Inland Transportation Improvement using Trade and Transport Data

1. Inland Transportation Improvement using Trade and Transport Data A New Tool for Logistics Performance Improvement World Bank Oct 26, 2010

2. Outline • Our Background • This Presentation • How can we improve inland transportation using available trade and transport data • Applications in Jordan, Syria and Pakistan • Additional potential applications in South Asia

3. About Us NTELX Amrinder Arora Vice President – Technology Solution Lead, Nafith TCS and PREDICT MS, DSc - GWU Adjunct Faculty, GWU Larry Kahn Director Business Lead – Syria-Jordan FTZ BA - Yale Univ.; MBA - MIT Advisor to Carlyle Group and Thayer Capital; Former Corp Officer Northwest Airlines and Marriott; Delivers advanced operational decision-making systems Example Programs: • PREDICT – U.S. Food & Drug Administration • Global Trader – U.S. Dept of Defense • Aqaba TCS (Jordan) • TIGRE (Pakistan)

4. Where Things Stand

5. Adding Intelligent Logistics to the Mix • Uses process, data, and technology to improve the flow of goods and equipment through logistics chain bottlenecks • Has been applied successfully in developing economies • Can be adapted to specific situations

6. Example Applications • Aqaba Truck Control System, Aqaba, Jordan • In production since 2006 • Syria-Jordan Free Trade Zone Truck Control System • In production since 2010 • Trade Information Gateway and Real-time Exchange (TIGRE) Port Access Control, Karachi, Pakistan • In development • TIGRE Transit Corridor Monitoring, Pakistan-Afghanistan • In development

7. ASEZA TCS Coordinates Use of Roads, Waiting Areas, and Terminals within 375 km2 Zone • 13 terminals • Over 40 specific destinations • Hundreds of routes • Over 3000 truck moves daily 3 2 1 4 6 5

8. Aqaba Truck Movement – Before TCS The Process • Recurring congestion problems in Aqaba city and at key port terminals • Long, indeterminate wait times in queues due to truck/load/docs problems causing 3x longer roundtrip times than necessary • High truck transport costs • Poor coordination between trucks and terminal activities • Limited shipment status visibility for government and cargo owners • Pollution and disruption of popular tourist areas (exhaust/noise/traffic) • No performance measurements Indeter-minatewaits Trucks queue outside Aqaba. Spillover in city. Trucks race to enter pick-up queues. Terminals call queue for trucks. Truck picks up load and leaves Zone The Problems

9. The New Process • Process redesign implemented through an Intelligent Transportation System • Clears trucks to access terminals by combining information from multiple data feeds • Gate coordination: Manages truck access to terminals when goods and space are available • Road capacity: Algorithms keep trucks moving and minimize congestion and chaos – starting 30 kilometers from the gates • System designed/implemented in 3 months • Estimated 20% reduction in inland shipping costs • Same size truck fleet handles 25% more freight than in 2005 • Congestion and chaos eliminated • Trucks diverted from tourist, commercial, and residential areas • Reduced fuel consumption, pollution, and accidents • Improved security, visibility, and data Monitor truck, system and people performance Proceed thru Zone checkpoints and pick-up load, as directed Create permit for entry to Zone Enter Zone as directed by Permit Key Elements of the Solution Results

11. Environmental Impact Analytical Findings • Estimated gas emission savings: 3,650 metric tons of CO2/year • Estimated fuel consumption savings: 365,500 diesel gallons/year Assumptions and Caveats • Only first-order effects for regulated traffic considered • No allowance for the fact that newer trucks have lower emissions than older trucks (1980s – 2001)

12. Syria-Jordan FTZ Syria Jordan

13. Syria-Jordan FTZ – Before FTZCS The Process • Sense of disorder and chaos concerns FTZ and Customs officials • Long, indeterminate trip times due to truck/load/docs problems • Poor coordination between trucks and businesses within FTZ • Frequent altercations between truck drivers and villagers • FTZ unable to keep up with demand • No performance measurements Indeter-minate waits No check on capacity; trucks enter FTZ. Trucks unload/load and leave FTZ. Operations slow as trucks congest FTZ. Trucks queue at FTZ and nearby villages. The Problems

14. The New Process • Connects decision-making at trucking companies to operations within the FTZ • Less complex capacity management requirements than Aqaba TCS • Appointments drive capacity management at entry gate and locations within the FTZ • System suggests alternative times when capacity is not available per initial request • FTZ and Customs have greater comfort with orderliness of FTZ operations • Less variable processing times for trucks • Village councils have confirmed reduction in incidents between truck drivers and villagers • Greater volumes handled by FTZ • Total time requirement for truck operation at FTZ reduced Dispatcher requests appointment with specific FTZ business TCS checks capacity at gate and business. Confirms request. Trucks dispatched for appointments enter FTZ without delay Monitor and report truck, system and people performance Key Elements of the Solution Results

15. Trade Information Gateway, Real-Time Exchange (Pakistan) • USTDA supported • Initial areas of focus: • Karachi ports access control • International transit corridor management (AfPak) • Working to implement systems that improve transport sector performance during 2011

16. The Problems • Congestion problems in Karachi and at key port terminals • Overloaded trucks and miss-matched loads common • Lack of visibility of truck arrival times impacts turnaround times • Limited shipment status visibility for government and cargo owners • Limited if any registration of equipment or drivers • Limited utilization of trucking companies waiting yards • No performance measurements • Long, indeterminate wait times

17. Relevant challenges in South Asia • Foreign Port Access; Transit Corridors • Guwahati (to Chittagong: 674 km; to Haldia: 1006 km) • Imphal (to Chittagong: 895 km; to Haldia: 1484 km) • Aizawl (to Chittagong: 454 km; to Haldia: 1600 km) • Integrated Cross-modal Logistics • Modeling and Evaluation • Corridor Performance Management • Others?

18. Government Initiatives India-Bangladesh Joint Statement, January 2010 • #14: The two Prime Ministers agreed to put in place a comprehensive framework ... cooperation in water resources, power, transportation.... • #22: It was agreed that Ashuganj in Bangladesh and Silghat in India shall be declared ports of call.... • #23: It was agreed that Bangladesh will allow use of Mongla and Chittagong sea ports for movement of goods to and from India through road and rail. • #35: The PMs agreed to operationalize land customs stations at Sabroom-Ramgarh and Demagiri-Thegamukh, including putting in place necessary infrastructure and issue necessary notifications .... agreed to take measures for strengthening infrastructure. http://www.satp.org/satporgtp/countries/bangladesh/document/papers/indiabangjoint2010.htm

19. Sample Pilot Project • Develop a demonstration system allowing direct port access involving an international border crossing • A 3-12 month pilot project involving a limited number of trucks taking the “control” route, and taking the “direct” route utilizing the demo system • Analyze and Assess • Transit Time and Processing Time • Impact on trade competitiveness and cost • Can be done in preparation of, or in parallel to an infrastructure project

20. Where Intelligent Logistics Fits • Pilot projects for port access and corridor development – both domestic and international • Part of major port, terminal, and road infrastructure projects • What else?

21. Conclusions and Paths Forward • Intelligent logistics works - Multiplies impact of other investments and efforts • Time is right – ICT infrastructure now in place • High impact – quickly and economically • Adaptable to range of situations • Addresses a range of challenges Dr. Amrinder Arora aarora@ntelx.com Larry Kahn lkahn@ntelx.com Dhiren Patel dpatel@ntelx.com