Pacific Coast Container Terminal Competitiveness Study - TP 14837E

 

 

[ Previous: Chapter 6 ]

 

 

[ Next: Chapter 8 ]

 

 

 

 

 

CHAPTER 7 - INFORMATION TECHNOLOGIES

 

 

 

 

 

This section describes some of information technologies used at Pacific Coast container terminals. Each of the systems has advantages and disadvantages that are too complex to evaluate here. However, the use of the advanced systems summarized in Exhibit 25 is indicative of terminal competitiveness. In the US, shipping company-owned terminals use advanced information technologies to gain a competitive advantage at each stage in their supply chain.

Exhibit 25 - Information Technologies at Marine Container Terminals September 20071
Terminal & Owner Operator Operating
System
Appointment
System
Radio Freq
Identity
Optical
Character
Recognition
GPS
CKHY Alliance -
LB Pier G
K-Line ITS-Navis Emodal.com Yes Yes  
CKHY Alliance -
LB Pier J N
K-Line ITS-Navis Emodal.com Yes Yes  
CKHY Alliance -
Oakland, Transbay
K-Line ITS-Navis   Yes Yes  
CKHY Alliance -
Tacoma, Husky
K-Line ITS-Navis   Yes Yes  
CKHY Alliance -
Tacoma, Olympic
YM, MTC ESC     APS  
CKHY Alliance -
LA, West Basin
YM, MTC ESC Emodal.com   APS  
CKHY Alliance -
LB, Pier J South
Cosco, SSAM Tideworks Emodal.com Yes Yes  
CKHY Alliance -
LB, Pier A
CS, SSAM Tideworks Emodal.com Yes Yes  
Grand, LA Yusen NYK Navis        
Evergreen -
LA
E-MTC ESC Emodal.com   APS  
Evergreen -
Oakland
E-MTC ESC     APS  
Evergreen -
Tacoma
E-MTC ESC     APS  
New World -
LA, APL
APL-NOL Navis Emodal.com   WN ICon
New World -
Oakland, Eagle
APL-NOL Navis        
New World -
Seattle Terminal 5
APL-NOL Navis        
New World -
LB, Pier E & F
Hyundai In-house Emodal.com   APS  
New World -
Tacoma, Wash
Hyundai In-house        
New World -
LA, Traypac
Mitsui OSK In-house Emodal.com Yes Yes Yes
New World -
Oakland, Traypac
Mitsui OSK In-house   Yes HT, APS Yes
APM-Maersk -
LA, Pier 400
APM Navis Emodal.com Yes HT, APS Yes
APM-Maersk -
Oakland
APM Navis   Yes APS  
APM-Maersk -
Tacoma
APM Navis Paperless gate Yes APS  
AIG-Macquarie-Hanjin -
LB, Hanjin AIG/
Macquarie-Hanjin - Pier T
  ESC totalterminals.com   APS  
AIG-Macquarie-Hanjin -
Oakland Hanjin
  ESC totalterminals.com   APS  
AIG-Macquarie-Hanjin -
Seattle, Hanjin
  ESC totalterminals.com   APS  
Hutchison -
Manzanillo
  Navis   Yes    
Hutchison -
Lazaro Cardenas
  Navis   Yes    
Hutchison -
Balboa
  In-house   Yes    
Deutsche Bank, Rupert Maher Maher In-house      
Goldman Sachs -
Oakland
  Tideworks Emodal.com Yes    
Goldman Sachs -
Seattle T 18
  Tideworks Emodal.com Yes Yes  
Goldman Sachs -
Manzanillo
  Tideworks -      
DP, Vancouver, Centerm DP Navis Navis Yes APS  
O. Teachers Deltaport TSI   In-house      
O. Teachers, Vanterm TSI   In-house      

For simplicity, Exhibit 25 does not include the names of all the operating companies working on behalf of the terminal owners. All the shipping companies operate their terminals by means of separate subsidiary companies. Only the terminal owners and shipping company or investment company operators are listed. For further information about the names and contacts for the operating companies please see our directory of terminals.2

 

 

7.1 - Terminal management systems

 

 

On the Pacific west coast, three companies supply terminal management systems: Navis LLC, Oakland, Embarcadero System Corp., San Francisco, and Tideworks, Seattle. Navis LLC, is an independent software company and the leading provider of terminal operating systems worldwide. Embarcadero Systems Corp. (ESC) is a subsidiary of Marine Terminals Corp. of Oakland, and Tideworks is a subsidiary of Stevedoring Services of America based in Seattle. These companies supply systems to automate vessel slot availability and schedules, berthing space management, yard operations, gates management, inventory, shipment documentation, billing and accounting, and the customer supplier interface.3

The world leader, Navis LLC offers Internet-based yard, warehouse and inventory management systems. In Los Angeles and Long Beach 5 of the 14 terminals use Navis systems for managing container pickups and deliveries. K-Line at Long Beach, Oakland and Tacoma uses in-house ITS host systems and Navis yard, vessel, and rail planning systems. Navis systems are used at APL-NOL Terminals in Los Angeles, Oakland and Seattle, NYK’s Los Angeles Terminal, and APM-Maersk’s Los Angeles terminal.4

In Vancouver, DP World at Centerm uses the Navis system for managing gates, cargo, and business transactions. More than 700 trucks using the Centerm terminal have radio tags and direct data exchange capability. Centerm also uses an optical recognition system to automatically identify trucks, chassis and containers.

The Prince Rupert terminal uses a Maher in-house system that digitally captures images of containers and transfers the information to CN and shipping line customers.5 This system uses an Internet interface to provide information about bookings and manifests. Terminal Systems International’s Deltaport and Vanterm presently use an in-house but plans to upgrade to the Navis system.

ESC has supplied operating systems to the terminals that are 50 percent owned by its parent company, Marine Terminals Corp., including Evergreen terminals in Los Angeles, Oakland and Tacoma, and Hanjin in Long Beach, Oakland and Seattle. ESC has provided security systems to meet new US regulations and is a systems integrator for Savi Networks’ tracking systems. MTC’s joint venture Total Terminals, Long Beach, uses radio frequency identification and global positioning systems. The system includes: 101 cameras, matrix switchers, custom software for control, fiber optic transceivers, two-way audio communication to 70 stations, data collection devices and a Web interface.6

Tideworks terminal management systems are used at Stevedoring Services of America operated terminals pier A and H in Long Beach, Oakland, Terminal 18 Seattle, and Manzanillo, Mexico.7  A subsidiary of Tideworks, Emodal.com, Irvine, CA, provides the trucker appointment management system used at most Los Angeles and Long Beach terminals. It provides container, vessel, terminal, and trucker status information. Registered members can query container and booking status, pay terminal fees online, and comply with security protocols.

Mitsui’s LA and Oakland Traypac terminals and Hyundai’s Long Beach E&F terminal both use in-house developed terminal management systems. A combination of automated express gates, better gantry cranes, optical and radio frequency identification systems from Savi Networks, global position systems, and computer information systems has tripled productivity. The Mitsui LA terminal has reduced gate queuing to an average of 10 minutes. Labels are applied at the factories and real-time information is provided to suppliers and retailers to help customers achieve better efficiency.8

7.2 - Container tracking systems

Radio receivers have been deployed at major terminals and carriers in Asia and the US so shipments are monitored automatically. Global position systems, radio frequency identification tags, location sensors, wireless technology, and yard management systems provide real-time location data for planning and space utilization. For example marine container terminals at the Ports of Los Angeles and Long Beach supply free radio frequency tags for mandatory mounting on the driver-side rearview mirror of all trucks in order to validate security clearances at gate entrances.

The leading supplier of information systems for US importers and container shipping lines is GT Nexus, based in Alameda, CA.9 GT Nexus provides real-time information from shipping companies on the location of containers along the entire transport route. For example all CKHY and New World Alliance members support a joint GT Nexus portal site to facilitate automated cargo tracking and trade documentation for their customers, including Weyerhaeuser, Home Depot, Walmart, and Sears, ocean carriers, brokers, consolidators, truck carriers, and distribution centres. The systems include applications for inventory visibility, trade document automation, cost analysis, rates, sailing schedules, shipment status, booking, document submission and invoice status.

Mitsui’s 200 truckers use a container tracking system with GPS-enabled mobile phones from Sprint and tracking software from Xora and International Asset Systems.10 At APM-Maersk, Los Angeles, optical recognition systems are used on the cranes and at the gate. These systems include automatic recording and screening of each container as it is loaded on or off the ship, real time identification of an incorrect load, and detection of undocumented containers. The system facilitates more efficient use of labour in the yard for data entry and exception handling. The rail optical recognition systems read container numbers on rail cars traveling at speeds up to 80 km/h and report the recognition information to the terminal’s information network.

APL-NOL, Los Angeles, is implementing a test system to track containers by satellite to provide continuous information on container movements.11 Information is transmitted during ocean transit, terminal operations, and land transit. These systems include tags that interface with a variety of sensors. In Canada, DP World’s Centerm matches the advanced technologies in tracking container locations and movements that are used in the US Pacific Coast.

Los Angeles, Long Beach, and Oakland have implemented Virtual Container Yards, allowing trucking companies to locate an empty container close to the site where they have an export pickup. The ocean carriers must approve the pickups and monitor the time of transfer. The trucker’s receiver is subject to per diem, liability, and damage charges for a container and chassis at the time of the transaction.12

We conclude there is a rapid trend to use global positioning systems on all trucks and containers. These systems help speed truck service at marine terminals and make container use more secure and efficient. Canada is somewhat behind the US in these initiatives.

 

 

7.3 - E-commerce

 

 

Container shipping lines are quickly moving ahead with electronic commerce initiatives. APL, Mitsui, Yang Ming, Zim and others have teamed up to form the global trading network (GTN) and Maersk and others have formed the INTTRA portal.13 These financial information and paperless trading systems include electronic letters of credit, invoices, and banking information. K-Line, Cosco and Evergreen also use the Bolero neutral secure platform enabling paperless trading between buyers, sellers, and their logistics service and bank partners.14 Trade Card, is another leading financial software system.

The electronic business transaction systems improve operating efficiency and reduce working capital. These systems facilitate supplier financing in the US rather than in China where borrowing costs are higher and can save more than 10 percent on the cost of goods purchased.

The trend towards the use of electronic commerce tools by the international shipping lines may indicate an opportunity for Canadian exporters particularly forest product companies, value-added wood products, and specialty crop producers to enhance their own capabilities in this field.

Transport Canada funds Intelligent Transportation Systems Research to apply technologies that make Canada’s transportation system safe, integrated, efficient and sustainable.15 Research on crop transportation economics is being carried out at the University of Saskatchewan, Saskatoon.16,17 The Transport Institute at the University of Manitoba hosts “Fields on Wheels” conferences and carries out shipping cost analyses. Researchers at the Bureau of Intelligent Transportation Systems and Freight Security at the University of British Columbia are also working on relevant subjects such as: international marketing and education, overall shipping costs between Canada and China, and transportation investment partnerships.18

 

 

1 Source: Compiled by Hanam Canada Note: Names shown with initials are provided in the text.

 

 

2 Hanam Canada Corp., Directory of Pacific Coast Container Ports, Terminals and Services, January 2006. http://www.tc.gc.ca/policy/report/research/tp14711e/tp14711e.pdf

3 Olivier, D, and Parola, F. (2007), “The Success of Asian Port Operators: The Role of IT”, in Wang et al (eds), Ports, Cities and Global Supply Chains, Ashgate, pp 205-220. https://www.ashgate.com/

4http://www.navis.com/

5 Marten Pilsch, World Wide shipping, October/November 2006. http://www.tideworks.com/media_coverage/200611_wws_TerminalTechnology.pdf

6 Ed Schriger, Embarcadero Systems Corp., Alameda, CA 510-749-7436.

7 Harvey Bauer, Tideworks, Seattle, WA 1-800-347-7004.

8 Savi Networks Inc., Mountain View, CA http://www.savi.com/

9 Ed Alazraqui, GT Nexus, Alameda, CA. http://www.gtnexus.com/

10Cal Trade Report, July 10, 2007. http://www.caltradereport.com/eWebPages/front-page-1184075394.html

11 I-Control, Santa Clara, CA. http://www.icontrol-inc.com/

12 John Cushing, emodal.com, Irvine, CA. http://wwwemodal.com/

13 Inttra, Parsippany, NY. http://www.inttra.com/home/home.aspx

14 Bolero. http://www.bolero.net/>

15 Transport Canada, ITS Plan For Canada, 1999. http://www.its-sti.gc.ca/en/its_plan_for_canada.htm

16 Leif Herbert Carlson, Masters of Science Thesis, Department of Agricultural Economics, Dec. 2004. http://www.collectionscanada.gc.ca/obj/S4/f2/dsk/SSU/TC-SSU-01242005130037.pdf

17 Dr. Murray Fulton, The Canadian Wheat Board in an Open Market, Nov. 2006. http://www.kis.usask.ca/CWB_Open_Market_Flton.pdf

18 Dr. Garland Chow, Bureau of Intelligent Transportation Systems and Freight Security, Sauder School of Business, University of British Columbia, 2007. http://www.freightsecurity.ubc.ca/

 

[ Previous: Chapter 6 ]

[ Next: Chapter 8 ]