Global Logistics IT Leader. KL-Net

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1 Global Logistics IT Leader KL-Net

2 Contents I. KL-Net II. B2G Service III. B2B Service IV. Future Development Direction

3 1. Introduction Ⅰ. KL-Net KL-Net was established by the Ministry of Lands, Transport, and Maritime Affairs (MLTM) in 1994 to computerize Korea's maritime logistics and to enhance national competitiveness. KL-Net has been about 23 years delivering the most advanced Maritime, Port & logistics IT solutions to satisfy our customer's needs and exceed their expectations. Business Area B2G, B2B PCS Services for import & export logistic business E-Business IT Solution Port Community System Port-MIS (Port Authority) RFID Solution(Terminal, CY) e-tax invoice TMS(Transportation Mgt. System) System Integration : - System analysis / design / development Consulting : - Business process redesign(bpr), - Information oriented strategy process(isp) SI & IT Consulting IT Outsourcing Data Center Service Network Service Application service

4 2. History Ⅰ. KL-Net 2018 ~ Re-Designated maritime logistics information exchange service provider Maritime Manifest Consolidation Service open (2016) PLISM 3.0 Service open 2011 Major share holder changed(public Sector(PA) -> Private Sector) (2011) TMS(Transportation Management System) service open (2011) Port-MIS upgrade project(2009) Development of RFID based gate automation system (2008) Port logistics integrated service for maritime business(plism) (2007) E-tax invoice service open( 2004) 2002 Listed in KOSDAQ (2002) Rail cargo EDI service open (2001) IT outsourcing business National wide Port-MIS System development Port-MIS service open Designated maritime logistics information exchange service provider by government Logistics EDI service open Establishment of KL-Net

5 3. Customers Ⅰ. KL-Net Built up network which is made up of 5, Customers in logistics Company and public institution Korea Customs Ministry of Maritime Affairs and Fisheries Korea immigration Center Korea Centers for Disease control Maritime D/G inspection center Government Department(7) Public institution/ association (23) Korea Terminal Authority Maritime Pilot s association Korea Marine Pollution Response Corp Korea Ship Owner s association etc. Terminal (30) + CY(60) Etc (1,000++) All container terminals including about 60 CYs Carrier Freights Forwarder (2,000) Transporter (2,050) KCTC, Korea Express, Sebang Express Maersk, MSC, CMA-CGM, APL, KMTC, Heung A

6 4. KL-Net Logistics IT Solution & Service Ⅰ. KL-Net KL-Net was invested by Korean government and major logistics companies in 1994 to strengthen the national supply chain logistics through the use of ICT. The core business of KL-Net is Port Community System(PCS), e-business, and logistics standardization.

7 5. KL-Net (Logistics ebiz Service) Ⅰ. KL-Net PCS Services of KL-Net contribute to reduction of logistics cost and enhancement of national logistics competitiveness by delivering export and import logistics services and declaration service via EDI(Electronic Data Interchange), Web, XML for automated processing. B2G Service(Single Window Service) B2G service facilitates the handling of various export and import declaration tasks through Single Window of EDI, Web, XML. Our customer can conveniently complete all of export and import declaration tasks with just a single declaration. B2B Service(Port Community System) (PLISM : Port Logistics Integrated System for Maritime business) B2B service contributes to reduction of logistics cost and enhancement of national logistics competitiveness by delivering and sharing booking, waybill, result of transport, shipping documents and inspection works via EDI(Electronic Data Interchange) among supplier and consumer of export and import logistics such as shippers, ocean carriers, forwarder, trucking companies and terminals, etc.

8 Contents I. KL-Net II. B2G Service III. B2B Service IV. Future Development Direction

9 1. B2G Service Contents Ⅱ. B2G Service B2G service facilitates the handling of various export and import declaration tasks through Single Window of EDI, Web, XML. Our customer can conveniently complete all of export and import declaration tasks with just a single declaration. Single window for declaration of vessel entry/departure (Including Port-MIS) For declaration of entry/departure of vessels, this service provides one-stop declaration system of entry and departure of vessels to export/import related government organizations such as "Port Authority", "CIQ Organizations", etc. Manifest Consolidation Service Consolidate Manifest from ocean carriers and forwarders, submit consolidated manifest to Korea Customs Service via EDI, and share it with related logistics entities. Dangerous cargo consolidation and declaration service Railroad transportation service Billing Service Advance Foreign Cargo Declaration Service Shippers can process 'dangerous goods inspection' from "Korea Maritime Dangerous Goods Inspection Center" via EDI. We also provide dangerous goods information sharing service with "Ministry of Oceans and Fisheries" for logistics efficiency. By interfacing with "KROIS(Korea Railroad Operating Information System)" service, Customers can apply to "Korean Railroad Corporation" about cargo transportation apply, allocation of freight car, notice of allocation results, etc. Customers can pay a bill for using port facilities without visiting bank or government agency by automating billing and receipt process electronically. 24 hours before departure, customers can declare their cargos to Japan Customs.

10 2. Single Windows Service Ⅱ. B2G Service Vessel entry/departure declaration Crew / Passenger List Cargo import / export report Vessel entry/departure declaration Crew / Passenger List Manifest Ministry of Oceans & Fishery Carrier - Vessel entry departure declaration - Crew / Passenger List - Integrated manifest Single Window KL-Net Vessel entry/departure declaration Crew / Passenger List Korea Customs Immigration Vessel entry/departure declaration Crew / Passenger List Quarantine Single Window service charge about 30% less, compared to conventional reporting system.

11 3. Port-MIS(Port Management Information System) Ⅱ. B2G Service Port-MIS is a comprehensive online port management system that provides e-port clearance service and real-time access to the operational information of a vessel from its arrival to departure. - Realize fully electronic paperless port business and provide real-time e-port services to both domestic and global port community - Integrate operational information of nation s ports to support knowledge-based decision and systematic policy making Regional Port Office / PA Vessel mgt Port-MIS Cargo mgt Shipping Company 1. System Concept To optimize port management, Port-MIS is built on four management fields: vessel management, cargo management, billing management and statistics management. Vessel Operation Cargo Operation Tariff Collection Vessel movement Monitoring Berth mgt Inner harbor vessel Vessel specification Billing mgt Tariff Collection Decision Support Cargo movement Container movement Cargo wharfage clearance Dangerous Cargo Statistics mgt Vessel movement Vessel Operation Cargo Operation Tariff Payment 2. Benefits For the Port Community (Private) - Minimize documentation time and cost - Link with relevant agencies involved in export/import (CIQ) - Minimize vessel waiting time in the port - Support non-stop stable civil service For the Port Operator (Public) - Establish an unified port information network to become a logistics hub Facility Management Investment Reserve Late fee Automatic transfer Cargo Movement Billing records Congestion index Global trend Facility Request - Make an effective use of limited port facilities based on real-time facility occupancy - Devise systematic policies/decisions based on statistical data analysis - Prevent unexpected accidents by real-time monitoring of vessel / cargo traffic and facility status

12 4. MFCS (Manifest Consolidation Service) Ⅱ. B2G Service Shipper Forwarder A 1 Manifest(H-B/L) (Include MRN) Shipper Forwarder B 1 Manifest(H-B/L) (Include MRN) Single Window KL-Net MFCS 2 Consolidated Manifest(M-B/L, H-B/L) Korea Customs Main Carrier 1 Manifest(M-B/L) (Include MRN) Coloader 1 Manifest(M-B/L) (Include MRN) MRN : Manifest reference number (11 Letters : Year(2 Letters)+Ship Code(4 Letters)+Serial Number(4 Letters)+Export/Import Category(1 Letter) M-BL and H-BL transmitted in the same MRN are consolidated from MFCS and reported by the Main Carrier to Customs

13 5. Integrated Information Providing Service Ⅱ. B2G Service PLISM integrates B2G, and B2B shipping data, and creates logistics information by using the integrated data from various logistics entities including shipping companies, carriers, terminals and auditing companies. Major Function Container movement tracking Container inventory management Container gate in/out control Import/export documentation & notice Demurrage / Detention notice and control Undelivered container management Real-time schedule service Cargo arrival information service

14 Contents I. KL-Net II. B2G Service III. B2B Service IV. Future Development Direction

15 1. Communication Pattern Ⅲ. B2B Service Traditional Communication Pattern in Maritime Business : - Every party exchanges its information to each other, who wants or needs the information - Every party has its own bi-directional lines and sends the same information to the ones who need it. Inland Carrier Shipping Line Customs MEANS FAX ICD/Warehouse Shipping Agent Terminal Tally Company PHONE Port Services Forwarder VISIT Consignor - Duplication of entry and storage of data formalities, and paper works - Disparate sources of information & bi-directional communication channel - Complicated and non-standardized formalities between the parties Development of PLISM service for quick and accurate business processing through sharing real-time information between logistics companies

16 2. PLISM Overview Ⅲ. B2B Service PLISM : Port Logistics Integrated System for Maritime business - Provide Export/Import Shippers with integrated one-stop e-scm(supply Chain Management) system - Support Shipping lines to manage field operations such as cargo, container, and cost management Export Shipper Inland Carrier CY Shipping Line Terminal Import Shipper MEANS EDI Trucking Co. Terminal Cargo Cargo Container Costs Costs Shipping Agent Trucking Co. XML/ ebxml ISP Forwarder Forwarder ASP Shipping Line

17 3. PLISM Service Overview (Carrier/Trucking Company/Terminal) Ⅲ. B2B Service PLSIM TM is basically PORT-SCM for carriers - Controlling container carry in and out by carrier s door-order - Providing calculated free-time for each terminals base on contract - Reducing needless phone calls and duplicated document processing Container Terminals Wharf ODCY D/O Gate carry in/out information loading and discharging information Order Information Sched. BKG Info Integrated conversion PLISM KL-Net Data integration B2G Carrier S/R, S/I Code mapping Check Door-Order Pickup/Return reservation Shipper/ Forwarder Information Order Trucking Company Tally

18 4. PLISM Service(Export) Ⅲ. B2B Service Types of services involved in Export process : e-booking, e-trans, shipment mgt. service Shipment mgt. Service (for shipping line) Shipper/ Forwarder Ocean Carrier control control control Trucking co. Trucking co. Shipment Terminal FULL delivery Terminal/ICD/CY MT pickup Shipper Tally Co. e-booking Service (for shipper) e-trans Service (for trucking co.) * MT : Empty Container * FULL : Full Container Booking Trucking order MT Pick-up Shipper s warehouse (load) Transport Terminal delivery Shipment

19 5. PLISM Service(Import) Ⅲ. B2B Service Types of services involved in Import process : e-d/o, e-trans, shipment mgt. service Shipment mgt. Service (for shipping line) Shipping Line control control control Shipper /Forwarder Trucking co. Transport (bonded) Shipper Terminal /ICD/CY e-d/o Service (for shipper) Terminal Full pickup e-trans Service (for trucking co.) Arrival Notice Receive B/L Obtain D/O Trucking order Terminal pick-up Transport (bonded) Shipper s Warehouse (delivery) MT Return

20 6. PLISM Service(Control Logic Flowchart) Ⅲ. B2B Service 2 BKG requirement Carrier 3 BKG confirmation 1 VSL schedule 3 BKG confirmation KL-Net COPINO Verification 3 Door Order(=BKG) (Pick-UP DEPOT) 6 Verified COPINO Send TML/ODCY 10 Integrated CODECO Send 6 Error COPINO Block 4 MT DOOR order Shipper Trucker 5 BKG info(pickup place) 6 Pick-up COPINO 11 MT DOOR delivery etrans BOOKING NO Pick-up place 7 COPINO Response Pick-up deadline Result Check CNTR quantity Direct connection to Terminals prohibited 7 Notify COPINO Response Process 8 CNTR Carry out 9 Gate log(codeco) Send CNTR Terminals Conventional Wharf ODCY

21 7. Service Systems Ⅲ. B2B Service Provide shipper with data exchange service data with carriers. - e-booking : booking, S/R, draft B/L, invoice, etc. - e-d/o : arrival info, D/O, invoice, and settlement information. Schedule Booking, S/R e-booking & e-d/o Export Booking, S/R Confirmation Draft B/L, Invoice Shipper/ Forwarder Query A/N, B/L & Freight Charge D/O Cargo Tracking Info. Import A/N Invoice, D/O Ocean Carrier * A/N : Arrival Notice * D/O : Delivery Order Services e-schedule e-booking e-s/r, B/L Invoice A/N D/O Description Query schedules of the shipping lines by harbor, route, and period of transport Process booking and booking confirmation between shipper-shipping line via web or EDI Process shipping request(s/r) and B/L draft info. between shipper-shipping line via web or EDI Process tax invoice among shipper-shipping line-customs via web or EDI Shipping line sends Arrival Notice(A/N for imported cargo) to shipper/forwarder via web, FAX, or EDI Shipper/trucking company query e-d/o info. Issued by shipping line

22 7. Service Systems Ⅲ. B2B Service e-trans provides transport company with ASP service to query basic information required to transport import/export cargo, and to send pre-notification messages for delivery/pick-up to the terminal, ICD, and CY. Shipper /Forwarder Trucking order Query result Information Query Query Order e-trans Service Message Exchange Transport Mgt. pre-notification for delivery/pick-up MT pick-up pre-notification MT return pre-notification Pre-notification for FULL delivery/pick-up ICD/CY Terminal Trucking Co. Services Export cargo transport info. Import cargo transport info. MT pick-up Full delivery MT Return Description Query shipping line s trucking order to apply for picking up MT and delivering FULL Query shipping line s manifest and D/O info. to pick up FULL Generate and exchange pre-notification for MT pick-up for export cargo delivery Generate and exchange pre-notification for FULL delivery for import cargo delivery After import cargo has been delivered to the shipper, send message for the MT return location info. designated by shipping line

23 Contents I. KL-Net II. B2G Service III. B2B Service IV. Future Development Direction

24 Export-Import Logistic Block-Chain Ecosystem IV. Future Development Direction Vision : Export-Import Logistic Block-Chain Ecosystem Creation Goal : Trusted Paperless Trade Offer Expectation Effectiveness : Construction of various supplementary services on the data pipeline of export-import block-chain - Integrated Trade/Shipping logistics/air logistics and customs service : Trade B2B/G/C(KTNET), Shipping logistics B2B/G(KL-Net), Air logistics and customs B2B/G/C(KC-Net) Cause expansion in B2B and B2C markets - Access various solution vendor applications as they are and share data with the block chain Activating a service from a solution Company - AI/Big-data based Service : Each vendor develops the necessary services on a platform basis Enable information-based services Trade B2B/B2G/B2C Platform (Finance, Insurance, e-commerce, etc) KL-Net(Logistics) B2B/B2G Platform (Transport, Warehouse, Ocean Carrier, Terminal, Port, etc) Customs B2B/B2G/B2C Platform (Customs, Export-Import Customs, etc) Solution Provider Applications (FMS,WMS, etc) IoT, AI, Big-data Export-Import Logistic Block Chain Platform: Trusted Paperless Trade

25 Contact Joon Young Tel: Yeo Ik Tel:

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