UIRNet as service infrastructure: The importance to be the National Logistics Platform. Andrea Campagna, Lazio Region Rodolfo De Dominicis, Uirnet

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1 UIRNet as service infrastructure: The importance to be the National Logistics Platform Andrea Campagna, Lazio Region Rodolfo De Dominicis, Uirnet Valencia - March 27,

2 The context: Italian Logistics system (1/3) Freight Transport Modes Intermodality: seaports and inland ports Road Maritime Railway Other 4,1 million road transport vehicles (71% of the total cargo) Only 11% of vehicles is owned by transport companies More than ships larger than 100 tons, carrying goods for a value equal to 24% of the total transport The railway handles about 4% of total cargo value Trenitalia Cargo is the main operator with a market share of ~70% Residual categories of other transport modes (e.g. air freight, inland waterways) with a volume of 1% of total cargo 24 seaports, 415 km extended and with 1,760 berths; the first 5 seaports (Gioia Tauro, Genova, La Spezia, Livorno, Cagliari) handle the 40% of domestic traffic. 26 active inland ports on the national territory (including 5 at start-up, e.g. Catania). Port Authority Active Inland Ports Start-Up Inlands Ports The Italian context is strongly characterized by road transport (71% of the total) through a complex network of seaports and dry ports Source: «Il trasporto merci in Italia» (February 2013 on 2010 data) Report by Ministry of environment and health 1

3 The context: Italian Transportation market (2/3) Breakdown by Category N. of Vehicles (Million) Breakdown by size N. of Vehicles (Million) Tons carried Million) The number of vehicles registered in Italy, is divided into two main categories depending on the properties of the goods carried Total Own-account Hire or reward 4,1 3,6 88% 0,5 12% Total < ,5 3,5 13% 4,1 87% Total < 3,5 tons 3,5 tons 82, ,3 53% 47% The Italian freight transport is strongly characterized by small size «own-account vehicles» belonging to small companies with a fleet size less than 10 vehicles Source: «Il trasporto merci in Italia» (February 2013 on 2010 data) Report by Ministry of environment and health 2

4 The context: Italian system critical issues (3/3) Critical Issues Description KPI LIMITED ATTRACTIVENES Structural inability to attract trade flows with "natural transit in Italy. This inability has generated : Loss of market share in the Transhipment (25.2% in 2007, 20.3% in 2010) In the Mediterranean area Valencia and Port Said have passed Gioia Tauro Port in the transhipment Market shares in the Transhipment % East Med North Africa West Med Italy 21,4 16,4 37,0 25, ,2 23,8 35,7 20, Economic loss Estimation - 4 B LOW PRODUCTIVITY Low productivity of the logistics industry in the Italian context, this productivity gap is mainly caused by: Low use of outsourcing (41% vs. 60% EU Average) Fragmented Fleets (low average fleet size) Specific structural features (economic structure focused on small and mediumsized companies) and territorial features Average pressure Tons per Kilometer, % Italy Germany - 8 B UIRNet in this context has a key role for the development and promotion of an integrated and efficient logistics system in order to catch up on the unexploited productivity Source: Mc Kinsey, September

5 UIRNet (*) is the Implementing body in accordance with the Ministry of Infrastructure and Transport in charge of the implementation and management of the reference telematic system for the management of the national logistics network (Law n. 27 of March 24, 2012, Article 61-bis ) National Logistics Platform Logistics hubs (*) UIRNet as Body governed by public law: Law n. 311 of December 30, 2004 Ministerial Decree n. 18T of June 20, 2005 Law n. 27 of March 24, 2012, Article 61-bis Law n. 135 of August 7, 2012, Article 23 Decree Law n. 179 of October 18, 2012 (Development Decree) Ministerial Decree n. 449 of December 6, 2012 Law n.221 of December 17, 2012 and n. 228 of December 24, 2012 (Legge di Stabilità) n. 147 of December 27, 2013 (Legge di Stabilità) Freight villages Seaports Clearing freight Centres Logistic complex Railway Terminals, etc. Third-party systems Carriers Logistics Operators Third-party systems Third-party systems Companies and Other Operators UIRNet has the purpose to develop the National Logistics Platform which provides services to improve integration of business processes within the supply chain making "smart" the logistics nodes and enabling all the actors to interact more efficiently. 4

6 UIRNet: Mission and architectural approach MISSION and ITS The mission is to realize an ITS system of reference in order to manage the national logistics network, and to improve efficiency and safety in logistic in Italy. Improve integration within the Supply Chain and speed up the overall logistic process through the National Logistics Platform (based on web interface/soap technology machine to machine interfacing) by providing a standard and freely accessible infrastructure to exchange data, information and services in realtime: National Logistics Platform Architectural Approach Integrated Route planning and Info-traffic and Infologistics service Information management about arrivals/departures from/to logistic nodes (e.g. seaports, inland ports - dry ports) Documents digitalization management (documentation related to the transport flow) Real time/online booking for loading/unloading services in the logistic nodes Supply/Demand market place and GPS integration Optimize customs operations in monitoring vehicles and assuring a proper security in the freight transport controlled corridors Need for integration with all actors, infrastructures and systems in order to propose a unique standard solution within the whole national-system. The NLP* as one integrated and integrable system for all players in the ltalian Logistics, without replacing the system already present within the node. (*) NLP = National Logistic Platform 5

7 UIRNet National ITS: focus on NLP core services Description Need Target User Smart Truck Control Tower Booking Freight taxi Provides generic tools for fleet control and offers tools that allow users to plan, monitor and manage missions trip, calculate the time of arrival and manage the documentation, knowing the realtime road conditions and operations of destinations. Allows to know in real time incoming vehicles at one point (logistics node, point of interest, etc.), investigate the status of a single vehicle on arrival (e.g. documentation status) and view their documentation made available by the carriers, in order to verify it before their arrival. Allows transport companies and goods suppliers to book logistic services. The search and booking service is fast, easy and aimed at vehicles, goods and people. Enlarges the market with a system of automatic matching between demand and supply of transport that takes into account the vehicles positions and current and future missions trip. Know the real status of the roads and actors with whom to work, to plan better their missions trip and manage their execution. Reduce time of acceptance of a transport, better plan the loading / unloading, organize intermodal appointments. Avoid delays or refusal of acceptance for loading due to incomplete or incorrect documentation. Reduce empty trips by finding loads in the neighborhood of one's position or along its path. Carriers Fleet Managers Who is interested in organizing and managing a trip. Logistics nodes Companies Carriers, Freight Forwarders MTO Shipping Agents Warehouse logistics operator Who offers bookable services (e.g. time windows of arrival) Who s interested in booking Freight Forwarders Freight Companies Who has loads and Who looks for loads to be carried Fast Corridor Management of goods subject to customs constraints through road sections predefined by the Agenzia delle Dogane e dei Monopoli. The operation is aimed to accelerate the import operations. Custom Operator Who has loads and Who looks for loads to be carried UIRNet presents a peculiar National Intelligent Transportation System that integrates in an innovative ICT infrastructure, through a Service Oriented Architecture, a wide range of services/subsystems to speed up the logistic process (with core and other value added services) 6

8 UIRNet: commitment on anti-foreign Cabotage Cabotage UIRNet considers the Foreign Cabotage a problem of unfair competition that severely affects the hire or reward transport performed by Italian companies in compliance with the provisions of the Road rules (hours driving) and with the labor legislation (recruitment and contributions). The phenomenon has a devastating effect: different sources agree in estimating the damage to regular business for approximately % of turnover. Several requests are moved by employers and associations representing haulers in order to claim a strong intervention by the government. The control of the phenomenon requires resources and personnel. The Traffic Police effort is not sufficient. UIRNet commitment and solution In this context UIRNet wants to act in support of the control network with the aim of creating a sure deterrent that defeats the profitability of Cabotage: Using information systems designed for identification of anomalous behavior: Telepass, Tutor, ANAS cameras, fixed and mobile control stations. Collaborating with Traffic Police (Polstrada) in locating and signaling Cabotage behaviors, blocking them at the boundaries (borders) (Bari, Ancona, Treviso, Brennero,..etc.) through data collected in UIRNet systems Cabotage consists mainly of two phenomena: 1. Foreign companies that employ foreign drivers to work regularly in Italy (at unattainable rates for regular companies); 2. Italian companies that use foreign drivers to pay work contributions abroad (where much cheaper). 7

9 UIRNet: National Logistic Platform main strengths - Summary Spreading UIRNet platform services on multiple private fleet management systems (e.g. Autamarocchi, Spinelli, Telecom, Qualcomm,...) and operational management systems of the main local logistic nodes High usability of NLP technology for all complex systems Possibility of opening up services to national and foreign operators (free license services) in a short time High usability and availability of the service through the web interface or through machine to machine Widespread management of service through Mobile-App for the drivers: receive alerts, reservations, critical issues and contingencies communication Operational support in real-time capable of using organizational levers at the national level Full interoperability and communication between UIRNet, institution and logistics operators (e.g. Customs, carriers, terminal operators, all actors involved in logistics supply chain...) Usability of NLP technology for all complex and even cross-border systems 8

10 Successful core services application: the North-West Project Porto di Genova Model implemented in the North-West (IT) KEY NUMBER 1 Mission and Vehicles - Data Registered Enter Positions vehicles Tracked vehicles Trucking company 5 Alert: Docs not ok 3 Arrivals - Notice and ETA * Infologistics Service Pre-Arrivals notice Tracked vehicles 805 vehicles 2 Positions 4 Docs ok / not ok Port of Genoa Advance Notice Avg. Waiting 160 Notices to the day on VTE* - 17 Minutes 3 With the notice of arrival Vehicles Average Time stop saved at the gate for those who use the Arrival Notice Service The North West project involves the development of the services for approx vehicles registered and 851 transport companies involved 9 (*) ETA = Estimated Time of Arrival VTE = Voltri Terminal Europa

11 FUTUREMED pilot project: customs corridor 10

12 UIRNet as service infrastructure: The importance to be the National Logistic Platform Thanks for your attention Valencia - March 27,

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