place its personnel at 24 foreign ports and deployed staff to 5 of these ports under CSI. It also enrolled more than 1,700 companies in C-TPAT. US Customs is also developing critical program elements intended to ensure that C-TPAT companies improve and maintain their security practices.

GAO found that Customs' implementation of these programs evolved in response to challenges it encountered. Although US Customs is preparing to devote significantly more resources to CSI and C-TPAT as it expands the programs, it has not taken adequate steps to incorporate factors necessary for the programs' long-term success and accountability.

These factors include human capital planning, development of performance measures, and strategic planning.

Potential vulnerability

One of the most interesting portions of this report is how potential vulnerabilities in the supply chain are analyzed by both CSI and C-TPAT programs.

Step 1 - Overseas Warehouse Loading A Container For Export
Potential Vulnerability: Warehouse facilities may have weak controls and personnel practices. For example, access to shipping areas may not be secure and warehouse personnel practices may lack sufficient background checks. Also, seals attached to containers may provide minimum security against tampering.

Step 2 - Contracted Trucking Company Preparing To Warehouse for Port Terminal
Potential Vulnerability: Visibility of in-transit activities may not be apparent to the trucking company or the supplier. The location of the truck and container may not be known or tracked. Furthermore, truck drivers may have broad discretion over their routes which are subject to last minute changes.

Step 3 - Port Terminal receives Container And Stages It For Vessel loading
Potential Vulnerability: Terminal operators may not adequately screen employees for criminal backgrounds. Some containers may be at risk of tampering since they may sit in the yard for extended periods before being staged and loaded aboard the cargo ship.

Step 4 - Ocean Carrier Loads Container For Trans-Oceanic Voyage
Potential Vulnerability: Containers might not a seal or show signs of tampering. The ocean carrier and terminal operator may not routinely check containers for seals or signs of container tampering prior to or during the loading of the container to the ship.

Step 5 - Ocean Carrier Enroute To Multiple Ports
Potential Vulnerability: Container ship may make multiple stops at various seaports to load and unload containers. The container ship transits through various routes and ports posing different levels of security risks.
Impact on local exporters, shipping lines and ports

This kind of vulnerability analysis puts the entire Philippine supply chain directly under scrutiny, specifically for exporters and suppliers to the US. It will be helpful if everyone should now start thinking along this line and make sure each individual component of the local supply chain is aware of such vulnerabilities.

The author has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries. For comments or inquiries, email him at leo@morada.name.

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Improving IT management skills: How to successfully conduct business meetings (November 24, 2003)

PortCalls readers may be surprised by the heading of this column today. Indeed, it is very much true that modern-day IT management skills include the ability to successfully conduct meetings with business users, management decision-makers, and non-IT system owners.

I have witnessed many occasions and heard stories of how technology-savvy IT managers organize meetings with business users armed only with their "MGM" complex, and subsequently end up complaining and frustrated that business decision-makers don't appreciate how IT can help improve business activities.

"MGM" complex pertains to the uncontrollable propensity of IT specialists to talk with non-technical business users in terms of megahertz (unit of measure for computer processor speed), gigabyte (unit of measure for computer storage or memory capacity) and middleware (software that connects two or more software applications across networks or the Internet).

Today, I am starting a new series on simple tips to improve IT management skills and the first topic will be a simple checklist for IT managers on how to successfully conduct and lead business meetings.
The items enumerated below are not intended as a comprehensive list but they should be sufficient enough to meet the only one basic rule: adequate preparation.

Pre-Meeting Tasks

* prepare a list of participants

* estimate time duration of meeting

* determine availability of desired participants for the estimated length of meeting duration

* determine schedule meeting

* create agenda with clear description and purpose for each meeting segment

* carefully study the agenda and strategize how you can minimize the use of technical terminologies and discuss things in common business layman language

* disseminate meeting notice about a week before scheduled date

* contact participants in advance and ask if there are any questions about what will be covered in the meeting

* re-schedule meeting if too many desired participants will not be able to attend

* if possible, contact the intended partcipants prior to the meeting by phone or visit their offices and identify key discussion points for complex issues in the proposed meeting agenda

* if the scheduled meeting requres a decision to be made by more than one business user department, prepare yourself to act as facilitator

* depending on the organization's corporate work culture, it is always advisable to use a pre-meeting communication checklist. This document should be sent to all participants prior to the meeting to prepare them to work effectively during the meeting session.

Be concise, because participants are less likely to read a lengthy write-up. This pre-meeting checklist normally includes the following:

* clarification on issues to be discussed and expected output of the topic discussions

* list of issues that will not be discussed in the meeting

* brief explanation on relationship of topics

* emphasize the importance of all participants' participation

* meeting agenda

* participant list

* meeting ground rules

* request for any feedback on this pre-meeting document


During The Meeting

* open with statement of purpose

* summarize briefly the information provided pre-meeting communication

* review the agenda with emphasis on the time constraints

* facilitate the discussions toward results for each meeting segment

* when things get off-track, don't hesitate to ask: "Is this discussion helping us get to the results for this part of the meeting?"

* list down all action items

* specify who does what by when

* describe the impact to others if these are not completed on time

* get agreement on next meeting time, if appropriate

* don't forget to thank everyone for their participation


Post-Meeting

* prepare the meeting summary and send it out to all participants preferably within 24 hours after the meeting
* thank everyone again (via e-mail) for participation to attain the organizational objective for which the meeting is part of
* send copies of meeting summary to any desired or intended participant who were not at the meeting
* follow up with them, if appropriate, especially if they were designated to complete any action items
* monitor all action items assigned to others
* evaluate effectiveness of recently held meeting and look for ways to standardize the conduct of similar meetings in the future.

Do not be worried if at the end the meeting no tangible output was accomplished. This is a reality in many business organizations. However, the manner in which the meeting was organized, led and conducted in accordance with the above checklist will demonstrate a level of professionalism that business peers and superiors will surely appreciate.

The author has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries. For comments or inquiries, email him at leo@morada.name.

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Maersk SMS - A novel approach to SMS-based vessel & cargo inquiry (October 27, 2003)

During the 17 March issue of this column, I wrote about how foreign shipping lines implement Internet-based "track & trace" features in their web sites. One of these is the Maersk Sealand Tracking Module which I briefly described as an example on how to utilize track & trace functionality as part of a shipping line "service brand".

This month the company announced the availability of MAERSK SMS facility for container tracking and inquiry on import vessel registry numbers, peso-US dollar exchange rates and office contact details.

According to Maersk Sealand Philippines General Manager Lars Nielsen, the SMS-based service is intended to provide clients with the capability to track their shipments anytime using the convenience of their mobile phones. He further adds that what is particularly interesting is the fact the software application is locally developed and that information retrieved through MAERSK SMS is the same information available when using the company's web-site tracking features.

Using a Nokia 6310i mobile phone with post-paid Globe line, I spent about an hour last Friday afternoon trying out the features of this SMS service.

A Novel Approach
The first interesting fact about MAERSK SMS is the simple & straightforward entry point to use it - the text message HELP. This design veers away from the usual approach of incorporating the company name or acronym in the initial text message format (something like TEXT MAERSK or ASK MAERSK). All that needs to be done is type HELP and send it to the designated number 09208387059.

You receive a 3-part text reply message listing down the keywords you should use when making specific inquiries:

CONTACT - Maersk Sealand office address, postal box number & trunkline
EXRATE - Philippine peso to US dollar exchange rate for the current day as well the past 2 days
REGISTRY - vessel name, voyage number and registry number of the last 3
Maersk Sealand vessels that arrived in Manila or Subic
CNTR <container nr> - the latest movement of a specified container (where & when),
final discharge port, port of delivery and arrival date
REG <MM DD> BL <BL Number> - bill of lading tracking

Another aspect of this novel approach to SMS design is the inquiry on import vessel registry number.

Among port users, the vessel voyage number is something that only shipping lines can make sense of. Go to the port operators and their computer systems identify transactions mainly in terms of vessel job numbers. Even the new PPA system identifies shipments in relation to ship call numbers. Talk to customs staff and their primary reference is the entry number.

The vessel registry number is the only common data item understood by everyone else. This makes the vessel registry number inquiry of MAERSK SMS one of its most useful and friendly features.

Response Time
The standard response time of MAERSK SMS is 15 seconds from the time the "message sent" indicator appeared on my Nokia 6310i cellphone. This should be acceptable enough for standard track & trace, although it would be interesting to test the response time during peak hours of text messaging.

Single Source of Information
The real strength of MAERSK SMS is in its container tracking functionality. This is due to two (2) main reasons: first, the extent of information that can be inquired upon is similar to what can be accessed using web-based track & trace and second, such information is directly retrieved from the company's container database that keeps track of container movements globally.

I thought of doing a "stress test" and the results received exceeded my expectations.

Instead of calling up the Maersk Sealand office and simply request for a sample or test container information belonging to a vessel that recently arrived, I contacted an importer friend whose last transaction with Maersk Sealand occurred only in South Harbor and during the early part of this year. The container numbers he gave me were discharged in the South Harbor last March and April co-loaded onboard a non-Maersk Sealand vessel.

I typed CNTR <container number>, sent it to 09208387059 and expected an error saying saying "Sorry, this container is no longer found in our database". I received the reply message a little while later which listed the container's final place of delivery, last discharge port, arrival date last terminal, latest move, latest move date, and latest move location.

When I verified it in the Maersk Sealand web site, the information I retrieved was similar.

There is also a functionality to track a specific bill of lading. All that a client has to do is type REG <MM DD> BL <BL Number>. This kind of inquiry is designed to require input of a mandatory search parameter consisting of vessel registry number and bill of lading number in order to protect the commercial nature of such information. Hence, you need to type both data items in order to make a valid inquiry.

The availability of MAERSK SMS facility presents a new and convenient tool for port users to use at any time they choose and from any location. I am sure that we shall see other similar SMS-based initiatives from other shipping lines. Overall, this makes the prospects of modern technology applications in our industry brighter than ever.

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Latest Technology Update - The Domestic Shipping Sector (October 13, 2003)

FOR today's column we will take a closer look at the current information technology landscape of the domestic shipping sector and focus on the recent milestone achieved by a domestic shipping line in terms of making it easy for customers to obtain information on passenger vessel schedules, passage rates and locations of ticket outlets.

Last month Negros Navigation launched an SMS (or text messaging)-based service for customers called Negros Nav Ferry Info.

According to a press release in the company's website, this is an automated question-and-answer facility whereby Smart (including Talk 'N Text) subscribers are able to get instantaneous information about Nenaco's sailing schedule (arrivals and departures), ports of destination, rates and accommodations and ticket outlet locations by simply texting "269" in their cellular phones.

Since I plan to go home to Bacolod City during the first week of November, I thought of an opportunity to use this SMS inquiry facility and find out for myself how it really works.
User-Friendly Features
The first thing I like about Negros Nav Ferry Info is its user-friendly features.

If you need to know the instructions how to use this service, all you need to do is send the message NN HELP. You will receive a response consisting of 3 text messages that describe the overall system features. Inquiry on the list of Nenaco ports of call is done through the message NN PORTS.

The reply text messages you receive even use abbreviations widely accepted as part of the "official" language of avid text users:
"2" instead of "to"
"4" instead of "for"
"d" instead of "the"
"ex." Instead of "example"
"Mla" instead of "Manila"
"sched" instead of "schedule"
"nmes" instead of "names"

The complete names of Nenaco vessels also have their respective 3-character codes so that you will not worry how to spell out them out completely: MQP - Mary Queen of Peace, SJW - St Joseph Worker, SLR - San Lorenzo Ruiz, SEM - St Ezekiel Moreno, SPA - St Peter Apostle, SP - San Paolo and PN - Princess of Negros.

The prescribed text message you send also works even in small letters (Nn help instead of the prescribed NN HELP).

Fast Response Time
The response time to all text inquiries is a uniform 5 seconds after the "Message Sent" indicator is displayed on your cellphone. You also receive 2 to 3 reply text messages for each inquiry. I tested Negros Nav Ferry Info one night at about 8:30 PM using a Nokia 6610 cellphone so the impact on response time during peak hours of text messaging should still be acceptable.

Inquiry On Ticket Outlet
Locations
To get a list of ticket outlets in the area, the prescribed text message format is NN LOC <Port> <City (for Manila only)>.

I sent NN LOC Manila Mandaluyong and the system replied with all 4 ticket outlets here in Mandaluyong, including the building name, street number and contact phone number.

I tried to "fool" the system by sending NN LOC Manila Mndluyng and expected an error message or the very unwelcome and unfriendly reply of "invalid message try again". Surprise of all surprises, it replied with an informative message spelling out the correct choices for "city" location such as QC, Para-aque, Pasay, Pasig and - of course -Mandaluyong.

Inquiry On Passage Rates
and Accommodations
The prescribed format for this is NN RATES <Origin Port> <Destination Port>.

When I sent the message NN RATES Manila Bacolod, the response I received was more than what I wanted: information on economy class rates with meals and without meals, an enticing 20% discount offer on the return trip if I buy a round-trip ticket, an advise to call the nearest ticket outlet for rates on other accommodations, and the standard advise: rates may change w/o prior notice.

Inquiry On Weekly Vessel
Arrival & Departure Schedules
The prescribed format for weekly arrival schedule is NN ARRIVE <Origin> <Destination> while that for weekly departure is NN DEPART <Origin> <Departure>.

When I tried NN ARRIVE Manila Iloilo, the message reply I received is in the format "day (time in AM or PM)-Vessel name code":

Thu(1:00PM)-MQP
Sat(10:00AM)-SPA
Sat(1:00PM)-MQP
Sun(2:00PM)-SJW
Mon(12:00NN)-SP

For those of us who frequently travel to Visayas and Mindanao onboard domestic passenger vessels, the availability of Negros Nav Ferry Info service is a very welcome development in the continued pursuit of better customer service in the domestic shipping sector.

Congratulations to the Information and Communication Technology Department of Negros Navigation headed by Assistant Vice President Eduardo G. Dela Cruz.

The author has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries. For comments or inquiries, email him at leo@morada.name

 

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