The use of Logistics Information System for increasing efficiency of transport connectivity

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1 Capacity building Workshop on Strengthening Integrated Intermodal Transport Connectivity for Southeast and South-Southwest Asia 8-9 March 2018, UNCC Bangkok The use of Logistics Information System for increasing efficiency of transport connectivity Edouard Chong Economic Affairs Officer, Transport Division

2 BACKGROUND: ESCAP INITIATIVES TO ENHANCE REGIONAL CONNECTIVITY Transport infrastructure Inter Governmental Agreements on Asian Highway, Trans-Asian Railway Networks and the Dry Ports of international importance Transport facilitation Regional Strategic Framework for the Facilitation of International Road Transport (2012) Regional Cooperation Framework for Facilitation of International Railway Transport (2015)

3 STUDY FINDINGS FROM THE ESCAP EURASIAN TRANSPORT CORRIDORS PROJECT CENTRAL CORRIDOR Intercontinental & multimodal routes On the Asian Highway and Trans-Asian Railway networks 23 countries 47 inland border crossing points 36 seaports

4 RAILWAY: DIFFERENT GAUGES CENTRAL CORRIDOR SOUTHERN CORRIDOR

5 RAILWAY: INFRASTRUCTURE QUALITY NORTHERN CORRIDOR CENTRAL CORRIDOR SOUTHERN CORRIDOR

6 ROAD: INFRASTRUCTURE QUALITY NORTHERN CORRIDOR CENTRAL CORRIDOR SOUTHERN CORRIDOR

7 TRANSPORT AND TRANSIT RIGHTS Bilateral agreement Multilateral agreement (ECMT, EU, EEC, Intergovernmental Agreement on International Road Transport along the Asian Highway Network etc.) Road transport permits and traffic rights (cross border road freight transport) Fully liberalized (no permits) Partially liberalized under certain conditions (permits, quota, etc.) o Multiple trip valid for one year o Single trip valid for one trip o No Quota o Quota o Permit issued to transport operator o Permit issued to vehicle o No designated routes o Designated routes No traffic rights (loading/unloading at the border)

8 ROAD: TRAFFIC RIGHTS NORTHERN CORRIDOR

9 ROAD: TRAFFIC RIGHTS CENTRAL CORRIDOR

10 ROAD: TRAFFIC RIGHTS SOUTHERN CORRIDOR

11 o Infrastructure quality CHALLENGES TO SEAMLESS CONNECTIVITY o Traffic rights: No traffic rights, transshipment at border areas Permit system (quotas, designated route, permit validity i.e. single trip or multiple, issue to vehicles or service providers etc.) Transit is subjected to special permits if possible at all Cabotage is usually forbidden o Mismatch and disbalance in transport regulations for bilateral/international road transport Designation of routes and extent of access granted Weight and dimension standards Requirements towards driving license Requirements for the third party liability insurance Customs requirements for temporary importation of vehicles and cargos o Border-crossing operational gaps Not harmonized transit trade procedures Lack of inter-agency cooperation Low adoption of advance risk-management technologies Delays due to queuing Lengthy inspections Manual processing of the documents Working hours not synchronized between the 2 sides

12 WAY FORWARD: FACILITATION ESCAP Transport Facilitation Tools Regional Frameworks Regional Strategic Framework for the Facilitation of International Road Transport Regional Cooperation Framework for Facilitation of International Railway Transport Eight mutually complementary models Time/Cost-Distance Methodology Secure Cross-border Transport Model Model on Integrated Controls at Border Crossings Efficient Cross-border Transport Model Standard Model for Logistics Information System Model Bilateral Agreement on International Road Transport Model Subregional Agreement on Transport Facilitation Model Multilateral Permits for International Road Transport

13 Regional Strategic Framework for the Facilitation of International Road Transport Common fundamental issues 1. road transport permits & traffic rights 2. visas for professional drivers & crew 3. temporary importation of road vehicles 4. insurance of vehicles 5. vehicle weights & dimensions 6. vehicle registration & inspection certificates Common approaches for key modalities for facilitation 1. building an effective legal regime 2. wider application of new technologies 3. development of professional training 4. establishment/strengthening of national coordination mechanisms 5. promotion of joint control at border crossings 6. promotion of economic zones at border crossings, dry ports and logistics centres 7. further application of facilitation tools

14 Regional Cooperation Framework for the Facilitation of International Railway Transport Identifies 4 fundamental issues for facilitation of international railway transport Standards for railway infrastructure, facilities and equipment Break of gauge Different legal regimes for railway transport contracts Coordination of regulatory controls and inspections at border-interchange stations Identifies 11 priority areas for cooperation among member countries to facilitate railway transport in the region participation in international railway organizations (OSJD, OTIF) formulation of subregional and bilateral agreements on the facilitation of railway transport cooperation to standardize cross-border railway operations use of advance passenger/cargo information system(s) arrangements for the exchange of wagons use of new technologies in train operations as well as in container tracking developing human resources for cross-border railway operations (visas, training, conditions of service) establishment of logistics centers/dry ports and maintenance hubs at or near border interchange stations, particularly along railway freight corridors simplification of the intermodal interface of railways with maritime, air and road transport promotion of the corridor approach in the facilitation of international railway transport work towards paperless railway freight transport

15 WAY FORWARD: FACILITATION Eight mutually complementary models Time/Cost-Distance Methodology: identifying barriers and monitoring performance from starting to ending points Secure Cross-border Transport Model: providing real-time monitoring enroute Model on Integrated Controls at Border Crossings: simplified and streamlined procedures at border crossings Efficient Cross-border Transport Model: more efficient transport arrangement across borders Standard Model for Logistics Information System Model Bilateral Road Transport Agreements Model Subregional Transport Agreement >>Implemented with the support of a Model multilateral permit for international road transport

16 Standard Model for Logistics Information System Improve the efficiency and effectiveness of national and transnational transport connectivity and logistics network through the use of information and communications technology (ICT).

17 Recommended national system TradeXChange Standard Model for Logistics Information System Overview: Functions of existing Logistics Information Systems China Japan Republic of Korea Singapore Transnational Functions LOGINK E-Port Colins NACCS PORT-MIS SP-IDC GCTS utrade PortNet Trade Net NEAL-NET ANNA ASEAN Single Window User management: importers/exporters, shippers, customs brokers x x x x x x x x x x x x freight forwarders x x x x x x x x x x x x x warehouse operators x x x x x x x x carriers inc agents x x x x x x x x x x x terminal operators x x x x x x x x x x Data interchange and messaging e.g. documents transmission, queries, messages x x x x x x x x x x x x x Standardizations e.g. data elements, code set, business doc, business process models Imports/exports clearances e.g. customs, quarantine, trade control Seaport/airport clearance inc. cargo and crew Payment: x x x x x x X x x x x x x x x link x x x x x link x x x x Customs duties, taxes etc. link x x x x transport related charges link x x Track and trace link x x x x x x x x B2G x x x x x x x x x x B2B x x x x x x x x x x x G2G x x x x x x x x Statistical data and data information x x x x x x x x x x M-All modes; A-Air; S-Sea; R-Road; W- Railway M M M S AS S M SRW M S M M M S M

18 Standard Model for Logistics Information System China Japan Republic of Korea Singapore Transnational LOGINK E-Port Lead agency Managed by Zhejiang Transport Department under the guidance and support of the Ministry of Transport Customs plays the leading role in construction and operation. e-port Committee office is located at the General Administration of Customs Financing Mainly funded by the Government of Zhejiang and subsidized by the Ministry of Transport Service of public nature is mainly financed by Government. Fees are charged on certain "value added" functions. Colins Ministry of Land, Infrastructure, Ministry of Land, Infrastructure, Transport and Tourism Transport and Tourism NACCS NACCS Center (public-private investment Mainly financed by Government for to establish; now a stock company) providing public service PORT-MIS Ministry of Oceans and Fisheries Ministry of Oceans and Fisheries Ownership and system management Ministry of Oceans and Fisheries SP-IDC rights with Ministry of Oceans and Fisheries; system operation is consigned to KMI GCTS Totally supported by the Ministry of Oceans and Fisheries. MOLIT is involved by sharing logistics information especially on container trailer at highway tollgate data. Ministry of Oceans and Fisheries The Ministry of Knowledge Economy Government Ministry of Knowledge Economy designated KTNET as e-trade service utrade provider for operating utradehub services and systems under the e-trade promotion law. PortNet Port of Singapore Authority User charges TradeNet TradeXChange Owned by Customs, Economic Development Board and Infocomm PPP: Government + open tender to investment, develop and operate the NEAL-NET ANNA ASEAN Single Window Project Development is led Authority by MoT of China, Republic of Korea and Japan thorugh a Joint Steering Committee; Secretariat is in Hangzhou, China Member states initiative with close cooperation with the European Commission. 14 EU nember states, observer countries and observer organizations e.g. World Customs Orgnization Develop and manage by the ASW Steering Committee; NSW by lead agencies of respective countries, usually Customs Financed system; user by the charges Government of member countries. A business model that combined Government subsidies and user charges are under consideration for next phase of development. Co-financing among participating countries NSW financed on by each country: Government budget, PPP, international donors Overview: Lead agencies and financing

19 Standard Model for Logistics Information System Data Standard LOGINK E-Port Colins NACCS Overview: Data Standards adopted China Japan Republic of Korea Singapore Transnational PORT- MIS SP-IDC GCTS utrade PortNet TradeNet TradeXCh ange UN/EDIFACT: Messages x x x x x x x x x UNECE Recommendations: Code x x x x x x x x x x x x UNTDED x x x x X x x x x x NEAL-NET x x x x WCO Data Model x x x x x x WCO HS x x x x x x x x x x x IMO Vessel ID number/dg Code x x x x x x x x x x x x IMO FAL Forms x x x x x x IATA: Cargo IMP and Cargo XML x x x x National standards x x x x x x x x SWIFT x x ISO: RFID and eseal x x GS1/EPC Global x x x x x ebxml x x x x x x x UBL x Uses EDI to collect information x x x x x x x x x x NEAL- NET ANNA ASEAN Single Window

20 Standard Model for Logistics Information System The Study includes examples of existing national and transnational systems, national experiences, recommended data and other technical standards and the Standard Model of Logistics Information Systems. General Recommendations To utilize logistics information technology systems or other ICT resources related to logistics services, in order to establish national logistics information systems as a public platform providing effective and efficient information services as well as future transnational interchange To establish a regional mechanism promoting cooperation among countries in the development of national logistics information systems; ideally include therein the coordination of standards and the development of cooperation through a legal framework. To consider government investment or public-private partnerships to fund the development of logistics information systems. To adopt the Standard Model of Logistics Information Systems in the development of national system.

21 Recommended national system Standard Model for Logistics Information System Functions STANDARD MODEL B2B, B2G, G2G for all modes of transport Functions: Data interchange: documents, messages etc. transmissions Information queries: database on service providers, track and trace etc. Information service: information on regulations, rules, vessels schedules, statistics etc. Administrative service: payment of duties, import export clearance etc. Data standardization (international technical standards) e.g. UNTDED, UN/EDIFACT, UN/CLL, ebxml, IATA: Cargo IMP and Cargo XML, ISO country codes, IMO Vessel codes etc. Main benefits: Transparency, traceability, efficiency, reduced cost User management: importers/exporters, shippers, customs brokers freight forwarders warehouse operators carriers inc agents terminal operators Data interchange and messaging e.g. documents transmission, queries, messages Standardizations e.g. data elements, code set, business doc, business process models Imports/exports clearances e.g. customs, quarantine, trade control Seaport/airport clearance inc. cargo and crew Payment: Customs duties, taxes etc. transport related charges Track and trace B2G B2B G2G Statistical data and data information M-All modes; A-Air; S-Sea; R-Road; W- Railway x x x x x x x link link link link link x x x x M

22 Standard Model for Logistics Information System

23 Standard Model for Logistics Information System Illustrative diagram of overall architecture of Logistics Information System

24 Thank you! Edouard Chong