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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 : 2004 Q4

 

*Looking Forward to ASYCUDAWorld Implementation Next Year (October 11, 2004)

*Latest News on GPS Systems and Anti-Virus Software (October 25, 2004)

*Insights on Some of the Latest ICT Developments (November 8, 2004)

*Air Cargo & Ocean Transport Portals (November 22, 2004)

 

Air Cargo & Ocean Transport Portals

The development of Internet-based neutral trading platforms for the international cargo transport industry can be traced back to the year 1998. The initiative was started by airfreight carriers and soon found its acceptance among ocean transport carriers two (2) years later.

In todays's column, we shall review the list of major commercially available portals that are operational.

Air Cargo Portals

Global Freight Exchange (GF-X) claims it is now transforming the $50-billion airfreight sector through the development of a neutral trading platform for airfreight carriers and forwarders. Founded in 1998, GF-X's progress has been driven by its commitment to a core set of values and skills: neutrality, professionalism and an emphasis on helping its clients manage and negotiate e-commerce implementation.

The solution is a sophisticated platform that enables forwarders to secure capacity with major carriers quickly, simply and in a cost effective way. This delivers substantial operating efficiencies, faster transactions, dynamic pricing and access to a wider range of global transactions for our clients.

GF-X went on to secure strategic investment from American Airlines, British Airways, Deutsche Post World Net, Lufthansa Commercial Holdings, Panalpina World Transport (Holdings) Ltd and SAirLogistics/Swisscargo. Its participating members now include many of the leading global carriers and freight forwarders.

In January 2003 Unisys Corporation, along with Air Canada Cargo, Northwest Airlines Cargo, and United Airlines Cargo, announced that Cargo Portal Services (CPS) was ready for business. All freight forwarders were invited to use the only Internet-based portal that allows them to more easily book and manage shipments through their lifecycles on these carriers, while reducing transaction costs.

In March of this year, CPS announced the 1,000th forwarder organization to join its group. The top ten economies for CPS registrations in alphabetical order are Australia, Austria, Canada, Germany, Hong Kong, Japan, Philippines, Taiwan, Thailand, and US.

Ezycargo commenced operational trials last year and is the third multi-user cargo booking portal for the international air cargo industry. It projects itself as a secure, carrier-neutral internet service portal. It is co-developed by Cargo Community Network Singapore (CCN) and Global Logistics System Hong Kong (GLSHK). It offers forwarders and carriers global online-access convenience to a comprehensive range of functions used for their day-to-day time-critical transactions.

There are currently four (4) participating carriers for the Ezycargo Portal: Cathay Pacific Cargo, Japan Airlines Cargo, Qantas Freight and Singapore Airlines Cargo.

Ocean Transport Portals

In the year 2000, groups of ocean cargo carriers began announcing internet portals to reduce inefficiencies in the ocean shipping industry. These carriers hoped to reduce inefficiencies and costs for themselves and their customers by automating processes such as access to sailing schedules, booking shipments, tracking and tracing shipments, and others.

CargoSmart began service in October 2000. Member carriers include Orient Overseas Container Line, China Ocean Shipping Company, and Malaysian International Shipping Corp. It launched its online portal on October 11, 2000, and has since added offline, integration, and mobile platforms to help customers manage their shipment information. CargoSmart is working with several other carriers to make their customers' shipment information accessible through its portal.

CargoSmart also provides a Web site designed to service the Chinese shipping community. In addition to the features that are currently available, customers can find information about how CargoSmart solutions are tailored to bridge the supply chain processes of Chinese importers and exporters and their overseas counterparts. The portal is reportedly enhancing its products to meet the unique language and business requirements for its Chinese customers.

Over 13,000 members use CargoSmart to effectively manage their shipments. With its advanced application services and close ties to carrier and customer needs, CargoSmart provides one of the most comprehensive shipment management solutions.

GTN Ocean Portal began service with a pilot program in April 2001. Member carriers include APL Limited, CP Ships, Crowley Liner Services, CSAV, Hanjin Shipping, Hyundai Merchant Marine, "K" Line, Mitsui O.S.K. Lines, Senator Lines, Wan Hai, Yang Ming, and Zim Israel Navigation Company.

GTN projects itself to be a leading transportation portal providing shippers worldwide with a common transaction platform for conducting business with ocean lines. Backed by a consortium of global carriers based in Europe, Asia and the Americas, GTN provides integrated access to over 45% of the global market for containerized shipping. GTN portal is powered by technology from GT Nexus, a leading provider of software and services for multimodal transportation and logistics management, global supply chain visibility, and performance management.

INTTRA began service with a pilot program in April 2001. Founder carriers include CMA GGM, Hamburg Süd, Hapag-Lloyd, Maersk Sealand, MSC Mediterranean Shipping Company, and P&O Nedlloyd. Others who now participate in INTTRA include Alianca, ANL, Columbus Line, Crowley American Transport, and Safmarine.

This portal enables shippers, freight forwarders, third party logistics providers, brokers, importers, and industry portals to manage the scheduling, booking, documentation, Bills of Lading, and tracking of cargo and the negotiation of freight services across multiple shipping lines in a single integrated process.

It is interesting to note that the name "INTTRA" is a combination of several terms. The "INT" is an abbreviation for International, which represents the extent of INTTRA's customer reach. The "TRA" is an abbreviation for both transportation and trade, two terms that are essential to the driving principles behind INTTRA. The double "T" in the center of "INTTRA" also represents Track & Trace, the first module offered to the public.

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Insights on Some of the Latest ICT Developments

SINCE the middle part of this year, I have continuously taken note of a number of really interesting insights with regard to on-going information and communication technology (ICT) developments in ports, shipping and logistics industry that are either local initiatives or directly impact Philippine port users.

Just to mention some of the highlights:

  • computerization projects of both the Philippine Ports Authority and Bureau of Customs altogether involve government ICT investments amounting to not less than P1 billion between the period 2003 and 2006

  • both PPA and BOC technology initiatives will institutionalize web-based systems for conducting electronic government front-line services and transactions

  • American President Lines' web site is adjudged by internationally-known BtoB magazine as one of its top 10 "great web sites" (the only ocean transport carrier to make it to the top 10)

  • Aboitiz Transport System elevates its e-commerce strategy to another level of sophistication with the launch of www.2go.gom.ph that integrates into a single web-based acecss to all its freight, express, logistics and solutions business.

Latest Developments On PPA MIS Computerization Project

PPA's web-based e-Port and e-Procurement systems are already well underway based on milestones reported during the latest PPA anniversary celebration last July.

What I really find to be outstanding in this initiative is the introduction of Internet-based electronic submission of port documentation requirements for notice of vessel arrival and berth application in the North Harbor - a location that is not exactly known for being "ICT-ready" in terms of network infrastructure and extent of software application usage among port users.

It will be interesting to know later how PPA can futher expand the utilization of these services to other ports under its direct management and operation.

Rapid Progress In the New BOC Computerization Project

During the 1st half of October, this column featured some high-level features of ASYCUDAWorld, the new web-based customs administration system that will be implemented as a result of the new BOC computerization project.

In contrast to the PPA IT project which is funded by internally-generated funds, the BOC project is one of the beneficiaries of e-Government Fund that was specially set aside to push e-governance initiatives among qualified government agencies. As I highlighted above, the combined government ICT investment for both initiatives is not less that 1 billion pesos.

BOC has not made new official announcements on the latest developments after awarding the project consultancy to Pacific Consultants International which will then prepare the Request For Proposal.

However, it is already well-known within Philippine ICT industry circles that two entities are already shortlisted to participate in the contract bidding. Both of them possess in-depth expertise in implementing IT projects that are of the magnitude required by BOC. They are likewise part of globally known technology companies.

APL Web Site Uses "Show, Don't Tell" Approach

In layman language, this means that APL web site visitors and users are not merely shown web pages to read. They are made to experience how the services and solutions featured in the web site actually work.

According to news reports and web expert reviews, APL web site uses plenty of demos and multimedia to get its point across and educate customers. Webmaster Hank Moreira is reported as saying that, "The demos and multimedia provide a simple and highly effective visual introduction to our e-commerce suite. The aim is for them to be easily understood by customers across all industries and countries". As an example, the use of Shockwave Flash demos enhance customer leaning of a particular tool and, more important, their understanding of its benefits.

BtoB magazine particularly made mention of the EBL feature that allows customers from anywhere in the world to print their bills of lading.

2GO: A New Brand Name & e-Commerce Front-End

Aboitiz Transport System recently unveiled its new brand 2GO for all of its freight businesses, which includes freight, express, logistics and solutions.

ATS President and Chief Executive Officer Endika Aboitiz says that 2GO is "simple, clear, distinctive, Filipino, fresh and creative. We need to simplify and integrate our brands into one…one brand, as well as one service."

The web site is designed as single integrated portal for ATS customers and business partners. Even the choice of web site color - magenta - reveals a design strategy that not only calls attention to itself but projects "action, precision and passion".

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Latest News on GPS Systems and Anti-Virus Software

During the 1st seafreight forwarders awards event organized last week by PortCalls and the Philippine Shippers' Bureau, I came across the booth of a technology provider for global positioning system (GPS)-based solution. I had previously come across its name and company logo but I did not really have much opportunity to know more about them.

Upon closer look at its product brochures, I realized that here is one pioneering Filipino company that is providing real business solutions. Star Communications Holdings Corporation otherwise known as StarComm was founded in 1997 and is the proud developer and manufacturer of the 3rdEye GPS Vehicle Monitoring System.

Since its inception in 1998, the 3rdEye solution is reported to have benefited hundreds of companies in various industries by providing the most cost-effective way of maximizing their vehicle and personnel resources while increasing revenue. It is a pioneer in providing GPS-based solutions in the Philippines since 1997 and currently exports its products to Hong Kong and Kuwait. Its core product & solution - 3rdEye Vehicle Monitoring System - is reported to the first locally-developed GPS-based vehicle monitoring system with Philippine patents.

In April of last year, I already wrote about GPS technology in one of the issues of this column. For many years now, most of the real-world applications of GPS can be broadly categorized into the following categories: location (determining a basic location), navigation (getting from one location to another), and tracking (monitoring movements).

The use of GPS technology has found some of its most important applications in international ports, shipping and transport industry. GPS receivers are now standard equipment onboard container ships, passenger cruise vessels and luxury yachts. Some of the biggest foreign ports use GPS-based container tracking systems. Equipping a fleet of trucks with GPS receivers provides many large transport companies abroad with tangible operating cost benefits as a result of efficient fleet scheduling and deployment. Stringent physical security requirements in the transport of high-value goods are satisfactorily met by making it mandatory for such shipments to be loaded only to truck carriers equipped with GPS systems.

StarComm's 3rdEye system has two (2) versions: Post Mission and Real-Time. Both report the position of your vehicles as well as additional information like engine on/off and door open/ closed. This allows close monitoring of the whereabouts of your vehicles and personnel. Both versions also entail installation of a GPS "Mobile Unit" in your vehicle and a "Base Station" at your office.

The Post-Mission System (Version 1) effectively facilitates management and supervision if client's requirement is to monitor movements and locations of delivery trucks, sales agents, and field personnel. When your personnel return to the office at the end of the day, the 3rdEye system provides a printed report on where the vehicle went during the whole day. With this information, you could schedule more trips, cut fuel and oil expenses, cut long lunch breaks, cut unnecessary overtime and do Time-and-Motion studies.

The Real-Time System (Version 2) tells you right now where your vehicles are. It is the appropriate solution if your cargo is time-sensitive or of high-value. The 3rdEye Real-Time System is reported to have special security features that alert you right away if there is an emergency in the vehicle. You will be able to know if the vehicle goes out of route or stops somewhere where it is not supposed to be.

On another development, I recently received an advisory from Sophos anti-virus and anti-spam software regarding several arrests made by Brazilian federal police authorities of suspected computer hackers who stole money from internet bank accounts using a series of phishing Trojan horses.
Phishing attacks use 'spoofed' e-mails and fraudulent websites designed to fool recipients into divulging personal financial data such as credit card numbers, account usernames and passwords, social security numbers, etc. By hijacking the trusted brands of well-known banks, online retailers and credit card companies, phishers are reportedly able to convince up to 5% of recipients to respond to them.

The media advisory reports that "Hackers and virus writers in Brazil seized upon the opportunity to make significant amounts of money by writing these Trojan horses," said Graham Cluley, senior technology consultant for Sophos. "The Trojans would lurk in the background, waiting for innocent users to enter their bank login details and then secretly pass them back to the hackers. The Brazilian authorities should be congratulated for taking swift action against this activity - fifty arrests give some idea of the huge scale of this kind of organised internet crime."

Virus experts at Sophos reportedly warned Brazilian computer users earlier this year of the increasing trend of Trojan horses being written specifically to target customers of Brazil's online bank websites.
Even this week, Sophos has added detection for several new Brazilian Trojans. Once a computer is infected with one of the Trojans, internet activity is monitored, and if it is determined that the computer user is visiting one of a number of Brazilian banking websites, a fake login page is displayed and the confidential data emailed back to the hacker's email addresss.

"All computer users should be running up-to-date anti-virus as well as protecting their PC with a firewall. This, combined with the safe computing practice of exercising caution over what you choose to run on your computer, can dramatically reduce the risks of these kind of attacks," continued Cluley.

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Looking Forward to ASYCUDAWorld Implementation Next Year

The 04 October issue of PortCalls reported that the Bureau of Cus-toms recently awarded the project consultancy contract for its new computer system to Pacific Consultants International Philippines, Inc.

I understand that the output of this consultancy work is the request for proposal (RFP) which will be the basis for subsequent bidding of the P500-million computerization project.

I was not surprised at all that after this was reported, I received a number of requests if I can suggest reference information for those who may want to learn more about this projected new customs automation initiative.

Since official information on this project will emanate only from BOC itself, I can only cite available information found on the web as well as those intended for press releases. We also have to bear in mind that the detailed system functionalities BOC requires will still be specified in the RFP document.

One of these is the National Computer Center (NCC) web site which has a section on status of existing government information & communications technology (ICT) projects. Based on the latest available update published by NCC, the ASYCUDAWorld Project proposed by BOC is already approved for funding from the e-Government Fund (specifically created to finance mission-critical and high-impact ICT projects of government agencies).

The NCC update further reports that this project aims to intensify the mandate of BOC to facilitate trade exchanges and generate revenues for government.

A web-based applications system using a portal/gateway shall be created to upgrade BOC's operational facilities, as well as enhance interfaces, streamline processes, and encourage transparent transactions. The project will use ASYCUDAWorld, the new e-customs web-based platform launched by UNCTAD last year.

Based on UNCTAD web site information made available to the press, the fourth version of UNCTAD's automated system for Customs - dubbed ASYCUDAWorld - is now taking off in Europe. Moldova is the first country to implement ASYCUDAWorld, with live operation planned by year-end. UNCTAD expects that ASYCUDAWorld, which makes use of state-of-the-art technologies such as electronic signature and biometrics, has the potential to reach well over 100 countries in just a few years.

In general, ASYCUDAWorld allows the computerization of all Customs operations, including risk-management, valuation control, assessment of Tariff duties and automation and control of transit operations. Unlike the existing versions of ASYCUDA++ (such as the one currently used by BOC ACOS system), ASYCUDAWorld makes full use of Internet technology. A secondary benefit of the distribution of ASYCUDAWorld processing is its effectiveness in combating fraud, corruption and illicit trafficking, as it gives Customs authorities in different countries their first-ever tool for working together online.

According to UNCTAD, the ASYCUDAWorld system makes use of cutting-edge ICT technologies, including e-signature, biometrics and XML to provide governments and Customs administrations in particular with new tools that will enable them to make dramatic improvements in security, trade efficiency and the fight against corruption. ASYCUDAWorld means even greater tax revenue collection and lower transaction costs, making it a showcase for e-government.

The ASYCUDAWorld database is fully compatible with ASYCUDA++, thereby ensuring a smooth transition to e-Customs for countries currently using ASYCUDA++. This is eased by the built-in implementation in all ASYCUDA systems of relevant international standards, and in particular the Harmonized System Tariff for classification of goods (HS) and ISO codes.

Through the implementation of ASYCUDA projects, Customs data requirements are harmonized and simplified and Customs procedures re-engineered and straight forwarded. That objective is also being pursued by the Brussels-based World Customs Organization (WCO), which is developing a global, harmonized standard data set that uses uniform electronic messages.

The WCO Customs Data Model, as it is called, is likely to have a dramatic effect on the processing of business-to-business, business-to-government and government-to-government transactions. These developments, combined with the fact that 85 countries around the world are already using the same customs IT system -ASYCUDA - represent a formidable opportunity for using the Internet to make international trade simpler and cheaper while also making international markets more accessible to enterprises from developing countries.

For those interested in the technical specifications of this system, ASYCUDAWorld can work with all major database management systems - including Oracle, Sybase, DB2, Informix, SQLServer, etc. - and most operating systems, such as Linux, Solaris, AIX and Windows.

The choices of software and hardware suppliers are thus left entirely to user countries. The platform's use of XML (extensible mark-up language) allows for the exchange of any document inside and outside the system, between Customs administrations and traders and between Customs administrations in different countries. Entirely Java-based, user countries can modify or extend the ASYCUDAWorld system without requesting assistance from UNCTAD.

The existing BOC ACOS system was initially implemented during the mid-1990s. The hardware configuration used by BOC such as servers and workstations have already long exceeded their maximum productive lifecycle. Once the new BOC computerization project gets underway, we can look forward to a new and modern customs computer system by the end of next year.

The author has more than 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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