PMAESA

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PMAESA Port Congestion Consultative
Meeting Mombasa
Date 25/09/2008
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Port Congestions Other Face

• Immediate focus is usually on quay side and
  in-terminal operations
• Limited maneuvering room for getting cargo out of
  the terminal
• Off-port yards are a costly, difficult solution
• Coordinating truck operations with cargo
  availability is key to immediate improvements
• Hence, NAFITH TCS

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NAFITH Profile

• NAFITH (National Freight Information and
  Transportation Hub) is a freight transportation
  logistics service to facilitate cargo movement
  countrywide
• Concept developed by FreightDesk Technologies
  (USA) and Nafith Logistics PSC. Jordan
• Has been adopted by Jordan through a Public
  Private Partnership with Nafith Logistics PSC.,
  operated as privately-funded, publicly-chartered
  utility, financially supported by users and
  beneficiaries

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How TCS Started

• Jordan Created Aqaba Special Economic Zone
• ASEZ Authority privatized the only Container Port
• Congestion and chaos continued to prevail
• Clearly, more reform was needed to span the
  transport cycle, outside all of the ports

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ASEZ Truck Movement Before NAFITH
The Situation

• More than 2000 truck transits per day
• Recurring congestion problems in Aqaba city and
  at key port terminals
• Long, indeterminate wait times causing 3x longer
  roundtrip times than necessary
• Poor coordination between trucks and terminal
  activities
• Limited shipment status visibility for government
  and cargo owners
• Pollution and disruption of popular tourist areas
  (exhaust/noise/traffic)
• High truck transport costs
• No performance measurements

The Challenges

• Government support and legal authority required
  for improvements
• Pervasive corruption problems
• Incumbent trucking cartel resistant to changes
  to status quo
• Limited use of computer-based systems in
  transportation sector
• Limited infrastructure to support 24x7 operation
  of computer systems

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Before NAFITH TCS
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Need for TCS

• De-clogging ports and roads congestion
• Deregulation of legacy queuing system
• Controlling flow of trucks through key corridors
  to various border exits/entries
• Decreasing unnecessary truck traffic in the city
  of Aqaba
• Regulating truck movement in the ASEZ

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Other Objectives of TCS

• Enhancing security and safety in the zone
• Decreasing truck emissions and pollutants
• Decreasing cost of freight from and to ports
• Abiding by the regulations of MoT
• Providing information on transportation and
  freight nationally

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NAFITH TCS Inception

• High-Level Business Process Design
• Dividing the Zone into Five Entry/Exit Points
• Four Marshalling Yards that feed into 39
  Destinations
• Operating all locations with entry/exit Operators
• Developing entry Rules and Procedures

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Main Stakeholders

• Ministry of Transport
• Port Authorities
• Terminal Operators
• Customs
• Trucking Companies, Truckers
• Border Control Authorities
• NAFITH

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Yards after TCS
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ASEZA Truck Movement The Solution
Regulatory compliance and status reports
Truck Company Manager
Electronic validation and compliance checks
Truck/cargo status
Billing/payment info
INTERNET
Nafith Truck Control System
Request entry route
FDfolio
Time route assignment
Record cargo pickup at terminal
Dispatcher
Verify truck, driver, route, cargo
Track truck enroute and at marshalling yards
Record truck exit
Time route assignment
Provide truck ticket with routing instructions
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TCS IT Systems

• Automation of Business Flow implemented by NAFITH
• Developing a Web Based, Multiple Language system,
  including Arabic
• Automated and manual capture of detailed
  logistics event data across cargo and vehicle
  movement life cycles
• Flexible management of Capacity of the
  marshalling yards, destinations and roads through
  Advanced Queuing Algorithms
• Verification of Trucking Companies and
  Availability of Cargo through integration with
  MoT and National Customs
• Creating an easy-to-use matrix of adding/removing
  destinations and roads on a need basis
• Complete Transparency and Control between ground
  operation and administrators
• An information Hub to retrieve Statistical
  Information on truck flow within the ASEZ through
  an extensive reporting module for future
  projections (congestions areas, truck turn over,
  truck flow, etc)
• High Volume of Transactions and Large User Base

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Logistics Event Capture

• Screen based entry
• System to system integration
• RFID
• GPS
• Barcode

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Detailed Operational Data
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Planning Statistics
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ASEZA TCS After NAFITH

• Avg. 3000 permits daily/18,000 daily events
• Validates truck, driver and cargo information and
  routes traffic to reduce congestion and enhance
  security
• Freight rates dropped 20 due to improved
  efficiencies and trucking company profits rose
• Transparent, automated system removes manual
  decisions thereby reducing corruption
• Improved visibility of information used to
  support cargo tracking, equipment/driver
  utilization and regulatory compliance
• Fully localized user interface
• Requirements gathering began mid-August system
  operating three months later by mid-November 2005
• Received 10-year services contract to operate
  business and manage 200 people and IT systems

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National Impact of TCS

• Quantum increase in transport efficiency
• Terminal operators focus on terminal operations
• Coordinated moves, e.g. drop off/pick up, on the
  rise
• With TCS, regulators are removing operational
  constraints on trucking companies
• System keeps traffic moving with seasonal and
  other spikes in volume
• Data from TCS facilitates better short and long
  term planning
• TCS can give priority to strategic supplies, e.g.
  fuel, grains, when necessary
• Better environment with less pollution
• Improved road safety and incident management

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Enhancements Underway

• Pre-notification of containers and shipments
• Coordination of express permits
• Appointment system for containers and bulk cargo,
  enabling stakeholders to have longer term
  planning
• Terminal operator staff planning for overtime or
  higher than usual loads
• Implement RFID network and tags to capture events
  more efficiently
• More timely information for all stakeholders
  (clearing agents, truck companies, shipping
  agents, and ports)

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NAFITH Conclusion

• TCS in Jordan, like PierPASS in Los Angeles and
  GEM in New Orleans, is leading the way to improve
  truck logistics around ports
• NAFITH is well-suited to implement solutions that
  can work in the cargo transport environment in
  East and Southern Africa
• Our experience with coordinating and monitoring
  transit cargo can enhance services to land-locked
  countries
• NAFITH TCS approach can increase capacity without
  major new physical infrastructure