Interim Report on Cutting Cost and Time in Maritime Container Transport

1
Interim Report onCutting Cost and Time in
Maritime Container Transport
27th APEC Transportation Working Group Meeting

• Maritime Experts Group
• 23 May 2006 Hanoi, Viet Nam

2
Q1 Which organizations are taking measures?
Central Government Port Management Bodies Terminal Operators Shipping Companies Others
Australia ? ? ?
Brunei ? ?
Chile ? ? ? ?
Japan ? ?
Korea ? ?
Peru ? ? ?
Russia ? ?
Singapore ? ?
Chinese Taipei ? ? ?
3
Q2What actions are taken for cutting
cost time?
Australia

• -Cost-
• Opportunities for Competition in Stevedoring
• Accommodate Larger, Efficient Vessels
• Expand Existing Facility
• Removal of Impediments to 24 hour, 7 day
• Operation
• Allocate Governmental Funds for Port Projects
• Ensure That Ports, Roads Railways Related
• is a Priority in Regional Plans
• Enhance Rail Access

4
Australia (Continued)

• -Time-
• Increase the Ports Capacity
• Enhance Rail Road Access
• Reduce Road Congestion
• Coordination of Activities in the Freight Chain
• Secure Appropriate Service Levels through
  Agreements with the Port Authority

5
Australia (Continued)

• -Time-
• Greater Use of Technological Improvements in
  Cargo Handling in Terminals
• Create a Seamless Freight Logistics System
• Use Information Technology to Improve
• Logistics-Chain Performance
• Create Real Time Tracking of Hazardous Cargoes in
  the Port

6
Brunei

• -Cost-
• Revise the Port Tariff and Incentives
• Joint Venture
• -Improvement of Quay Crane Performance
• Reduce Ship Berthing Time
• -Time-
• Introduce Computer Integrated Terminal Operating
  System

7
Chile

• -Cost Time-
• Conversion of State-own Ports to Independent
  Companies ? 20- year Concessions
• BOT, Lease Contracts, JV
• Competition between Chiles Top Two Container
  Terminals
• Invest in New Equipment and Technology
• -15 m Berths, Gantry Cranes, Gate
• New Shipping Lines Reduce Freight Rate

8
Japan

• -Cost Time- Super-hub Ports
• Promote IT Utilization
• Integrate Berth Operator
• Allocating Budgetary Funds for Important
  Structures (Deep Berths etc.)
• Offer Low Interest Loans for Quality Equipment
  (Vehicle Management System)
• Semiautomatic Cargo Handling System
• Automatic Gate System

9
Japan (Continued)

• -Cost Time- Super-hub Ports
• Tax Exemptions for the Private Sector
• Tariff Discount for Heavy Users
• 24 hour Operation

10
Korea

• -Cost Time-
• Increase the Scale of Logistics Facilities
• Reform Labor Union System
• Introduce RFID System, Web Based EDI System
  Single Window System
• Cut Lead Time 1-3 Days in FTZ (Distripark)
• Merge Container Terminal Operator
• Custom Service Improvement Such as Total Custom
  Clearance System

11
Peru

• -Cost-
• Introduction of Private Investments
• Partnership Participation, Concession
  Contracts etc.
• Modernization Renewal of Equipment
• Container Clearance at the Arrival Point
• -Time-
• Coordinate Related Authorities to Reduce the Time
  for Arrival (4 ? 1 hour)
• Electric Transmission of DATA prior to Ships
  Arrival
• Coordinate Vessels Arrival

12
Russia

• -Cost-
• Minimization of Port Charges
• Reduction of Customs Duty Regulation
• -Time-
• Provide Efficient High Quality Cargo Handling
• Cutting Time of Customs Procedures Includes the
  Use of EDI
• Construct Logistic Center and Provide Permanent
  Freight Traffic

13
Singapore

• -Cost Time-
• Reduce Port Due
• Provide Sufficient Capacity to Meet Future Demand
  
• Introduction of IT System and a Single Integrated
  Platform

14
Chinese Taipei

• -Cost-
• Build Port Facilities via Joint Venture, BOT
• Tax Exemptions and Low Interest Loans to Private
  Sectors
• Volume Discount for Heavy-users
• Upgrade of Handling Equipment
• Flexible Rates
• Set up a Free Trade Zone to Simplify
  Administration Procedure

15
Chinese Taipei (Continue)

• -Time-
• VTS (Vessel Traffic System), CCTV
• Widen External Road Link
• Automatic Gate System
• Automatic Container Terminal

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Cutting Cost and Time
Improve Operating Ratio 24hour 7day Operation
Volume discount Flexible Tariff Coordinate
Ship Arrival Shorten Custom Procedure
Advanced Custom Clearance
Improve Port Productivity Accommodate Bigger
Vessels Expand Port Facilities Improve Road
Rail Access Modernization (Install Cranes,
Improve Terminal Operation) Integrate
Operator (Operation Cost Cut) Automatic
Terminals Automatic Gates
Improve Freight Chain Logistics Seamless Chain
FTZ Use
Construct Infrastructure, Install IT Equipment
Private Participation Install Legal Scheme (JV,
Concession) Opportunities for Competition
Secure Operation Level through Concession
Reform Labor Union
Governmental Support Fund for Infrastructure
or IT Equipment Tax Exemption, Low
Interest Loan Other Incentives
17
Proposal of Joint Study Korea-

• Major Obstacles Which Prevent Seamless Container
  Flow in Individual Economies
• Compare Logistics Process from Port to Shippers
  Door and Reverse