154

Port-centric 07
ICT system
Building value in
supply chains
TSZ LEUNG YIP, YINGLI WANG, JANE JING HAIDER
and MARTEN VAN DER VELDE

Introduction
The aim of this chapter is to de ne the concept of a port-centric information
and communications technology (ICT) system and its added value in the
supply chain. The role of ICT in adding value to logistics is well acknowledged
but its application in the context of port-centric logistics has been rarely
studied. Recent developments in ICT such as cloud computing and internet
of things provide new opportunities to connect various parties involved in a
port in a cost-effective way and have the potential to change the way that
service can be provided by a port.
A port is an essential node in maritime shipping and multimodal transport.
It has evolved from a simple transhipment point to a connecting hub sup-
porting the wider supply chains; hence there are increasing needs to ful l
various supply chain partners’ requirements. Having an ef cient information
ow helps to support time-sensitive activities and communication with various
clients. Traditional information systems deployed by a port facilitate the
exchange of information and port operation often in an application-speci c
manner, which creates problems such as costly and time-consuming duplication
of information, information transfer errors and delays, inef cient aggregation
 Port-centric ICT system 155

F I G UR E 7. 1 Port logistics and its linkages

Rail
operators
Road
Forwarders
haulers

Customs
Shipping
lines

Depots

Shipping
agents Barge
Terminals operators

Port
authorities

of information, and lack of visibility and availability. These problems cause

delays in the supply chains and hinder the competitiveness of a port.
Modern logistics concentrates on the management of information ows
in the supply chains and the provision of value-added services, where new
concepts, technology and innovative skills evolve. As shown in Figure 7.1,
different industries are closely linked to each other with the port. Many may
functionally integrate with other port activities such as ship schedule, trade
functions and customs service. In particular, ICT has been widely applied to
enhance logistics management functions in ports (Figure 7.2), particularly
for container shipping. Increased competition between ports has encouraged
port authorities to make use of the latest techniques in ICT to attract
customers. New functions are being put forward by the more progressive
ports to keep their existing customers and expand their businesses.
Compared with other industries or service activities, ports were less
competitive. A port usually serves its hinterland and customers. Each port
has its own group of clients whose activities are within the proximity of the
port area and its major hinterland, whose businesses are often out of the
reach of other ports due to the expensive and underdeveloped land transport
system, and sometimes due to political and administrative barriers. The
156 E-Logistics for Transport Modes and Nodes

F I G UR E 7. 2 Traditional port ICT platform

3PL, 4PL, 3PL, 4PL,

Depot, Terminal Terminal Depot,
Shippers Carriers Consignees
Warehouse Operator Operator Warehouse
Intermodal Intermodal
Operational Information

Carrier ICT

Terminal ICT

Logistics and Shippers ICT

principal task of the port consists of the fair assignment of the busy berthing
capacities. This results in the traditional conservatism of port management.
Ports are separated by their hinterlands. Ports do not worry about the
geographically separated markets since the cargo cannot be own or easily
transferred elsewhere. Ports do not need to concern other ports, as their
in uence extends little beyond their own immediate hinterlands.
ICT has become a very important element in port management and develop-
ment, as ports are operating in a more and more competitive environment.
With the concept of the fourth-generation port (UNCTAD, 1999), ports are
competing for sea-traf c markets. Ports have suddenly found themselves in
the global competitive market, hunting cargoes in the common hinterland.
Ports are forced to understand shippers’ needs and to ful l these needs by
extensive port service. An ICT system can be de ned as any organized com-
bination of people, hardware, software, communications networks and data
resources that collects, transforms and disseminates information in an
organization (O’Brien and Marakas, 2010). A port-centric ICT is used to
transform data recourses into a wide variety of information for port stake-
holders, professionals and users.
Port service is not simply a service for physical freight movements. A port
has a far wider scope including complex and sophisticated service areas.
The port logistics can be divided into physical ow, information ow and
nancial ow. The physical ow include ships, cargo and vehicle movements.
Port-centric logistics focuses on the management of cargo, ships and vehicle,
and associated information and nancial ows where innovative services,
technologies and concepts are widely developed and applied.
 Port-centric ICT system 157

A port-centric ICT system serves as a central hub that integrates and

streamlines the information ow by bringing together different parties involved
into a single platform. This chapter de nes the concept of port-centric ICT
systems and its unique characteristics; it summarizes recent developments
of port-centric ICT systems in various ports, such as Portbase system for
the ports of Amsterdam and Rotterdam; it compares traditional information
port systems and port-centric ICT systems. It also investigates the impact
of port-centric ICT systems and how to mitigate the problems caused by
traditional ICT applications. It further examines the process, relational and
technological con gurations of a port-centric ICT system. As a result, the
functions of a port-centric ICT system are standardized and generalized.
Potential bene ts and deployment issues are discussed as well. This chapter
concludes by proposing a framework that captures the unique characteristics
of a port-centric ICT system and suggesting avenues for future research.

The importance of ICT to port systems:

an academic background
Mangan, Lalwani and Fynes (2008) used the concept of ‘port-centric logistics’
for the rst time to describe the transition in ports from being a simple
transhipment hub to a critical logistics node that can provide a range of
services and activities to support the wider supply chains. They de ned
port-centric as the provision of distribution and other value-added logistic
services at a port. They described the changing role of ports in supply chains
with the emergence of ‘port-centric logistics’ and identi ed new trends in the
port sector, ie signi cant reforms concerning port deregulation and changes
in the public/private ownership of the ports sector; the emergence of global
port operators (GPOs) and the need for integration in international supply
chains to reduce container terminal costs; intensi ed inter-port competitions,
and the recognition of ports as key components in determining the overall
competitiveness of national economies. These new trends in the port sector
lead to an increase in non-core port activities that bring higher pro t margins
and, as a result, port operators are more eager to engage in activities beyond
simply providing berths for ships. As a result, ports need to promote
value-added services in a more active manner.
Fransoo and Lee (2013) stressed the importance of ocean container
transport as a critical element of almost any global supply chain, particularly
as supply chains become more global and more operations are being outsourced
and moved offshore. Herz and Flaming (2014) proposed a ‘port-SCM’
158 E-Logistics for Transport Modes and Nodes

philosophy that ‘seaports should add value to shippers by aligning their own
business activities with shippers’ supply chain management (SCM) strategies
and requirements’. Hence port actors should work with shippers to achieve
a maximum bene t to the whole supply chain.
While the concept of ‘port-centric logistics’ and the importance of ports
to the wider supply chain have seen awareness grow, the practicability of
this concept has been rarely studied. With logistics and transport networks
becoming increasingly complicated, and the competition on costs and
service performance ever stronger, ICT has been widely recognized as a key
enabler (Perego, Perotti and Mangiaracina, 2011; Murty et al, 2005).
Carbone and De Martino (2003) investigated the contribution of the Port of
Le Havre to value creation in an automotive supply chain. They identi ed
ICT as one of the most important factors that help to bring about integration
of ports/terminals in the supply chain.
Perego, Perotti and Mangiaracina (2011) reviewed papers on ICT for
logistics and freight transport, among which the use of ICT in ports has been
con ned to a handful of papers. Kia, Shayan and Ghotb (2000) provide one
of the rst few papers that discussed the importance of information technology

F I G UR E 7. 3 The single window concept of port-centric ICT

Warehousing and Distribution Onshore Transport

Forwarding

Transport
Value-added services
services

Trade
services

Warehouse Port-centric ICT Governance

Ship
services
Courier
activities
Maritime
services
Water Transport
 Port-centric ICT system 159

(IT) in supply chain management and port terminal operation, ie operational

systems in cargo handling. Lee-Partridge, Teo and Lim (2000) studied the IT
management in the case of the Port of Singapore Authority and identi ed
four key management success factors in IT management. Giannopoulos
(2004) examined various applications of ICT in all modes of transport and
mentioned improved resource management at ports due to ICT applications
for ports and waterways.
While the importance of ICT to ports and supply chains has been
widely recognized, an established de nition of the concept is yet to emerge.
A port-centric ICT system can be described as a central hub that integrates
and streamlines the information ow by bringing together different parties
involved in a port into a single platform (Figure 7.3). In the following
sections, we propose for the rst time a framework that captures the unique
characteristics of a port-centric ICT system and further identify the value of
port-centric ICT systems in supply chains.

The port-centric ICT

ICT is a broad area of business activity that directs the ow of services to
customers in order to satisfy customers’ needs and wants, and to achieve
commercial objectives. In other words, ICT is the process whereby the rm
seeks to identify, quantify and anticipate the needs of its market, and take
the necessary steps for satisfying such needs. In general, ICT can be de ned
as: the ICT function organizes and directs all those business activities
involved in assessing and converting customer purchasing power into effective
demand for a speci c product or service to the nal consumer or user so as
to achieve the pro t target or other objectives set by a company (Bocij,
Greasley and Hickie, 2015).
The port-centric ICT is designed for different types of ports. ICT implies
a competitive supply chain situation. As there exists strong inter-port
competition among seaports, ICT is developed in leading seaports such as
Rotterdam, Felixstowe, Le Havre, Bremen, Hamburg and Barcelona (Table 7.1,
later in this chapter, summarizes the ICT system in those leading seaports).
In order for ICT to be effective, ports need to de ne ICT objectives and
strategy as part of their general objectives. For instance, if the general objective
is to maximize port pro ts, the ICT objectives must be nancial in terms of
pro tability and rate of return on capital. If the general objective is to minimize
the cost of cargo passing through the port and to maximize the added value
to the cargo, then the ICT objective will be more concrete, such as attracting
160 E-Logistics for Transport Modes and Nodes

F I G UR E 7. 4 Port-centric ICT

3PL, 4PL, 3PL, 4PL,

Depot, Terminal Terminal Depot,
Shippers Carriers Consignees
Warehouse Operator Operator Warehouse
Intermodal Intermodal

Carrier ICT Terminal ICT Logistics and Shippers ICT

Operational
Information

Port-Centric ICT

and obtaining more traf c to ensure full use of the port facilities at a high
level of productivity. Apart from all this, there will be strategic ICT decisions
such as the leasing of berths or port terminals to operating companies or
shipping lines; and indeed, policies with regard to the availability of open
berths as against dedicated berths.
As can be seen in Figure 7.2 (a traditional information port system) and
Figure 7.4 (a port-centric ICT system), while a traditional information port
system communicates in a dyadic way, a port-centric ICT system is intended
to integrate – in a secure manner – the information ow of port-related ac-
tivities as the centralized hub for the port and its major stakeholders such as
shippers, carriers and authorities. Port-centric ICT plays a crucial role in
ful lling port objectives, by enabling ports to acquire information about what
port users need and helping the port to satisfy them quickly and completely.
Evans and Wurster (1997) described how information can add values in
three ways:

● Reach: a business can share information with more stakeholders at

lower cost.
● Customization: information can be more readily tailored for sharing
with a large number of stakeholders.
● Dialogue: interaction between the organizations is two-way rather
than the traditional push of information.

Similarly, the value-adding activities of port-centric ICT include three main

ways: reach, customization and dialogue. The rst value-adding activity is
‘reach’: information gathering should be a continuing task, as out-of-date
 Port-centric ICT system 161

information could lead to wrong decisions. Information to be collected for

a port-centric ICT is varied and can be summarized as follows:

● information about cargo movements (volume, origins and destinations);

● information about actual and expected port logistics activities;
● information about physical and technological changes in ports and
related sectors, namely maritime, inland, waterway and air transport.

The question of how to collate all the required information is, however,
a crucial matter. For information collection, two traditional ways can be
employed: direct information collection and indirect information collection.
Direct information collection generally implies direct input by corresponding
stakeholders, eg shippers, operators. Indirect information collection signi es
all sources of information such as customs, marine department, immigration
and health authority.
The second value-adding activity, ‘customization’, should be undertaken
with regard to market segmentation. A port-centric ICT can be segmented
to meet the requirements of different types of users and traf c. Container
shipping, roll-on roll-off services, dry and liquid bulk traf c, and specialized
traf c may each require different information from the ICT. In addition,
ICT work should be carried out in relation to bodies such as ship owners,
shippers, shipping agents and other relevant organizations that may in uence
port logistics.
When the targets have been set and plans made, port ICT comes to its
third value-adding activity: ‘dialogue’. Acting as a centralized coordination
mechanism, a port-centric ICT platform facilitates instant information
exchange via standardized communication protocol, supporting simultaneous
dialogues between various stakeholders in a supply chain. The ultimate aim
is to create seamless information ow in order to reduce uncertainties in cargo
ows and to improve ef ciencies in trade. In this case, port becomes a critical
and ef cient node in the supply chain, attracting new customers (who otherwise
may use another transport node such as air) to the business. Other than
providing standardized cargo-in and cargo-out transit services, customers’
needs can be ful lled by more customized value-adding services such as by
providing real-time visibility tracking services for a speci c consignment.

Information matrix of port-centric ICT

The port-centric ICT provides a structural guide for the development of
port-centric logistics and supply chains. Compared with traditional port
162 E-Logistics for Transport Modes and Nodes

information systems, the port-centric ICT is simpler to understand, exible to

accommodate the various needs of different organizations in a port supply
chain and able to adapt to various real situations. For instance, an organization
can develop some local ICT applications, integrate such ICT applications on
a single port-centric platform and, nally, realign the business processes.
A port-centric ICT should cover ve basic categories of information,
according to the way the information is gathered:

● Gate data: compulsory information needed to complete booking,

including shipper’s name, address, type of cargoes (containers),
expected time of arrival (ETA), and expected time of departure
(ETD).
● Quay data: compulsory information needed to complete booking,
including ship name, ship particulars, type of cargoes (containers),
ETA and ETD.
● Yard data: yard usage, utilization.
● Spontaneous data: complaints, special requests, special needs and
courier activities.
● Value-added data: facilities data, value-added services, trade, nance,
customs service, and e-commerce.

ICT investment
The investment of port-centric ICT involves a lot of dif cult decisions. The
ICT in ports, in addition to value-adding activities, is composed of other
activities related to port logistics and competitive advantages. The value-adding
activities will allow the port to have its market analysed, logistics objectives
xed and strategy built. It is necessary to specify when and where the ICT
investment should be carried out and who should be the ICT stakeholders.
The timing of port ICT investment is especially important, because there is
no better time for ICT development than when a change of port logistics
becomes necessary or desirable. Carriers are not often interested in changing
their port-of-call, due to good understanding and cooperation between
the port logistics and the personnel at the port. Carriers may fear that a
change of port may lead to loss of traf c to other ports. When competition
between ports is high, particularly when they service a common hinterland,
the level of service that a carrier receives and the costs it pays often decide
the continued use of that port by that carrier. From the perspective of the
 Port-centric ICT system 163

port, the optimum use of the very expensive ICT that the port has invested
in is crucial to the cost-effectiveness of logistics.
In addition, a port should identify its areas of strengths and weaknesses,
and satisfy the selected target users’ needs. A useful starting point for ICT
objective setting is to analyse – by comparing the port with competing or
other ports – the port’s underlying advantages and disadvantages, the factors
that may provide opportunities for its growth, and also such negative factors
as may affect the future development of port logistics.
In the implementation stage, ICT applications should be deployed to
achieve ICT objectives of ports. ICT applications are those elements that
will have an in uence on the ‘sales’ of the port services. The in uence of those
applications will differ from one port to another. Therefore, it is necessary
to nd the appropriate mix of all those elements for a given port market, so
that the result matches the major targeted stakeholders. Namely, we need to
match the information processing needs of major stakeholder groups with
the information processing capability a port-centric system has to build. It is
clear that, in many cases, various applications can be complementary and
interchangeable. The appropriate mix for a given market will have some
degree of segmentation:

● technology: the investment required to develop the ICT system

components (hardware and software);
● time: the time that the port operators and shippers devote to data
input instead of executing other tasks;
● human resources: staff reallocation or enlargement;
● training and motivation: training of managers and staff to use the
new ICT system;
● reorganization of port procedures.

Port community systems

Generic business model
The concept of a port community system (PCS) offered by members of the
International Port Community Systems Association (IPCSA) is very close to
the port-centric ICT system we raise in this chapter. Within IPCSA, electronic
communications platforms provided by PCS operators ensure smooth transport
and logistics operations at hundreds of sea ports, airports and inland ports.
According to the IPCSA (http://www.ipcsa.international/), a PCS:
164 E-Logistics for Transport Modes and Nodes

● is a neutral and open electronic platform enabling intelligent and

secure exchange of information between public and private
stakeholders in order to improve the competitive position of the sea
and air ports’ communities;
● optimizes, manages and automates port and logistics processes
through a single submission of data and connecting transport and
logistics chains.

IPCSA consists of six founding members related to six major ports in

Europe: 1) SOGET, Le Havre, France; 2) MCP, Felixstowe, UK; 3) Portic,
Barcelona, Spain; 4) Portbase, Rotterdam; and Amsterdam, Netherlands;
5) DBH, Bremen, Germany; and 6) DAKOSY, Germany. Table 7.1 describes
these six in uential PCSs with regards to their location, ownership and main
functions. We further compare these six PCSs in Europe in terms of their
functions, claimed bene ts, user group, technology and pricing model, as
summarized in Tables 7.2a and 7.2b: a standardized model, and a re ned
port-centric system concept.

Process (functions) and target user groups

The functions are determined by the needs of various user groups. They can
be broadly categorized into:

● Public stakeholders:
– inspection authorities;
– customs;
– port authorities.
● Private stakeholders:
– supply chain agents: shipping lines, importers, exporters, clearing/
forwarding agency;
– node: terminal operators;
– mode: rail and road operators.

All six cases offer a wide range of services but vary slightly according to the
nature and management model of the port (public service port, tool port,
landlord port and private service port). All cover, for instance, exports, im-
ports, transhipments and consolidations.

Technology and pricing model

All the six case platforms are web- and EDI-based systems, indicating the
essential characteristic of technology deployed. A web-based system is the
 Port-centric ICT system 165

TAB L E 7. 1 Summary of six major port community systems

Name Description
Website
Location
Ownership

Portbase Portbase is the neutral and reliable hub for all logistics
www.Portbase.com information in the ports of Rotterdam and Amsterdam.
Rotterdam, Portbase belongs to and serves the port community
Netherlands and is a non-profit organization. Portbase was created
Non-profit, owned by by a merger between Rotterdam’s port Infolink
port authority (completed in 2002) and Amsterdam’s PortNET
(completed in 2000). The new organization was set up
in 2009 by the Port of Rotterdam Authority and the Port
of Amsterdam and enjoys wide support amongst the
port business community.

MCP, Destin8 MCP plc’s Destin8 port community system handles

www.mcpplc.com and processes huge volumes of data and information
Felixstowe, UK relating to international trade – collecting, storing,
Software service exchanging and distributing it among and between
provider almost 750 companies and government agencies
involved in international trade and transport. Destin8
operates in 17 UK ports and 50+ inland clearance
locations representing some 75% of UK container
throughput and a major proportion of general (non-
unitized) cargo. It provides for electronic exchange of
information between all port sectors, including
shipping lines/agents, port authorities, terminal
operators, customs and other government agencies,
clearing agents/customs brokers, and road and rail
hauliers/operators. Electronic data interchange (EDI) is
used extensively.

SOGET Headquartered in Le Havre, France, SOGET is the

www.soget.fr leading port community system operator in France and
Le Havre, France a public–private partnership between the port community
Public–private of Le Havre, Port of Le Havre Authority and French
partnership Customs. SOGET port community system (PCS) is in
operation throughout French ports as well as overseas,
and also claims to be the first PCS vendor in the world.
Currently 14 ports are operated by SOGET.
166 E-Logistics for Transport Modes and Nodes

TAB L E 7. 1 continued

Name Description
Website
Location
Ownership

DBH As an international software and consulting company,

www.DBH.de DBH Logistics IT AG offers ideal solutions in the areas
Bremen, Germany of customs clearance and export control, freight
Software and forwarding, SAP®-consulting and port community
consulting company systems. Headquartered in Bremen, Germany, DBH
employs 120 members of staff. Claimed to have
developed the first port system in the world in 1973 in
the ports of Bremen and Bremerhaven.

DAKOSY DAKOSY was established as the port community

www.dakosy.de system for the Port of Hamburg by members of the
Hamburg, Germany seaport industry. As one of the leading IT and software
Software service service providers for the transportation industry,
provider DAKOSY AG, headquartered in Hamburg, has been
providing port communication services as well as
solutions for international freight forwarding and
customs clearance since 1982. DAKOSY is to this day
a 100% privately owned company, each one-third
owned by forwarders, liner agents/shipping lines and
terminal operators.

Portic Headquartered in Barcelona, Portic is the port

www.portic.net community system operator in Barcelona and a private
Barcelona, Spain partnership between the port community of Barcelona,
Private partnership port authority of Barcelona, financial institutions (La
Caixa, Banc Sabadell) and the Chamber of Commerce
of Barcelona.

key to most centralized information platforms. Unlike traditional applications,

web systems are accessible anytime, anywhere, via a PC with an internet
connection. The user interface of a web-based application is easier to customize
for different user groups than it is in desktop applications.
Such a system can largely reduce the cost of deployment (ie installation
and maintenance) and the cost of data transaction as compared with traditional
 Port-centric ICT system 167

software-based systems. The rise of ‘cloud computing’ has resulted in various

exible deployment models such as software as in infrastructure, software
as a platform and software as a service. The organizations using cloud
computing will only need to pay for speci c computing resources on an
as-needed basis, accessing them on-demand via a web-based interface using
smartphones, computers and other devices. The pricing model is therefore
often based on a xed or per-usage subscription fee. For instance, Portbase
offers two types of subscription choices: one for frequent system users and
another for infrequent users.

Claimed benefits
Various bene ts were claimed by the six case examples. These can be
consolidated into the following four aspects:

● Transactional bene ts (speed and quality of data transaction): the

centralized data storage and information architecture has largely
removed delays and inef ciencies that commonly exist in traditional
dyadic information-sharing practices. Data can only be input once
and then be reused and shared among various participating
organizations. This results in improved (sometimes real-time)
visibility and data quality by reducing errors from manual and/or
duplicating input. Traceability is largely improved too as one can, in
many cases, follow the digital footprint of a speci c consignment
from the point when it enters the port system to the point when it
arrives at its next or nal destination. Such digitalization reduces
paperwork and leads to optimal reuse of information. Web-based
systems also provide 24/7 instant access, which is particularly useful
for global transport – such as when a consignment may involve
multiple organizations across different time zones.

● Operational bene ts (process and ef ciency gains): the processes are

streamlined by automation and standardization via a single
submission of data. Therefore this allows better, simpler and more
transparent planning via increased visibility. Lead-time reduction is
another major bene t that is achieved by speeding up cargo
information ow and more rapid throughput times (less dwell time).
Many such systems claim supply chain cost reduction, though it is
dif cult to quantify.
● Strategic bene ts (new service offering and value adding to new and
existing customers): a port-centric ICT helps to improve operational
ef ciency and assist seamless cargo transition, therefore offering an
168 E-Logistics for Transport Modes and Nodes

attractive customer service to various stakeholders. This, in return,

may bring competitive advantages to a port, therefore increasing a
port’s competitive position at national and international level. It may
attract new demand and trade that otherwise would not be generated.
● Port security: port security, which was traditionally considered an
overhead to a port’s main operation, is now widely recognized as an
important aspect of competitive advantage of port business. Port
security is now viewed as a value creator that supports and enables
the maritime trade, rather than simply as a cost of doing port
business. A secure environment for ports and cargo ow will create
value for the port as well as its stakeholders.
Port security is no longer purely a concern of the traditional
high-risk events, such as military defence and territorial attacks.
It has been recognized across all related sectors of ports. Security
breaches will lead to breach of users’ con dence and trust in
addition to lost business and third-party liability. The introduction
of port-centric ICT seeks to manage the security-associated port
facilities and operation such as cargo loss, operation disruption and
unauthorized access. As all information is stored in the system and all
the cargo (eg containers) are tagged and traced, a high level of port
security can be realized due to the port-centric ICT. In this case, port
security will lead to competitive advantages at a much lower cost.

In a nutshell, any ICT system that claims to be a port-centric community

system has to ful l the aforementioned criteria on process, technology and
the target community users. These three dimensions are interlinked. The
collective needs of community users, for example on information sharing
and visibility, are the driving forces in the development of related processes
(functions) of a port-centric system. The process design in return affects the
choice of technical solutions. The rapid technological developments provide
opportunities for the owners and users of port-centric ICT platforms to
think beyond existing collaborating arrangements and seek innovative ways
for service provision. Enabled by the advances in technology such as cloud
computing and internet of things, many processes that previously were costly
to integrate can now be more easily simpli ed and streamlined. This lowers
the barriers for collaboration and coordination between various community
users. Hence it is both ‘market-pull’ and ‘technology-push’ that have accelerated
the recent port-centric ICT community system.
 Port-centric ICT system 169

TAB L E 7. 2 a Summary of major port ICT systems

Port Portbase Destin8 SOGET
community
systems

Key ● Exports ● Exports Not available

Functions ● Imports ● Imports
● Consolidations ● Consolidations
● Transhipments ● Transhipments
● Rail/road planning ● Warehousing

Claimed ● Greater efficiency ● Better utilization Single window

Benefits ● Lower costs of plant and application.
● Better service equipment The automation,
provision ● Less dwell time optimization and
● Better, more ● Reduce management of
transparent planning paperwork processes through a
Speed up cargo single submission of
● More rapid throughput ●

information flow data and connecting

times
transport and logistics
● Fewer mistakes ● Simplify planning
chains as well as the
● Optimal reuse of ● Reduce errors
dematerialization of
information ● Trade facilitation documents offered
● Available 24/7 ● Demonstrable by single window
cost benefits speeds up information
exchanges and, by
extension, goods
processing. Not only
is single window a
facilitator of different
business processes
but is also
interoperable with
the users’ private
information systems.
Single windows
goods tracking/tracing
modules ensure the
integrity of the
logistics chain whilst
guaranteeing data
confidentiality.
170 E-Logistics for Transport Modes and Nodes

TAB L E 7. 2 a continued
Port Portbase Destin8 SOGET
community
systems

User Groups ● Agents inspection ● Shipping lines ● Shipping lines

stations ● Importers ● Airline companies
● Barge operators ● Exporters ● Importers
● Shipping companies ● Clearing/ ● Exporters
● Shipbrokers forwarding agents ● Clearing/forwarding
● Rail infrastructure ● Terminal operators agents
operators ● Port authorities ● Terminal operators
● Customs ● Hauliers – road ● Port authorities
● Rail operators and rail ● Customs authorities
● Empty depots ● Government ● Inland carriers
● Traction suppliers departments ● Government
● Forwarders agencies
● Terminals ● Warehouse
● Exporters operators
● Inspection authorities
● Port authorities
● Road hauliers
● Importers

Technology Broadly speaking, the PCS Web-enabled Neutral open platform

consists of three parts: Similar architecture
● The application layer as Portbase
with the services
● A platform with the
facilities common to all
services
● A central database
in which all the
information that
companies and
government authorities
exchange via Portbase
is gathered
Web-enabled

Website www.Portbase.com www.mcpplc.com www.soget.fr

 Port-centric ICT system 171

TAB L E 7. 2 b Summary of major port ICT systems

Port DBH DAKOSY Portic

community
systems

Key A whole range of Cargo handling, Streamlined service for the

functions services, from hinterland entire port community
consulting, design connections and IT
and service provision
implementation,
through to
operating IT
All areas of the
global supply chain

Claimed Strengthen Combine all existing Improve the

benefits important German data on the vessel’s competitiveness of the
logistics locations arrival, handling and companies in the Port
and increasing departure, making of Barcelona logistics
national and this available in real community through a
international time to all those technological platform
competition involved, eg that facilitates interaction
shipbrokers, tugboat between members
operators, mooring Facilitates simultaneous
companies and, communication and reduces
above all, terminals transaction times and costs
Simplifies and automates
the documentary
procedures associated with
cargo traffic
Guaranteed confidentiality
of communications
By harmonizing
communication standards,
Portic makes it possible to
connect all the different
systems in the port
community
Complete traceability makes
for more streamlined
operations management
172 E-Logistics for Transport Modes and Nodes

TAB L E 7. 2 b continued
Port DBH DAKOSY Portic
community
systems

User groups ● Forwarding ● Forwarder The entire port community

agencies ● Handling agents has a stake in Portic:
● Shipping ● Agents/carrier ● Port Authority of Barcelona
companies ● Trade/industry ● Association of Shipping
● Terminal ● Rail/truck Agents of Barcelona
operators ● Association of
● Terminal/packing
● Production station International Forwarding
companies Agents of Barcelona
● Traders ● Official Association of
Customs and
Commission Agents of
Barcelona
● Association of Port
Stevedoring Companies
of Barcelona
● e-la Caixa
● Sabadell Atlántico Bank
● Official Chamber of
Commerce, Industry and
Navigation of Barcelona

Technology Consulting – from SaaS (Software as a Portic services can be

experienced staff Service) accessed on the internet,
members Many customers by personalized e-mail
Operation – secure who have their own notification or system
and sustainable software packages integration

IT-Service – our for logging and

additional services processing the
documents to be
communicated use
DAKOSY as a single
window/as an EDI
node for electronic
communication with
transport partners
and authorities

Website www.DBH.de www.dakosy.de www.portic.net

 Port-centric ICT system 173

In the case study below, we use the Portbase system for the ports of
Amsterdam and Rotterdam as a more in-depth study to showcase how such
a system works in reality.

C A S E S T U DY Portbase

Portbase is the smart, neutral and reliable hub for all logistics information in all
Dutch ports and the connected supply chains, for both containerized and bulk
cargo (import, export and transhipment).
Via the Portbase port community system (PCS), companies can benefit from a
multitude of intelligent services for simple and efficient information exchange,
both between companies and between the public and private sector. This enables
all the participants to optimize their logistics processes, thereby improving their
own competitive position and that of the ports. Portbase belongs to and serves the
port community and is a neutral and non-profit organization.
As of 2015 Portbase offers over 40 different services to the market. Approximately
3,700 organizations are connected and actively sharing information via the PCS.
Portbase was created by a merger between Rotterdam’s Port Infolink
(completed in 2002) and Amsterdam’s PortNET (completed in 2000). The new
organization was set up in 2009 by the Port of Rotterdam and the Port of Amsterdam,
which are the shareholders of Portbase, and enjoys wide support amongst the
port business community.
Its aim is to make the logistics chains of the Dutch ports and related chains the
smartest in Europe, where administrative data is combined with real-time data.
The strategic goal for the next years is ‘innovating with the community towards
integral planning’. For this, Portbase takes up five roles:

● service provider;

● infrastructure provider;

● community manager;

● data manager;

● knowledge supplier and innovator.

The port community system was developed with the common interest in mind; as
such it is neutral and cost-based. Its presence offers an important contribution to
the efficiency and effectiveness – and therefore the quality – of port logistics.
174 E-Logistics for Transport Modes and Nodes

It also wants to play a key role in port-related logistics networks both in the
Netherlands and abroad. To this end, the organization combines knowledge of
the ports with ICT know-how in an atmosphere of personal cooperation.

How Portbase works

Broadly speaking, the PCS consists of three parts:

● The application layer with the services: these services reflect specific
processes in the supply chain as sending custom declarations and ordering
transport.

● A platform with the facilities common to all services.

● A central database in which all the information that companies and

government authorities exchange via Portbase is gathered.

Within the platform are three more discrete services:

● domain-related services specifically aimed at the port, such as reference

tables with ship names;

● generic services with general basic functions such as security, authorization,

management and logging;

● implementation services with the building blocks for making new services.

The reuse of data is one of the key benefits of the PCS. It allows organizations
to enter and receive data via one central platform, but it also bridges the gap in
communications where organizations do not know which organization is next
in the supply chain. In the case of merchant haulage, where the forwarder is
responsible for the transport from sea terminal to the shipper (and vice versa),
the shipping line and the forwarder do not have a contractual relationship. This
implies that the forwarder will not be notified and informed automatically on the
status of the cargo. In the past this meant calling the terminal and shipping line to
gather status information. The PCS is able – by reusing and combining data, but
also by establishing trust and arranging agreements on data usage – to provide
the forwarders with the necessary data to (re)plan the hinterland transport
(via the service cargo information).

How the services work

Each service includes several service processes. These processes describe

the desired message exchange and interaction between parties. This involves
messages to and from systems (system messages) and messages between people
 Port-centric ICT system 175

(notifications). The platform ensures that the processes run in accordance with
the established rules. Thanks to the central database, the reuse of information is
made possible in this connection. Companies need only enter data once.

Advantages

Thanks to the PCS, the days when companies had to develop and maintain a whole
range of bilateral connections are over. All the information exchange in the ports
now runs efficiently through a single hub, as shown in Figure 7.5. The services
available in the PCS provide concrete savings in time and money from day one.
The advantages of Portbase (as discussed in Table 7.2a) are:
● greater efficiency, for instance due to better planning of resources (cranes,
quays, ships, etc) and better usage of infrastructures;
● lower costs, for instance by reducing waiting times and fewer empty miles;
● better service provision, due to seamless connection in the supply chains;
● better, more transparent planning;
● more rapid throughput times;
● fewer mistakes;
● optimal reuse of information;
● available 24/7.

PricewaterhouseCoopers (PwC) calculated the actual added value of the PCS.

The conclusion: the PCS generates a direct annual value for its participants of up
to €186 million (based on the service offering in 2012). In 2009 Portbase created the
strategy to open up the platform and allow third parties to offer their own, specific
services to the market.

Costs

Portbase is a non-profit organization. Companies only pay a contribution for the

use of services with a clearly demonstrable added value. When offset against the
advantages, these costs are relatively small. The financing of services that are of
particular strategic interest to the port is done using the general income of
shareholders of the Port of Rotterdam Authority and the Port of Amsterdam. On the
pages in its website listing the services, an indication is given for each service,
whether a contribution is charged or not.
The funding model of Portbase consists of three layers, as in Figure 7.6. For
each service, clients can choose between two different subscriptions:
176
F I G UR E 7. 5 Communication among port community members: without and with a port community system

Rail operators
Without Port Community System

Forwarders

Road hauliers Customs

Shipping lines Barge operators

Depots

With Port Community System

Shipping agents
Veterinary authorities Agents Terminals
Shipbrokers
Forwarders
Shipping
companies

Terminals Exporters
Port authorities

Empty depots

Importers

Rail infrastructure operator Customs

Rail operators
Rail hauliers
Port authorities
Food & Consumer Product
Safety Authority

Road hauliers

Barge operators

Inspection stations

SOURCE: Portbase, with permission

 177
F I G UR E 7. 6 The funding model of Portbase

FUNDING MODEL

Port National Harbour Masters

Community Government Port authorities

Portbase Development:

User fees Project-based financing

Portbase Exploitation:
USER FEES

Customers

Shareholders:
Portabse Platform:
Generic Infrastructure
and services Port of Port of
Amsterdam Rotterdam

COSTS MADE PAID BY

SOURCE: Portbase, with permission

178 E-Logistics for Transport Modes and Nodes

● Portbase Basis Plus: a fixed amount per month and a payment per
transaction.
● Portbase Basis: just a (somewhat higher) payment per transaction. This is
especially attractive to clients who do not work through the PCS very often.

Invoicing is done on a monthly basis. For each client, Portbase makes as realistic
as possible an estimate of the expected number of transactions. Settlement takes
place once a year (similar to the invoicing method used by energy companies).

Practical implications

On the macro level, a PCS enhances the competitive position of the port(s) it
serves by easing the complexities of doing business with a port. It provides a one-
stop shop for information sharing, which leads to a decrease of the administrative
burden and increase in compliancy to rules and regulations. Compared to the
traditional dyadic communication channels between various stakeholders in
a port community, a PCS significantly reduces the cost of communication,
information sharing and document processing by providing a single and unified
interface.
In addition, due to having an integral view on logistics, a PCS makes hidden
problems visible along the logistics planning and execution processes; this leads
to enhanced awareness of one’s own processes as well as bottlenecks in
the physical infrastructures. Consequently it will help organizations to take
counteractive measures to address the problematic areas for further improvement.
On the micro level, there are implications for each type of community actors:

● Shipping lines/agents: higher use of capacity, improved turnaround times.

● Terminal operators (deep sea and inland): more efficient use of assets (quays,
cranes), efficient stack planning.
● Inland transporters (road, rail, barge): higher use of capacity, improved
turnaround times.
● Authorities (customs, harbour masters, inspection agencies, etc): efficient
and effective inspection (operational and planning), one channel to reach all
business actors (and vice versa).
● Forwarders: same as transporters and shippers (depends on role of
forwarder).
● Shippers (importer, exporters): ability to track and trace goods through the
port supply chain.
 Port-centric ICT system 179

Policy implications
Despite the clear competitive advantages of ICT systems, logistics operators
encounter bottlenecks such as increasing operational costs and sluggish
infrastructure development. Speci cally, the port-centric ICT faces the
following ve challenges:

● capacity bottleneck due to the pause of major port infrastructure

investment after the 2008 nancial crisis;
● increasing cost pressure as the freight price continues to slump for
shipping services;
● labour storage of both port knowledge and ICT skills;
● insuf cient technical and/or economic support for the port ICT;
● increasingly sophisticated ICT such as smartphones.

An effective response to the challenges above hinges on strong support

from the port sector, which is vital to driving sector growth and improved
competitiveness. It is important for ports to form a strategic alignment of
organizations across the port sector. The port-centric ICT promotes e-logistics
by providing an e-platform, especially for small and medium-sized enterprises
(SMEs), and enabling paperless documentation.
The port-centric ICT adds value to port users. Most functions of ports
are mainly limited to cargo interface and storage. One of the strategic areas
a port should develop is to allow the port users to participate in the analysis
and problem-solving process. Port users will use a port-centric ICT to manage
and analyse their day-to-day data over a period. The port-centric ICT
system then should enhance the data exchange among the port and different
users. Moreover, users can do some data analysis versus the problem-solving
solution via the ICT system. The ICT system helps a port to build a long-term
relationship with users, shorten the logistical cycle and secure the supply chains.
The port-centric ICT also adds value to port governance. The port-centric
ICT empowers a central headquarters to control the port logistics in a close
manner. The headquarters members can evaluate each logistical process
as soon as front-line staff. By combining different logistical processes,
the port-centric ICT can integrate the port as a whole in a very strategic
position. In the past, a port was managed on the basis of movements of
cargo, vehicles and people. Most processes were considered as short-term
issues and the ICT system was only a tool of data management. Today, one
of a port’s strategic moves is to extend into logistical solution providers,
which requires a sustainable system with accumulating data.
180 E-Logistics for Transport Modes and Nodes

A port needs to extend itself from cargo storage to logistical hub.

The port-centric ICT offers a framework as a starting point to help port
managers to understand the value added via the current and future supply
chains. Tafti, Mithas and Krishnan (2013) mentioned three dimensions of
IT-enabled exibility to foster a wide array of strategic alliances; we apply
these three dimensions in a port-centric ICT system:

1 Open communication standards: common understanding of the

format and structure of the port-centric ICT system should be
exchanged among system users.
2 Cross-functional transparency: the port-centric ICT system should be
made widely accessible across different levels and groups of users of
the system.
3 Modularity: units of functionality of the port-centric ICT system
should be easily disaggregated and recombined into new
combinations of services or business processes to allow new port
users to join the system.

Before concluding the chapter, it is necessary to point out that although

there may be a certain degree of overlap, the concept of a port-centric com-
munity system is different from the single window system concept:

● A single window system is usually initiated and owned by

government bodies with a primary aim to facilitate cross-border
trades and for companies to submit regulatory (such as customs
declarations, applications for import and export permits) and other
supporting documents (such as certi cates of origin and trading
invoices). A port-centric community system, however, may not
necessarily be owned and initiated by a government body, as it can be
privately owned by a port operator (as discussed earlier).
● A single window system is often compulsory to use by trading
companies; however, a port community system may not be mandated
and can be used voluntarily.
● A single window system could be developed with a regional or
national or international coverage and does not have to have a port
as part of the community (for instance it could be purely road-based
for cross-border transport), yet a port-centric community system
tends to focus on individual ports or a collective of ports under the
same parent organization.
 Port-centric ICT system 181

Conclusion
In this chapter, we have introduced different types of port competition and
the importance of port-centric ICT activities. We have also discussed the
relationships between port objectives and tasks of port ICT, and various
ICT promotion tools. It is obvious that port-centric ICT is required and
should be operated to enhance the competitive advantage of all supply
chains using the port.
The port-centric ICT demonstrates ve key implications of the current
information revolution of port logistics and supply chains:

● ICT is the single most important under-leveraged resource today.

● Technological developments outpace an organization’s ability to
master and leverage in the port sector.
● ICT supports the current port business strategy and shapes the future
one.
● A strategic perspective of port development needs to be adopted on
port-centric ICT.
● It is dif cult to conceive of supply chain strategy without recognizing
port-centric ICT.

The role of ports today is very different from what it was some decades
ago. There is a greater emphasis on the competitive advantage of e-logistics
and digital supply chain that ports provide to their clients. The port-centric
ICT generates some overlaps in the responsibilities of ports and their
stakeholders around the port. Ports and their stakeholders need to work
more closely than ever to promote their common interests. The competitive
advantages of port users inevitably rely on the ICT provided by the port.

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