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PMAESA Port Congestion Consultative Meeting Mombasa Date: 25/09/2008 Port Congestion’s Other Face 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

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PMAESA

Port Congestion Consultative Meeting

Mombasa

Date: 25/09/2008


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Port Congestion’s Other Face

  • 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…


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NAFITH Profile

  • NAFITH (National Freight Information and Transportation Hub) is a freight transportation logistics service to facilitate cargo movement countrywide

  • 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


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How TCS Started

  • Jordan Created Aqaba Special Economic Zone

  • ASEZ Authority privatized the only Container Port

  • Congestion and chaos continued to prevail

  • Clearly, more reform was needed to span the transport cycle, outside all of the ports


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ASEZ Truck Movement – Before NAFITH

The Situation

  • 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 government and cargo owners

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

  • High truck transport costs

  • No performance measurements

The Challenges

  • 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

  • 5



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    Need for TCS

    De-clogging ports and roads congestion

    Deregulationof legacy queuing system

    Controlling flow of trucks through key corridors to various border exits/entries

    Decreasing unnecessary truck traffic in the city of Aqaba

    Regulating truck movement in the ASEZ


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    Other Objectives of TCS

    Enhancing security and safety in the zone

    Decreasing truck emissions and pollutants

    Decreasing cost of freight from and to ports

    Abiding by the regulations of MoT

    Providing information on transportation and freight nationally


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    NAFITH TCS Inception

    • High-Level Business Process Design

      • Dividing the Zone into Five Entry/Exit Points

      • Four Marshalling Yards that feed into 39 Destinations

      • Operating all locations with entry/exit Operators

      • Developing entry Rules and Procedures


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    Main Stakeholders

    • Ministry of Transport

    • Port Authorities

    • Terminal Operators

    • Customs

    • Trucking Companies, Truckers

    • Border Control Authorities

    • NAFITH



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    Government of Jordan

    ASEZA Truck Movement – The Solution

    Regulatory compliance and status reports

    Truck Company Manager

    Electronic validation and compliance checks

    Truck/cargo status

    Billing/payment info

    INTERNET

    Nafith Truck Control System

    Request entry & route

    FDfolio™

    Time & route assignment

    Record cargo pickup at terminal

    Dispatcher

    Verify truck, driver, route, cargo

    Track truck enroute and at marshalling yards

    Record truck exit

    Time & route assignment

    Provide truck ticket with routing instructions

    13


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    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


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    Logistics Event Capture

    • Screen based entry

    • System to system integration

    • RFID

    • GPS

    • Barcode




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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

    18


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    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


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    Enhancements Underway

    • 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)


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    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 East and Southern Africa

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

    • NAFITH TCS approach can increase capacity without major new physical infrastructure


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