Port Community System

Jamaica

VI Meeting of the Inter-American Network of International Trade

Single Windows

Peru – December 2014

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Presented by:Mr. Dwain PowellPort Authority of Jamaica

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TINSON&PEN&LOGISTICS&AND&DISTRIBUTION&CENTRE&

Mul4modal&Cargo&Transhipment&hub&

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“Jamaica!the!place!of!choice!to!live,!work,!raise!families!and!do!business”!

Ministry of Transport and Works

AUGUST 2011

Building&the&logis4cs&hub&of&the&region&

Jamaica’s Central Location and Global Trade

! There is no doubt that Jamaica has benefited significantly in the past form its central location.

! However, Jamaica’s excellent location is no longer sufficient to effectively compete and maintain its preeminent position, as a leading transhipment hub.

! Global trends have seen ports evolving from being just a gateway to international trade to become an integral part of global supply chain and logistics industries through integration with in-land port and multi-modal facilities .

! Jamaica’s Vision 2030 envisages Jamaica becoming a major global logistics hub, capitalising on its transhipment success with a view to transfer this into becoming a major logistics hub. It is within this context that the GOJ and MTW, has developed a series of projects to enhance and support a multimodal strategy of integrating all modes of cargo transportation to enhance Jamaica’s competitiveness within global trade. Tinson Pen was conceived as playing a major role in enhancing KCT position as being the premiere transhipment hub of the Americas, especially in the post-Panama expansion era.

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JAMAICA’S LOCATIONAL ADVANTAGES

JAMAICA

Caribbean Transshipment Triangle

THE PORT OF KINGSTON

NMIAKCT

Port Royal

City of Kingston

KWL

Kingston is the home of Kingston Container Terminal and

Kingston Wharves Limited

GLOBAL CONTEXT: TOP 100 GLOBAL PORTS (2013)

Source: Lloyd's List Intelligence, Nov 2014

Top 1

0:S

ou

th A

merica &

Cari

bbean

Overview

• A Port Community System (PCS):

▫ is a neutral and open electronic platform enabling intelligent and secure exchange of information between public and private stakeholders in order to improve the competitive position of the sea and air ports’ communities.

▫ optimises, manages and automates port and logistics processes through a single submission of data and connecting transport and logistics chains

• It is a single window for the ports of Jamaica as it is shared, set up, organized and used by firms in the same sector – in this case, a port community. A PCS optimizes, manages and automates smooth port and logistics processes through a single submission of data and by connecting transport and logistics chains.

• The PCS implementation is an opportunity to substantially encourage and promote more efficient and effective trading practices, while reducing the cost of doing business; therefore marketing/positioning Jamaica as a global logistics hub for the region. This will be critical for Jamaica to take advantage of the 2015 Completion of the Panama Canal Expansion project.

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Port Community System Operator

• is an organisation that is either public, private or public/private that operates and maintains a Port Community System and where the Port Community System represents the core of that organisations business.

• has a board, or some form of steering committee, made up of representatives from different internal and external groups within the Port and Logistics community

• has “service level agreements” with PCS users to manage the electronic exchange of information between different parties on their behalf.

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Jamaica Major Initiatives

• Modernization of Customs

• Acquisition of a PCS

• Development of a Logistics Hub

• Privatization of Kingston Container Terminal

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Background

• Given Jamaica’s historically poor ranking with the World Bank’s Doing Business and Logistical Performance Index reports, the Government of Jamaica (GOJ), by way of Cabinet Decision has mandated the Port Authority of Jamaica and Jamaica Customs to:

• Implement a PCS for the Shipping Industry as a Public-Private Partnership (PPP)

• Engage the competitive tender process for the selection of a suitable investment partner

• Establish a Joint Venture Company for the development and implementation of the project.

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Port Authority’s Role• In undertaking the GOJ’s mandate the Authority’s role includes the following:

• Planning and guiding the process of selecting the investment partner(s) who will be responsible for the funding, design, development, implementation and operations of the PCS, by way of a PPP.

• Acquiring Technical and Legal Consultants.

• Ensuring the involvement and sensitization of key stakeholders

• Ensuring that key local stakeholders have an opportunity to invest in the project

• Ensuring the necessary legislative framework is in place to support the PCS.

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Accomplishments & Milestones

• Acquisition of Technical Consultants completed –January 2013

• Stage 1 Evaluation Completed – March 2013

• Stage 2 Evaluation Completed – April 2014

• Contract Finalization – March 2015

• Implementation Start – April 2015

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Outcome of PPP Tender Process

• Stage 2 is comprised of the following aspects:

▫ Establishing the Bidders’ Technical Capability

▫ Financial Capability and the proposed PPP Model

• The Financial Capability and PPP Model included three (3) critical areas, viz:

▫ Proposed Capital Expenditure

▫ Proposed Operating Expenditure

▫ Proposed Transaction Fees

▫ The evaluation process for the Stage 2 RFP was completed in April 2014. On review of the bids, it was found that both were technically responsive and they also demonstrated that they were financially able to undertake the project. However, both proposals would have resulted in high transaction user fees, which would be unacceptable and would make Jamaica less competitive vis-à-vis our competitors.

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PCS:

Project Stakeholders Interaction

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Objectives• The objective of the PCS is to provide a single window portal which inter-alia will:

• Allow the integration of information from various systems, and give community members (including Customs, truckers, brokers/freight forwarders, importers/exporters, terminal operators and trade agencies) access to pertinent data while enhancing the efficiency and effectiveness of their interactions.

• Secure the supply chain with cargo Tracking and Tracing while ensuring confidentiality and accountability.

• Lower business costs for the trading community with the innovative use of, and rationalization of the business processes and practices.

• Be a critical element in the GOJ’s Logistic Hub Project

• Assist in the improvement of Jamaica’s international rankings with the Doing Businessand Logistic Performance Index reports.

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Trade Challenges Facing Jamaica

Internal factors

• Formalities and logistics efficiencies: Doing Business and Logistics Performance Indicators (LPI)

• Costs of doing business

• Time and lack of transparency in paper based transfer of information

• Funding, resources, social issues

External factors

• Global trade patterns

• Regional competition

• Demands and expectations of global supply chains and shipping/logistics operators

• WCO plans for single windows

• UN support for standards and single windows

• Comparative advantage of countries with automated trade processes

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Process Analysis: Import and export lead times could be reduced by

implementing paperless flows and improving procedures

• Manual processes predominantly.

• Excessive document lodging, transfer from one person to

another.

• Processing times within import and export processes lengthy.

• Partial implementation of electronic messages.

• Procedures cannot be anticipated.

• Lack of standardization in electronic exchanges.

• Differences in processes across locations and stakeholders.

• Lack of interconnection of IT applications.

• Lack of visibility and track & trace information.

Gap analysis of the site assessment. Main findings:

Issues on sharing container logistics information

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There is a huge volume of inquiries to the terminal operations daily

To solve the issues on container logistics; it is required that Companies must share information

efficiently and electronically.

all-timeeasily quickly searchable.

Problem(1)

Problem(2)

Problem(3)

Troubles at the gate lead to an increase in congestion

The essential information can be shared among related parties by using a PCS

Outcome(1)

Outcome(2)

Outcome(3)

A PCS drastically eases the burdens on terminal operators!

A PCS provides the ability to manage logistical operations efficiently

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It is difficult to share the information among container logistics related parties

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PCS projects are being carried out in many countries. The majority of major ports

in the world have a PCS

Major PCS upgrades and revamps are also being accomplished in different ports

General impact of a PCS

Some examples of recent / ongoing PCS projects

Port of Valparaiso -

Chile

Cyprus ports

Brazilian ports

Nigeria

Ghana

Benin

Mozambique• Port Community Systems is a mature initiative, its value

has been proved in ports across the world. PCSs have

become a necessary tool for ports to compete.

• PCS development has been usually been tied with

Customs single window developments (in many cases,

PCS have been the natural step after Customs

modernization and single window creation). Countries

from all Africa, Asia-Pacific, Middle-East and Americas

from all income levels have gone through single

window initiatives for trade.

PCS innovation curve

Indonesian ports

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Jamaica PCS Schema Overview

Internet

JAMAICA PCS_TRADE FACILITATION SCHEMA OVERVIEW – OCTOBER 2014

Bureau of Standards

Jamaica

JAMPRO

Trade Board

Pesticides Authority

of Jamaica

CUSTOMS: ASYCUDA WORLD SYTEM

Shipping Lines/

AgentsTruckers

Brokers/Freight

Forwaders

Importers /

Exporters

Port Community Users

PCS

Veterinary Services

Division

Plant Quarantine

Pharmaceutical

Division

Terminal Operating Systems

TRADE FACILITATION SYSTEMS

TRADE AND LOGISTICS SYSTEMS

Warehouses AND Logistic Providers: Private, Public and SEZ

Port Authority of Jamaica

PCS – CUSTOMS INTEGRATION

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Recommended - Port Community

Stakeholder Interaction

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Recommended Port Community

Stakeholder: Transaction Flows

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Main EDI Message typesNAME DESCRIPTION FROM TO

CUSCAR Cargo Manifest Shipping Agent Customs

COPRAR Loading / Discharge

Container List

Shipping Agent Terminal

COARRI Report Loading /

Discharge Container List

Terminal Shipping Agent

COPARN Acceptance Container

Order

Shipping Agent Terminal

COREOR Delivery Order Shipping Agent Terminal

IFTMIN Transport Order Shipping Agent / Custom

Broker

Haulage

COPINO Notification Container

Arrival

Haulage Terminal

CODECO Notification of exit or entry

container at the terminal

gate.

Terminal Shipping Agent/ Custom

Broker/

Haulage

IFTMCS Booking & Shipping

Instruction

Custom Broker Shipping Agent/Carrier

IFTMBC Booking Confirmation Shipping Agent/Carrier Custom Broker

APERAK Control Status Message. ALL ALL

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PCS Major Components

• Message Broker

• Web Interface

• Vessel calls and scheduling

• Electronic Gate Passes

• Haulage Bookings

• Hazardous cargo reporting

• Manifest processing

• Container management including discharge, release and tracking

• Export bookings

• Transhipment

• Inspections

• Bonded warehouse

• Business intelligence and reporting

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Important Elements for Success

• Stakeholder/community buy in and involvement

• Reengineering/optimizing of processes

• Neutrality of operator

• Support of Customs

• Commitment of Port Authority

• Relationship between government entities and private entities

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Commercial Considerations

• Annual fees

• Transaction fees (Per container, weight, per gate release)

• Tariff Structure

• Yearly Opex for PCS Operator SPV

• Continuous investment and development of PCS infrastructure

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National Single Window and PCS

Interrelationship

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Business to Government Transactions

B2G

Government to Government Transactions

G2G

Government Administration

Private Sector and Port Logistics

Business to Business Transactions

B2B

Completed Trade Transaction

Road Map for a Collaborative

Jamaican National Single Window

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Trade Promotion Portal

OGA/MDA

Individual Agency SW Electronic Customs Declaration

Port ManagementPort Community

System

Vessel Call Book and Bill(Shipping Services)

Terminal Operator’s SystemsElectronic Manifest

Declarations

Formalities SW

Logistics SW

Jamaican National

Single Window

Regional SW

Global SW

Global Supply Chain and Shippers

One Stop Shop(Paper and/ or Hybrid)

Thank You

Questions/Suggestions ?

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