PAPC Conference

IAPH Africa-Europe Regional Meeting

PMAESA Council Meeting

Djibouti Date: 3/11/2008

National Infrastructure

A country’s trade efficiency relies on the processes that it carefully builds for its trade supply chain

A country’s infrastructure capacity / demand may experience in spikes, ramp-ups, surges, …etc., while its infrastructure grows in steps

Solutions for capacity / demand growth does not always lie in a matching increase of infrastructure

Non capital-intensive projects may prove to be more effective than concrete laden projects

PPP is vital to “non capital–intensive” projects, since services are driven by HR, technology, efficiency and effectiveness

Port Congestion’s Other Face

The immediate solution to any port congestions is: building another port

Investments in new ports take time

Investment in these economic down-turns could delay decision for years

Immediate focus is usually on quay side and in-terminal operations

Limited maneuvering room for getting cargo out of the terminal

Off-port yards are a costly, difficult solution

Coordinating truck operations with cargo availability is key to immediate improvements

Hence, NAFITH TCS…

NAFITH Profile

NAFITH (National Freight Information and Transportation Hub) is a freight transportation logistics service to facilitate cargo movement countrywide, or through transport corridors

Concept developed by FreightDesk Technologies (USA) and Nafith Logistics PSC. Jordan

Has been adopted by Jordan through a Public – Private Partnership with Nafith Logistics PSC., operated as privately-funded, publicly-chartered utility, financially supported by users and beneficiaries

5

• More than 2000 truck transits per day

• Recurring congestion problems in Aqaba city and at key port terminals

• Long, indeterminate wait times causing 3x longer roundtrip times than necessary

• Poor coordination between trucks and terminal activities

• Limited shipment status visibility for cargo owners

• Pollution and disruption of popular tourist areas (exhaust/noise/traffic)

• High truck transport costs

• No performance measurements

The Situation (2005)

• Government support and legal authority required for improvements

• Pervasive corruption problems

• Incumbent trucking cartel resistant to changes to status quo

• Limited use of computer-based systems in transportation sector

• Limited infrastructure to support 24x7 operation of computer systems

The Challenges

ASEZ Truck Movement – Before NAFITH

Before NAFITH TCS

Other Objectives of TCS

Enhancing security and safety

Decreasing truck emissions and pollutants

Decreasing cost of freight from and to ports

Abiding by national regulations

Providing information on transportation and freight nationally

Main Stakeholders

Ministry of Transport Port Authorities Terminal Operators Customs Trucking Companies, Truckers Border Control Authorities NAFITH

Yards – after TCS

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INTERNET

Truck/cargo statusBilling/payment

info

Request entry &

routeTime &

route assignment

Time & route

assignment

Verify truck, driver, route,

cargo

Provide truck ticket with routing instructions

Track truck enroute and

at marshalling

yards

Record cargo pickup at terminal Record

truck exit

Nafith Truck Control System

FDfolio™

GovernmentRegulatory complianc

e and status

reports

Truck Company Manager

Dispatcher

ASEZA Truck Movement – The Solution

Electronic validation and compliance checks

TCS IT Systems

Automation of Business Flow implemented by NAFITH Developing a Web Based, Multiple Language system, including

Arabic Automated and manual capture of detailed logistics event data

across cargo and vehicle movement life cycles Flexible management of Capacity of the marshalling yards,

destinations and roads through Advanced Queuing Algorithms Verification of Trucking Companies and Availability of Cargo

through integration with MoT and National Customs Creating an easy-to-use matrix of adding/removing destinations and

roads on a need basis Complete Transparency and Control between ground operation

and administrators An information Hub to retrieve Statistical Information on truck flow

within the ASEZ through an extensive reporting module for future projections (congestions areas, truck turn over, truck flow, … etc)

High Volume of Transactions and Large User Base

Logistics Event Capture

Screen based entry System to system integration RFID GPS Barcode

Detailed Operational Data

Planning Statistics

Monthly Permits by Cargo Type

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

CARGOCARS

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ls Tan

ks

EMPT

Y CONTA

INER

FROZE

N GOODSFU

EL

GRAINS

HEAVY LOAD

LIVE S

TOCK

Load C

ONTAINER

MANUAL

Off Load

Container

PETROLE

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PHOSPHATE

POTASH

Petroleu

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SULF

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2008-01

2008-02

2008-03

2008-04

2008-05

2008-06

2008-07

2008-08

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• Avg. 3000+ permits daily/18,000+ daily events• Validates truck, driver and cargo information and

routes traffic to reduce congestion and enhance security

• Freight rates dropped 20% due to improved efficiencies and trucking company profits rose

• Transparent, automated system removes manual decisions thereby reducing corruption

• Improved visibility of information used to support cargo tracking, equipment/driver utilization and regulatory compliance

• Fully localized user interface

• Requirements gathering began mid-August; system operating three months later by mid-November 2005

• Received 10-year services contract to operate business and manage 200 people and IT systems

ASEZA TCS – After NAFITH

National Impact of TCS

Quantum increase in transport efficiency Terminal operators focus on terminal operations Coordinated moves, e.g. drop off/pick up, on the rise With TCS, regulators are removing operational constraints on trucking

companies System keeps traffic moving with seasonal and other spikes in

volume

Data from TCS facilitates better short and long term planning TCS can give priority to strategic supplies, e.g. fuel, grains, when

necessary Better environment with less pollution Improved road safety and incident management More investments materialized in the trucking and logistics

sectors because it simply became more transparent and feasible

Toppings

Pre-notification of containers and shipments

Coordination of express permits

Appointment system for containers and bulk cargo, enabling stakeholders to have longer term planning

Terminal operator staff planning for overtime or higher than usual loads

Implement RFID network and tags to capture events more efficiently

More timely information for all stakeholders (clearing agents, truck companies, shipping agents, and ports)

NAFITH: Conclusion

TCS in Jordan, like PierPASS in Los Angeles and GEM in New Orleans, is leading the way to improve truck logistics around ports

NAFITH is well-suited to implement solutions that can work in the cargo transport environment in Africa

Our experience with coordinating and monitoring transit cargo can enhance services to land-locked countries and through corridors

NAFITH TCS approach can increase capacity without major new physical infrastructure

Advanced services needed more cutting edge technological investments in a short period of time