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AUTOGATES PRE-ADVICE: INDUSTRY WORK GROUP:POSITION PAPER:Version1

14 August 2009 version 1

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Contents

Introduction and context

Industry approach

Objectives, deliverables and Work Group scope

Work group recommendations

Way forward

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Introduction and context

TPT is in the process of introducing automated gates at their container terminals with the view to ensuring that these facilities/services contribute positively to optimal road/terminal interface and reduced vehicle processing times

In order for automated gates to justify the considerable investment and contribute optimally to the container supply chain fluidity it is TPT’s intention to make the pre-advice of export containers prior to arriving at the terminals’ gates mandatory

During TPT’s bilateral engagement with Shipping Lines and Industry forums the general consensus was that the pre-advice of export containers is critical to deriving the optimal benefit from the automated gates

The identification and assignment of roles and responsibilities together with the practicalities of routing information flows remain a challenge

The introduction of TPT’s new Terminal Operating System (NAVIS), fortunately presents opportunities for potential solutions in this regard

In order to effectively design and implement the required pre-advice business process it is critical that a holistic Industry approach be adopted

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Industry approach

In order to ensure that workable pre-advice export business processes with clearly defined roles and responsibilities are developed and implemented as a matter of urgency, TPT approached SAASOA, SAAFF, Harbour Carriers division and Warehousemen to participate in an initiative to develop the required business processes

The content of this document is a direct output of the work group constituted from the above stakeholders

SARS were requested to participate in this initiative with the view to ensuring alignment with future SARS strategy/legislation/ business processes and computer systems. During a bilateral engagement between TPT and SARS, it was agreed that SARS would participate in this initiative as an observer. This approach was supported by SAASOA and SAAFF

This draft document does not reflect any input from SARS at this point in time. Once the document has been ratified by the working group’s principals it will be made available to

SARS for input Refer to Appendix “A” for the work group members

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Objectives, deliverables and Work Group scope

Objectives and deliverables of work group To agree and sign off on the business pre-advice process option (s

) To develop practical pre-advice information process flows for the

agreed and signed off business pre-advice process option (s) that will facilitate achieving maximum benefit for the container supply chain

The agreed business process pre-advice options to be referred for Legal review in order to ascertain risk and liability implications

Work group scope: Rail ex City Deep & Private sidings: Taken care of not part of this work

group Inter Terminal Transhipments: Taken care of, Shipping Lines to pre-

advise pre-and on-carriers, not part of this work group Empty container shipments Pre-packed staged containers (I.e. depots and packing

stations) Major Shippers Small Shippers

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Work Group recommendations

Key principles Critical Success Factors Proposed pre-advice business process options and

information flows Go to market strategy

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Key principles

The following key principles were agreed to: Pre-advice of export containers will be mandatory Pre-advice information (Booking reference, container number, seal number and

container weight) to be provided preferably by EDI but could be web-based. The Shipper (Packing point) is responsible for the source and generation of

information The pre-advice function can be performed by various parties, as is the case

with the current CTO system, including the following: Shipping Lines Shippers Container Depots Clearing and Forwarding Agents Trucking companies 3rd party pre-advice service providers

The aforementioned parties pre-advise TPT on behalf of Shipping Lines provided they have been authorised/ accredited by the Shipping Lines

Given that TPT only has commercial relationships with Shipping Lines, the responsibility for the correctness of the information lies with the Shipping Lines , as is the case with the current CTO system

The to be agreed on pre-advice business processes to be subject to legal review

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Critical Success Factors

The following critical success factors were agreed to: TPT establish business processes/systems that will allow multiple

parties to pre-advise (see previous slide) TPT to ensure that the pre-advice business processes/systems have

the necessary information security ( The pre-advising party may only have access to/ visibility of the units that it is pre-advising) and adequate audit trails ( Parties pre-advising, information being pre-advised and subsequent amendments being made are identifiable)

TPT to ensure that an interim solution is put in place and maintained to facilitate the acceptance of containers into all container terminals.

In order to ensure that the interim solution does not undermine the objectives of pre-advice end state the interim solution must have a defined lifespan

The CTO will remain in operation for containers pre-advised at the interim facility ( No faxes and e mails to be used as pre-advice instructions)

The current CTO paper based process to be replaced with EDI/WEB as an end state

The interim pre-advice facility needs to be off-site from the Container Terminals to ensure that pre-advising is not performed at the terminals whilst the trucks are queuing

Industry to agree on a date for pre-advice to be mandatory Go to market strategy has to be implemented as an Industry

initiative

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Proposed pre-advice business process options and information flows: Effectively resulting in all containers being pre-advised using any of the 3 pre-advice options

Can the packing Point pre-advise

TPT?

Yes No

Shipping Line to Authorise this

party

Shipping LineTo pre-advise

PackerPre-advises TPTDirectly using

WEBEDI

Pre-advice Performed using

TPT interimPre-advice facility

Packer presentsInformation toShipping LineDuring working

hours

Shipping LinePre-advises TPTDirectly using

WEBEDI

1 year ?Life span

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Go to market strategy

Direct pre-advice value proposition (“What’s in it for me?”) packaged highlighting following benefits: Cost effective business process using EDI/WEB CTO no longer required Transporter not disadvantaged having to wait for cumbersome pre-advice process before proceeding to the Container Terminal

A go to market strategy to be developed for the following target market segments in order of priority: Empty container shipments (I.e. Depots) Pre-packed staged containers (I.e. depots and packing stations) Major Shippers Small Shippers Pilot projects to be accelerated with an Industry “go to market” strategy Objective is to have 80% of volumes pre-advised by 1 April 2010

Interim pre-advice service offering/facility to be packaged highlighting the following “hassle factors” : Paper based with CTO remaining in force Costly business process in that it is time consuming and likely to attract a service fee going forward Transporters disadvantaged having to wait for cumbersome pre-advice process prior to proceeding to the Container Terminal

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Way forward

The key elements of the way forward are: TPT/Industry, represented by work group, to agree and sign off on

the business pre-advice process option (s ) Development of practical pre-advice information process

flows for the agreed and signed off business pre-advice option (s) Agreed pre-advise business options to be reviewed from a legal

perspective TPT/Industry go to market strategy to be launched:

Pilot projects to be accelerated with an Industry “go to market” strategy Industry to agree and declare a pre-advice mandatory date i.e. the

implementation of “proposed pre-advice business process options and information flows as per slide 9”

Objective is to have 80% of volumes pre-advised by 1 April 2010

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Appendix “A”: Work group members

Name Representing

Natasha Vaughan SAASOA

Thomas Eckert SAASOA

Paul Scannell SAASOA

Ashley Govender SAASOA

Dave Watts SAAFF

Jacques de Villiers SAAFF (Warehousemen)

Malcolm Sodalay SAAFF (Harbour Carriers)

Michelle Phillips TPT

Moshe Motlohi TPT

John Hyde TPT

Mark Wootton TPT

Tshwaelo Matlhape TPT

Previn Govender TPT

Sidney Bird TPT