A voyage of discovery

Much like the voyages of discovery to the New World 500 years ago, Port Community Systems are taking their time to spread beyond Asia and Europe.

In the US, they are virtually unknown outside their uses in security and safety. One US executive contacted by Port Strategy assumed the term refers to group activities in suburbs and towns close to ports.

Arguably, one of the three most diverse world suppliers is TSB (whose official name is the confusing Total Soft Bank) of Korea - with sites at four ports in Europe, Africa, Asia and the Middle East using its Port Logistics Unifying System (PLUS) and a fifth close to being announced in the US. More than 70 terminals worldwide operate its CATOS (Computer Automated terminal Operating System).

Also up there is Belgium’s Phaeros, with its Harbour View and Cargo System.

European ports have undoubtedly benefitted from PCS in varying forms. An outstanding system is Portbase, linking Rotterdam and Amsterdam in virtually every activity. So far, 40 different services are offered, with Notification of Dangerous Goods (as an EDI) next in line.

The big test in extending Portbase lies in fitting the programme into less homogenous conditions elsewhere.

For TSB, added value and versatility are strong points for users. Executives say that management at ports has largely been eager to implement more efficient information interchange. "They realise very quickly that the supply chain benefits hugely," says Arnold Kang, general manager.

At Gothenburg in Sweden, the most significant aspect was integrating with the government systems, regulations and requirements – especially in areas such as control of dangerous goods and waste disposal.

Chad Lee, senior manager, emphasises the single window application as being a key to success. Based on a module approach, three sub-programs – the Vessel Clearance System, Marine Service System, and Cargo Management System – cover the spectrum of operations linking port customers, users, management and government authorities.

"What makes it particularly powerful is that vessel Automatic Identification Signals are into the platform, giving a greater degree of accuracy and reliability of information."

It’s easy to see why sophisticated and industrialised Sweden wants such a tool but less so in regard to under-developed Kenya, where Mombasa is plagued by delays and inefficiency is heavily labour intensive.

"They have been able to significantly improve efficiency," says Mr Kang. "Previously, all the administration was paper based. Cargo was getting lost and stolen, ships were held up in port without being able to unload. Revenue has increased, dwell times have lessened and theft is reduced."

The same has been found at Dar es Salaam in Tanzania, Mombasa's rival, which has adopted Phaeros and has found an enormous improvement in service.

Ports in emerging markets are in fact prime beneficiaries from PCS products. Says Walter Kemmsies, chief economist for global consultant and engineer Moffat and Nichol: "They realise they can get a step ahead of competitors by setting up more efficient and secure information systems."

A port observer echoes this. "In developed countries the differences are marginal when new systems are set up, because every port is already heavily computerised. In emerging markets even the most basic computer system can mean a huge step forward. It's also a big plus when free trade agreements are signed. Customs departments will zero in on the most efficient port as the designated Foreign Trade Zone and bonded warehouse site. The more efficient a port, the more likely that it will be used as a trade lane."

In the US, the focus of information exchange is almost solely on safety and security, a consequence of the 2001 terrorist attacks. Commercial and operational information sharing is almost non-existent, and the reason is the extremely competitive culture that pervades business.

The universal opinion is that terminal operators and port authorities jealously guard their business models and details from rivals. And as one official puts it:"This is all a case of ‘you jump in first'. There is a total refusal to be the first to set up a system – the competitors would be only too happy to plunder the information without giving anything back in return."

In complete contrast, the approach to security and safety is "the more the better".

At Los Angeles, the biggest US container port, a command and control network is being implemented to send instant information to relevant users on any safety or security problem. "It can be a container accident, vessel spill or vehicle accident," says chief information officer Lance Kaneshero. A second network ties in the port police, fire department and associated agencies.

For its command and control network, Los Angeles has bought the Situator programme suite from Nice.

As an example of the emphasis on security, dozens of video cameras covering every corner and aspect of operations at Los Angeles have been installed at a cost of $25m. This is hugely more than ports have spent in other countries on setting up a PCS.

Across the country, the Seafreight Agencies terminal Port Everglades in Florida has installed wireless transmission points, supplied by Fidelity Comtech, on existing lighting masts to send individual container details to the Navis TOS. Dockworkers scan the boxes with handheld wireless devices.

Even if the US fails to catch up, it is clear that the next step in PCS is linking ports by trade lanes.

"The Marine Information Highway will expand greatly if far flung ports on the trade lanes cooperate more," says Mr Kemmsies. "Places sitting on opposite ends of the trade lane have every reason to cooperate."

Port tie-ups being looked at very closely include Hong Kong-Long Beach and Houston with the Persian Gulf oil exporters.

One country that urgently needs better information sharing is Brazil, says Mr Kemmsies. "Paranagua started an appointment system only a couple of years ago and it could well do with efficient coordination. Ships are kept waiting, demurrage piles up and lines try to avoid it. The country is underperforming on exports and ports should be sharing and coordinating."