Linking Single Windows to Port Community Systems:

The Valenciaport Case

Carolina Navarro

cnavarro@fundación.valenciaport.com

REGIONAL POLICY DIALOGUE- TRADE AND INTEGRATION

NETWORK

Designing and Implementing Single Windows in the Caribbean: Good

Practices and International Standards

Port of Spain,Trinidad y Tobago – April 10th, 2015

Objetives of the presentation

• Short introduction: Valenciaport

• Challenges for ports and the role of ICT systems

• What is a PCS? Difference with SW?

• Valenciaport case study: Valenciaportpcs.net:

• Need to manage complexity

• Towards a port connected to the world

• Adding value

• Some recommendations

The Port of Valencia….

“Wecolme to Valenciaport”

The Port Authority ofValencia (PAV), whichtrades under the nameof VALENCIAPORT, isthe public bodyresponsible for runningand managing threestate-owned portsalong an 80km stretchof the Mediterraneancoast in Eastern Spain:Valencia, Sagunto andGandía

Organismo Público con

Personalidad y Patrimonio Propio.

Gestiona sus Intereses bajo el

Principio General de Autonomía

Funcional y de Gestión.

Public Entity in charge of the implementation of the Central Government’s general Port Policies and of the coordination and

control of the efficiency of the Spanish Port System

Public Entity with legal responsibility and ownership of its own assets

Manages its functional and administrative interests autonomously

The Port Authority of Valencia and the Spanish Port System

Our three port at a glance

Sagunto: 7,33 Mio. Tons35.442 TEU

Valencia: 59,53 Mio. Tons4,4 Mio. TEU 692.471 Passengers319.458 Regular Lines Passengers373.013 Cruise Passengers437.544 Vehicles

Gandia: 0,32 Mio. Tons3.837 TEU V

ale

ncia

po

rt:

67 M

ioTons; 4

,44

Mio

TE

U

Traffic throughput PAV, tons/type of presentation

The container our main traffic

74%0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

2009 2010 2011 2012 2013 2014

Liquid bulk Solid bulk

Containerized General Cargo Non Containerized General Cargo

Traffic throughput PAV, TEUs/type of operation

Gate/transhipment port (Mixed hub concept)

SPAIN

SOUTH & EAST AFRICA

WEST AFRICA

NORTH AFRICA

NORTH EUROPE / BALTIC SEA

MEDITERRANEAN / BLACK SEA

AUSTRALIA & NEW ZEALAND

MIDDLE & FAR EAST

USA / CANADA

CENTRAL AMERICA / CARIBBEAN

SOUTH AMERICA

Port of Valencia container traffic by geographical area in 2013 (Import/Export/Transhipment)

5,17

6,59

%

3,64

7,21 25,99

4,58

5,01

0,76

30,74

0,52

NORTH EUROPE / BALTIC SEA

WEST AFRICA

MIDDLE & FAR EAST

MEDITERRANEAN / BLACK SEA

NORTH AFRICA

SOUTH & EAST AFRICA AUSTRALIA & NEW ZEALAND

SPAIN

9,74

Container Traffic by Geographical Areas (TEUs)

“Challenges for ports”

Maritime transportation is undergoing more change in recent years than it has in the past hundreds

of years

Security Consolidation

Growth

PortChallenges

Challenges for ports

Maritime transportation is undergoing more change in recent years than it has in the past hundreds

of years

Growth

PortChallenges

Security Consolidation

Assuring container

security is the most

important issue facing

maritime transportation.

Few players have been

willing to pay for it

Export trade is

growing twice as fast

as GDP mainly due to

industrial off-shoring

Maritime transportation is

clearly in a consolidation

phase as companies

combine to extract

greater utilization from

fixed assets

Modern logistics chain

demands efficiency at

each step of the

process; ports are no

longer isolated elements

Leading ports have also reacted to these

challenges by investing in technology…

Port Community Systems

“The need to manage complexity”

Each TEU movement requires multiple communications among members of the port

community, thus creating a complex information web

The diversity of actors around a port requires the

harmonization of procedures for organizing and

standardizing operations in the logistics chain.

TRANSITARIO

IMPORTADOR

EXPORTADORAGETE DE ADUANAS

ADUANA

TRANSPORTISTA

CONTAINER

DEPOT

CONTAINER

TERMINAL

AGENTE MARÍTIMO

NAVIERA

AUTORIDAD

PORTUARIA

OTRAS

AUTORIDADES

FREIGHT

FORWARDER

EXPORTER

IMPORTERCUSTOMS AGENT

CUSTOMS

TRUCK COMPANY

CONTAINER

DEPOT

CONTAINER

TERMINAL

SHIPPING AGENT

CARRIER

PORT

AUTHORITY OTHER

AUTHORITIES

All the Port Community at the same Virtual Table

A PCS is an electronic platform that connects the multiple systems operated

by a variety of organisations and make up a seaport or airport community.

It is shared in the sense that it is set up, organised and used by firms in the

same sector – in this case, a port community.

Is a PCS a software product?

No, a PCS is a value added service offered by an operator to participants in the port

community with the following characteristics:

• It shall be neutral and open to the entire port community, enabling secure

exchange and an intelligent use of information between public and private actors in

order to improve the competitive position of maritime and air port communities it

serves;

• It shall optimize, manage and automate logistics and port processes efficiently

based on the unique provision of data and linking logistics and transport chains.

What is a port community system (PCS)?

B2B

B

B

B

B

B B2B

B

B

B

B

B

B

B

B2G

B

B

B

B

GB2G

B

B

B

B

G

G

G

B BB2B

G GG2G

B2G G2G B2G

B2B B2B B2B

B

B

B

B

B

B

GG

G

Bu

sin

ess

Go

vern

me

nt

Bilateral communications

Value Added Networks (VAN)

Virtual Private Networks (VPN)

Intra-governmental

communication networks

Business portals

Online shops

Online access

Virtual offices

eGovernment

e-marketplace

Sectoral Portals

Service Aggregator

Administrative Single Window

Port or Cargo

Community Systems

(PCS o CCS)

The huge diversity of management systems needs to achieve a connectivity at enterprise, inter-

company and inter-government levels.

PCS deliver Business to Goverment (B2G) and Business to Business (B2B) messages and in

some cases Goverment to Goverment (G2G)

Are PCS and SW the same concept?

GOVERNMENT SERVICE TO LODGE STANDARDISED INFORMATION AND DOCUMENTS THROUGH A

SINGLE ENTRY POINT.

GOVERNANCE PHILOSOPHY AND MANAGEMENT TO IMPROVE THE CONTROL AND SECURITY, AND

FACILITATE AT THE SAME TIME INTERNATIONAL TRADE.

What is a Single Window?

REPORTING FORMALITIES DIRECTIVE 2010/65/EU

The directive 2010/65/EU aimsto simplify and harmonise theadministrative proceduresapplied to maritime transportby establishing a standardelectronic transmission ofinformation and byrationalising reportingformalities for ships arriving inand ships departing fromEuropean Union (EU) ports.

Local Single Window

National Single Window

Port Community Systems

“Towards a port connected to the World”

valenciaportpcs.net provides complete coverage of land, port and sea

21

Schedules

Bookings

Shipping Instructions

Call Request Dangerous Goods

Inland Transport

Container List Orders

Railway Transport

Goods Declaration

Customs Information

Integral Track and TraceQuality Monitoring and Reporting

Sea Port Land

valenciaportpcs.net is the result of a large process that aimed the improvement of port community

productivity through IT

Evolution of infostructures

Objective:•Automate internal processes–Internal information systems

Technology:•Voice services•Image services•Data services

Stage 1: The isolated port

Objective:•Connect with port agents for critical business processes–Cargo Manifest–Customs Declaration–Berthing Management–Hazardous Materials

Technology:• EDI

Stage 2: The connected port

Objective:•Build communities both into the land side with land carriers, and into the sea side with shipping companies–Community Information System–Development of Infoportals–Seal of Quality Guarantee

Technology:•Community portal•Integration with web technology/ RFID

Stage 3: The port community

Objective:•Increase efficiency by automating operations in a paperless, error-free process•Modernize logistics management•Increase connectivity by full integration with external agents•Foster integration by connecting Sea-Port-Land operations, improving the cooperation of the Port Community •Reinforce bonds with partner ports

Technology:•Microsoft .NET solutions•Web services/ RFID•XML

Stage 4: A port community

connected to the world

1980 1992 1999 2005

Developing a PCS from scratch is a high risk long-term project that typically takes 10 to 15 years and

costs tens of millions

Associated risks from developing a PCS from scratchStages of evolution of a Port Community System

Stage 1:

The isolated port

Stage 4:A port community connected to the

world

Stage 2:

The connected

port

Stage 3:

The port

community

10-15 years

Developing the

Port Community

Value for the

agents operating in

the port

• Cost overruns

• Project delays

• Lack of acceptance in

Port Community

$

A project such as valenciaportpcs.net requires the involvement and support of the whole PC

... assuming the following roles

Port Community Involvement...

ForwardersPort

AuthoritySociety Shippers

Port

Community

Shipping Co

Road and

Rail transport

Administration

Institutional support and promote

community creation

Institutional and financial support

Main user of the portal

Project leader and infrastructure

supplier

Promotional area users

Information suppliers and portal users

Port authorities can play a major role by leading the creation of the port infoestructures

for their PCS

Entrepreneurial

Associations

valenciaportpcs.net

Adding Value

Saving Money

27

28 shipping

companies

233 logistics operators

71 maritime

agents

> 190,000 daily

messages

28 empty container

depots

3 container terminals

99% of valenciaporttraffic use at least one of the PCS services

296 road transport

companies

2 ro-ro terminals

5 railway operators

Container List orders for Load/Unload

(with Automatic Customs Check for Export and transshipments)

• Checking a list of 5000 movements took 4 hours before having this tool.

Efficiencies and benefits

Container List Orders

Customs Information

1h 2h 3h 4h

• Now only 3 minutes.

• Time required to verify the transshipped containers of a vessel has been reduced by ten times both for the shipping agencies and the customs’ police.

Building a PCS

Some recommendations

Source: IPCSA

Thanks for your attention!

Carolina Navarro

cnavarro@fundación.valenciaport.com

REGIONAL POLICY DIALOGUE- TRADE AND INTEGRATION

NETWORK

Designing and Implementing Single Windows in the Caribbean: Good

Practices and International Standards

Port of Spain,Trinidad y Tobago – April 10th, 2015