Project Newsletter. Content: April The Project INTEGRITY

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1 April 2009 Project Newsletter Content: The Project INTEGRITY News First Meeting of the Joint Advisory Board Consensus Building Meeting in Rotterdam INTEGRITY presentations on the World Customs Forum in Brussels Discussions of INTEGRITY with EU-China Customs Project ISL at the Hamburg International Conference of Logistics HICL2008 Project Status Events Project Partners

2 The Project INTEGRITY INTEGRITY Intermodal Global Door-to-door Container Supply Chain Visibility The growth in container transport, bottlenecks in hinterland connections, complex logistics chains consisting of many actors, information gaps as well as new security regulations are challenges to be managed by industry and administration. The INTEGRITY-project is funded by the 7 th Framework Programme for Research & Development and liaises with several EU Directorates. INTEGRITY will develop a methodology and an IT system serving both issues satisfying industry and authorities at the same time by creating Supply Chain Visibility. Essential part of the Project is the development of Shared Integrated Container Information System (SICIS) allowing authorized companies and authorities to access planning and status information of selected transports. The project started in June 2008 and has a duration of three years. INTEGRITY cooperates with the project SmartCM which is also EU funded. Both projects have similar objectives, but involve different geographic corridors and stakeholders. News INTEGRITY and SmartCM First meeting of the Joint Advisory Board (JAB) in Brussels In March 2009 the first meeting of the "Joint Advisory Board (JAB) took place in Brussels. This committee launched together from INTEGRITY and SmartCM is made up of top-level representatives from customs authorities, operators of port community systems, shipping companies as well as different European associations. The JAB s objective is to discuss the drafts and structures of both projects in order to put them on a profound basis. About 50 top-class participants from Customs authorities, port community systems, shipping companies, 3PLs as well as different European associations appreciated the efforts to achieve an optimized Supply Chain Transparency. Central points were intensely discussed; for example the question of the operator of a suchlike system. Furthermore it was pointed out that existing standards like the WCO data model should be considered in the conceptual design. Institute of Shipping Economics and Logistics 2

3 The Supply Chain Visibility platform SICIS for the integration of available status information is currently in the development phase. Particular attention is being dedicated to the sensitive handling of the data which will be combined in this form for the first time. The design of SICIS allows the connection to other systems like port community systems, customer systems, or the SmartCM system. The JAB was jointly moderated by the INTEGRITY coordinator Dr. F. Arendt, ISL, and Prof. G. A. Giannopoulos of the Hellenic Institutes of Transport. Also on the platform are Dr. A. Veenstra (University of Rotterdam) and I. Davydenko (TNO) (from right to left) INTEGRITY Consensus Building Meeting in Rotterdam The first Consensus Building Meeting of the Integrity project was hosted on January 20th, 2009 by the Erasmus University, Rotterdam. The focus of the attending project partners and external participants was the presentation and discussion of the development of the Shared Intermodal Container Information System (SICIS). In particular, the linking of SICIS with existing information systems requires an exactingly high level of coordination between all participants. Dr. Frank Arendt (Institute of Shipping Economics and Logistics, Bremerhaven) gave the opening speech about the objectives of this ambitious research project. Dr. Albert Veenstra (Erasmus University Rotterdam) presented the outcomes of the requirements analysis. Eric Lung s (Port of Felixstowe) presentation about the development of the basic concept and architecture of the SICIS system gave another motivation for serious discussions. The challenge of SICIS is the combination of existing technologies and new business processes together with legal and administrative agreements. SICIS will allow authorized companies and authorities to access planning and status information of selected cargos and shipments between Chinese and European container ports. This was the basis for an informative and productive discussion. An important question referred to the flexibility of SICIS. It was affirmed that it will be possible at any time to include additional information into this system. Because SICIS will communicate with the port community IT systems directly, their user groups can be connected to the system without the construction of new interfaces. Under the aspect of liability the planned application of electronic seals was particularly emphasized. These are automated and thus can be checked more often. Therefore many liability questions will be resolved in the future. At the end of the meeting the project partners agreed that the progress of the project justifies the first test run of the basic SICIS module in September, Institute of Shipping Economics and Logistics 3

4 INTEGRITY presentations on the World Customs Forum in Brussels The INTEGRITY project was presented at the World Customs Forum titled Managing secure trade lanes & the future of facilitation: Navigating the seas of change organized by the World Customs Organization (WCO) on December 4th in Brussels with several speeches. In Session 1 Secure Trade Lanes: Model for the Future? the keynote speech of Juha Hintsa (University of Lausanne & Cross-border Research Organization) as well as the presentations of Dr. Frank Arendt (ISL Institute of Shipping Economics and Logistics Bremen/Bremerhaven, INTEGRITY Coordinator), Dr. Rob Zuidwijk (Erasmus University Rotterdam) and Nicolas Gillen (University of Lausanne & Cross-border Research Organization) covered different aspects of INTEGRITY such as the basic intention of the project, the use of simulation models for secure trade lane benefit assessment as well as a way for calculating the cost of security using an activity-based cost model. The World Customs Forum with about 200 participants from all over the world offered an excellent platform for discussing the INTEGRITY approach. Discussions of INTEGRITY with EU-China Customs Project On 30th October, 2008, representatives of the INTEGRITY project presented general aspects and first achievements of INTEGRITY at a meeting with the EU-China Customs Project (SSTL Smart and Secure Trade Lanes). The meeting took place at the city of Xi An, China. The delegation of Chinese Customs was led by their Director Hao Chongfu, who considered the INTEGRITY concept to be very interesting. During the meeting, cooperation between both projects was discussed. INTEGRITY offered the involvement of Chinese Customs in their discussions e.g. on the concept and functionality of the SICIS system to be developed during the project which will lead to an improved Supply Chain Visibility. As a conclusion, it was decided to further exchange information and resumes a detailed discussion in the near future when the development of technical concepts has progressed. ISL at the Hamburg International Conference of Logistics HICL2008 On September 4th and 5th, 2008, the Hamburg University of Technology (TUHH) hosted the HICL2008 Hamburg International Conference of Logistics. The HICL brought together scientists and practitioners from all over the world to exchange ideas and information on the latest advancements and issues in the field of Logistics Networks and Nodes. Institute of Shipping Economics and Logistics 4

5 On behalf of ISL, Dr. Nils Meyer-Larsen and Rainer Müller took part in the conference. During their talk they presented the topic RFID Supports SCEM in Container Transport Networks and among others introduced the INTEGRITY project to the audience. They highlighted the benefits of using RFID on containers (container tag and electronic seal) and showed how events which are generated by using RFID can be used in a Supply Chain Event Management (SCEM) system which was developed by the ISL in order to achieve an optimized Supply Chain Visibility. Project Status The management documents Project Handbook/Guidelines for Reporting and Presentations, Quality Assurance Plan (QAP) and the Risk Management Template (RMT) for the INTEGRITY project have been completed. The documents provide guidelines on the day-by-day project management work and on the practical aspects of the project development for the INTEGRITY project. These documents have been developed to support the efficient performance of the project. The Global Container Supply Chain Compendium provides the basis for a solid understanding for all logistic and intermodal chain partners. The aim is to describe the state of the art in supply chain security that is relevant for the projects INTEGRITY and SMART-CM (cooperation partner and also EU funded), which helps to define a common starting point for the two projects and formulating the main missions. The document is available for download on the project website The User Requirement Analysis has taken place in the period June- November This analysis consisted of several rounds of questionnaires, interviews and workshops, both with trade lane representatives and with Customs. The main results should act as a real time milestone generator. In addition, increasing benefit can be created from capturing cargo information in the chain at an early stage. Institute of Shipping Economics and Logistics 5

6 The Detailed User Requirement Analysis is an extension of the User Requirement Analysis. The detailed analysis of processes in supply chains leads to an in-depth definition of all relevant features. The INTEGRITY System Architecture document describes the outline of the principle SICIS modules. The original proposal for SICIS has two stages, container based and consignment based. It is now proposed that the first release will still be for container tracking only but, rather than having one big release for the consignment tracking, it will be broken up into modules that can be developed, tested and released separately. The Interoperability Concept describes a first approach of cooperation between the projects INTEGRITY and SmartCM. It sets out a proposed infrastructure which would allow data exchange to take place between the systems to be developed. It is not intended as a final detailed specification showing all possible data elements, methods of working etc. but, instead, provides a platform upon which further technical and management interaction can be built. Events September Consensus Building Meeting, Rotterdam Joint Advisory Board Meeting, Brussels WP4 System Specification Meeting, Rotterdam Review Meeting, Brussels Technical Status Meeting, Hong Kong Trade Fair Multimodal, NEC Birmingham Project Management Committee Meeting, Celerina First Test Run of SICIS Future Security Conference, Karlsruhe Integrity partner Hutchison Ports included information on the INTEGRITY project on its stand at the Multimodal 2009 exhibition. Held at the UK's National Exhibition Centre (NEC) in Birmingham between 28 and 30 April, the exhibition was attended by leading representatives of the UK and European freight industries. Institute of Shipping Economics and Logistics 6

7 Project Partners Newsletter Impressum, Copyright & Contact Institute of Shipping Economics and Logistics Dr. Frank Arendt, Director Universitätsallee Bremen Tel. +49/4 21/ Fax +49/4 21/ Dr. Nils Meyer-Larsen, Project Manager t.i.m.e.port II Barkhausenstraße Bremerhaven Tel.: +49/4 71/ Fax: +49/4 71/