Diapositiva 1

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PORT COMMUNITY SYSTEMS. FACTOR IN PORTS
COMPETIVENES
Javier Gallardo Martínez Deputy Managing
Director PORTIC Barcelona S.A
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The Actual Ports situation

• More competitive market for the Ports. Ports
  should achieve an attractive logistic position
  inside the international commerce
• More decision and negotiation power in hands of
  end users ports. Standards ports costs and
  logistics services allow them to negotiate
• Shipping companies concentration's process.
  Efficiency Less Ports more Offers

• Differentiation Excellent Services new added
  value Services.
• Global Logistic. Door to Door JUST IN TIME
• Efficiency. More value services with less
  resources

Port Communities need new solutions to help its
companies to improve its competiveness and the
right use of Information Technologies can help
the Ports to achieve its objectives very
efficiently
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Information flow in a traditional logistic chain
The information flow in a Port follows no
standard document and non written and obsolete
process. The new IT advantages tools are not
normally being using to improve the global
efficiency of these circuits.
Servicios Paraduan.
Servicios Paraduan.
Aduana
Aduana
Agente Aduana
Agente Aduana
Capitania Marítima
Capitania Marítima
Sociedad Estiba
Autoridad Portuaria
Sociedad Estiba
Autoridad Portuaria
Consignat.
Transitario
Banco
Consignat.
Transitario
Banco
Armador
Terminal Estiba
Transporte terrestre
Terminal Estiba
Transporte terrestre
Importad.
Exportad.
Barco
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Port Community System (PCS )
The PCS works as neural point and enables the
communication and the integration of the
different systems that interacts in a PORT.
Harbour masters office
Customs Agent
Shipping company
Air lines
Deposits
Port Authority
Port Authority Network
Freight Forwarder
Others
Land Transport
Inspections Services.
Customs
Customs Inspection offices network
PCS System
EDI
Insurance Company
Customs inspection offices
Importer Exporter
Handling Company
Airport masters office
Airport Authority
Air Authority Network
Shipping Agent.
Stevedors
Banks
Railway
Others
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PORT COMMNUNITY SYSTEM S OBJECTIVES

• Simplify and automate the procedures of
  documentary interchange related to the goods
  traffic.
• Create information services for logistics agents
  and for their final customer.
• Help the agents to overcome the technological and
  economic barriers of access to new services.
• Progressive implementation of electronic commerce
  services in the logistics Community

Improve the competitiveness of the Port and the
logistic chain
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Not only a Technological Project
To establish a PCS in a Port ,not only
technical aspects should be considered. It is
important to analyze how the Port Community is
organized to determinate the priorities in the
Business Process Reengineering, which services
should be developed and mostly the organization
and the business model of the institutional
framework that will be in charge of running the
system. In any case there are some PCS principles
will be followed for the success of the project .

• Community Analysis
• Number of members of the Community.
• Distribution of the members in the activities.
• Local or international companies.
• Preexistent Systems in the Community.
• IT Knowledge.
• Community Feeling

Port Community Principles Improve overall
Competiveness Neutral / Non Exclusive Transparency
Easy Access and Use Respect Local Laws
Institutional Framework Commercial
Entity Community Entity Government LEAD
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Business Point of View
The PCS system should cover most of the process
that happen inside of a Port. Process among
Private Operators are more difficult to implement
than Private/Public Operators. It is CRITICAL to
keep in mind the overall competiveness of the
system but no entity ought to feel a" Looser.
The import/export end user have to notice the
advantages of the new system, more information,
security, transparency
Technical Point of View
Value Added Services
The PCS system infrastructure are built over well
known and IT standard technical protocols in the
community ( communication, security, formats).
The message broker is in charge of rules the
message interchanging. Thanks to the message
interchange valued added services can developed,
cargo and vessel tracking, trucks fleet
optimization, inventory and warehousing system.
Message Brooker
Standard Protocols
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Questionnaire on PCS Presentation of Preliminary
results
What kind of services is the PCS offering?
Financial services and electronic invoice are
offered in few cases. Information services are
the most common services offered (49) Although
the difficulty of offering documentary exchange,
it is offered by almost 45 of cases.
Did the Port undertake a process of
re-engineering of processes in order to develop
the Documentary exchange services?
70 of PCS declared that a process of
re-engineering of processes was undertaken when
building the PCS. In most cases, it still
continues.
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Questionnaire on PCS Presentation of Preliminary
results
Do you charge the PCS use?
In 44 of cases, the use of PCS is financed by
public administrations or by the Port
authority. In the cases that the use of PCS is
charged, there are several criteria (number of
messages sent, per byte, per subscription,)
Which entity/ies own the PCS currently?
In 64 of cases PCS are owned, partly or totally,
by a public entity (Government/Ministry, Customs
or Port authority)
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Port Community s Hazards
The PCS implantation is quite hard, it is drive
as IT project in the beginning, but in fact it
is a change management project across a port
community and it requires a great COORDINATION
work. The services should be sold by (paid
/used) someone to the ports companies it
requires a great effort of selling and marketing
activities. Companies apart from buying the
service need to make an inversion in IT projects
and change its internal procedure to take
profit. The maritime activity is ruled by old
procedures that have been designed long time ago
and change these procedure is hard to do without
the definition of a clear leadership. The
agreements are should be achieved by all. Forum
of experts have to be constituted to discuss and
agree the news rules and procedures. Most of the
companies are afraid of who is going to get
access of the information. The system and the
companies in charge must guarantee the security
of the information.

• DIFFICULTIES
• Change management project
• The Selling Process
• Ensure ROI Company
• Establishment of new procedures
• Information Access

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Port Community s Profitability
The ROI of a PCS is very significant if we take
in consideration the save cost of the
administration of no retyping the information.
But we can considerate it peanuts if we
compare of with other issues that are improving
due to the PCS s use. Time reduction is the
point for a Port Community if we succeed to
reduce the stay of the cargo in terminal we would
increase the terminal productivity. Other example
could be the reduction of the time queue of the
trucks, it can be achieved if use the PCS to
preannounce the arrival of the trucks to the
terminal. The effects of a PCS can be shown to
import/export and also to other Logistic Operator
across the world. The PCS helps to theses
operator to trace the cargo and do operations.
ECONOMIC RESULTS INCOME (TOTAL SAVE COST) TOTAL
MESSAGES (Year) 9.000.000 msg Total Save Cost
per Message 3 INCOME ( TOTAL SAVE COST)
27.000.000 COST CAPEX 7 M COPEX 1.5 M

• OTHER RESULTS
• Times reduction of the total PORT operation.
• Time in terminal.
• Time in queues.
• Administration time.
• Transparency , Traceability -gt Security.
• Port Community Cohesion.

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CONCLUSION

• PCS is port community project with the support of
  Port Authorities.
• PCS is a change management project. Not only IT
  project.
• Business Organization in charge of the system is
  critical.
• PCS is a very high profitable project and adds
  great value to ports image.

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