Extended smart port and international fast trade lanes. Teheran, 02/27/2018

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1 Extended smart port and international fast trade lanes Teheran, 02/27/2018

2 Agenda Port of the Future Digitalisation & Fast Trade Lane Internet of Things & Blockchain Innovative procedure to increase customs & security efficiency European concrete experiences MILOS and Sinfomar framework 2

3 Port of the Future 3

4 Port of the Future The era of digitalization promise to revolutionize worldwide supply chain system, according studies effected by Mckinsey and the Boston Consulting Group we are entered in the Fourth Industrial Revolution. The main actors will be smart devices Iot able to dialogue with safe digital platform, while the data will be the stars. The Shipping field is fully involved in the digitalization. According to the main shipping lines as Maersk we are entered in a disruption point, where data and contracts will pass from a physical flow to a smart digital flow. The ports must follow the trend to be named Smart Ports. Smart Ports Features: The Results Digitalization using IoT device; Intelligent Information Infrastructure; Integration of different Management areas; Optimal and maximal utilization of the existing capacities. Increased customer satisfaction; Increased competitiveness; Developing agility in port in response to the changeful business environment; Template changes in port services. Circle is project coordinator of EU Project Dock the Future. The research has the purpose to find and implement new port management models innovative design, and innovative technologies solutions to increase the ports performance and the customer satisfaction 4

5 The Connection of the Future One of the main issues relate the ports management is concerned the lack of dialogues with the different Inland Terminal or Logistics Hubs, this aspect represents one of bigger ports diseconomies in terms of : Transit-time; Costs linked to the permanence of goods inside the different storages area; Difficult to optimize the yard and storage area management; Urban impact. Digital Solutions: Digital platform able to share the data and documents; IoT devices able to catch the information, increase the security level and digitalize and automate the gate in and gate out operations. >> Cooperation Iran Actors & systems represents an essential tools to the establishment innovative & semplified Corridor procedures CORRIDOR MANAGEMENT PLATFORM Port Terminals IoT device Iran Customs Agency IT Systems Port Community System IoT devices Shipping Agent & Company Terminal Operating System Iran Inland terminals 5

6 The Ports Automatization Tools Gate Automation The Gate automation solution is designed specifically to monitor and manage the movement of containers that pass through it. It is able to monitor in a reliable and secure way the containers using RFID tag and allowing the record of truck and shape analysis using OCR Gate camera making faster ad safe the gate operations. Gamma Ray Scanners The Gamma Ray Scanner Gate solution is designed to provide in real-time information relate the goods shipped. The customs benefits are related to the Risk Management and the container to investigate and the possibility to make available the pictures among the Customs involves in a end to end transport perspective. IoT Tugs and Readers OCR gate camera Circle are working with different HW providers about OCR, RFID, Ray Scanners, etc. Our MILOS module is designed to be HW-indipendent. 6

7 How the digitalization is the key of Smart Port I Main topics: Blockchain and smart contracts ; Internet of Things Digital road and rail documentations; Digital Bill of landing; 7

8 What behind the Internet of Goods* concept The use of smart device IoT allows to share in real-time information regarding the condition of goods shipped without human controls. The information shared can be managed by digital platform Blockchain able to share the data with the stakeholders directly involved in the logistics chain *Internet of Goods is a key-concept we are working on and defined by Italian Customs Agency inside an EU project. 8

9 How the Blockchain will be the fundamental part of the chain The combined use of smart devices IoT and digital tools such as Blockchain Platforms and Smart Contracts has the purpose to dematerialize the transport procedures and relative contracts leaving traces of all operations and events occurring within the Logistics Chain. IoT Blockchain Smart Contracts Optimization of finances and documents flow MILOS Blockchain Connector is a solution designed to integrate these innovative solutions. 9

10 Blockchain and IoT integration Thanks the use of smart devices IoT mounted on containers it is possible to share information automatically to the different actors involved in the logistics chain and recorded it by the blockchain without any user input. The Benefits: Insurance Companies, the information provided in real-time can be used by the insurance companies, which in case of excessive vibrations or change of container s temperature will change the insurance payments automatically thanks specific Smart Contracts; The Bank, once the container is unloaded, smart device IoT can communicate automatically to the bank to start the procedure of commercial viability; Customs, thanks the use of smart devices IoT is possible to evaluate whether the container s internal condition has changed as a result of legitimate container s opening. These information can be communicated to the customs increasing the level of security the quality and the specificity of controls. 10

11 Blockchain and Smart Contracts integration The smart contracts are computer codes embodied in the Blockchain, which are formulated in if this then do that structures. Their application is importance in the field of logistics contracting, that because the Smart contracts enable the automation of transactions, reducing the human error or cases of fraud, but they also increase the privacy, the cost and time efficiency as well as the trustworthiness. In the business environment, there are already companies selling smart contract solutions, such as Ethereum and SmartContract. 11

12 Innovative procedure to increase the customs efficient Main topics: The concept of Customs 4.0; Case study: Italian Custom innovative procedures; Circle main projects. I 12

13 The Concept of Customs 4.0 The Digital Disruption has changed the procedure of the main public actors along the logistics chain such as the Customs Agencies^. New innovative solution are available thanks digitalization and smart device IoT able to share in real-time information and documents with the purpose to decrease the level of costs and the transit-time ensuring elevate control security standard. *Concept by Italian Customs Agency inside 2020 customs roadmap IoT Devices 13

14 Customs innovative procedures: The Preclearing Thanks digital collaborations among the different stakeholders has been possible develope the preclearing procedure. The preclearing is an ensemble of customs clearance procedure effected during the vessel sailing and the dock berth. The purpose is to anticipate the complex administrative customs clearance procedure and the consequent payment of customs duties. The Benefits - The permanence of containers in the ports is shortened considerably; - The landing operations are optimized and all containers cleared are directly addressed for the gate-out operations. Preclearing Flow *Solution implemented with Contship Group inside WiderMos project 14

15 Customs innovative procedures: Fast Corridor The concept of Custom Corridors (named Fast Corridor in Italy) born to decrease the costs relate the import / export cycle converging towards the complete traceability of the goods forwarded in the multimodal logistics chain. The containers are moved between the ports and places of destination (always under the control of customs agency offices) where are complete the custom clearance procedures. The Benefits Decrease the permanence of goods in the ports berth and storage area; Increase receptivity; Reduce to the point of eliminating the costs relating to the stationing of goods. due to the need to control them by customs officials and other national authorities, prior to customs clearance. Main KPI s index : Customs Corridor Flow The Italian Custom Corridor covering more than 2000 km; 727 containers has been shipped in 2015 and 900 in the first quarter of 2016; Circle has contributed to the implementation and the data management of 18 italian customs corridors. Fast Corridor 15

16 Circle experiences: B2MOS Project* The pilot involved an international RoRo trasport of trailers between the ports of Rades and Leghorn. A preclearing procedure using passive eseals and a Corridor Management Platform were tested for the first time, integrating logistics and Customs aspects. Association Truck plate & eseal number Customs Preclearing Private actors involved: Public Institution involved: Port Terminals of Leghorn and Rades; Leghorn and Rades Port Importers; Authority; Exporters; Italian Port Captaincy; Shipping Company; Shipping Agency; Freight Forwarders. Italian Customs Agency. Gate out or Customs Control Check of Customs status Interoperability Framework *EU project implemented with Leghorn Port Port Community System Corridor Management Platform 16

17 Circle best practice: cars industry 4.0 project The project involved an international export transport of new vehicles between the production plant and the ports of Salerno and Civitavecchia, to the final destination. A fast export procedure using passive RFID Tags and a Corridor Management Platform were implemented, integrating logistics and Customs aspects. Installing of RFID tags inside the production plant Anticipation of export procedure Transportation by truck or rail of new vehicles to the port of departure Private actors involved: Public Institution involved: Freight Forwarder; Circle; Car Shipper; Port Authority of Salerno; Port Authority of Civitavecchia; Italian Customs Agency. Outcome of Customs status of goods Grimaldi Lines; Grimaldi Terminal of Civitavecchia and Salerno; Loading of the transported units on the board of ship Automatic Gate-in inside the port area thanks to RFID antennas 17

18 IKEA and Tiger projects Circle is technological partner of IKEA within the «banchina lunghissima» project. Circle supports Ikea for this important project considering: Technical aspects; Customs components; Coordination with Authorities and external stakeholders. This is possible using the customs corridor «Fast corridor in italian» authorization, that gives the possibility to have an A3 formal document directly to an inland authorized (AEO) warehouse. Created in 2010, to maker easier the connection between the Korea and China Ports and Genoa and the relative Inland Ports or Private Warehouse Firms. Circle, has been involved in part of project called Genoa Fast Corridor. Main KPI s index : Direct cost reduction -30%; Paper reduction - 100%. Main KPI s index : Total cost reduction up to 26%; reduction of «operative costs» related to terminal up to 10%; transit time reduction port dry port up to 37,1%; dwell time reduction (due to various aspects, among which customs) up to 40%; CO2 Emissions Reduction : estimated 4 kg/teu. 18

19 Trieste SmartPort and Sinfomar platform 19

20 Trieste SmartPort 20

21 MILOS innovative framework 21

22 CILP Smart Port Terminal & Lugo Smart Inland Terminal Management of information received by Port Community System, Truck companies, Shipping agencies, etc. Mobile management of information of gate-in and gate out. Preadvice & fast lane Delivery, Interchange, QR code, Invoice AUTOMATIC DATA ACQUISITION, OCR & IOT, about Gate-in, Gate-out operations 22

23 International fast trade lane Turkey Italy Shipper Mersin External Area International Fast Corridor: Trieste - Mersin Corridor preliminary scenario Supplier Port Community System Mersin International Port Turkish Customs Administration (BILGE) Shipping Agent Exit Gate Loading and Discharging Entrance Gate Passive eseal check at Operations Automated Gate Passive eseal final RORO parking area check at Loading area Mersin International Port SHIPPING AGENT INTERNATIONAL CORRIDOR MANAGEMENT PLATFORM Turkish Customs Administration ITALIAN ACTORS Off-Dock Passive eseal apposition Anticipated Customs, X- RAY controls, Fuel Supply operations EU TERRITORY INTERNATIONAL CORRIDOR MANAGEMENT PLATFORM Samer Port Terminal Trieste Port Community System Shipper Italian Customs Agency AIDA Il Trovatore Supplier Fernetti Inland Terminal 23

24 Concrete proposal Based on topics shared during the presentation, preliminary proposal is following: Define areas of cooperation Define a concept for analysis and pilot project Define objective and KPI for pilot project Define timeline about activities Share experience and define a common roadmap CORRIDOR MANAGEMENT PLATFORM Port Terminals IoT device Iran Customs Agency IT Systems Port Community System IoT devices Shipping Agent & Company Terminal Operating System Iran Inland terminals 24

25 25

26 COMPANY PROFILE Our mission is to strengthen every day relations of trust and transparency with our customers and to transform ( touch ) ideas into concrete and measurable business results. Circle is a credible partner for Italian and European companies that want to seize the challenge of innovation, internationalization and growth through a better organization and effective processes. 26

27 Business Unit: PORTS, TRANSPORT & LOGISTICS We cooperate with companies of port, transport and logistic field to define strategies, new models, deals and partnerships in order to optimize flow management, performances, organization and operations. Our main software products are addressed to complementary targets: MILOS for intermodal logistics and Sinfomar for ports & maritime logistics. 27

28 MILOS framework 28

29 Internet of Things Circle is specialized in the integration between new RFID technologies and processes of logistic, port and intermodal supply chains. Interconnected Systems Fully Integrated supply chain Internet of Things With MILOS IoT module approved companies and relevant authorities can access planning and transport status of containers, therefore combing logistic data with information related to security of cargo thanks to new opportunities coming from automation processes. 29

30 Sinfomar Port Community System (PCS) for maritime logistics Sinfomar is a software solution conceived to manage maritime logistics and handling operations through the integration of information related to ships and voyages (Master data management, Master data editing, Voyage management, Statistical tools, emanifest), vehicles (Security, FreeZone entry / exit procedures, CH30/CIM generation), goods (Unloading, Loading, Customs management, FreeZone entry/exit, Delivery, Seafarers, statistics, intermodal management) and people (Tracking, Interchange, Security). Sinfomar has connectors for Customs, Security, Coast Guard, Logistics platform, Statistics national platform, EU platforms. 30

31 Track record Ports, terminals, inland terminals 31

32 Track record Companies 32

33 Products roadmap MILOS evolution Intermodal logistics BIG DATA AI DATA ANALYTICS Automation* MILOS OPTIMIZATION MILOS IOT TOS MULTIPURPOSE MILOS GATE AUTOMATION NMSW CONNECTOR FREE ZONE & ZES MILOS FOR BLOCKCHAIN Rail^ Ports/Maritime network; ^Binary System partnership 33

34 Luca Abatello Circle CEO