“COMMUNITY PLATFORM FOR PORTS & SHIPPING”

Mumbai, 28th Oct 2015

COMMUNITY PLATFORM IN PORTS & SHIPPING

Thanks to AMTOI for opportunity to present our experience in industry EDI

Profile of our established community platform

Suggestions for approach for ports, ocean freight and multi-modal transport

ACAAI: LONG HISTORY IN EDI “UPLIFT”

ACAAI explored EDI since 1980s, with Trade, Airlines, Customs, MoC. ACAAI set up CSI (“Community Systems India”) for ACAAI Member air

cargo agents to connect with Airlines – early version of what we have today – UPLIFT.

This preceded IATA’s e-Freight; Customs’ Icegate; DIAL’s gateway system / MIAL’s GMAX, etc

ACAAI pioneered Govt initiatives (MoC, MoF / CBEC) for EDI development. In 2009, ACAAI appointed Kale Consultants as EDI partner for UPLIFT –

“Universal Platform for Logistics and Integrated Freight Transport” UPLIFT is a digital platform facilitating interactions between exporters,

importers, CHA, forwarders, carriers, airports, customs, chambers of commerce, custodians, overseas agents, other Indian and overseas community systems, etc.

“UPLIFT” PARAMETERS

Must connect all segments of the trade, as also concerned departments / organizations of the government / regulators;

Must cover all organisations within each segment; Must maximise coverage of all functionalities and applications; Must interface with systems of all players in the trade (Customs, Carriers,

Ground Handlers, Terminal Operators, other Regulators, Banks, Insurance); Must aim to rationalise and optimise processes, yielding cost- and time-

efficiencies; Must have guaranteed uptime: tight parameters for (planned) downtime; Must provide maximum security and confidentiality of data; Must be sustainable, with development & enhancements to adapt/upgrade to

changing trade and regulatory environment.

“UPLIFT” FEATURES

Currently UPLIFT has digitized following interactions:Stakeholders Digitized Transactions / DocumentsExporters/Importers – Forwarders / CHB

Freight booking, Invoice, Packing List, SLI, pre-alerts

Forwarder – CHB Job information, job status, Consol DO

Forwarder – Airline E-booking, e-AWB, e-House Manifest, tracking

CHB-Customs Shpg Bill, Bill of Entry, Acknowledgements, Status

Airline – Customs EGM, IGM, Acknowledgements

Forwarder – Customs Consol General Manifest, Acknowledgements

CHB-Airport Carting Order, TSP, Vehicle Token, Deliver Order

Airline –Airport Segregation Reports, Delivery Status, Carting Approvals

Forwarder/CHB/Exporter – Chamber of Commerce

Certificate of Origin

Forwarder – Overseas Agent Pre-Alerts

UPLIFT for Shipper

FEATURES Send shipment data to forwarder

online; Upload shipment data from excel or

other file formats on to UPLIFT; e-Docket feature: e-transmission of

shipment documents and archival; Check & validate shipment booking; Receive SMS/e-mail status updates; Door-to-door visibility of shipment

transit to destination.

BENEFITS Single point data entry: documents

& image files Multiple RFQ’s at a single click Single window view Online HAWB for approval Pre-defined formats to integrate with

shipper’s internal system. Online chat facility Select milestones to schedule

automatic updates Shipping documents online Online payments

UPLIFT for Forwarder / Consolidator

RFQ’s floated by shippers Airline schedules & space availablity Access profiles of multiple service

providers Past shipment records from shipper Float RFQs; avail booking online Quote online to multiple shippers Quotation revision & receipt,

evaluation / re-negotiation of quotes E-Payments of Customs cess, duty

and TSP charges Online filing of SB, BoE & CGM on

ICEGATE

Interact with Customs, custodians, banks and airlines

Pre-alerts HS codes Customs notifications & circulars Transmission & receipt of shipment

documents End-to-end shipment visibility Single window to all custodians Interfaces Forwarder’s internal

operation system using flat file, csv, xml and xls

UPLIFT for Airlines

Electronic receipt of booking requests Electronic receipt of Air Waybill data Customs interface for transfer of

IGM / EGM / AMS/ EU customs Alerts from custodian / agent Single window to custodians for

carting orders & shipment status Proper validations at data entry point

of shpt booking and AWB processing e-dockets to store data Rates to agents through a single

channel

Receive RFQ, Quotation floating and negotiation

Raise CAN, CSR / Invoice and deliver personalized alerts and messages to trade partners

Status updates on cargo movement to and within airport terminal

e-meetings and web casts UPLIFT helps community members

share & acquire industry best practices

Advertisement of spot offers, discounts and rates

UPLIFT for Airport Custodians

Online receipt of validated shipment data Proactive milestone alerts Terminal Charges (TSP) Online TSP payments Shipment data populated online in Custodian’s system Online intimation of e-payments made for TSP and Demurrage Reduced congestion at airport within given infrastructural constraints Proactive alerts for preventing service failures Higher Customer Satisfaction with improved visibility

PREVAILING INDUSTRY ENVIRONMENT

TECHNOLOGY PLATFORM: CONNECTIVITY ISSUES & EDI Various hindrances to implementation of EDI in Indian context. Compartmentalised approach to development, esp. EDI:

Need for industry overview, integrated approach, common platform. New EDI Systems are not fully effective against the human factor in

operations; Flow of goods and information is not seamless – there are too many stages

between the shipper’s door and export uplift, or vice versa from arrival of flight till the delivery to final consignee.

Same commercial, customs and transport data entered multiple times during the logistics flow high administration costs and scope for manual errors.

PREVAILING INDUSTRY ENVIRONMENT

Processes vary at different (air)ports – no standardization. Governmental agencies not interconnected e.g. Octroi, Customs, DGFT Frequently changing compliance standards create difficulties. No integrated Cargo Community System (CCS) through which all players

and regulators can be connected through a single platform, and which provides door-to-door shipment visibility and process functionality.

RECOMMENDATIONS

Universal Platform (Cargo Community System) through which Customs, Custodians, Carriers, Terminal Operators, Forwarders, CHBs, other regulators / authorities are connected, for door-to-door shipment visibility and completion of all transactions and processes at and beyond ports.

Custodians and Lines may offer incentives for automation in rationalised processes and reduction (& eventual elimination) of paper.

Legal / Regulatory framework to allow electronic data as substitute for documents

Definition of data exchange standards for processes specific to India Harmonization of data interchange standards Simplification of taxation structures

PRE-REQUISITES

Effective implementation needs mandating: EDI Standards Standardized processes Digital Signatures Linking Regulatory Agencies and Acceptance of multimodal EDI.

UPLIFT MILESTONES

India’s first multi-modal CCS platform – crossed 3.5 million transactions; and is the fastest growing CCS globally.

Large Airports like Mumbai already adopted the platform. Has delivered 100% electronic messages for 2 large European Carriers in Mumbai –

a first in the world. Platform has helped India get catapulted to No 6 Rank globally in e-freight from the

earlier rank of much below 100. Platform is most comprehensive in the world with participation / connectivity to

airlines, forwarders / CHBs, major airports, customs, chambers of commerce, custodians, transporters, ground handling agents, banks.

Platform is globally recognized with accolades from KPMG and Kellogg’s Business School

PORTS & SHIPPING SECTOR

© Copyright. 2015. Kale Logistics Solutions Private Limited

Background

India’s ranking in “Doing Business” report of world bank is extremely low

We require twice the number of documents, about thrice the time to complete EXIM procedures and our costs per unit for EXIM are almost thrice that of Singapore

INDIAN ECONOMICS

India’s logistics costs are amongst the highest in the world at around 13% of GDP. An average 1% reduction in transaction costs increases GDP by 2.9% (Source: World Bank)

Our rank in Doing Business report of World Bank is very poor at 142. Facilitating trade is a critical factor in determination of the rank.

At least 30 types of documents and around 120 copies get generated in the Exports process. most of which has common data.

There is a significant opportunity to simplify the documentation procedures and improve efficiencies to reduce logistics costs!

SHIPPING INDUSTRY PAIN AREAS

Original shipment documents (Commercial Invoice / Packing List) have most of the data to create subsequent documents, but is exchanged manually.

Forwarder / CHB has to access multiple stakeholder systems (shipping line portals, custodian portals, customs portal, bank portal etc) and re-enter shipment data multiple times – time/resource costs.

Many paper documents in multiple copies required by multiple parties (e.g. around 120 copies of paper needed to export a shipment etc.)

Automation in the industry is heterogeneous and at most ports there is no single window EDI for the trade to address “Land” side issues.

No single point visibility of shipment. Multiple regulatory authorities need information already on other documents;

hence increased delay in getting multiple approvals based on same information. Sources of trade data for the government are in multiple systems – hence difficult

to get accurate and timely information for policy making

PORT USER COMMUNITY SYSTEM

Stakeholders Transactions / documentsExporters/Importers – Forwarders / CHA Freight booking, Invoice, Packing List, SLI, pre-

alertsForwarder – CHB Job information, job status, Consol DO

Forwarder – Shipping Line E-booking, SI, e-BL, e-House Manifest, Tracking

CHB-Customs Shipping Bill, Bill of Entry, Acknowledgements, Status

Shipping Line – Customs EGM, IGM, Acknowledgements

Forwarder – Customs Consol General Manifest, Acknowledgements

CHB-CFS/ICD Carting Order, TSP, Vehicle Token, Gate Pass

Forwarder/CHB/Exporter – Chamber of Commerce

Certificate of Origin

Forwarder – Overseas Agent Pre-Alerts

CFS – Port EIR

PORT USER COMMUNITY SYSTEM

The Port User Community System should not be purely an EDI messaging switch. Processes should necessarily be re-engineered to maximise efficiencies.

The system should enable single data entry for the end user. It should be either “one touch” or “no touch” automation

All segments to be connected: Ports (Major/minor/private) Shipping Lines, Shipping Agents Consolidators, MTOs, Forwarders, CHBs ICDs / CFSs Road and Rail Container Transport Operators, and eventually Coastal Shipping, Inland Waterways...

Customs Officer

2 3

Vehicle & Driver Details Recorded

Vehicle Pass Issued

1CFS

Gate Out Pass Vehicle No. , Container No. &

EIR is checked

CISF @ Port

Time Taken: 15 Mns.

4

CHA Submits EIR Copy

Time Taken: 15 Mns.

Port Authority

EIR is Verified

and Copy

CHA Submits EIR Copy

Time Taken: 20 Mns.

Time Taken: 15 Mns.

CHA Submits EIR & SB

Copy

Shipping Bill & EIR is Verified

CHA Submits EIR Copy

Customs Seal / Line Seal &

Container # is verified

Time Taken: 20 Mns.

56

Yard Operator

CHA Submits EIR Copy

7

Gate In: EIR is Verified

& Location Allotted

Time Taken: 25 Mns.

Yard Operator

Gate Out: Yard Block I supdated

Time Taken: 10 Mns.

AS IS EXPORT PROCESS

Pass Section @ Port

At CFS / ICD

Preventive Officer

8

1At CFS / ICD

TO BE EXPORT PROCESS

PORT USER

SYSTEM

Gate Out Pass

Vehicle Details

EIR Details SBill Details

CHA Shows Port Pass

Port Pass

CISFGate Pass

OK | Reject

CHA Shows Port Pass

Port EIROK | Reject

Customs S-BillOK | Reject

Preventive Officer

SealOK | Reject

Total Time Taken: 10 Mns.

Yard OperatorCHA Shows Port Pass

2

3

Gate In: Location Allotted

Gate Out:

Location Updated

Total Time Taken: 15 Mns.

Greatly reduced time to check Documents ~ just Minutes

BENEFITS TO STAKEHOLDERS

Exporter / Importer

Carrier

Reduced costsFaster e-freight adoptionBetter customer satisfactionBetter planningSecurity at reduced costs

Chamber of Commerce

Transporter

Government

Better shipment visibilityReduced inventoryFaster movement of goodsReduced paper managementReduced logistics costs

Reduced waiting timeReduced costsFaster tripsBetter customer satisfaction

Reduced paper handlingReduced CostsCompliance to e-trade

Reduced paper handlingReduced manpower Reduced revenue leakage

Reduced overall transaction costsIncreased exports competitivenessBetter securityEfficient trade information availability

Trade facilitation

using technology

KEY RECOMMENDATIONS

Reduce dwell times at Ports Reduce overall transaction costs Implement a policy for mandating single window Community System at all Ports in

India for trade facilitation Create an interface between CCS and (planned) Customs Single Window system Adopt and mandate EDI standards for key documents such as Invoice, Packing List,

Certificate of Origin, B/L, Manifests Implement digital signatures to replace physical signatures Implement a policy of allowing e-dockets instead of requiring physical papers to be

submitted Implement near real time interface between port-wise systems and a National Trade

Data Repository for access to real time information for policy making

THANK YOU