Luca Abatello, CEO, Circle. Extended smart ports and international fast trade lane: challenges and concrete experiences

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1 Luca Abatello, CEO, Circle Extended smart ports and international fast trade lane: challenges and concrete experiences

2 The Ports of the Future; Digitalisation & Fast Trade Lane; Internet of Things & Blockchain; Innovative procedure to increase customs & security efficiency; Successful cases; MILOS and Sinfomar framework.

3 Ports of the Future

4 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: Digitalization using IoT device; Intelligent Information Infrastructure; Integration of different Management areas; Optimal and maximal utilization of the existing capacities. The Results 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

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 between Actors & systems represents an essential tools to the establishment innovative & semplified Corridor procedures CORRIDOR MANAGEMENT PLATFORM Port Terminals IoT device Customs Agency systems Port Community System IoT devices Shipping Agent & Company Terminal Operating System Inland terminals

6 The Ports Automatization Tools 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. 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.

7 Gate Automation - Management Dashboard The Gate Automation allows the real-time management of the information relating the Gate-In and Gate-Out operations increased the level of security and decreasing the transit time integrating all flows and infos arriving from OCR, IOT & Security. Gate Automation Management Dashboard

8 How the digitalization is the key of Extended Smart Port Main topics: Internet of Things; Blockchain and smart contracts ;

9 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 its Digitalization Strategy.

10 IOT, in our vision, creates innovation & benefits with the integration between new IOT technologies and processes of logistic, port and intermodal supply chain. Interconnected Systems Fully Integrated supply chain Internet of Things With 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.

11 IoT devices and tags used inside the logistics chain

12 Example of logistics cycle using IoT devices * The Data collected by IoT device can by stored inside Blockchain Platform

13 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.

14 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.

15 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.

16 Innovative procedure to increase the customs efficient Main topics: The concept of Customs 4.0; Cars industry 4.0 project & innovative procedures; Supply Chain 4.0 Smart Logistic Chain SmartPort

17 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

18 Cars industry & supply chain 4.0 project The project involved an international export transport of new vehicles between the production plant and the ports of Civitavecchia and Salerno to the final destination. A fast export procedure using passive RFID Tags and a Corridor Management Platform were implemented, integrating logistics and Customs aspects. Private actors involved: Freight Forwarder; Circle; Car Shipper / Producer; Grimaldi Lines; Grimaldi Terminal in Civitavecchia and Salerno; Public Institution involved: Port Authority of Salerno; Port Authority of Civitavecchia; Italian Customs Agency.

19 Trieste SmartPort

20 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.

21 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.

22 Trieste SmartPort and Sinfomar platform

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24 LUCA Abatello, Circle CEO. Mobile: