Trucking Transhipment Service. Analysing Trucking, Rail and Within same Port services

Transcription

1 Trucking Transhipment Service Analysing Trucking, Rail and Within same Port services

2 Panama has a network ports connected by rail and truck To compete the network should function like a single port Rail connection should function like a conveyor belt Truck connection should functions like a parallel conveyor belt Actual transit time approximately one hour Rail cost approximately $150/container + government fees Truck cost approximately $400/container + government fees Often takes more than a week Occasional serious disruptions 2 A Member of the Productivity for Progress Institute

3 Transshipment trucking service Study Motivation: Trucking is currently not competitive with rail as a mode to move containers from port to port across country (estimated truck cost $400 per trip, and rail cost $150). What can be done to make trucking service competitive? 3 A Member of the Productivity for Progress Institute

4 Transshipment trucking service Study Objective: Understand current process, benchmark against other services, identify problems, and present findings to key stakeholders (shipping lines, ports and trucking companies) in order to increase Panama s competitiveness in transshipment services. Study Methodology: Workshop with critical stakeholders Map and document process at Balboa and MIT port Identify key issues Compare trucking, rail and transshipment within the same port Validate analysis Present findings to key stakeholders 4 A Member of the Productivity for Progress Institute

5 BRAINSTORM RESULTS FROM WORKSHOP (Shipping lines, trucking companies and ports) OBSERVATIONS: Transshipment takes place on Saturdays and Sundays (24 hours) in order for it to be profitable and windows can be empty There is not enough customs agents for processing the high volume of transshipment containers. Shipping lines would like ports to be 24 hours Shipping lines would like for Customs to be 24 hours, in order to eliminate over costs SUGGESTED IMPROVEMENTS Pay D6 charges by credit Documentation should all be electronic as in the rail. Container movement could be tracked by Customs using GPS. Government authorities databases are independent. It would be advisable if Aupsa, Quarantine info systems would be compatible with SIGA in order to shorten processing time. Dedicated yard gate entry/exit for transshipment 5 A Member of the Productivity for Progress Institute

6 MANZANILLO BPM MODEL 6 A Member of the Productivity for Progress Institute

7 BALBOA BPM MODEL 7 A Member of the Productivity for Progress Institute

8 RAIL BPM MODEL 8 A Member of the Productivity for Progress Institute

9 WITHIN SAME PORT BPM MODEL 9 A Member of the Productivity for Progress Institute

10 TRANSHIPMENT MODELS WITHIN SAME PORT RAIL TRUCKING Unload from ship 1 Store Load to ship A Member of the Productivity for Progress Institute Unload from ship 1 Store Clear government holds electronically Load to rail Travel Unload from rail Store Load to ship 2 Unload from ship 1 Store Clear Government & Port Paperwork physically Load to truck Travel Clear Government & Port Paperwork physically Unload from truck Store Load to ship 2

11 WITHIN SAME PORT: [no holds] DESCRIPTION: Shipping lines sent entry manifest to port of arrival, port of connection and Customs (24 to 48 hours before ship arrives). Entry manifest (also known as unloading list) details: o Containers for local imports o Inter-terminal containers: by rail and by truck o Within same port containers. Shipping lines will also send an exit manifest (loading list) Shipping lines will pay 0.25 cents per container to Quarantine PURPOSE: Customs ensures that entries = exits Quarantine charges cost for safekeeping containers within port perimeter, and in case of an emergency. 11 A Member of the Productivity for Progress Institute

12 RAIL: Clear Holds Electronically DESCRIPTION: Shipping lines sent list of containers in an Excel format to rail and authorities by . List includes commodity description. Authorities check commodity, and assess risk. Authorities place hold of containers with risk in port system (MIT) or requests port to place hold (Balboa). Shipping lines present special docs to Aupsa and Quarantine at port service windows. Aupsa and Quarantine remove hold. Containers with holds cannot leave yard. At port exit gate to rail, Aupsa and Quarantine will place plastic seals to containers with risk At destination, Aupsa and Quarantine check that containers arrived with seal. PURPOSE: Quarantine and AUPSA: place holds and plastic seals which allow to identify containers with high or medium risk in order to respond to emergencies accordingly. 12 A Member of the Productivity for Progress Institute

13 TRUCKING [Pick up box]: Paper Clearance DESCRIPTION: Shipping lines give truckers 10 copies of BL (5 for port of origin, 5 for destination). Trucker takes printed BL to service windows (Aupsa, Quarantine, Customs, Port and Gate). Each window will place a stamp on the BL to show that trucker indeed presented BL and will keep a copy. Authorities remove hold in port system (MIT) or request port to remove hold (Balboa). If container has special requirements AUPSA and Quarantine will request In-transit notice and/or phytozoosanitary license, respectively. Authorities will give trucker a plastic seal. Customs fills out Decree 6, charge $9.00, and give trucker a metal seal. At port window, trucker will pay port services (if they haven t been paid in advance). At gate window, trucker will give BL with all stamps, and will receive in return yard location of container. PURPOSE: PORT: Ensure that container complies with government requirements, port charges have been cancelled before retrieving container. CUSTOMS: Allow container to transit in Panama City and ensure is not opened. Quarantine and AUPSA: place holds and plastic seals which allow to identify containers with high or medium risk in order to respond to emergencies accordingly. 13 A Member of the Productivity for Progress Institute

14 TRUCKING [Drop Box] : Paper Clearance DESCRIPTION Stop at port gate to turn in Decree 6 form to customs agent on-site (Balboa) Go through Aupsa and Quarantine windows to remove hold in port system (MIT) Go through Customs window to turn in Decree 6 form and remove hold in port system (MIT) Stop at gate window to retrieve location where container should be dropped. PURPOSE Customs: Ensure that container arrived intact to port of destination. AUPSA and Quarantine (MIT): Remove hold in port system. Port: Ensure that all holds were removed (MIT) in order to give yard position where container should be taken. 14 A Member of the Productivity for Progress Institute

15 DIFFERENCES BETWEEN SERVICES Same port transshipment requires no government paperwork or holds. Communication and documents between shipping line and port are electronic. Rail service has little paperwork. Communication and documents between port, rail, shipping lines and government are electronic.* Trucking service requires trucking company to clear paperwork physically at port windows in order to remove port and government holds and retrieve container. *Exception: Shipping lines will need to deliver printed documents to Aupsa and Quarantine to remove holds. 15 A Member of the Productivity for Progress Institute

16 Government charges for container clearance Authority Charge Description Charge Cost Within same port Rail Trucking **High Risk Customs AUPSA Quarantine Decree 6 form and metal seal (includes TAST) Transshipment Tariff (TAST) B/ B/ X X Transit notice B/ X Plastic seal B/ X Plastic seal B/ X Fumigation B/ X X X Security Fee B/ X Total B/ B/. 14 B/. 18 B/. 17 ** Only applies for containers transshipped by rail and truck considers as high risk for Aupsa and/or Quarantine. 16 A Member of the Productivity for Progress Institute

17 CUSTOMS: Assessment on government processes WITHIN SAME PORT Containers do not require forms nor seals. Shipping lines will send entry manifest of entry 24-48h before ship arrives. Customs will then compare that entries=exits when ship departs at port of destination. RAIL Shipping lines send to Customs the list of all containers that are going to be transshipped by rail. In SIGA, Customs will virtually move containers from port of origin to port of destination, and compare manually against the load plan sent by PCRC after the train leaves. Customs charges $5 per container for transshipment services (use of SIGA system). Containers transshipped by rail do not require seals. The position of containers on the wells ensure they are not opened. TRUCK Containers require: metal seal, and Decree 6 (D6) form. D6 form is a Customs form for moving non-nationalized cargo outside primary zones. Shipping lines will sent Customs the list of all containers to be transshipped by truck. In SIGA, Customs will virtually move all containers (belonging to a shipping line) from one port to the other, and compare manually against D6 form at port of destination. D6 allows to track the physical movement of container, because containers are moved virtually to destination. Customs charges $5 per container for transshipment services (use of SIGA system). D6 is filled out by hand. Each container must have a D6 and it will only be valid for one day. Payment needs to be immediate: metal seal ($3.00) + D6 form ($1.00). There s no credit line for D6 and seals charges. Metal seals prevent containers are breached intentionally through their transit. 17 A Member of the Productivity for Progress Institute

18 AUPSA: Assessment on government processes Within same port For containers transshipped within the same port, shipping lines will only need to send the BL to authorities. It seems ports have an assigned security area for high and medium risk containers. There are no holds. Truck or Rail All containers transshipped by rail or truck require: transit notice, plastic seal, packing list and copy of sanitary certificate from origin. Transit notice can be issued hours before ship arrives. Notice will be valid 10 days before and after notified date. There must be a transit notice for each commodity type in a container. Though transit notices are generated electronically, they will need to be printed and be presented physically at window (applies for trucking and Balboa/rail process) Seal prevents container from being opened during transit, and risking possible contamination. Seal is verified and removed by Aupsa agent at port yard, before container is loaded onto connecting vessel. 18 A Member of the Productivity for Progress Institute

19 QUARANTINE: Assessment on government processes Within same port: Shipping lines pay 0.25 cents per container that will be transshipped within the same port for security fee (safeguarding port yard in case contamination occurs) There are three security areas inside the port: high risk, medium risk and low risk. Authority has access to MIT port system to know content of containers beforehand. At Balboa, shipping lines send packing list of containers in PDF files. Official will need to check each pdf to know the area were container should be placed. Truck or Rail: All rail and trucking containers with commodities and packaging components regulated by Quarantine will need phytozoosanitary license and plastic seal. All containers leaving the port gate: transit by truck, rail, import will need to go through the fumigation arch ($9.00). Plastic seals prevent containers are breached intentionally through their transit. Shipping lines fill out licenses electronically using MIDA portal Charges can be paid by credit. 19 A Member of the Productivity for Progress Institute

20 Risk Assessment (Product Type) AUTHORITY LEVEL OF RISK TYPE OF COMMODITIY Customs High ALL AUPSA Quarantine High Medium Low High fresh and/or frozen meats and produce semi-processed foods Processed foods Fertilizers, seeds, live animals and plants, wood 20 A Member of the Productivity for Progress Institute

21 TRUCKING SERVICE TIMELINE Processing + Travel Time = 4 hours 1.5 h 0.5 h 1 h 0.5 h 0.5 h Clear government and port paperwork physically Load to truck Travel Clear government and port paperwork physically Unload from truck Unload from ship 1 at port of origin Load to ship 2 at port of destination 21 A Member of the Productivity for Progress Institute

22 TRUCKING SERVICE TIMELINE Port hours: MIT : 8:00 am 6:00 pm Customs MIT : 8:00 am 6:00 pm Balboa: 8:00 am 10:00 pm Customs Balboa: 8:00 am 10:00 pm (For retrieving Decree 6) 8:00 am 4:30 pm (For imports clearance) 8:00 am -10:00am Trucker retrieves container 1 at Port 1 10:00 am -11:00am Goes to Port 2 11:00 am -12:00pm Drops container 1 at Port 2 12:00 pm - 1:00pm Goes back to Port 1 empty Truckers can make 2 trips per day, assuming no congestion at port or traffic. Shipping lines will pay late-gate costs in order to increase transshipments. 1:00 pm - 3:00pm Trucker retrieves container 2 at Port 1 3:00 pm - 4:00pm Goes to Port 2 4:00 pm - 5:00pm Drops container 2 at Port 2 * Process and times are based on interviews. Container has no special requirements. It is assumed that port charges have been cancelled beforehand, and yard time is 30 min. 22 A Member of the Productivity for Progress Institute

23 KEY FINDINGS ON TRUCKING Truckers will need to get BL stamped at all windows before being able to drop or retrieve a container. It seems that each window requires 1 BL copy per container. Shipping lines will make 10 copies of BL per container. It seems that dropping and retrieving processes, times and number of copies will vary according to the port. Truckers can make at most 2 trips per day given that container processing at windows is time consuming. Customs has a SIGA module that virtually moves all containers from port of origin to port of destination. However, D6 form is filled out by hand to keep track of container while in transit. Aupsa and Quarantine requirements impact the transshipment of containers arriving from near ports. There is not enough time to process al the necessary documentation. If a container has only one type of commodity and it is regulated by Aupsa and Quarantine, cost due to government charges will be $30. (this includes plastic and metal seals, forms, licenses, notices and fumigation) 23 A Member of the Productivity for Progress Institute

24 RECOMMENDATIONS Reduce government charges for clearing transshipment containers Change laws and government processes to make trucking between ports competitive Improve road infrastructure between ports Have performance of all network components monitored by a neutral party to eliminate finger pointing Establish a Logistics Ministry to facilitate integration and monitor potential disruptions Establish clear performance goals and metrics based on maximum total transfer times Establish contingency plans for disruptions 24 A Member of the Productivity for Progress Institute

25 STAKEHOLDER FEEDBACK Validation of analysis Questions Suggestions 25 A Member of the Productivity for Progress Institute