Presented by the MOEF, Republic of Korea

2019/20 KSP Policy Consultation Report Feasibility Study on Automation of Business Processes in the Port of in Azerbaijan Government Publications Registration Number 11-1051000-001028-01

2019/20 KSP Policy Consultation Report Azerbaijan Feasibility Study on Automation of Business Processes in the in Azerbaijan 2019/20 KSP Policy Consultation Report

Project Title Feasibility Study on Automation of Business Processes in the Port of Baku Prepared for The Government of the Republic of Azerbaijan In Cooperation with Port of Baku

Supported by Ministry of Economy and Finance (MOEF), Republic of Korea Korea Development Institute (KDI) Prepared by Korea Maritme Institute (KMI) Total Soft Bank (TSB) Project Director Sanghoon Ahn, Executive Director, Center for International Development (CID), KDI Project Manager Sanghoon Ahn, Executive Director, Center for International Development (CID), KDI Project Officer Bora Nam, Senior Research Associate, Division of Policy Consultation, CID, KDI Gahyun Kim, Research Associate, Port & Logistics Research Division, KMI Senior Advisor Manhee Han, Former Vice Minister for Ministry of Land, Infrastructure and Transport Principal Investigator Chanho Kim, Director of Port investment & Operation Department, Port & Logistics Research Davison, KMI Authors Chapter 1. Chan-ho Kim, Ga-hyun Kim, Sung-a Kim, Sung-ki Kim, Jungyong Seo, Sanghee-Choi, Seo-yoen Oh (KMI) Kuhdayar Hasanli (Baku Port Authority) Chapter 2. Seung-Ho Jung, Myoun-Soo Lee, Hyang-seop Song (SM Line Gyeong-In Terminal) Sang-youl Kim (Pusan National University), Park Ho (Kunsan National University) Hidayat Hamidov (CAT Azerbaijan LLC) Chapter 3. Kyung-Won Kang, Jeong-Hwan Choi, Young-Kwon Lee (TSB) Tural Aliyev (Policy Advisor, Baku Port Authority) English Editor IVYFORCE

Government Publications Registration Number 11-1051000-001028-01 ISBN 979-11-5932-562-5 979-11-5932-556-4 (set) Copyright ⓒ 2020 by Ministry of Economy and Finance, Republic of Korea 2019/20 KSP Policy Consultation Report Feasibility Study on Automation of Business Processes in the Port of Baku Preface

As we enter the Fourth Industrial Revolution, the importance of knowledge is growing. Knowledge is a key driver of innovation and growth and a key instrument for implementing the Sustainable Development Goals. The Ministry of Economy and Finance has been operating a knowledge sharing program (KSP) to meet the demand for knowledge-based cooperation using Korea’s development experience. Since the KSP was launched in 2004, Korea has conducted the KSP with over 70 countries—serving as a leading source of knowledge sharing and contributing to the construction of common development and sustainable growth in the international community.

The 2019/20 KSP project “Baku Port Operation Modernization Feasibility Study", which was promoted with Azerbaijan, examines the possible modernization and automation of the operations of the Port of Baku, the representative port of Azerbaijan. The Korea Development Institute (KDI), Korea Maritime Institute (KMI), and Total Soft Bank (TSB) jointly established the automation strategy. Moreover, the Azerbaijan government is devising a strategy to move away from its high dependence on the oil industry and to grow into a logistics hub in the Eurasian region by utilizing its geographic location. Accordingly, it aims to reduce costs by improving the port automation rate of Baku Port and to attract transshipment cargo between China and by providing high-quality port services.

The 2019/20 Azerbaijan KSP project was promoted to review the possibility of automation for the Baku Port and to help establish a strategy to become a Eurasian logistics hub. Therefore, Korean experts in the port management system and the Baku port officials share their experiences of constructing the port management system despite the COVID-19 pandemic, conduct joint research, and establish automation strategies to suit the national growth strategy.

Through these efforts, this project has established an automation strategy for the Baku Port based on the development experience of the Busan Port in Korea. Accordingly, we first investigate and analyze the general status and volume of the Baku Port, present the implications for establishing a strategy through information exchange among stakeholders, and examine the cargo handling process by terminal. By comparing and analyzing the operating systems of the Baku Port and the Busan New Port, we identified problems and sought improvement measures. Finally, this study derived a phased implementation strategy and its expected effects to increase efficiency and build an automated terminal. The KSP project is expected to greatly expand the cooperative relationship between Korea and Azerbaijan in establishing an automation system for the port of Baku in the future, and we hope to contribute to advancing Azerbaijan’s Eurasian logistics hub.

We would like to express our sincere gratitude to Professor Man-Hee Han, the Senior Advisor who was responsible for the success of the 2019/20 Azerbaijan KSP project. Moreover, we would like to send our appreciation to the three local experts—Kuhdayar Hasanli, Tural Aliyev, and Hidayat Hamidov—who advised on the project implementation in Azerbaijan. We also thank all the researchers at the Center for International Development (KDI) who continued to endeavor towards the successful project execution despite the difficulties of COVID-19. Lastly, we are especially grateful to the Baku Port officials for their interest and support in establishing the automation strategy, and we hope that the cooperative relationship will continue in the future.

Young Tae Chang President Korea Maritime Institute (KMI) Contents

2019/20 KSP with Azerbaijan �����������������������������������������������������������������������������������������������������015 Executive Summary ��������������������������������������������������������������������������������������������������������������������025

Chapter 1 Review of the Port of Baku

Summary·····································································································································029 1. Introduction·····························································································································021 2. Status of Partner Country·······································································································033 2.1. Azerbaijan Policy: Overview and Highlights···································································035 2.2. Status Port Logistics in Azerbaijan··················································································036 2.3. Informatization Status at the Port of Baku·····································································066 2.4. Integration Status between the Port of Baku and Stakeholders··································081 3. Experience of Korea················································································································085 3.1. Case study of Korea: Establishment of BPA-NET····························································085 3.2. Implications of the Busan Port Case for Application to the Port of Baku·····················089 4. Conclusion and Implication····································································································090 4.1. Summary of the Study·····································································································090 4.2. Policy Implications from the Experience of Establishing BPA-NET and Conclusion ���092 4.3. Indications for the Follow-up Study and Possibility of Linking it with Other Projects (EDCF, KOICA, International Organizations, etc.) ����������������������������������������������������������093 References ����������������������������������������������������������������������������������������������������������������������������������095

Chapter 2 Port Automation and Feasibility Analysis for the Port of Baku

Summary·····································································································································097 1. Introduction·····························································································································098 1.1. Background······················································································································098 1.2. Configuration···················································································································099 2. Status of Port of Baku·············································································································100 2.1. Infrastructure and Network····························································································100 2.2. Operation Process············································································································101 2.3. Information System·········································································································104 2.4. Equipment Status and Comparison················································································113 2.5. Annual Cost Analysis········································································································120 2.6. Port Automation Necessity and Possibility Review························································126 3. Experience of Korea················································································································129 3.1. Infrastructure and Network····························································································129 3.2. Operation Process············································································································131 3.3. Information System·········································································································133 3.4. Equipment Status and Comparison················································································134 4. Conclusion·······························································································································135 4.1. Infrastructure and Network····························································································135 4.2. Operation Process············································································································136 4.3. Information System·········································································································136 4.4. Equipment Status·············································································································137 4.5. Annual Cost Analysis········································································································137 4.6. Necessity and Possibility of Port Automation································································137 Appendix······································································································································140

Chapter 3 Establishing an Automation Strategy for the Port of Baku

Summary·····································································································································181 1. Introduction·····························································································································183 1.1. Background······················································································································183 1.2. Outline of the research····································································································184 2. Current Status of Partner Countries·······················································································185 2.1. Status and Features of Caspian Countries’ Port Systems··············································185 2.2. Identified Issues and the Improvement of the Port System·········································186 3. Experiences Based on Korea’s Terminal Operating System··················································187 3.1. A Case Study of Korea’s Terminal Operating System·····················································187 3.2. Comprehensive Assessments of Korea’s Terminal Operating System··························199 4. Conclusion and Suggestions··································································································204 4.1. Summary··························································································································204 4.2. Specific and feasible suggestions and conclusions from the Korean experience·······209 4.3. A following study and the feasibility of cooperating with other organizations ����������210 References ����������������������������������������������������������������������������������������������������������������������������������214 Appendix······································································································································215 Contents l List of Tables

Chapter 1

Facilities··············································································································036
Cranes·················································································································038
Other Cargo Handling Equipment····································································039
Workforce Status································································································040
General Cargo····································································································042
Containers··········································································································042
Storage Tariffs for Container·············································································043
Port Dues············································································································044
Throughput of Ports Near the (2015–2019)································046
Operational Status of Ports Near the Caspian Sea···········································047
Cargo Handling Statistics of the Baku Ports·····················································049
Cargo Handling Statistics by Transportation Mode·········································050
Top 20 Cargo Sending Countries·······································································051
Top 20 Cargo Receiving Countries····································································052
Origin-Destination Trading Volume (from USA to Other Countries)···············053
Origin-Destination Trading Volume (from to Other Countries)········054
Origin-Destination Trading Volume (from Azerbaijan to Other Countries)····055
Origin-Destination Trading Volume (from to Other Countries)···········056
Origin-Destination Trading Volume (from Turkmenistan to Other Countries)····057
Origin-Destination Trading Volume (from Kazakhstan to Other Countries)···058
Origin-Destination Trading Volume(from Tajikistan to Other Countries)·······059
Origin-Destination Trading Volume (from Uzbekistan to Other Countries)···060
Origin-Destination Trading Volume (from China to Other Countries)············061
Origin-Destination Trading Volume (from Afghanistan to Other Countries)·······062
General Cargo Terminal Operations·································································063
Ro-Ro Terminal Operations···············································································063
Ferry Terminal Operations·················································································064
Productivity Differences between Vessel Sizes and Types ������������������������������065
Bulk Vessel Stay Data (December 12, 2019 to February 14, 2020)··················065
Current State of Data and Information Sharing with Stakeholders················083 Chapter 2
The Online System·····························································································101
Operation Process······························································································102
Shipping & Terminal Operation·········································································105
Ship Planning·····································································································106
Yard Planning·····································································································108
Reefer Planning··································································································108
Dangerous Goods Planning···············································································109
Operations Management··················································································109
Delivery Reservation and Inter-Terminal Delivery············································110
Billing··················································································································111
Statistics Occupancy···························································································111
Multi-purpose System························································································112
Container Crane (STS) Automation Factor Comparison···································113
Transfer Crane (T/C) Automation Factor Comparison······································114
Yard Tractor Automation Factor Comparison···················································115
Miscellaneous Equipment–Portal Crane···························································115
Miscellaneous Equipment-Assorted·································································116
Evaluation of Equipment···················································································118
Manpower Formation Comparison···································································120
Additional Direct Cost Due to Non-found Online Service································123
Annual Labor Cost for Non-found Online Service············································123
Husbanding Cost for Shipping Company·························································124
Cargo Interest Expense······················································································124
Truck Waiting Cost and Round-trip Unloading Losses·····································125
Losses for Round-trip Loading Ratio Decreases···············································125

Chapter 3

Status of TOS of Major Caspian Sea Ports························································185
Key Features of PCS····························································································196
Business Performance of BPA-NET···································································203
Modules and Functions in Stage 1····································································207
Modules and Functions in Stage 2····································································208 Contents l List of Tables

Modules and Functions in Stage 3····································································208
Cost Estimation, by Project Stage, for System Implementation······················209
Financing plans··································································································210
Comparing Project Promotion Procedures Between KOICA and EDCF···········212 Contents l List of Figures

Chapter 1 [Figure 1-1] Connectivity with Trade Routes and Hubs························································031 [Figure 1-2] Trade Routes between Europe, Asia, and Potential Markets···························032 [Figure 1-3] Layout of the New Port of Baku········································································033 [Figure 1-4] Alat Free Economic Zone Value Proposition·····················································034 [Figure 1-5] Layout of New Port of Baku···············································································037 [Figure 1-6] View of Each Terminal························································································037 [Figure 1-7] Mobile Harbor Crane·························································································038 [Figure 1-8] Organization Chart·····························································································041 [Figure 1-9] Countries Near the Caspian Sea········································································045 [Figure 1-10] Cargo Handling Trends of Baku Ports·······························································049 [Figure 1-11] Cargo Handling Trends by Transportation Mode·············································050 [Figure 1-12] Sending Rate in 2019·························································································051 [Figure 1-13] Receiving Rate in 2019·······················································································053 [Figure 1-14] Origin-Destination Trading in 2019 (from USA to Other Countries)···············054 [Figure 1-15] Origin-Destination Trading in 2019 (from Georgia to Other Countries)·········055 [Figure 1-16] Origin-Destination Trading in 2019 (from Azerbaijan to Other Countries)··········056 [Figure 1-17] Origin-Destination Trading in 2019 (from Turkey to Other Countries)···········057 [Figure 1-18] Origin-Destination Trading in 2019 (from Turkmenistan to Other Countries) ����������058 [Figure 1-19] Origin-Destination Trading in 2019 (from Kazakhstan to Other Countries) ���������059 [Figure 1-20] Origin-Destination Trading in 2019 (from Tajikistan to Other Countries)·········060 [Figure 1-21] Origin-Destination Trading in 2019 (from Uzbekistan to Other Countries)··········061 [Figure 1-22] Wagon Capturing Process·················································································068 [Figure 1-23] General Cargo Discharging Process (Process-based)······································069 [Figure 1-24] Container Discharging Operation·····································································070 [Figure 1-25] General Cargo Discharging Process (Entity-based)·········································071 [Figure 1-26] General Cargo Loading Process (Process-based)·············································072 [Figure 1-27] General Cargo Loading Process (Entity-based)················································073 [Figure 1-28] Discharging Operation in the Ro-Ro Terminal (Example)································074 [Figure 1-29] Discharging Process in RoRo Terminals in the PoB (Process-basd)················075 [Figure 1-30] Bill of Lading and the Discharge Manifest························································075 [Figure 1-31] Discharging Process in the RoRo Terminals in the PoB (Entity-based)···········076 [Figure 1-32] Loading Process in RoRo Terminals in the PoB (Process-based)·····················076 Contents l List of Figures

[Figure 1-33] Loading Manifest and the Loading List····························································077 [Figure 1-34] Loading Process in RoRo Terminals in the PoB (Entity-based)························077 [Figure 1-35] Discharging Process in the Ferry Terminals in the PoB (Process-based)········078 [Figure 1-36] Discharging Process in the Ferry Terminals in the PoB (Entity-based)···········079 [Figure 1-37] Wagon Invoice Example····················································································079 [Figure 1-38] Loading Process in the Ferry Terminals in the PoB (Process-based)··············080 [Figure 1-39] Loading Process in the Ferry Terminals in the PoB (Entity-based)··················081 [Figure 1-40] Changes of Container Cargo Volume in the Busan Port··································085 [Figure 1-41] Development Goals of BPA-NET········································································086 [Figure 1-42] BPA-NET System Configuration·········································································088

Chapter 2 [Figure 2-1] Process Review and Comparison Flow······························································100 [Figure 2-2] Portal Crane········································································································115 [Figure 2-3] Photo of Our Bulk Salt Operation······································································119 [Figure 2-4] A Full Terminal Operating System·····································································126 [Figure 2-5] Current Terminal Operating System of Port of Baku·······································128 [Figure 2-6] Port of Busan Infrastructure and Network·······················································130 [Figure 2-7] Ship Loading/Unloading Operation··································································132 [Figure 2-8] Standard Systems in Korea················································································134 [Figure 2-9] Port Equipment··································································································135 [Figure 2-10] Operation Flow and the Improvement Priority of the Port of Baku················136 [Figure 2-11] A Full Terminal Operating System·····································································139

Chapter 3 [Figure 3-1] Korean TOS System Structure············································································188 [Figure 3-2] Diagram of Korean TOS Function······································································188 [Figure 3-3] Workflow of Korean TOS Function····································································189 [Figure 3-4] Korean TOS Key Function—Cross-Browser·······················································189 [Figure 3-5] Korean TOS Key Function—Multi-language·····················································190 [Figure 3-6] Korean TOS Key Function—GUI········································································190 [Figure 3-7] Korean TOS Key Function—Resource Plan·······················································191 [Figure 3-8] Korean TOS Key Function—Warehouse / Yard plan·········································191 [Figure 3-9] Korean TOS Key Function—Holds Placed by Customs / Agent························192 [Figure 3-10] Korean TOS Key Function—Vessel Monitoring················································192 [Figure 3-11] Korean TOS Key Function—Terminal Monitoring············································193 [Figure 3-12] Korean TOS Key Function—Billing advice·························································193 [Figure 3-13] Korean TOS Key Function—Collecting Output Data········································194 [Figure 3-14] Korean TOS Key Function—HHT········································································194 [Figure 3-15] Korean TOS Key Function—Weighbridge·························································195 [Figure 3-16] Figure of PCS······································································································196 [Figure 3-17] VCS System Specification···················································································197 [Figure 3-18] MSS System Specification··················································································198 [Figure 3-19] CMS System Specification··················································································199 [Figure 3-20] BPA-NET Diagram·······························································································201 [Figure 3-21] Service Diagram of BPA-NET··············································································202 [Figure 3-22] Workflow of BPA-NET·························································································202 [Figure 3-23] Structure of To-Be system for the Port of Baku················································205 [Figure 3-24] The Three-stage Implementation Strategy for Automating the Port of Baku·····206 [Figure 3-25] The Three-stage Roadmap for Automating the Port of Baku··························206 [Figure 3-26] Outline of the EDCF····························································································212 2019/20 KSP with Azerbaijan

Gahyun Kim (Korea Maritime Institute) 2019/2020 KSP with Azerbaijan

Gahyun Kim (Korea Maritime Institute)

1. Background of the project

In December 2016, Azerbaijan adopted and is still pushing the “Strategic roadmap for the development of trade and logistics” as a national strategy to move the country away from its high dependence on the oil industry and grow into a logistics hub in the Eurasia region. 015

To develop the Baku New Port, which began development in 2011 and has been operating 2019/2020 KSP with Azerbaijan since 2019, as a logistics hub in the Eurasia region, Azerbaijan is striving to activate the port by improving operational efficiency through the informatization of port, improvement of the fare collection system, and development of a railroad-port-ships-combined transportation system.

However, in October 2017, the Baku Port Authority of Azerbaijan submitted a demand survey for the 2019/20 Knowledge Sharing Program (KSP) through an official diplomatic channel for a feasibility study on modernizing Baku Port’s operations to solve the usability problems caused by the lack of experience in modernized port operations and information infrastructure.

The Korea Development Institute (KDI), which was entrusted with the KSP project from the Ministry of Economy and Finance, conducted a prior consultation with the Baku Port Authority in May 2019 to discuss the topics in detail. In December 2019, KDI selected the Korea Maritime Institute (KMI) consortium as the project executing agency through the announcement and evaluation of the re-consignment project selection and KMI proceeded with this project. Project planning planning Project This project is planned to effectively carry out tasks by establishing a cooperative establishing a cooperative This project is planned to effectively carry out tasks by 2.3. Project execution overview execution 2.3. Project 2.2. Project planning planning 2.2. Project three topics. First, the current status of the Baku This project is largely composed of 2.1. Project purpose purpose 2.1. Project of the Baku of the operations project is to review the modernization The purpose of the thisSpecifically, project aims to discover and select the area requiring port automation

network between the following groups: (1) the Azerbaijan Government, its partner country, partner country, network between the following groups: (1) the Azerbaijan Government, its execution agency and KDI; (2) the project management agency and KMI; and (3) the project New port operation was surveyed, analyzed, and used as data to diagnose the level of and used as data to diagnose the level of was surveyed, analyzed, New port operation automation port the while developing experience Korea’s on Second, based modernization. in the Baku New Port should be promoted was system, the area where port automation promoting the automation of the Baku New Port is selected. Last, a policy direction for particular, as detailed policy directions for In suggested through establishing strategies. the Baku New Port, it proposes priority areas related promoting the automation project of automation promotion plans, and strategies, to port automation, phased development was Workshop a financial support plan. In addition to these studies, an Expert Training policy Korea.staffplanned Itby infor was a the replaced webinar Azerbaijani government’s Industrial Revolution, smart ports, and Its topics included the Fourth due to COVID-19. demonstrations of the port management system developed in Korea—reflecting the interest of partner countries in informatization. New Port in Azerbaijan, to share Korea’s experience and knowledge on port operations, and knowledge on port operations, experience to share Korea’s New Port in Azerbaijan, to improve port infrastructure (IT) and Information Technology information systems, to provide advice on related policies. efficiency and operational (informatization), present phased strategies and predict the required time and cost based analyzing by in Korea (TOS) System Operation on the experience of establishing a Terminal the current status and level of automation in the Baku Port. the Accordingly, final report of automating the Baku Port. Moreover, the purpose is to this project can serve as a guide for and expand economic emerging markets companies to enter gain momentum for Korean on the project result. finding out the following project based by cooperation 2. 016 Feasibility Study on Automation of Business Processes in the Port of Baku and the Total Soft Bank (TSB).

The project was scheduled to be carried out for eight months after its launch, but due to the cancellation of the mission in Azerbaijan and the difficulty in communicating with local officials due to COVID-19, the planned schedules were delayed. Accordingly, it will take 10 months (extended by two months) to complete the project.

In the initiation phase, the policy demand and the scope of tasks were determined through a kick-off meeting and factual survey, and necessary data were obtained through discussions with the Baku Port Authority. In the phase for the policy advisory, we sought to improve the performance of the policy advisory by consulting with domestic and foreign experts and utilizing local networks.

At the phase of capacity building and networking, Korea’s experience in the Fourth Industrial Revolution, smart ports, and Korea’s port management system were introduced to those working on the Azerbaijan port-related policy via a webinar. It aimed to strengthen the capabilities of the partner country, provide opportunities for domestic private companies to 017 advance in the overseas market, and to establish a network between Korea and Azerbaijan 2019/2020 KSP with Azerbaijan in the port sector.

Finally, at the project completion phase, the Azerbaijan Government and the Baku Port Authority, which are the project partners, evaluated and reviewed the report pursuant to the deliberative process so that a high-quality and reliable report could be presented.

Sub-topics Researchers Local Consultants

Chan-ho Kim, Ga-hyun Kim, Sung-a Kim, Kuhdayar Hasanli (Head of Strategy Review of the Port of Baku Sung-ki Kim, Jungyong Seo, Sanghee-Choi, and Development Department, Baku Seo-yoen Oh. (Korea Maritime Institute) Port Authority)

Seung-ho Jung (SM Line Gyeong-In Port Automation and Feasibility Hidayat Hamidov (Executive Terminal) Analysis for Port of Baku Director, CAT Azerbaijan LLC) Sang-yeol Kim (Pusan National University)

Establishment of Automation Tural Aliyev Junghwan Choi (TSB) Strategy of Port of Baku (Policy Advisor, Baku Port Authority)

• Senior Advisor: : Manhee Han (Former Vice Minister for Ministry of Land, Infrastructure and Transport) • Project Manager: Sanghoon AHN, Executive Director, Center for International Development (CID), KDI • Principal Investigator: : Chanho Kim (Director of Port & Logistics Research Davison, Korea Maritime Institute) Main activities Main 3.2. Kickoff Seminar and Factual Survey (December 14–19, 2019) Survey 3.2. Kickoff Seminar and Factual The official kickoff seminar, the identification of the specific demands for the research directions and topics, methods, the explained and discussed seminar The kickoff for software construction a strategy research team suggested the Korean Accordingly, 3.1. Kickoff Meeting (December 6, 2019) (December 6, Meeting 3.1. Kickoff To introduce the 2019/20 Azerbaijan KSP project, research content, plans, etc., a kickoff KDI described the KSP roles of each research team were introduced. At the meeting, the

topic, the factual survey through interviews with related organizations, and recruitment with related organizations, and recruitment topic, the factual survey through interviews topic were conducted. interviews of local experts by local policy demands could be whereby of research with local officials in Azerbaijan, identified and concreted. Moreover, it was confirmed that the PCS (Port Community System) revealed at the time of the prior consultation that took construction project, which was not place in May 2019, was in progress and is currently being tested. Furthermore, officialsof the informatization is currently being made said that about 50% of the Baku Port Authority they However, project. this through 90% to level the increase to plans it and PCS, through added that it is difficult to collect data from related agencies railroad (ships, offices, customs, the etc.) port through automation the capability current is PCS. insufficient,Consequently, so it is necessary to consult about appropriate software applications. including the cost and time required to build an information system for port automation the after Korea Busan, in system information operation port the of case the on based that the system at Baku New Port. It was explained diagnosis of the existing operation research would be conducted with the aim of inviting officers (such as those from the Baku New Port) to share Korea’s experience in efficient port operations. Moreover, we discussed meeting was held under the presidency of KDI with the attendance of senior advisor Man- advisor senior of attendance the with KDI of presidency the under held was meeting participants. hee Han and project major each for details task and plan promotion project the explained KMI Moreover, project. detailed the on provided were consultations Also, formulation. budget the and stage project and on the specific survey seminar held in mid-December schedule related to the kickoff main the list of data for collection during the survey, content. Discussions also focused on the local institutions, etc. contents to be discussed when visiting 3. 018 Feasibility Study on Automation of Business Processes in the Port of Baku mutually necessary matters and plans for future research through a question and answer session.

While visiting the Baku New Port following the kick-off seminar, the current Baku Port’s operation status, equipment, and manpower were discussed, related data were collected, and problems and requests were surveyed at the site. Three local experts were also hired through recruitment interviews to secure the reliability of this project-related data and research content, and the role of each local expert is as follows.

Role of Local Consultant Local Consultant

Collecting basic data on the Baku Port, communication Kuhdayar Hasanli (Head of Strategy and Development between Azerbaijan and Korea Department, Baku Port Authority) Establish promotion strategy, investment attraction, and Tural Aliyev (Policy Advisor, Baku Port Authority) financial security plan Collecting and sharing data about the logistics processes Hidayat Hamidov (Executive Director, CAT Azerbaijan of the Caspian coastal countries and the Baku New Port LLC) and the logistics information on neighboring countries

019 3.3. Evaluation Meeting for Project Plan (January 9, 2020) 2019/2020 KSP with Azerbaijan

The evaluation meeting for the project plan was held with the presence of the senior advisor (Han Man-hee), four advisory evaluation committee members for each subject, researchers, and KDI officials to evaluate the project plan by topic. At the evaluation meeting, discussions focused on the content and scope of research for each subject and the direction and appropriateness of the research. Looking at the content of the discussion by topic, during Topic 1, according to the opinion of the evaluation advisory committee, the level of informatization of ports in countries near the Caspian Sea should be compared and analyzed within the scope of the study. It is also necessary to conduct surveys on what needs to be standardized to establish a cooperation system with neighboring ports, identify a shipping company using the Baku Port, and check the ability to connect to the information system for each ship.

Specifically, the research team is expected to have much difficulty in determining the level of informatization of the ports in countries near the Caspian Sea, and it is suggested that local experts should only include the content they can confirm. Regarding Topic 2, the advisory committee evaluated that it was necessary to clearly distinguish between the clear purpose of the PCS and the level of automation (connectivity, degree of delay, service, etc.). Therefore, the research team responded that the port automation required by the Baku Port Authority does not mean the automation of equipment but requires the automation Unsu Kim (Topic 3) Unsu Kim (Topic Eonkyung Lee (Topic 2) Eonkyung Lee (Topic Donggeun Ryu (Topic 3) (Topic Donggeun Ryu Hwayoung Kim (Topic 1) Kim (Topic Hwayoung Evaluation Advisory Committee Evaluation Advisory Professor, Korea Maritime University Maritime Professor, Korea Korea Maritime Institute, Director of Smart Port Research Division Maritime Institute, Korea Director of Transportation Logistics Research Division, Incheon Research Institute Director of Transportation Professor of Department of Maritime Transportation, Mokpo National Maritime University Professor of Department of Maritime Transportation, 3 1 2 3 3.4. Seminar and Factual Survey (February 8–16, 2020) 3.4. Seminar and Factual Survey Seminars and factual surveys were conducted for site investigation and identification of there were discussions about the level of Authority, In the workshop with the Baku Port includes Authority Port the Baku by solution proposed the informatization particular, In Namely, we suggested a phased strategy for the Baku Port Authority to resolve the the resolve to Authority Port Baku the for strategy phased a suggested we Namely, Sub-topics local demand regarding this project. solutions required in the future among the content of the future development plan of the included a smart sensor, the Baku Port Authority Solutions proposed by Baku Port Authority. smart cargo handling, a transport vehicle, equipment management and control, etc. The current PCS was also discussed. Fourth the from technology the using system information operation port a establishing in differences Industrial Revolution, such as artificial intelligence, so there were many The the Baku Port Authority. the level of the informatization system currently owned by the research team (TSB) helped the Baku Port Authority by TOS of the Korean demonstration

The Azerbaijani Customs is operating its own system, like the Railway Authority, and discussed the possibility of linking the PCS system of the Baku New Port. Regarding the advance cargo reporting system, it is mandatory for both railroads and ships to report at least one hour in advance. However, although railroads provide notifications one hour in advance of their arrival, ships—despite the duty to report at least one hour in advance— share cargo information with customs immediately after arrival. Therefore, it emphasized that the success of the PCS depends on the cooperation of shipping companies. There is currently no specific discussion regarding information exchange and observation with the Caspian coastal countries.

For the field survey of the Alat New Port, we visited the ferry, Ro-Ro, and the general cargo terminals. First, in the railroad-port shunting yard, cargo and wagon arrival 021 information (weight, number of wagons, etc.) using the railroad are confirmed through 2019/2020 KSP with Azerbaijan CCTV, but the cargo weight information was manually entered into the information window and entered into the Port Authority’s PCS system. At the ferry wharf, the ship and cargo information from the shipping company was not automatically transferred through the pre-arrival notification process. Instead, written data was received from the captain after the arrival and was handed over to the Port Authority after the customs inspection. Consequently, it was found that the unloading work started after the arrival report was made (about 30 minutes to one hour before arrival). At the Ro-Ro and general cargo docks, the current unloading process could be confirmed. Normally, it took one to two days for the ferry pier, 10 to 11 hours for the Ro-Ro pier, and two hours for the general pier to unload cargo at the port. Subsequent interviews with the person in charge of informatization were conducted to compare the functions of the existing PCS operating system and the functions that should be provided in the future. After the field survey and the meeting with related organizations, the mission was ended by reviewing the results of the survey with the Baku Port Authority and determining matters for future discussion and the next plans.

3.5. Interim Reporting and Evaluation Meeting (June 11, 2020)

Due to the unexpected COVID-19 pandemic, the interim reporting and evaluation meeting was replaced with a written report (June 4, 2020). As local officials were unable to enter Korea, the interim reporting was also replaced with a video conference. Discussions 3.6. Training workshop for policy staff (October 6, 2020) workshop for policy staff 3.6. Training who workshop was scheduled to be conducted for Azerbaijani officials The training In the interim reporting, the analysis based on the fact-finding survey and data data and survey fact-finding the on based analysis the reporting, interim the In intensively Baku Port Authority of the current situation, the Based on the understating based on was presented 2, the level of automation introduction In the detailed Topic would visit Korea during a period when it was possible to move between Korea and and between Korea move possible to it was when during a period Korea visit would with a partner country were conducted to postpone the training session for the policy staff. session for the training conducted to postpone country were with a partner were future results and the predicted New Port was explained related to the Baku collection about Azerbaijan in officials local of opinions the to listened we Moreover, introduced. Topic detailed the First, plan. response the reviewed and presentation the of content the 1 explained the Baku Port operation status (facilities, equipment, rates, etc.), volume and cargo, process by terminal, information exchange productivity by terminal point analysis, information exchange between stakeholders. and agreements on solution, etc.), which is necessary construction (appropriate software, reviewed the system the emphasized Authority Port the Baku particular, In budget. the and automation for is fully explained in which Port Authority, establishment part of the Baku future strategy that a clear and unified definition and matching 3. It was determined 2 and Topic Topic the Baku Port development” previously delivered by work between the part of the “Future content covered in this study is necessary. to the research team and the related Authority emphasized the link between the future and final report The final report preparation contents covered in this study. and the development of the Baku Port Authority the analysis of the current status of the Baku Port, such as the equipment, data exchange, it was emphasized that costs. Accordingly, process, information system, and labor operation and preceded, be must interchange) data electronic (e.g., services online of introduction the then, the operation procedure and equipment introduction must be considered. However, during the first and second missions in Azerbaijan, the Baku PortAuthority did not provide services and the status of promotion. Therefore, it information on the introduction of online the Baku by was decided that detailed information on the introduction of the online services Port Officewould be reflected thein final report. In detailedthe Topic 3, roadmapthe for In particular, terminal automation at the Baku Port was prepared over a total of three times. but Port, Baku the of plan future and priority the on focusing prepared, was roadmap a the Baku Port Authority pointed out that it was not sufficientlyvetted and thus agreedto conduct local review and feedback. 022 Feasibility Study on Automation of Business Processes in the Port of Baku Azerbaijan, examining the spread of COVID-19. The originally planned training program included visiting the Busan Port Authority, Busan New Port, and the TSB to introduce the current status of port operations in Korea. TSB is in charge of Topic 2 and Topic 3 of this project; as a specialized company in the software solutions (S/W) for port logistics, it has the second-largest market share in the TOS and the largest market share in the solution service for shipping companies. The training workshop was planned to explain the port operation system that can be introduced in the Baku New Port in Azerbaijan.

In particular, when visiting the TSB, a business briefing session was planned to be held to establish domestic and local networks and continuously promote tasks for carrying out continuous tasks associated with a follow-up project. Through this, a Private-Public Partnership (PPP) between the two countries would be established for promoting the following project. However, since last August, as the number of confirmed cases of COVID-19 in Korea has increased rapidly and local officials in Azerbaijan have become unable to enter Korea, the training workshop for policy staff have been replaced by webinars. Its topics included the Fourth Industrial Revolution, smart ports, and demonstrations of the port management system developed in Korea—reflecting the demand of the partner country. 023 2019/2020 KSP with Azerbaijan

3.7. Final Reporting Workshop and High–level Policy Dialogue (October 7, 2020)

The content of the research by subject to be presented at the final reporting workshop was finally confirmed through an anonymous review. The final reporting workshop and high-level policy dialogue were also replaced by video conferences due to COVID-19. The final report is modified and revised according to the review by anonymous reviewers of the draft version written in July 2020. At the final reporting session, the opinions on the final report shared with the partner countries will be heard beforehand, and the plans for continuous cooperation between the two countries will be discussed through a high-level policy dialogue via video conference.

3.8. Wrap-up Meeting (October 2020)

The warp up meeting was planned to review the final report reflecting the result of the final reporting workshop and review opinions. At the meeting, we plan to share opinions on the overall project with the final report and to discuss how to use the project results in the future and publish the report. Executive Summary

Chanho Kim (Korea Maritime Institute) Executive Summary

Chanho Kim (Korea Maritime Institute)

The government of Azerbaijan, a landlocked country bounded by the Caspian Sea, adopted the “Strategic Roadmap for Trade and Logistics Development” (December, 2016) to escape its high dependence on the oil industry and grow into a logistics hub in the Eurasia region. This project was promoted by the government’s application for a knowledge sharing program (KSP) from the Korean government (2018) to solve the problem of the declining usability and convenience of users caused by the lack of experience in the port operations 025 and an inadequate information technology (IT) infrastructure, such as the Terminal Executive Summary Operating System. The purpose of the project is to review the possibility of modernizing port operations and to establish the basis for improving port operational efficiency through various operational information systems and an IT infrastructure. The study was conducted by setting three sub-themes, such as reviewing the level of port automation, the possibility of implementation, and establishing a port automation strategy.

In Chapter 1, as the first step in establishing the automation strategy for Baku Port, we conducted a survey that included the current status of the port facilities and equipment in the Baku Port, cargo handling performance and origin-destination analysis, and cargo handling process and productivity analysis. Through the fact-finding survey, the overall cargo handling process was confirmed, including subjects and information delivery types of which the Baku Port Authority was unaware.

As a result of the analysis, several sub-processes of the general cargo terminal, ro- ro terminal, and ferry terminal can be digitized and automated through Electronic Data Exchange and information-sharing platform, but the manual work and data/information exchange format increases working time, which negatively affects port productivity. An overall system re-engineering was necessary.

Based on the analysis results, we proposed digitalizing the platform of the current In Chapter 2, the equipment and operation process, information exchange process, and for the Baku Port, based on Korea’s strategy In Chapter 3, to establish a port automation collects cargo weight information through the Third, the current Baku Port automatically system. This enables real-time data and information sharing, eliminating bottlenecks in in eliminating bottlenecks sharing, data and information enables real-time system. This and improving or cargo, resources and visibility of increasing traceability specific tasks, the quality of decision-making related to resource operation. This will play a key role in connects multiple ports as well as network because it systematically improving the logistics of a specific port. stakeholders the Baku Port and the Busan were compared and analyzed between information system the possibility of promoting the port the level of port automation and New Port to analyze on an efficient change and effect Baku Port; this examination focused automation in the Data Interchange) and the introduction of an EDI (Electronic through analysis in operation a partial system. It was proposed to establish a specific mid- to long-term marketing plan stage and introduction. internally to set the direction for the automation we reviewed the system (TOS), terminal operation experience in establishing an automated improvement field and the three-step strategy of the Baku Port. There are threekey areas of the data on all cargo handling can be computerized to improvement for the Baku Port. First, Second, after the operation. for major decision-making in the terminal secure the data asked there so site, the at inspected and checked, received, is information cargo the arrives, ship the at arrives cargo or ship the before objection, improve To handling. cargo in delay a is information about the arrival of the ship or receives port, the Port of Baku (PoB) Authority cargo rail and the cargo itself so that the terminal personnel and equipment are prepared in quickly. advance and the cargo can be processed but the part that is combined with wagons and trucks, by weighbridge for cargo transported in cargo handling. Therefore, causing a delay the cargo number (wagon id) is done manually, weighbridge is established. a 100% computerization of cargo information processed by goal the achieve to proposed was strategy three-step a improvements, above the on Based of port automation in Baku Port. In the first stage, a terminal operatingsystem (TOS) with stage, the functions second the in and network, the integrate to introduced is basic functions are reinforced. Moreover, after supplementing the (TOS) System Operating of the Terminal automation equipment in step 3, we proposed rebuilding the business process accordingly. 026 Feasibility Study on Automation of Business Processes in the Port of Baku

01 CHAPTER

Review of the Port of Baku

Chan-ho Kim, Ga-hyun Kim, Sung-a Kim, Sung-ki Kim, Jungyong Seo, Sanghee-Choi, Seo-yoen Oh (Korea Maritime Institute) Kuhdayar Hasanli (Port of Baku)

1. Introduction 2. Status of Partner Country 3. Experience of Korea 4. Conclusion and Implication

Keywords Port of Baku, Cargo Handling Process, Port Modernization, Port Operation, Process In- formatization Review of the Port of Baku

Chan-ho Kim, Ga-hyun Kim, Sung-a Kim, Sung-ki Kim, Jungyong Seo, Sanghee-Choi, Seo-yoen Oh (Korea Maritime Institute) Kuhdayar Hasanli (Port of Baku)

Summary

Azerbaijan, which is located in the Middle East and the Commonwealth of Independent States (CIS) region, established and promoted the “National Economy and Macroeconomic Development Strategy Roadmap” in 2016 to move away from its high economic dependence on the oil industry. Specifically, the Government had started constructing the New Port of 029

Baku, a main facility that is intended to become a logistics hub, and the New Port (Alat New CHAPTER Port) was opened in early 2019. The development of the New Port of Baku consisted of two 01

phases. The first phase included the construction of two ferry berths, two Ro-Ro berths, Review of the Port Baku seven general cargo berths, and one service berth. Although the schedule for the second phase development is not decided yet, five additional container berths capable of handling 10 million tons will be constructed during the second phase.

Despite the construction and operation of the new port, the limited previous experience of the port operations and the lack of IT infrastructure have caused usability problems. Although the cargo volume increased in 2019 (4.06 million tons) compared to 2015 (3.30 million tons), the steady growth has undercut and appeared in an irregular pattern each year. Therefore, the Port of Baku (PoB) Authority seeks solutions to these kinds of problems through the KSP and expects to increase the total cargo volume, including transshipment cargo volume through informatization.

For example, regarding the process of general cargo vessel discharging operations in the PoB, the operations indeed are prepared before a cargo vessel arrives. First, the sales and marketing department in the port (SMD) emails the information on the coming vessel to several teams and departments, including the Operations Department and the Marine Services Department. An agent in the PoB signs and sends a permission letter for the planned discharging operations to the customs headquarters. Then, the SMD drafts a letter When the vessel berths, a port agent commissions a team for customs, border, and team for customs, border, and a port agent commissions a When the vessel berths, seal each wagon with cargo. An agent the customs and sender During the operations, flow includes limited information on loading andIn terms of a logistics process, the cargo provided Nevertheless, valuable data and information are available from the documents To reduce theinefficiency, PoB launched its own port operation program, called PCS, in to be sent to an agent of the to request wagons for serving the vessel. A at Alat as the wagons arrive are performed inspections and commercial series of mechanical the port. wagons move to and the empty station, railway the following from the vessel: bill of the vessel. The agent also receives sanitary services to The agent passes the copies of the cargo plan, and invoice documents. lading (BL), manifest, firstthree documents to a warehouse officer,and customsa officer receives necessary the all the information in their system vessel. The customs officer seals documents from the on a document basis, especially assigning a barcode to each BL. The customs headquarters port starts discharging operations the created barcodes, and then, the electronically approve for the vessel. at the Alat Railway station periodically dispatches wagons to the shunting yard on request. that Act the following three documents: the General Moreover, a warehouse assistant issues loading of list a and shift, end of each the at invoice sturman a cargo, discharged indicates sends to the wagons. A port-assigned broker performed directly from the vessel operations each invoices for railway which prepare list document to the railways, the loading operation bills to the railway takes the broker are completed, wagon. After all discharging operations Customs Head Office in Baku for declaration. The customs declare and approve the transit and close their management system. PoB, and therefore, it is challenging cargo terminals in the in general discharging operations for no dictionary has a description for instance, to identify the processes thoroughly; “sturman”. Also, there is no processing time required for the study in identifying the main in the PoB. of the current terminal operations drawbacks including an overview of the cargo-handling processes in the different the authority, by the discharging working with the PoB. Notably, terminals and the various stakeholders cargo terminals are especially well explained. Besides, the PoB in the general operations In study. the by improved and automated be can that work the and processes such marks from targets as improvement be chosen would processes operation potential words, other the marks. 030 Feasibility Study on Automation of Business Processes in the Port of Baku November 2019, and the program is now being tested. In addition to establishing an internal operating system of PoB for informatization, it is essential to integrate the existing systems that involve the stakeholders in Azerbaijan and the CIS region. The PoB works with many stakeholders, such as the Azerbaijan Railways (ADY), the customs offices, and nearby ports (Turkmenbashi and Aktau), and such works require data exchange during cargo transit operation. The PoB is now negotiating with the Customs and ADY for data interchange

1. Introduction

Azerbaijan, located in the Middle East and the CIS region, established and promoted the “National Economy and Macroeconomic Development Strategy Roadmap” in 2016 to reorient its economy away from its dependence on the oil industry. Under the strategy roadmap, the logistics industry was selected as an alternative industry to promote the national economy. The reason for choosing the logistics industry as a key industry lies in the geographical location of Azerbaijan. 031

[Figure 1-1] Connectivity with Trade Routes and Hubs CHAPTER 01 Review of the Port Baku

Source: Port of Baku, 2020.

Geographically, Azerbaijan is located on the right side of the Caspian Sea and bounded by Georgia, Armenia, , and Turkey. Especially, bordering Turkey, Azerbaijan is a kind of land bridge between Asia and Europe. Also, Azerbaijan is a member of the Transport - - (3) transportation (3) transportation 1 2 ound the Port of Baku, and its possible extension is based on the population, which is over 130 130 is based on the population, which is over ound the Port of Baku, and its possible extension Port of Baku, 2020. Therefore, to ignite the plan, the Azerbaijan government has invested in logistics government has invested in logistics Therefore, to ignite the plan, the Azerbaijan Based on the understanding of geographical strength, Azerbaijan believes that there believes that there Azerbaijan strength, geographical of understanding the on Based million people who live within 1,000 km in the 10 countries. counting for more than 2% of the goods traded between the EU and China, has quadrupled since 2007. The value of goods trans than 2% of the goods traded counting for more was 200,000 China to Europe from rail $ 22.9bln in 2016 to $ 76.5bln in 2020. The number of TEU by from increased rail ported by in 2018. per year was 6,000 trains TEUs in 2017, and the number of trains T Huge B2C market was formed ar

facilities, such as railways, roads, and ports. Given Azerbaijan’s favorable geographical geographical favorable roads, and ports. Given Azerbaijan’s facilities, such as railways, to used corridors transport international main the region, the in location priority the Among routes. North-South and East-West the are potential transit strengthen AH-5, and M-2 onprojects for Azerbaijan, the following are exceptionally important: (1) E-60, Network; (2) the state border with the Transport route of the Trans-European the TRACECA (60,002), AH-8 Republic of Baku-Alat-Gazakh-Georgia; and (3) E-119 on the North-South route of Completion Federation. Baku-Russian the with roads state border on the and M-1 (5.81), as a whole is also an important issue. In the near future, these highways the work to upgrade to complete the construction of the remaining sections of these measures will be taken 1 betweentheEUandChina,ac transportation volumeofrail thepast10years.Trade 87%over by ingoodshasincreased rade 2 Source: Source: [Figure 1-2] Trade Routes between Europe, Asia, and Potential Markets Asia, and Potential Routes between Europe, 1-2] Trade [Figure Corridor Europe-Caucasus-Asia (TRACECA) Initiative, involving the European Union and and Union European the involving Initiative, (TRACECA) Europe-Caucasus-Asia Corridor Asian regions. Central Caucasian, and Eastern European, countries of the 12 member One Road Initiative One Belt and China’s in the main route for Azerbaijan is Furthermore, Europe- of expansion the (1) logistics: potential of terms in demands market many are trade; (2) future increases in the EU-China routes; Asia overland trade time and cost competitiveness of railways against shipping for medium-value goods (e.g., goods (e.g., medium-value shipping for against competitiveness of railways cost and time potential. car parts); and (4) its own market electronic devices and 032 Feasibility Study on Automation of Business Processes in the Port of Baku routes in accordance with world standards, including M-1 (60 km, Russian border-Gandob) and M-2 (130 km, Ganja-Georgian border).

Specifically, the government had started construction on the New Baku Port as a key logistics hub in the CIS region to replace the old port near downtown in 2016. As a result of the construction, the new port was finally opened in early 2019.

The development of the New Port of Baku consisted of two phases. The first phase of development, opened in the early of 2019, included two ferry berths, two Ro-Ro berths, seven general cargo berths, and one service berth. With these facilities, the total handling capacity reached 15 million tons, including 100,000 TEUs. The total development cost was 1 billion dollars, which was invested by the central government of Azerbaijan.

The time schedule for the second phase of development is still pending, but five additional container berths capable of handling 10 million tons will be constructed. When the second phase of the development is finished, the New Port of Baku will bring the total handling capacity to 25 million tons, including 500,000 TEUs with 17 berths. 033 CHAPTER [Figure 1-3] Layout of the New Port of Baku

The 1st Phase The 2nd Phase 01 Review of the Port Baku

Source: Port of Baku, 2020.

Moreover, the Port of Baku (PoB) Authority is planning to develop a free economic zone (“Alat Free Economic Zone (FEZ)”) in the Alat area. To promote it, the Port of Baku Authority will provide four incentive schemes, such as tax exemptions, customs duties exemptions, a one-stop-shop, and the establishment of a separate arbitration center. and center All civil disputes commercial Separate arbitration Separate Visas Taxes Labor Customs Company registration concerning ------most questions One stop shop for Economic efficiency Favoravle geograghy Favoravle Alat Free Trade Zone Trade Alat Free the zone the zone Import to Export from ------Customs duties Exemptions from (130M inhabitants in a radius of 1000Km from Baku) (130M inhabitants in a radius One of the cheapest and most efficient labor in the region One of the cheapest and most efficient labor in Logistics hub on a cross-road of China - Europe and North - South flows Logistics hub on a cross-road of China - Europe The most competitive economy of the region (Global competitiveness Index) The most competitive economy Existing countries near Azerbaijan are big economies with large import flows Existing countries near Azerbaijan are big economies VAT taxes income Dividend payments Employee Corporate net income ------Exemptions from

Port of Baku, 2020.

Fundamentals Zone incentives Zone of experience previous limited port, new the of operation and construction the Despite mentioned above, the aims of this study are as follows: (1) review Under the background the port operations and a lack of IT infrastructure, such as operational information systems, as operational such and a lack of IT infrastructure, the port operations example, the cargo passing from Georgia to Azerbaijan via caused usability problems. For truck or train takes about 30 minutes for customs clearance, but in the case of the port, it due to the absence of an information system. Therefore, the PoB about two hours takes Authority applied for the KSP program in 2018 to find solutions to these sorts of problems from 50% to 90%. and to increase its automation rate analyze Port of Baku; (2) system level and automation possibilities of the operating the suggest a port the port necessity and possibility of a port in Baku; and (3) establish and for the port of Baku. automation strategy Source: Source: [Figure 1-4] Alat Free Economic Zone Value Proposition Value Economic Zone Alat Free 1-4] [Figure 034 Feasibility Study on Automation of Business Processes in the Port of Baku 2. Status of Partner Country

2.1. Azerbaijan Policy: Overview and Highlights

Azerbaijan is an oil-rich country, and its economy has been highly dependent on oil. The oil and gas industry accounted for approximately 90% of exports and 65% of the Gross Domestic Product (GDP). Although the country’s annual growth rate stood at 16.4% on average by 2014, it faced an economic crisis by recording a 3.8% decline in the GDP since 2016 due to a reduced trade surplus, an aggravated financial state, a worsening exchange rate, and a decrease in the amount of oil and gas exports as the world entered into the low oil price era in 2015. Furthermore, the country was largely importing industrial goods due to its fragile manufacturing base.

To overcome such vulnerabilities, Azerbaijan pursued a downstream strategy to the existing oil industry and implemented policies to develop various industrial sectors, including agriculture, logistics, and ICT. As for the manufacturing sector, the country has been focusing on nurturing the petrochemical sector and agriculture, which can be 035 developed and grown in a relatively short period by utilizing the country’s existing resources CHAPTER and the medical industry’s (pharmaceuticals) high dependence on imports. 01 Review of the Port Baku The country has implemented a series of projects to modernize its refinery plants and build new petrochemical factories to downstream the petrochemical industry, with the aim of constructing oil refineries available to produce diesel and gasoline that comply with Euro 5 (Euro emissions standard) by 2021. As for the agriculture sector, the country is raising funds by utilizing its abundant agricultural resources and promoting non-tariff measures on farming facilities and equipment. Also, it is developing large greenhouses to modernize the industry and increase the crop production, and it is implementing projects to construct the Agro Park, agricultural complex (ABAD). Considering that it is entirely dependent on the import of drugs, the country is fostering the medical industry (pharmaceuticals) and making efforts to attract investments from companies in and the United Arab Emirates (UAE). To build the transport infrastructure, it is constructing railways—such as the Baku-Tbilisi- Kars (BTK) railway (completed in October 2017) and the International North-South Transport Corridor (INSTC, the rail route that stretches to Iran-Azerbaijan-Southern Russia)—to establish itself as a transport hub connecting China, Central Asia, and Europe.

According to the statistical office in the country of residence, Azerbaijan recorded a trade surplus in 2018 with USD 31.75 billion or an increase of 41% compared to the previous year. As of 2018, Russia and Turkey were the largest exporters, accounting for 30% of the - Capacity 6.2 million tons 1.8 million tons 7.0 million tons 15.0 million tons, including 100,000 TEU 2 2 1 7 Number of Berths Berth Ferry berth Ferry Ro-Ro berth Service berth Port Facility General cargo berth General Port of Baku, 2020.

The Port of Baku (PoB) Authority has two ferry berths (capering 6.2 million tons), two Ro- has two ferry The Port of Baku (PoB) Authority 2.2. Status Port Logistics in Azerbaijan 2.2. Status Port Logistics in Equipment, and Workforce 2.2.1. Port facility, • Regarding the foreign policy, it sticks to the pro-Western stance, while pursuing pursuing while stance, pro-Western the to sticks it policy, foreign the Regarding Total throughput capacity Total Ro berths (capering 1.8 million tons), seven general cargo berths (capering 7.0 million tons), seven general Ro berths (capering 1.8 million tons), capacity of 15.0 million tons. The facilities of PoB and one service berth with a total handling 1-1. are described in detail in Table Source: Source:

Facilities 1-1>

Source: Port of Baku, 2020.

037 [Figure 1-6] View of Each Terminal CHAPTER

General Cargo Terminal 01 Review of the Port Baku

Ferry Terminal Ro-Ro Terminal

Source: Port of Baku, 2020. - - 8 8 8 8 8 8 8 8 8 8 (m) Min radius Min radius 32 32 26 18 32 32 32 32 20 35 32 19 Max radius (m) Max radius 150 t hook opertion 54 m 29.3 m 23.2 m 4 ropes / 1 drum to 101.0 m/min to 1.6 rpm 809 kW 30 40 50 80 20 40 16 20 32 32 150 74.3 SWL (ton) SWL Lifting capacity Maximum radius Cab height Boom pivot height Hoist configuration Hoisting speed Slowing speed Installed power MAIN TECHNICAL PARAMETERS Regime Grab mode Grab Grab mode Grab Grab mode Grab Hook mode Hook mode Hook mode Hook mode Hook mode Heavy mode 80 40 32 32 150 SWL SWL (ton) 2 2 2 2 1 No of cranes Equipment Port of Baku, 2020. Port of Baku, 2020. Crane cranes Status

• tons to 150 tons. from 32 capacity ranges and its handling nine cranes, PoB possesses Modernized Mobile Harbor New Ardelt crane New Ardelt crane New Ardelt crane Source: Source: Source: Source: 1-7] Mobile Harbor Crane [Figure

Cranes

Other Cargo Handling Equipment Operating Specifications or Date of Name Qty Unit Brand weight models prod. /per unit

Forklift 3 set HC CPCD200 - W36 2017 33,500kg

Forklift 3 set HC CPCD100 - RG17 2017 13,000kg

Goose Neck Tractor 3 set HOWO zz425s 3247d1 2017 25,000kg

Trailer 3 set HOWO TAZ9400TDP 2017 40,000kg

Forklift 2 set HC CPCD40 - RG24 2017 6,300kg

Forklift 4 set HC CPCD25N - RG2 2017 4,130kg

Forklift 4 set HC CPCD15N - RG26 2017 3,020kg 039

Skid Loader 4 set XCMG XT760 2017 3,670kg CHAPTER

Skid Loader 1 set XCMG XT760 2017 3,700kg 01 Review of the Port Baku Nylon Sling 4 line YEWEI YW - BP - 001 2017 /

Reach Stacker for 2 set HC RS45-31 ch - W45 2017 72,200kg Freight Container

Weight: 220T All-terrain Crane 1 set XCMG 2017 71,870kg Lifting height: 94.7m

Source: Port of Baku, 2020.

• Workforce

The PoB employed a total of 787, 651 people and outsourced 136 employees. Among them, 593 employees work on the operational side, such as in docker, driver, controller, stevedore, and maintenance positions. The detailed personnel status of the PoB is shown in the following table. There are four brigades, eight hours of work, and a monthly salary fixed amount at the rate of 450 AZN (265 USD). The salary depends on the type of cargo volume (they are paid an additional salary for handling each ton) and an average monthly docker salary varies between 800–900 AZN (470–530 USD). 787 1 8 7 0 0 2 6 8 4 3 9 0 7 0 0 0 0 0 0 0 0 0 8 1 9 99 11 14 30 58 22 96 57 61 593 194 162 104 Sum 136 0 1 9 8 57 61 136 Partner 0 1 8 7 0 0 2 6 4 3 9 0 7 0 0 0 0 0 0 0 0 8 99 11 14 30 58 22 96 457 651 194 162 104 In-house Position personnel Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Team leader including Team Administrative and labor Administrative Sum Sum General Manager, Directors Manager, General Total Sum Total IT HR CEO Cash Tally Sales Labor Team Billing Driver Health Docker Admin. Facility Planner Security On-dock Customs Statistics Planning Secretary Stevedore Chauffeur Controller Executives Underman Accounting Firefighting Receptionist Gate Control Maintenance Procurement Field Support Control Center Gate Inspection Legal Insurance Dangerous goods Advisor (Forman) Advisor Operational Plan & Operational Port of Baku, 2020. Personnel Personnel Managerial Operational Operational Source: Source:

Workforce Status 1-4> Workforce

[Figure 1-8] Organization Chart

Director General - 1 Deputy to Director General - 1

Advisor to director general - 3 Assistant to Director General - 1

International Internal audit cooperation and Marine Services Deputy to Director Deputy to Director Deputy to Director Senior advisor to department - 2 Public relations department - 3 General - 1 General - 1 General - 1 director general - 1 division - 9

Sales and Human Security Confidentiality Fleet Dispatching Financial It Legal Secretary - 7 marketing Resources department - 5 division- 1 service- 89 service- 22 department - 23 department- 7 division- 3 department - 8 department- 8

Ship Strategic Quality Archive - 2 Agent Operations Training HES Guide movement planning and control service - 5 department - 1 center- 3 department- 19 service- 0 control development division- 2 service- 4 department-5

Internal Operations Procurement Patrol and Marine Ferry control planning division- 3 surveillance station terminal - 9 division- 4 services- 9 area- 14 division - 4

Supply and repair- Alat Head Ro-Ro General cargo 041 construction service

area- 54 office - 8 terminal - 3 terminal - 4 CHAPTER department-7

Technical Shipping Shipping Transport area- 26 Garadag Dubandi service area - 21 area- 4 area- 4 operations operations 01 area - 13 area - 11 Review of the Port Baku Supply Electricity and Operation warehouse -5 energy area -20 support area - 19 Administrative Rigging area-36 area -10 Portal crane group of Railway group of operation operation support area - 25 support area - 15 Engineering area -6

Source: Port of Baku, 2020.

2.2.2. Port Tariff

• Cargo Handling Tariff

A cargo handling tariff is divided by the cargo type and handling status, as shown in the following tables. For general cargo, the average tariff is $4.2 per ton for cross-docking and $5.9 per ton for complete operation. 45 25 60 45 65 50 Vehicle 4.2 5.6 5.9 7.0 4.2 5.6 4.9 5.3 4.5 12.0 Warehouse- Complete operation Semi operation 45 25 60 45 65 50 Vehicle- warehouse Handling charge (rate per ton in USD) per (rate 8.6 3.0 4.0 4.2 5.0 3.0 4.0 3.5 3.8 3.2 Handling charge Cross-Docking 90 50 90 120 130 100 (rate per unit in USD dollar) per unit in USD (rate Complete operation 70 30 60 70 100 110 Cross-Docking Other Average Scrap metal Scrap Commodity Rubber goods Palletized cargo / Big bags Loose metallurgical products Cargo in bags, cases, and boxes Cargo in bags, cases, and Cargo in bundles, bales, rolls, barrels. Cargo in bundles, bales, Commodity Metallurgical products in bundles and rolls Metallurgical products in Metal structures, machinery, and equipment Metal structures, machinery, 20’ DC full container 40’ DC full container 45’ DC full container Port of Baku, 2020. Port of Baku, 2020. 20’ DC empty container 40’ DC empty container 45’ DC empty container For containers, semi-operation is added, unlike other cargo. The tariff for a 20’ full full 20’ a for tariff The cargo. other unlike added, is semi-operation containers, For container is $70 for cross-docking, $90 for the complete operation, and $45 for the semi- If the type operation. of container is a 20’ empty container, the tariff is $30 for cross-docking, semi operation. and $25 for the $50 for the complete operation, Source: Source: liquid bulk cargo, loading, and discharging tariff is $ 0.80 per ton. For

Containers
General Cargo 1-5> General

A storage Tariff is varied depending on the type of cargo (import, export, and transshipment). A seven-day free storage period is offered for all kinds of imported and exported cargo, and a 15-day free storage period is available for all kinds of transit cargo.

For an import and export 20’ container, the tariff is free for up to seven days, $2 (per container per day) for 8–30 days, $2.5 for 31–60 days, and $4 for over 60 days. Moreover, for a transit 20’ container, the tariff is free for up to 15 days, $2 (per container per day) for 16–30 days, $2.5 for 31–60 days, and $4 for over 60 days.

Storage Tariffs for Container (Unit: USD)

Import/export Transit

Free per per per Free per per per storage container container container storage container container container period per day per day per day period per day per day per day Container

Over 60 Over 60 7 days 8–30 days 31–60 days 15 days 16–30 days 31–60 days 043

days days CHAPTER

20’ DC 0 2 2.5 4 0 $ 2 2.5 4 01

40’ DC 0 4 4.5 7 0 $ 4 4.5 7 Review of the Port Baku

Over 40’ DC 0 5 5.5 9 0 $ 5 5.5 9

Source: Port of Baku, 2020.

• Port Dues

Port dues include arriving registration, sailing registration, canal dues, tonnage dues, anchorage dues, environment dues, pilotage, wharfage dues, tugboat dues, agent, and transport services, ship shift, water Supply, etc. The detailed port dues are shown in the following table. $3 $8 $10 $43 $86 $10 $30 $350 $250 $600 $530 $500 $450 $450 $450 $300 $300 $450 $650 $550 $500 $400 $174 $150 $250 $348 $513 $868 $0,0888 $0.1036 $0.1480 $0.0370 $0.3996 $0.0015 $0.0296 $0.0148 carrier Foreign flag Foreign ------$6 $20 $29 $58 $12 $150 $350 $175 $250 $250 $220 $220 $220 $175 $300 $115 $230 $460 ₼ 2,57 $0,0341 $0.1165 $0.0411 $0.0447 $0.0270 $0.0018 $0.0411 $0.0100 carrier National flag National flag CBM CBM CBM CBM CBM CBM CBM CBM per ton per ton per hour per hour per hour per hour per hour per hour per hour per hour per hour per hour per hour Unit measure Sailing registration Arriving registration Pilotage Ship shift Port dues Canal dues Tugboat dues Water Supply Water Tonnage dues Tonnage Providing fuel Alat // Tugboat Up to 1,000 m3 Pilot // Pilotage Wharfage dues Anchorage dues Anchorage Kür // Ecological Kür Şəfəq // Ecological Günəşli // Tugboat Silkway // Tugboat Silkway Environment dues Limançı // Tugboat 20,001 m3 and more Mooring, unmooring MNSM-73 // Ecological Sabir Babayev // Tugboat Sabir Babayev Nüsrət Şirinov // Tugboat Elxan Kazımov // Tugboat From 1,001 m3 to 5,000 m3 From 1,001 m3 to 3,000 m3 The use of floating vehicles From 3,001 m3 to 10,000 m3 From 5,001 m3 to 10,000 m3 Up to 1,000 cubic meter(m3) from 60,001 m3 to 80,000 m3 From 10,001 m3 to 20,000 m3 From 10,001 m3 to 20,000 m3 From 20,001 m3 to 40,000 m3 From 40,001 m3 to 60,000 m3 Agent and Transport services and Transport Agent Port of Baku, 2020. Additional transport service for one hour transport Additional Source: Source:

Port Dues

Countries near the Caspian Sea include Azerbaijan, Russia, Kazakhstan, Turkmenistan, and Iran. The main ports in Russia are Astrakhan, Makhackhala, and Olya. In Kazakhstan, Aktau and Kuryk are the main ports. The main ports of Iran are Anzali, Amirabad, Nowshahr, Neka and Astara, and Turkmenistan’s main ports are Turkmenistan. Turkmebashy), the port of Alaja.

[Figure 1-9] Countries near the Caspian Sea

045 CHAPTER 01 Review of the Port Baku

Source: https://www.pinterest.co.kr/pin/426012445994020096/.

• Throughput

In 2019, Azerbaijan handled the largest volume of cargo with 8.3 million tons, followed by Russia (7.2 million tons), Iran (6 million tons), Kazakhstan (5.1 million tons), and Turkmenistan (3.7 million tons).

As for the single ports, the Port of Makhackhala (Russia) handled the largest volume of cargo (4.6 million tons), followed by the Port of Sangachal (4.2 million tons), and the Port of Baku (4 million tons) in Azerbaijan. - - - 0.7% 1.6% 7.3% 4.5% 5.8% 5.7% 9.6% 9.1% -9.3% -3.6% -0.8% -0.3% -0.3% -2.1% 14.6% CAGR -16.8% - n/a n/a 2019 531.6 769.6 155.2 7,203.0 3,708.2 3,833.7 4,057.2 4,247.7 8,304.9 2,006.1 4,665.3 5,195.0 1,034.2 4,117.1 1,361.2 6,076.1 30,487.1 (unit: brutto thousand ton) (unit: brutto thousand - n/a n/a 2018 421.2 580.1 192.5 4,534.0 6,386.0 3,553.1 3,787.8 6,116.0 9,903.8 1,641.7 2,471.1 5,165.0 1,494.5 3,625.5 1,611.9 5,892.6 31,881.4 - n/a n/a 2017 271.4 614.0 175.1 3,947.6 6,576.0 3,033.0 4,398.1 3,946.4 8,344.5 2,287.9 1,388.3 4,496.8 2,203.1 2,885.6 1,463.8 5,877.8 29,242.7 - n/a n/a 69.8 2016 197.6 743.4 179.3 6,039.5 6,801.5 3,597.4 4,523.0 1,284.3 5,807.3 2,590.4 3,251.5 3,597.4 3,081.6 2,345.8 6,419.8 28,665.5 - n/a n/a 2015 112.8 308.0 795.9 169.0 7,018.0 7,423.4 3,599.2 3,059.0 3,567.0 2,970.0 3,740.0 6,626.0 3,599.2 2,157.1 2,903.0 6,137.8 30,804.4 PoB Olya Zykh Neka Kurik Ports Aktau Kenar Anzali Astara Sub total Sub total Sub total Sub total Hovshan Amirabad Astrakhan Nowshahr Sanghachal Makhackhala Turkmebashy, Turkmebashy, Alaja, Ekerem, Alaja, Ekerem, Total Iran Russia Operation Status Operation Port of Baku, 2020. Country

Azerbaijan Kazakhstan • country) near the Caspian Sea is shown in status of the ports (listed by The operational capacity annual the and (6,048m), 35 at berths of number highest the has Azerbaijan Turkmenistan Table <1-10> below. <1-10> below. Table highest the has PoB the port, single a of terms In tons. 54.7 million with highest the also is and Iran. capacity (25 million tons), which is higher than that of Turkmenistan, Kazakhstan,

Throughput of Ports Near the Caspian Sea (2015–2019) of Ports Near the 1-9> Throughput
Operational Status of Ports Near the Caspian Sea Total Capacity Number of Length Capacity Country Ports Terminal (million ton Berth (m) (million ton per year) per year)

1.8 Ro-Ro (Autovehicles) 2 406 (60,000 Autovechiles)

PoB Ferry 25 (Railcars and 2 309 6.2 autovehicles) General Cargo 7 Azerbaijan (Dry Cargo and 7 1,361 (100,000 TEU) Container) Oil 2 500 10 (Liquid cargo) Oil Sanghachal 6 1,168 20 20 (Liquid cargo) General Cargo 047 Zykh (Dry Cargo and 7 1,179 1.15 1.15 CHAPTER Container) General Cargo

Hovshan (Dry Cargo and 9 1,125 8.6 8.6 01

Container) Review of the Port Baku

General Cargo 4 625 4

Bulk Cargo Terminal 3 440 3

Container terminal 3 480 400,000 TEU

Polypropylen 3 - 0.12 terminal

17 300,000 passengers per Turkmenistan Turkmenbashy year; Ferry and Passenger 2 256 terminal 75,000 vechicles per year

Alaja n/a n/a n/a n/a

Ekerem n/a n/a n/a n/a

Kenar n/a n/a n/a n/a 2 6 7 12 0.2 7.5 1.5 1.5 3.5 n/a n/a Total Total Capacity per year) (million ton (million ton 2 6 12 0.2 1.5 1.5 3.5 n/a n/a n/a n/a n/a n/a n/a n/a n/a Capacity per year) (million ton (million ton n/a n/a n/a n/a n/a n/a n/a 150 466 188 180 300 180 200 183 (m) 1,875 1,332 Length 1 6 3 1 4 2 1 1 1 1 1 1 3 9 1 11 n/a Berth Number of Number of Oil Oil Ferry Grain Bautino Oil dock wood, etc. Terminal Ro-Ro dock (Liquid cargo) Multi-purpose Multi-purpose General Cargo General Ferry complex Ferry Grain terminal Grain Ferry (Railcars) Ferry Iron, Container, Dry bulk terminal Multi-purpose (Oil) Ro-Ro (Automobiles) Kurik Ports Aktau Anzali Astara Amirabad Nowshahr General Cargo Handling Statistics Cargo General Iran Port of Baku, 2020.

Country 2.2.4. Cargo Handling Statistics 2.2.4. Cargo • in 2014 to 3.30 The total volume of the Baku Ports dropped from nearly 5.9 million tons Kazakhstan million tons in 2015, and then, increased to about 4.06 million tons in 2019. Despite the 2019. Despite the million tons in 2015, and then, increased to about 4.06 million tons in undercut and increased volume in 2019 compared to 2015, the steady growth has been 200,000 tons in appeared in an irregular pattern each year. Exports increased from about 2014 to 311,000 tons in 2019, and imports fell significantly from 1.16 million tons to 290,000 in tons million 3.45 to 2014 in tons million 4.45 from decreased also transit Moreover, tons. volume, making up 84.7% of the total on a accounted for most of the trading 2019. Transit six-year average. Source: Source:

Continued
Cargo Handling Statistics of the Baku Ports (unit: brutto thousand ton)

Indicator 2014 2015 2016 2017 2018 2019

Total 5,895 3,059 4,523 4,398 3,788 4,057

export 199 198 368 344 325 311

import 1,158 231 232 284 259 293

transit 4,538 2,631 3,924 3,770 3,203 3,453

Source: Rewritten by researchers using data from the Port of Baku.

[Figure 1-10] Cargo Handling Trends of Baku Ports (unit: brutto thousand ton)

7,000

6,000

5,000

4,000

3,000 049 CHAPTER 2,000

1,000 01 Review of the Port Baku

- 2014 2015 2016 2017 2018 2019 export import transit Total cargo handilng

The total volume was divided into five types (break bulk and dry cargo, liquid cargo, railcars, automobiles, and container). The main items in the railcars and dry cargo were agricultural products, such as fertilizer, grains, vegetables, and beverages. Agricultural products produced in Georgia are mainly transported by railcars. The ratio of cargo types in 2019 was 81.1 percent for fertilizer materials and 18.9 percent for the rest. As of 2019, railcars accounted for the largest portion (60%), followed by automobiles (22%), liquid cargo (8%), break bulk and dry cargo (6%), and containers (4%). Railcars, however, fell sharply in 2015 and then, declined again after rising to 2017. Automobiles had a small share until 2018, but due to the sharp rise of its shares in 2009, automobiles took second place for cargo handling. Liquid Cargo accounted for a high share in 2016 but has since been declining. Break bulk and dry cargo had a high share in 2014 but continued to fall with a sharp drop- off in 2015, followed by an uptick in 2019. Containers, like automobiles, had a small portion until 2018 but increased in volume in 2019. In summary, railcars are seeing a steady and significant increase in volume, whereas liquid and break bulk and dry cargo are decreasing, and automobiles and containers are increasing in volume. 331 885 161 254 2019 2,428 2019 Railcars - 56 87 494 (unit: brutto thousand ton) (unit: brutto thousand ton) (unit: brutto thousand 2018 2,609 2018 44 31 531 131 2017 2,980 2017 63 44 170 2016 1,576 2,126 Liquid cargo (oil terminal) Containers 2016 37 26 840 211 2015 1,791 2015 6 25 2014 1,104 3,636 1,112 Break-bulk & Dry cargo Autovehicles 2014 Railcars Dry cargo Indicator Containers Origin-Destination Statistics Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten - Automobiles Liquid cargo Break-bulk & (oil terminal)

• Looking at the country rankings of the volume of goods leaving the PoB, the largest of the volume of goods leaving the PoB, the largest Looking at the country rankings 4,000 3,000 2,000 1,000 volume of trading to neighboring Turkmenistan and Kazakhstan is shown in

, 1-13>, to neighboring Turkmenistan and Kazakhstan is shown in
Cargo Handling Statistics by Transportation Mode Transportation Statistics by Handling 1-12> Cargo
Top 20 Cargo Sending Countries (unit: brutto thousand ton)

Country 2014 2015 2016 2017 2018 2019 CAGR

Turkmenistan 937 1,009 1,886 946 934 1,017 1.7% Kazakhstan 1,518 144 268 1,210 836 453 -21.5% USA 286 157 252 428 409 452 9.6% Turkey 128 219 398 365 253 447 28.4% Azerbaijan 199 199 371 316 328 311 9.3% Ukraine 180 63 303 445 343 383 16.3% Georgia 423 215 221 137 217 298 -6.8% Iran 1,003 179 137 3 18 11 -59.4% Tajikistan 271 304 225 41 85 52 -28.1% Uzbekistan 271 184 140 102 29 44 -30.5% UAE 38 24 49 103 75 93 19.6% Bulgaria 158 168 50 0 0 2 -58.3% Venezuela 285 69 -100.0% China 29 15 14 17 71 146 38.2% Russia 61 44 30 69 24 23 -17.7% Afghanistan 6 2 25 50 73 69 63.0% Brazil 39 5 18 35 1 4 -36.6% 051

Italy 22 19 9 5 10 34 9.1% CHAPTER Korea 1 14 33 3 16 9 55.2%

Japan 0 24 26 4 3 NA 01

Others 42 27 69 95 61 205 37.3% Review of the Port Baku Total 5,895 3,059 4,523 4,398 3,788 4,057 -7.2%

Source: Rewritten by researchers using data from the Port of Baku.

[Figure 1-12] Sending Rate in 2019 (unit: %)

Source: Rewritten by researchers using data from the Port of Baku. NA NA NA NA NA 7.4% 8.0% 5.3% -1.6% -7.2% 25.4% 20.6% 61.9% 69.0% 51.2% 22.5% CAGR -66.5% -50.0% -28.2% -24.1% -21.5% -15.0% 1 9 1 1 0 25 24 71 55 62 15 43 110 174 218 385 292 835 685 330 722 2019 4,057 (unit: brutto thousand ton) 4 7 0 60 11 45 15 47 21 91 59 53 255 364 262 418 727 494 856 2018 3,788 4 2 1 3 33 34 58 72 14 21 234 263 281 616 912 448 2017 4,398 1,402 - 9 8 0 5 54 23 40 55 21 256 294 232 596 787 566 2016 4,523 1,576 2 6 7 5 0 97 12 73 161 168 231 610 312 839 535 2015 3,059 3 2 10 22 77 13 28 23 169 290 270 570 529 2014 1,157 5,895 1,104 1,630 Iran UAE Italy Total Ispan Russia Others Turkey Sweden Georgia Ukraine Scotland Country Tajikistan Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Nederland Azerbaijan Uzbekistan Kyrgyzstan Bangladesh Kazakhstan Afghanistan Turkmenistan

shows the country ranking of the volume of cargo received at Baku’s ports. at Baku’s of cargo received of the volume country ranking 1-14> shows the
Top 20 Cargo Receiving Countries Receiving 20 Cargo 1-14> Top

Source: Rewritten by researchers using data from the Port of Baku.

Because Azerbaijan is a land-locked country, the international logistics route consisted of two routes (West-East and East-West). The West-East Route mainly comes from the United States, Georgia, and Turkey as described in tables below. First,

shows the flow of cargo moving from the United States to other countries through Azerbaijan, which has 053 increased by 9.6% per year since 2014. Most of the volumes in 2019 go to Afghanistan (44.0%), CHAPTER Kazakhstan (36.9%), and Turkmenistan (16.9%). 01 Review of the Port Baku
Origin-Destination Trading Volume (from USA to Other Countries) (unit: brutto thousand ton)

O-D countries 2014 2015 2016 2017 2018 2019 CAGR

Total 285.6 152.8 251.8 428.2 409.2 451.6 9.6%

Afghanistan 191.3 79.6 82.5 137.5 188.4 191.2 -0.01%

Kazakhstan 1.2 127.5 242.9 171.1 188.0 NA

Turkmenistan 88.9 69.9 36.8 41.3 36.7 60.4 -7.4%

Tajikistan 4.3 3.2 7.9 1.6 NA

Kirghizstan 4.2 3.1 0.8 0.0 3.8 8.9 16.2%

Uzbekistan 0.2 1.1 1.4 0.1 NA

Other 2.1 1.4 NA

Source: Rewritten by researchers using data from the Port of Baku. (unit: %) NA 2.2% -6.8% 33.4% 39.0% 52.6% CAGR -16.0% 5.5 0.4 5.8 32.7 2019 297.2 126.2 126.5 (unit: brutto thousand ton) 4.9 0.1 8.5 84.8 11.2 2018 216.4 106.9 2.6 0.7 2.4 51.8 64.6 14.5 2017 136.5 0.7 0.0 3.6 94.1 13.1 2016 220.5 109.0 4.0 0.5 51.5 2015 210.7 154.6 6.3 0.7 1.3 2014 423.5 301.6 113.6 Total Other Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Tajikistan Uzbekistan Kyrgyzstan Kazakhstan Secondly, the trading volume from Georgia to other countries through Azerbaijan is is Azerbaijan through countries Georgia to other from volume trading the Secondly, Turkmenistan O-D countries shown in

, which has decreased by 6.8% annually since 2014. Most of the since 2014. Most of the 6.8% annually 1-16>, which has decreased by shown in
Origin-Destination Trading Volume (from Georgia to Other Countries) Georgia (from Volume 1-16> Origin-Destination Trading

Source: Rewritten by researchers using data from the Port of Baku.

shows the trading volume of the goods produced in Azerbaijan and shipped 055 to other countries through Baku, which has been increasing by 9.3% each year since CHAPTER 2014. Most of the volumes in 2019 go to Afghanistan (45.6%), Turkmenistan (28.6%), and

Kazakhstan (14.4%). Also, the transit volume from Azerbaijan to Tajikistan and Uzbekistan is 01 Review of the Port Baku annually increasing by 57.8% and 25.6%, respectively.

Origin-Destination Trading Volume (from Azerbaijan to Other Countries) (unit: brutto thousand ton)

O-D countries 2014 2015 2016 2017 2018 2019 CAGR

Total 199.2 197.7 370.6 316.4 327.9 311.1 9.3%

Afghanistan 52.3 82.6 208.0 116.8 163.6 161.8 25.3%

Turkmenistan 65.4 77.0 101.3 117.1 59.0 72.5 2.1%

Kazakhstan 13.5 34.3 39.4 59.7 70.9 30.7 17.9%

Kyrgyzstan 59.6 0.2 0.3 4.0 2.0 -49.3%

Tajikistan 1.3 1.5 15.1 4.9 16.1 12.7 57.8%

Uzbekistan 5.9 2.3 3.1 3.1 6.4 18.5 25.7%

Other 1.0 - 3.5 14.5 7.8 12.9 66.8%

Source: Rewritten by researchers using data from the Port of Baku. (unit: %) 91.9% 69.0% 14.3% 41.6% 33.8% CAGR -13.7% 114.4% 5.2 5.3 12.4 59.8 18.1 2019 345.8 446.7 (unit: brutto thousand ton) 8.4 3.7 5.2 72.2 29.9 2018 132.8 252.1 4.6 5.8 10.7 14.6 2017 136.8 192.4 364.9 1.1 0.6 5.3 15.4 2016 260.5 114.6 397.6 - 0.2 3.3 35.9 2015 175.8 215.2 0.9 0.2 0.4 30.7 11.1 60.8 2014 104.0 Total Other Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Tajikistan Uzbekistan Kyrgyzstan Kazakhstan The transit volume from Turkey to other countries through Azerbaijan is shown in is shown in to other countries through Azerbaijan volume from Turkey The transit Turkmenistan O-D countries

, which has been increasing by 33.8% per year since 2014. Most of the volumes 33.8% per year 1-18>, which has been increasing by
Origin-Destination Trading Volume (from Turkey to Other Countries) Turkey (from Volume 1-18> Origin-Destination Trading

Source: Rewritten by researchers using data from the Port of Baku.

A summary of the trading volume on the West-East Route shows that Afghanistan, Turkmenistan, and Kazakhstan are the main destinations. However, the volume of this route slightly increased in 2019 compared to 2014 (CAGR 5.1%), with substantial fluctuations every year. 057 CHAPTER

On the East-West Route, the transit volume from Turkmenistan to other West countries via Azerbaijan has been increasing 1.7% per year since 2014. There is a large volume going 01 Review of the Port Baku to Europe (66.6%), followed by Georgia (15.7%), and Turkey (8.4%). Europe has been trending downward (CAGR -17.5%), whereas Georgia and Turkey have been on upward trends (CAGR 59.0%, 114.1%).

Origin-Destination Trading Volume (from Turkmenistan to Other Countries) (unit: brutto thousand ton)

O-D countries 2014 2015 2016 2017 2018 2019 CAGR

Total 933 985 1,851 922 934 1,015 1.7%

Europe 858 788 1,532 424 494 327 -17.5%

Georgia 28 136 180 224 189 287 59.3%

Turkey 3 45 50 168 159 135 114.1%

Azerbaijan 9 3 24 80 22 64 48.0%

Other 33 14 65 26 71 201 43.5%

Source: Rewritten by researchers using data from the Port of Baku. (unit: %) NA 93.3% CAGR -26.2% -39.8% -21.5% 151.7% 0 54 19 278 101 453 2019 (unit: brutto thousand ton) 95 498 125 119 836 2018 61 16 88 2017 1,045 1,210 0 90 15 37 126 268 2016 3 10 28 103 144 2015 2 1 241 2014 1,274 1,518 Total Turkey Europe Georgia Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Nederland Azerbaijan Most of the trading from Kazakhstan goes to Georgia (75.1%), and the volume of goods Georgia (75.1%), and the volume of goods from Kazakhstan goes to Most of the trading O-D countries coming into Europe (10.0%) and Azerbaijan (7.8%) is also large. Shipments to Azerbaijan are coming into Europe (10.0%) and Azerbaijan Moreover, shipments to Georgia and Europe 151.7%) but declined in 2019. on the rise (CAGR year after year. -26.2%, -39.8%) and fluctuate are declining (CAGR Source: Source:

Origin-Destination Trading Volume (from Kazakhstan to Other Countries) (from Volume 1-20> Origin-Destination Trading

Source: Rewritten by researchers using data from the Port of Baku.

The main destinations for transit volume from Tajikistan are Georgia (78.2%) and Turkey (20.1%), but Georgia has declined significantly (CAGR -28.1%). Although CAGR of Turkey is 8.4%, shipments in 2019 fell significantly compared to 2015. 059 CHAPTER

Origin-Destination Trading Volume(from Tajikistan to Other Countries)

(unit: brutto thousand ton) 01 Review of the Port Baku O-D countries 2014 2015 2016 2017 2018 2019 CAGR

Total 271 304 225 41 85 52 -28.1%

Georgia 267 198 138 38 80 45 -30.0%

Turkey 2 106 85 0 0 3 8.4%

Azerbaijan 2 1 1 4 3 8.4%

Other - - 0 2 1 2 NA

Source: Rewritten by researchers using data from the Port of Baku. (unit: %) 16.5% CAGR -64.2% -43.3% -36.9% -30.5% -14.8% -100.0% 1 1 1 44 26 15 2019 (unit: brutto thousand ton) 4 0 1 29 15 10 2018 3 4 3 5 85 102 2017 8 0 16 11 140 104 2016 - 4 97 83 184 2015 7 10 58 17 10 169 271 2014 Italy Total Other Turkey Georgia Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Azerbaijan Bangladesh Transit volume from Uzbekistan mainly goes to Georgia (48.2%), Bangladesh (35.2%), to Georgia (48.2%), Bangladesh (35.2%), volume from Uzbekistan mainly goes Transit O-D countries and Azerbaijan (6.7%). By 2015, shipments to Bangladesh were high, but since 2016, the Bangladesh were high, but since 2016, the 2015, shipments to and Azerbaijan (6.7%). By Shipments to Georgia have also declined -64.2%). volume has fallen to almost none (CAGR to decline. in Uzbekistan continues -14.8%), so trading significantly (CAGR Source: Source:

Origin-Destination Trading Volume (from Uzbekistan to Other Countries) (from Volume 1-22> Origin-Destination Trading

Source: Rewritten by researchers using data from the Port of Baku.

The volume of cargo from China has risen sharply since 2014 (CAGR 34.4%). Imports to Azerbaijan are high (6.6%). Since 2016, the transit volume to Georgia has increased (CAGR 71.0%). 061 CHAPTER

Origin-Destination Trading Volume (from China to Other Countries) (unit: brutto thousand ton) 01

O-D countries 2014 2015 2016 2017 2018 2019 CAGR Review of the Port Baku

Total 29 15 14 16 70 127 34.4%

Azerbaijan 29 14 4 12 27 40 6.6%

Georgia 10 4 42 50 71.0%

Other - 1 0 1 1 38 NA

Source: Rewritten by researchers using data from the Port of Baku.

The volume of cargo from Afghanistan is low but has been increasing since 2014 (CAGR 63.0%). It increased from approximately 0.06 million tons in 2014 to 0.7 million tons in 2019. The volume entering Azerbaijan is the highest (68.1%). The volume to Georgia is increasing steeply. NA NA 63.0% 28.4% 14.9% CAGR -100.0% 6 0 0 69 36 26 2019 (unit: brutto thousand ton) (unit: brutto thousand 0 0 73 56 17 2018 5 0 50 45 2017 8 1 25 17 2016 - 2 0 2 2015 - 6 3 3 2014 USA Total Other Turkey Georgia Terminal Productivity Terminal Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Azerbaijan

• be assessed in different performance areas. Also, Port (or terminal) productivity can Summarizing the trading volume on the East-West Route, Georgia, and Azerbaijan Azerbaijan and Georgia, Route, East-West the on volume trading the Summarizing O-D countries some performance indicators are only suitable for specific terminal types. In this report, terminal types. In this report, specific for suitable only indicators are performance some cargo 2017 to 2019 in three types of terminals: general port productivity was examined from performance various and Customized terminals. ferry and terminals, Ro-Ro terminals, performance changes is and, therefore, tracking indicators per terminal type are utilized possible during and after the study. are the main destinations and Europe. Unlike the West-East route, which showed a slight route, which showed a slight the West-East Unlike are the main destinations and Europe. -15.3%). Volumes (CAGR is falling volume of trading 5.1%), the overall upward trend (CAGR but neither have much volume. from China and Afghanistan have risen, Source: Source:

Origin-Destination Trading Volume (from Afghanistan to Other Countries) to Other Afghanistan (from Volume Trading 1-24> Origin-Destination
General Cargo Terminal Operations

Year 2017 2018 2019

General cargo vessel call 69 80 140

From vessel 1,060 1,756 6,785 Container (TEU) To vessel 3,713 4,345 5,539

Total (TEU) 4,773 6,101 12 324

From vessel 39,470 29,794 164,267 Dry cargo (ton) To vessel 12,849 6,672 12,521

Total (ton) 52,319 36,466 176,788

Average productivity of big bags per hour - 18 96

Average productivity of bulk cargo per hour - 74 156

Average productivity of container per hour - 12 12

Max productivity of container per hour - 14 23

Source: Rewritten by researchers using data from the Port of Baku.

063

As shown in

general cargo operations significantly advanced in all CHAPTER performance areas. It is worth mentioning that the number of vessel calls doubled during the period. Also, the port handled more containers and dry cargo each year. Especially, 01 Review of the Port Baku container throughput in 2019 is about three times larger than that in 2017. The average productivity of big bags per hour experienced the largest increase from 2018 to 2019. The terminal processed 18 bags per hour in 2018; however, it handled 96 bags per hour. The terminal improved its operations in bulk handling, whereas container handling operations did not experience any improvement.

Ro-Ro Terminal Operations

Year 2017 2018 2019

Average vessel stay time, number of vessel visits 20.2 / 151 19.8 / 146 15.5 / 166

Total number of passengers 20,422 36,067 23,033

Total number of trucks 19,358 15,782 17,704

Total vessel stay time (hour) 8,633.6 6,341.3 3,623.7

Total net operation time (hour) 2,194 2,300 1,632

Total trucks / vessel stay 2.2 2.5 4.9

Total passengers / vessel stay 2.4 5.7 6.4

Total trucks / net operation 8.8 6.9 10.8

Source: Rewritten by researchers using data from the Port of Baku. 32 62 1.2 3.6 0.9 2019 14,819 44,211 10,528 13.3 / 494 12,365.04 10.64 / 554 32 62 0.3 3.7 0.7 2018 2,958 8,693 43,038 11,614.7 13.7 / 426 12.7 / 455 32 62 0.4 4.1 0.8 2017 4,019 8,615 46,469 14.4 / 413 11,290.95 11.25 / 475 3 3 Year Total number of trucks Total Total trucks / vessel stay Total Total number of wagons number of Total Total wagons / vessel stay wagons / vessel stay Total Total number of passengers number of Total Total passenger / vessel stay Total Total vessel stay time (hour) vessel stay Total ver net operation time ver net operation Old ferry stay time, number of vessel visit time, number Old ferry stay New ferry stay time, number of vessel visit time, New ferry stay Average net wagon handling per hour old ferries Average Average net wagon handling per hour new ferries Average Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Ro-Ro operations also experienced improvements in various performance (Table 1- 26). 1- 26). (Table performance in various experienced improvements also Ro-Ro operations in various performance areas during also experienced improvements operations Ferry Calculated o

First, vessel stay time at the port decreased from 20.2 hours in 2017 to 15.5 hours in 2019 (after in 2017 to 15.5 hours from 20.2 hours at the port decreased time stay First, vessel visits and passengers. with more vessel 25% decrease came the Alat Port). The moving to Therefore, the terminal clearly improved its efficiencyoperational in handling Ro-Ro vessels during the period. The PoB mentioned that it was due to the simplification of documentation that the total trucks per vessel stay to passengers. It is also remarkable and logistic service The authority was improved. meaning that truck utilization around 120%, increased by before vessel completed and declaration is due to the preparation mentioned that this arrivals. An old ferry has a main deck that accommodates up 1-27>. the period, as shown in

Ferry Terminal Operations 1-27> Ferry Terminal
shows productivity differences between vessel types and sizes from 2018 to 2019. The average productivity of big bags per hour soared by 433%, and that of bulk cargo per hour rose by 111%. In container handling operations, the average productivity remained constant, whereas the maximum productivity per hour increased by 64%.

Productivity Differences Between Vessel Sizes and Types

Performance Indicator 2018 2019 Percentage Change

Average productivity of big bags per hour 18 96 433%

Average productivity of bulk cargo per hour 74 156 111%

Average productivity of containers per hour 12 12 -

Max productivity of containers per hour 14 23 64%

Source: Rewritten by researchers using data from the Port of Baku.

shows bulk vessel stay information from December 12, 2019 to February 14, 2020. Per vessel stay, the name of the vessel, the actual time of berth (ATB), the actual time of departure (ATD), waiting time for arrivals of wagons (WAW) and for arrivals of wagons 065

as a percentage of the total port stay time (WAWP) are available. The port received 21 bulk CHAPTER vessels, and the WAWP was 26% on average. It is worth mentioning that 16 of them waited for wagons between two hours (WAWP: 1%) to 86 hours (WAWP: 68%). 01 Review of the Port Baku

Bulk Vessel Stay Data (December 12, 2019 to February 14, 2020)

Vessel ATB ATD WAW(hour) WAWP(%)

Mikayil Mushfig 12/Dec/19 10:30 15/Dec/19 06:30 4.50 7%

Jafar Jabbarly 18/Dec/19 01:00 19/Dec/19 16:00 0.00 0%

Pola Anfisa 20/Dec/19 16:45 26/Dec/19 15:10 42.00 29%

Mahmud Rehimov 26/Dec/19 14:30 28/Dec/19 06:00 0.00 0%

Mikayil Mushfig 27/Dec/19 16:30 01/Jan/20 23:00 86.00 68%

Jafar Jabbarly 28/Dec/19 16:30 05/Jan/20 13:30 5.00 3%

Pola Anfisa 4/Jan/20 14:40 9/1/20 10:40 11.00 9%

Mahmud Rehimov 8/Jan/20 0:45 11/Jan/20 19:45 28.00 31%

Valeriy Kokov 9/Jan/20 15:10 14/Jan/20 16:00 3.00 2%

Arbat 11/Jan/20 21:50 14/Jan/20 20:30 46.00 65%

Jafar Jabbarly 15/Jan/20 15:45 23/Jan/20 23:20 2.00 1%

Mahmud Rehimov 22/Jan/20 15:10 26/Jan/20 14:40 29.00 30%

Volga Don 211 26/Jan/20 18:30 30/Jan/20 15:40 47.50 51%

Mikayil Mushfig 30/Jan/20 18:00 1/Feb/20 23:30 0.00 0% 3% 0% 0% 24% 54% 11% 20% WAWP(%) 7.00 2.00 0.00 0.00 51.00 54.00 10.50 WAW(hour) ATD 5/Feb/20 19:00 5/Feb/20 22/Jan/20 10:30 17/Jan/20 15:50 16/Feb/20 19:00 16/Feb/20 15/Feb/20 17:20 15/Feb/20 14/Feb/20 23:15 14/Feb/20 11/Feb/20 16:00 11/Feb/20 ATB : Wagons are manually registered by Azerbaijani Railways in in Railways Azerbaijani by are manually registered : Wagons 14/Feb/20 4:15 14/Feb/20 6/Feb/20 10:45 6/Feb/20 2/Feb/20 17:35 2/Feb/20 13/Jan/20 11:45 13/Jan/20 12:30 13/Feb/20 13:00 13/Feb/20 11/Feb/20 23:10 11/Feb/20 Vessel Pola Anfisa Pola Anfisa Valeriy Kokov Valeriy Jafar Jabbarly Turkmenistan Wagon Capturing Process Wagon Rewritten by researchers using data from the Port of Baku. using data from researchers by Rewritten Mikayil Mushfig Mikayil Mikayil Mushfig Mikayil

Wagon capturing in connection with the railway is differently performed in general is differently performed in general capturing in connection with the railway Wagon Step-1 (Announced, ANN) terminals: After wagons arrive at a weighbridge, cargo in general Step 2-1 (Shunting yard) 2.3.1. Cargo Handling Processes Handling Processes 2.3.1. Cargo • 2.3. Informatization Status at the Port of Baku 2.3. Informatization Status The authority highlights the importance of data and information system integration integration system information and data of importance the highlights authority The cargo terminals and ferry terminals in Baku. Each process consists of four steps while while process consists of four steps Each Baku. ferry terminals in cargo terminals and are as follows: sharing the first step. The processes announcements. the project management and information system (PMIS) in the form of rail The announcements include wagon information, like the identification numbers, types and updates automatically system The wagons. of destinations and cargo, loaded dimensions, gate, the (ANN)”. After a wagon arrives at the port’s the state of wagons to “Announced selected is checkbox ATS the If ANN. from (ATS)” Yard Shunting the “At to changed is state upon sending the rail announcement creation, the state is changed to “ATS” during the rail announcement. with different stakeholders through electronic information exchange (EDI).They would like to have a system by which the stakeholders can know the position, numbers of required and real- planning, just-in-time (JIT) operations, wagons for better resource (i.e., wagons) and resources terminal of time waiting the reduce would These making. decision time the handling capacity of the port. wagons. Therefore, this will increase Source: Source:

Continued

Step 2-2 (Shunting yard) in ferry terminals: For the wagons headed to the ferry terminal, weighbridge is not required. The rest of the procedure is the same.

Step 3-1 (in port) in general cargo terminals: When the wagons arrive at the wharf, a cargo handling specialist updates their arrival by using a handheld device. The wagon’s status should be changed to “In Port (INP)”. The wagons are loaded/discharged depending on the nature of the operation. The completion of operations is confirmed by the cargo handling specialist using a handheld device. After a wagon’s loading (or discharging) operations, wagons exit the wharf area.

Step 3-2 (in port) in ferry terminals: When the wagons arrive at the ferry terminal, a cargo 067 handling specialist updates their arrival by using a handheld device. At this point, wagons CHAPTER are handled in the RoRo TOS module in the PMIS. The position at the yard is assigned, and the state becomes YRD. Next, the wagons are loaded to the ferry vessels, and their state 01 Review of the Port Baku becomes “Loaded to Vessel (LDV)”.

Step 4-1 (Shunting yard) in general cargo terminals: Cameras confirm the arrivals of loaded/discharged wagons to the shunting yard, and the second weighing takes place. Cameras located at the entrance of the shunting yard confirm the departure of wagons. The state becomes “Departed (DPT)”.

Step 4-2 (Shunting yard) in ferry terminals: The process for the discharge of wagons from the ferry vessels will be declared in the PMIS by a cargo handling specialist on a real- time basis using a handheld device. The departure of the wagons will be confirmed by the cameras located at the shunting yard. wagons handle in RORO TOS second by port by wagons updated required arrival in are loaded. weighing is ferry terminal using HH device Ferry in port (berthing side) in port (berthing or GCT Ferry exit of update updated HH device HH device wagons are GCT by port using by by port using by arrival in GCT

tare weight updated yard camera wagons arrival of camera confirmed in shunting by confirms the departure of shunting yard 2nd set of are wagon when it exits wagons weighed are wagon number wagons weighed wagon number matched from camera

matched from camera Shunting yard gross camera weight arrival in updated confirms the ATS ATS status- Wagon Wagon Wagon confirmed camera Wagon’s exit Wagon’s confirmed by Y ANN ATS ATS N status- Wagon Wagon selected checkbox destination terminal is defined based on announcement destination terminal General Cargo Terminal Operations Operations Terminal Cargo General Port of Baku, 2020.

ANNOUNCED - ANN ANNOUNCED Discharging operations in general cargo terminals in the Port of Baku (PoB) refer to cargo cargo to refer (PoB) Baku of Port the in terminals cargo general in operations Discharging • The process on the system is as described, but the actual processes run ATS differently. Wagon Announced handling equipment unloading various types of cargo, like containers from vessels to the cargo; however, ground, which is called the yard. In most cases, containers represent the are also handled in the terminals. Such unloaded cargo moves out gas and oil, others, like truck and rail. via the gate by is being replaced by “At the Station”. In the case of general cargo, when the wagon arrives cargo, when the wagon arrives the Station”. In the case of general “At is being replaced by manually PMIS operator The INP state. an to changed automatically is it the weighbridge, at confirmsthe departure of the wagons. In the case of the ferry terminal,ATS at stage, the the The Arrival (IAR)”. “In of status the with module TOS RoRo the in declared also are wagons executed, and the statuses of wagons are within PMIS are currently manually operations the process for discharging the Additionally, changed according to the real-time operations. with the status of IAR are discharged from the wagons in PMIS goes as follows: (1) wagons to leave the gate, and assigned; (2) wagons are marked vessel, and the position on the yard is and the to EGO; and (3) wagons are manually departed from the port, is changed the status status changes to DPT. Source: Source: [Figure 1-22] Wagon Capturing Process Wagon 1-22] [Figure 068 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-23] General Cargo Discharging Process (Process-based)

Before vessel arrivals After vessel arrivals

SMD passes information Vessel berthed. Port agent takes During the operations, each filled about expected vessel Commissioning team (Customs, wagons is sealed by customs and by e-mail to relevant bodies Boder, Sanitary) to the vessel sender (Opertations, HSE, Marine Fleet, Stevedoring, etc.)

The agent takes documents Operations periodically coordinate (Bill of Lading, Manifest, Invoice, with Alat Railway station to send Cargo Plan) from vessel filled wagons to shunting yard (b) Letter for permission for discharge is signed by PoB and send to Customs Head Quarters

Commissioning ends Warehouse assistant issued the General Act (indicating discharged cargo), Sturman lnvoice (at the end of each shift) and Operations inform broker “Information about loading directly about the numer of wagons The agent passes a copy of from vessel to wagon” needed for unloading the vessel documents (Bill of Lading, Manifest and Cargo Plan) to warehouse officer and customs officer takes the nexessary documnets from vessel Port assigned broker sends SMD drafts a letter to be ‘Information about loading directly sent to railways from vessel’ document to railway ordering the wagons and railway prepares Railway Invoice according to the Customs officer keys all documents for each wagon 069

information in their system CHAPTER as per document, creating As wagons arrive at barcode for each Bill of Lading Alat Railway station Mechanical and Commercial Discharge operations completed 01 Inspections (a) take place Review of the Port Baku

Customs Head Quarters will electronically approves created Broker takes Railway Bill to After inspections, empty wagons barcode and after approval Port Customs Head Office in Baku for move to Port fot preparation can commence discharging Declaration

Customs declares the cargo, closes the system and Discharge operations commence approves the transit

Source: Rewritten by researchers using data from the Port of Baku.

[Figure 1-23] shows the process of general cargo vessel discharging operations in the PoB. The operations indeed are prepared before a cargo vessel arrives. First, the Sales and Marketing Department in the port (SMD) passes information by e-mail on the coming vessel to several teams and departments, including the Operations Department and the Marine Services Department. An agent in the PoB signs and sends a permission letter for the planned discharging operations to the customs headquarters. The SMD drafts a letter to be sent to an agent in Azerbaijan Railways to request wagons for serving the vessel. A series of mechanical and commercial inspections are performed as the wagons arrive at Alat railway station, and the empty wagons move to the port. Port of Baku, 2020. During the operations, the customs and sender seal each wagon with cargo. An agent the customs and sender seal each wagon with cargo. An agent During the operations, When the vessel berths, a port agent commissions a team for customs, border, and and customs, border, a team for port agent commissions vessel berths, a When the in Alat Railway station periodically dispatches wagons to the shunting yard on request. which Act, General (1) the documents: three the following issues assistant A warehouse and (3) a list of indicates discharged cargo, (2) a sturman invoice at the end of each shift, broker A port-assigned wagons. to vessel from the performed directly loading operations invoices which prepare railway list document to the railways, sends the loading operation bills railway takes are completed, the broker per wagon. After all discharging operations to the Customs Head Office in Baku for declaration. The customs declare and approve the and close their management system. transit sanitary services to the vessel. The agent also receives the following from the vessel: bill of from the vessel: receives the following The agent also to the vessel. sanitary services of the passes the copies documents. The agent plan, and invoice manifest, cargo lading (BL), firstthree documents to a warehouse officer,and customsa officer receives necessary the all the information in their system vessel. The customs officer seals documents from the on a document basis, especially assigning a barcode to each BL. The customs headquarters port starts discharging operations the created barcodes, and then, the electronically approve for the vessel. Source: Source: [Figure 1-24] Container Discharging Operation 1-24] Container Discharging [Figure 070 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-25] General Cargo Discharging Process (Entity-based)

General Discharging(1)

Wagon arrivals / Mechanical and commercial inspections Azerbaijan ❺ Railways Empty wagons to the Part ❻ Customs HQ Electronically approving the barcodes Wagon ordering letter ❹ ❷ Discharging permission letter SMD HSE ❾ Customs Vessel BL, Manifest, Marine Fleet Cargo Plan Officer Coming vessel information ❽ ❶ BL, Manifest, Invoice, Cargo Plan ❿ Keying all information Stevedoring in their system per doc and creating a barcode per BL Customs Operations Agent Border ❼ Organising Number of wagons for discharging in the PoB ❸ a commissioning team Sanitary Broker Warehouse ⑨ SMD: Sales and Marketing Departmnet of the Port of Baku(PoB) BL, Manifest, Invoice, Cargo Plan Officer General Discharging(2)

Customs Officer Issuing the followings: Sealing cargo with wagons Warehouse - the General Act(indicating discharged cargo) Assistant - Sturman Invoice (at the end of each shift) Sender - Info on loading directly to wagons 071 CHAPTER

Perparing railway bills Azerbaijan Coordinating to send filled wagons to the shunting yard Operations 01 Railways Review of the Port Baku

Info on loading directly to wagons Port-assigned Broker Railway bills(after discharging) Declaring cargo, closing the system and approving the transit Customs HQ

Manual E-mail Unknown Clear / vague entity Entity group Activity performed by the entity group ⓿

Source: Rewritten by researchers using data in the Port of Baku.

The discharging process in [Figure 1-23] can be differently expressed by focusing on the entities involved in the process [Figure 1-25]. The arrows in black refer to the manual transmission of data and information; the arrows in blue are transmission by e-mail, and the arrows in red an unknown transmission type. The rounded rectangles in red are vague entities, and therefore, more data should be provided from the PoB. The pentagons in dotted lines refer to a group of entities that perform the same activity (i.e., sub-process) together; for example, the seventh activity is performed by an agent in the PoB, the Customs, the Border, and the Sanitary Departments.

Although the entity-based diagram shows the same process, it highlights sub-processes that can be improved by informatization like EDI. For instance, the SMD manually sends a commerce operations Discharge Vessel departed Vessel Commissionig and by client by operations Wagon bills, Wagon bl and manifest specialist and SMD issued by warehouse issued by and ‘sturman invoice’ (at end of each shift)are (indicating loaded cargo) are provided to operations ‘Information about loading’ Operations Operations periodically Alat railway coordinate with who then passes to operations specialist operations by railway provided by station to send empty entering to the port is wagons to shunting yard Informaiton about wagons dispatcher to port dispatcher How are the railway bills in Step 16 sent to the broker? bills in Step 16 sent to the broker? How are the railway How can Step 3 and Step 4 be connected [Figure 1-25]? How can Step 3 and and the right side be connected? How can the left side be connected? How can the left side and the right side What is a Sender exactly? side be connected? How can the upper side and the lower Rewritten by researchers using data in the Port of Baku. researchers by Rewritten

• • • • • • In addition, the diagram clarifies vague entities and connections that should be identified vague entities and connections that clarifies In addition, the diagram [Figure 1-26] depicts the process of loading operations in the PoB. A port dispatcher in the PoB. A port dispatcher loading operations [Figure 1-26] depicts the process of Source: Source: [Figure 1-26] General Cargo Loading Process (Process-based). Loading Process Cargo 1-26] General [Figure wagon ordering letters to Azerbaijan Railways without the adoption of electronic systems (the adoption of electronic without the Railways letters to Azerbaijan wagon ordering can be ordering letters be EDI-based; wagon sub-process can in the Figure). This fourth step to Azerbaijan Railways. transmitted the SMD and created by electronically Because the activities are not logically linked. example, the third and fourth the PoB. For by sent to the has not been the broker number of wagons for discharging information on the wagon ordering letters to to transmit sense for the SMD to be able it does not make SMD, should primarily check the following: The PoB Azerbaijan Railways. receives information on wagons that enter the port from a railway dispatcher. Then, the dispatcher. Then, the enter the port from a railway receives information on wagons that port dispatcher passes the information to operation specialists. clientsSpecifically, involved BL, and the manifest to the specialists and send wagon bills, the in the loading operations in station Railway Alat with coordination periodic with start operations the Next, SMD. the on document a issue operators Warehouse yard. shunting the to wagons empty receiving at the end of each shift. When all loading operations loaded cargo and sturman invoices terminate, the vessel sets sail. 072 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-27] General Cargo Loading Process (Entity-based)

General Loading

Loading operations Commissioning Vessel departs ⓿ ❻ ❼ Client

Wagon bill, BL and Manifest ❸

Railway Entering Port Entering Operations Dispatcher ❶wagon info Dispatcher ❷wagon info Specialist SMD

Coordinating to send filled wagons to shunting yard Issuning the followings: ❹ ❺ Warehouse - Info on loading Operator (indicating loaded cargo) Alat Railway Station Operations - Sturman invoice (at the end of each shift)

Manual Unknown Clear / vague entity

Source: Rewritten by researchers using data in the Port of Baku. 073 CHAPTER [Figure 1-27] depicts the loading process in the general cargo terminals, focusing on the

entities involved in the process. Similar to [Figure 1-25], it explains exactly the same process 01 described in [Figure 1-26]; however, it also highlights key issues that can be improved by Review of the Port Baku informatization and sub-processes that should be explained more by the PoB. The PoB should primarily check the following:

• How can the left side and the right side be connected? • How can the upper side and the lower side be connected?

To summarise, the cargo flow chart data explained above includes limited information on loading and discharging operations in general cargo terminals in the PoB, and therefore, it is challenging to thoroughly identify the processes; for instance, no dictionaries offer a description of a sturman. Also, there is no processing time required for the study in identifying the main drawbacks of the current terminal operations in the PoB.

Nevertheless, valuable data and information are available from the documents provided by the authority. They include an overview of the cargo-handling processes in different terminals and show various stakeholders working with the PoB. Notably, the discharging operations in the general cargo terminals are especially well-explained. Besides, the PoB marks such processes and work that can be automated and improved by the study. In other Ro-Ro Terminal Operations Ro-Ro Terminal Port of Baku, 2020.

Before a vessel arrival, the process of discharging operations in Ro-Ro terminals in the Ro-Ro terminals in the in the process of discharging operations Before a vessel arrival, • port is as follows. A dispatcher contacts the coming vessel and sends information on the and sends information on the A dispatcher contacts the coming vessel port is as follows. relevant and stakeholders to e-mail via information cargo and (ETB) berth of time expected parties. Port operators request stevedoring workers to handle trailers and deck cargo. Five cashier (ASCO) Shipping Company berths, an Azerbaijan Caspian hours before the vessel vehicles hours before the vessel berths, to the customs office. Three sends the cargo manifest agents (in foreign vessels), customs the port area. After the vessel berths, to be loaded enter doctors perform commissioning work in the and border representatives, and sanitary the discharging manifest, the bill of lading, and ship. The Customs representative receives 1-30]. The customs and border representatives other documents from the vessel [Figure of and vessel crews send a copy opens, The ramp then approve discharging operations. specialists. After all the steps are completed, the discharging manifest to cargo handling [Figure 1-29]. begin [Figure 1-28] and discharging operations Source: Source: [Figure 1-28] Discharging Operation in the Ro-Ro Terminal (Example) in the Ro-Ro Terminal Operation 1-28] Discharging [Figure words, potential operation processes would be chosen as improvement targets from the targets from the as improvement would be chosen processes operation words, potential marks. 074 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-29] Discharging Process in RoRo Terminals in the PoB (Process-basd)

E-mail(Processing time required; potentially able to be automatic)

Before Vessel Arrival

Dispatcher Port operations 5 hours before contacts the expected 3 hours before vessel works inform vessel berths vessel and sends berths the vehicles stevedoring workers loading manifest info about the which are to for handling is provided by ETB and cargo info be loaded trailers and ASCO cashier via email to into the vesseel deck cargo to Customs respective parties enter the area

After Vessel Arrival

Agent Customs rep (in foreign After Vessel crew takes over the vessels), approval by provides discharging Customs, Customs and one copy of The manifest, Border reps and Border the discharging vessel bill of lading Discharging sanitary doctor discharging manifest to berthed and conduct ops start, cargo handling other respective commissioning Ramp is area documents work opened specialists from vessel in the vessel 075 CHAPTER 01 Paper-based and manually interchanged (Processing time required; potentially able to be automatic) Review of the Port Baku

Source: Rewritten by researchers using data in the Port of Baku.

[Figure 1-30] Bill of Lading and the Discharge Manifest

Bill of lading Discharge manifest

Source: Rewritten by researchers using data in the Port of Baku. Vessel park the unberths vehicle in emplotyees specialist Parking service respective areas Others Operations Cargo handling area Stevedoring Activity performed by the entity group performed by Activity

Manifest copy Manifest ⓿ queue ❿ and deck cargo handle trailers info to work ❸ conduct number Security provides Customs, with in the vessel each vehicle ETB and cargo info sanitary doctor Border reps and commissioning Entity group ❷

Vessel Dispatcher Loading checks Security the docs ETB and cargo info at the gate Sanitary Doctor ❶ the truck and Clear / vague entity Paper-based and manually interchanged (Processing time required; potentially able to be automatic) (After berthing) loading Vehicle Vehicle to enter Discharging operations

and Border by Customs by are checked start, vehicles Before loading ❼ BL, manifest respective docs other the regime zone arrive in Port for Unknown Conducting commissioning work in the vessel Conducting commissioning

❻ Discharging Customs E-mail Border reps Loading manifest ASCO Cashier (5 hours before berthing) (5 hours before ❹ and responsible loading manifest cashier to Customs is provied by ASCO is provied by persons for Parking cargo handling area Border, Vessel crew Border, Vessel specialists, Customs, Port cashier prepares loading manifest and copies are distrivutes to Manual (3 hours before berthing) (3 hours before Opening the ramp Vehicles to be loaded move to the waiting area Vehicles 5 hours before vessel berths ❾ ❺ Rewritten by researchers using data in the Port of Baku. researchers by Rewritten Rewritten by researchers using data in the Port of Baku. researchers by Rewritten Approving ASCO: Azerbaijan Caspian Shipping Company By focusing on the entities in [Figure 1-29], the process of discharging in the RoRo RoRo the in discharging of process the 1-29], [Figure in entities the on focusing By ❽ start discharging RoRo Discharging terminals can be depicted, as shown in [Figure 1-31]. Except for the second sub-process, mostterminals can be depicted, as shown in with paper-based documents. Also, a couple of of the sub-processes are manually performed sub-processes with unknown data interchange types are identified. They should be checked “Others”. the PoB while identifying the vague entity named by Source: Source: [Figure 1-32] Loading Process in RoRo Terminals in the PoB (Process-based) in RoRo Terminals 1-32] Loading Process [Figure Source: Source: [Figure 1-31] Discharging Process in the RoRo Terminals in the PoB (Entity-based) in the Terminals in the RoRo Process Discharging 1-31] [Figure 076 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-33] Loading Manifest and the Loading List

Loading manifest Loading list

Source: Rewritten by researchers using data in the Port of Baku.

[Figure 1-34] Loading Process in RoRo Terminals in the PoB (Entity-based) 077

RoRo Loading CHAPTER ❽ Checking vehicles go be sent to the regime zone ❺ Parking vehicles in respective areas 01 ❶ Loading manifest

ASCO Cashier (5 hours before berthing) Customs Parking Service Review of the Port Baku

Border ❷ Vehicle arrivals in the part to be loaded Manifest copies Vessel Crew / Sanitary Doctor ❼ Cargo Handling Area Stecialists

❾ Loaing ❿ Conducting commissioning work in the vessel

Port Cashier ❸ Checking the trucks and docs at the gate Security Providing each vehicle with a queue number Preparing the loading manifest Vessel departure ❹ ❻

Manual Clear / vague entity Entity group Activity performed by the entity group ⓿

Source: Rewritten by researchers using data in the Port of Baku.

The process of loading operations in the terminals is as follows [Figure 1-32]. Five hours before a vessel arrives, an ASCO cashier sends the manifest for the operations to the customs representative [Figure 1-33]. When vehicles arrive at the port, security officers check the vehicles and the documents at the gate area. Then, the security officers assign a queue number for the parking service to each vehicle. A port cashier prepares the copies of the loading manifest and distributes them to cargo handling specialists, the customs, border, and vessel crews, and the parking service officers. Before the loading operations, the customs and border representatives check vehicles and allow them to enter the regime zone. 4. 5. Dispatcher upon dispatcher’s ADY sends locomotives to sends locomotives ADY ADY locomotives perform discharging locomotives ADY Paper-based and manually interchanged (Processing time requirde; potentially able to be automatic) 1. 2. 3. ADY ACSC for registration ACSC discharging can a start customs upon registration wagon invoices from Takes to ADY so that invoices given to ADY Wagon Wagon invoices given to PoB cashier and Wagon Ferry Terminal Operations Ferry Terminal Rewritten by researchers using data in the Port of Baku. researchers by Rewritten

• and the terminals, ferry port’s the discharging in of process the depicts [Figure 1-35] Similar to general cargo operations, current problems with the digitization and and digitization the with problems current operations, cargo general to Similar diagram in [Figure 1-36] is another version of the discharging process. ADY receives wagon discharging process. ADY in [Figure 1-36] is another version of the diagram invoices from the customs officeon registration [Figure1-37]. Theinvoices are given to a to The invoices are also sent to ADY for registration. cashier in the PoB and an agent in ACSC the vessel. for serving locomotives dispatches ADY Then, operations. the discharging begin the sub-processes are still performed manually. Although the process seems simple, all Source: Source: [Figure 1-35] Discharging Process in the Ferry Terminals in the PoB (Process-based) in the Ferry Terminals Process 1-35] Discharging [Figure After all these steps are completed, loading operations start. The customs and the border and the border start. The customs loading operations these steps are completed, After all the ship in the ship, and commissioning work doctors perform and sanitary representatives [Figure as shown in diagram, into an entity-based transformed process can be departs. This 1-34]. e-mail in sending documents discharging process result from using automation of the and workers between interchanges data manual Moreover, paper-based. mainly are that steps in the process. still exist in several stakeholders 078 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-36] Discharging Process in the Ferry Terminals in the PoB (Entity-based)

Ferry Discharging Dispatching locomotives to perform discharging ❹ ADY

Wagon invoice for starting discharging (after doc checks) ❸ Performing dispatching ❺ Customs Wagon invoice Dispatcher ❶

Wagon invoice for registration ❷

ADY: Azerbaijan Railways Port Cashier ACSC ACSC: Azerbaijan Caspian Shipping Company

Manual Clear / vague entity

Source: Rewritten by researchers using data in the Port of Baku.

[Figure 1-37] Wagon Invoice Example 079 CHAPTER 01 Review of the Port Baku

Source: Rewritten by researchers using data in the Port of Baku. 5. Ferry by vessel by Wagons are being checked Wagons 4. 2. 5. 6. Dispatcher wagon departures Wagon invoices given to Wagon Wagon invoices given to PoB Wagon to ferry while customs register customs officer for registration Dsipatcher creates loading plan cashier and ACSC for registration cashier and ACSC Loading list and plan are given Paper-based and manually interchanged able to be automatic) (Processing time requirde; potentially 4. 7. 1. 3. ADY of the wagon Wagons are grouped and Wagons loading upon dispatcher’s ADY locomotives perform locomotives ADY on each track upon arrival on each track ADY registers the departure registers ADY Rewritten by researchers using data in the Port of Baku. researchers by Rewritten Shunting yard lists down wagon Loading operations start with listing down wagons in the shunting yard on each track track on each yard the shunting down wagons in start with listing Loading operations upon arrival. A dispatcher prepares loading plans, and the ADY registers the wagons’ the wagons’ registers plans, and the ADY prepares loading A dispatcher upon arrival. for ACSC in the PoB and sent to a cashier the wagons are The invoices of departures. officer a customs to sent are invoices the and grouped, are wagons the Also, registration. and plan while customs the ferry ship receives a loading list An agent of for registration. ADY an agent of the vessel, and by departures. The wagons are checked registers the wagon can also be expressed as [Figure 1-38]. The process loading operations locomotives conduct shows a separation the diagram 1-39], and as depicted in [Figure diagram, an entity-based the right side, respectively. of sub-processes on the left side and between two groups Source: Source: [Figure 1-38] Loading Process in the Ferry Terminals in the PoB (Process-based) in the in the Ferry Terminals 1-38] Loading Process [Figure 080 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 1-39] Loading Process in the Ferry Terminals in the PoB (Entity-based)

Ferry Loading

ADY Wagon invoice for registration ACSC Creating a loading plan(Manual) ❹ ❷ Dispatcher(PoB) Listing wagons on each track on arrival(Manual) ❶ Registering wagon departures(Manual) ❸ Grouping the wagons ④ Port Cashier Performing loading Loading list and plan ❽ ❻

Registering wagon departures ⑥ Ferry Customs Wagon invoice for registration Checking wagons ❺ ❼

Manual Clear / vague entity

Source: Rewritten by researchers using data in the Port of Baku.

081

Similar to the other terminal operations, adopting EDI will digitalize and automate CHAPTER several sub-processes. Manual work and data exchanges still exist while potentially decreasing port productivity. The next step of the study is identifying the processing time 01 Review of the Port Baku and specific work to improve.

2.4. Integration Status between the Port of Baku and Stakeholders

2.4.1. Current State of the Data and Information Sharing with Stakeholders

The PoB works with many stakeholders, such as Azerbaijan Railways (ADY) and the Customs Committee (CC). Such work includes data exchanges involved in the process of cargo transit. This section explains the current state of data and information sharing per the main stakeholder.

First, the PoB has agreed on data and information exchange and signed a contract with ADY. The PoB is going to receive wagon- and cargo-related information from ADY. At this moment, they are trying to identify data types, formats, and structures.4

4 ADY has currently analyzed one of the container databases so that when only the container number is entered into the system, all relevant parameters like ISO code, dimensions, and weights will be automatically populated. ADY also have already implemented a system so that when they enter a wagon number into their system, all respective information regarding the wagon is being populated automatically. Their wagon database is being constantly updated because some technical specifications of wagons may change over the passage of time. Second, the project management and information system (PMIS) of the PoB is now linked of the PoB is now linked system (PMIS) and information project management Second, the connection with the Azerbaijan going to construct a data exchange Third, the PoB was with vessel announcements the PoB is trying to receive vessel and cargo data Fourth, 1- 30> Current State of Data The coordination explained above is summarised in

Current State of Data and Information Sharing with Stakeholders

Stakeholder Data and Information Sharing

Sending wagon- and cargo-related information to the PoB ADY Identifying data types, formats, and structures with the PoB

CC Sending truck transit announcements to the PoB

Sharing a limited range of information with the PoB ACSO Taking no more action

Able to receive data from the PoB Unable to send data to the PoB PoT / PoA Making DBA developing a connection to the PoB Requiring a web-based system with the PoB

Source: Rewritten by researchers using data from the Port of Baku.

2.4.2. Problems

• Inefficient Information Flow

Cargo owners are facing challenges in cargo tracking along the Silk Route. When cargo is 083 departing from Eastern Europe and is heading towards China, there are several bottlenecks CHAPTER along the way. Sometimes cargo is stuck at the borders and the transshipment ports. The 01 cargo owners are unable to reach not only the data about the estimated time of arrival (ETA) Review of the Port Baku and the estimated time of departure (ETD) of the cargo but also the information concerning the exact location of their cargo. The limited access to the information flow encourages logistics companies and cargo owners to use a specific transport corridor. The transport corridor is logistically effective and efficient when the information flows continuously with the smooth movement of cargo from the origin to its final destination. Cargo owners must feel safe about the location and condition of their cargo. Not only cargo owners but also all related participants of the logistics process should have access to the information flow for the real-time status of their cargo en-route to its final destination.

• Long Waiting Times

The Silk Route’s Middle Corridor connects countries with border controls amongst each of them. Having too many border crossings along the Silk Route’s Middle Corridor is one of the main factors that lead to transport planning complexity along the transport corridor. As cargo departs from any European Union country and is destined to China, transport modes carrying the cargo move through countries like Turkey, Georgia, Azerbaijan, and Kazakhstan, which do not have uninterrupted customs agreements amongst each other. For instance, when cargo is departing from the Port of Poti and is heading towards Central Trade Policy Trade Documentation

• issues regarding the logistics sector as mentioned above, Azerbaijan Besides many activities are largely controlled and managed by trade In the meantime, the country’s • unnecessary to leads point transshipment at each step of the paperwork Customs Longer idle times for any transport mode is one of the key reasons to avoid any transport transport avoid any reasons to the key is one of mode transport any Longer idle times for continues to try to amend laws its and trade regulations and adopt new ones for a simplified However, such process in the customs duty. procedure and efficient administrative trade by policy turned out to be ineffective. The cabinet led by the government and its trade efforts responsible is ministries, key nation’s the of Ministers of consists which Minister, Prime the such policies. However, a lack of working agencies to execute for implementing trade policies efficiently is considered as the main cause for the failure in delivering the impact. waiting times and long queues. Ineffective cooperation among customs border points and lead Middle Corridor Route Silk the for standardization documentation of unavailability of cargo flow across the Silk Route Middle Corridor. to discrepancies in the smoothness the documents are checked customs, mode passes through each border’s When a transport leads to This process leads to the repetition of the process over and over, which accordingly. times and increased idle times are essential factors in longer waiting times. Longer waiting route. choosing the transport Asia, transshipment ports in the middle corridor are not well informed about this flow. about this flow. not well informed corridor are ports in the middle Asia, transshipment Intermediary transshipment ports are only notified when cargo ships cross the particular at for the vessels planning challenges flow creates Lack of information country borders. the Caspian Ports. trucks Consequently, and wagons that carry the cargos confront with longer waiting times for respective vessels. Non-availability of fixed sailings at Caspian Ports result in and irregular ETDs ETAs of uncertainty the in vessels. departure Consequently, and of production and delivery schedule harm the planning of schedules arrival times of cargo of the final product. route. Transport modes are effective when they operate the full cycle of the supply chain transshipment crossings, border at times idle long the to Due times. idle minimum with from regularly using the companies transport points and customs, terminals restrain corridor strongly depends on the transport corridor. The competitiveness of any transport points. crossings and transshipment modes spend at border amount of time that transport 084 Feasibility Study on Automation of Business Processes in the Port of Baku multiple ministries and agencies including the Ministry of Economic Development, State Customs Committee, Ministry of Transportation, Ministry of Agriculture, Ministry of Health, Statistical Committee, Ministry of Taxes, Ministry of Ecology and Natural Resources, etc.

3. Experience of Korea

3.1. Case study of Korea: Establishment of BPA-NET

• Background and Objectives

The Busan Port is the sixth-largest port in the world in terms of container cargo volume, which amounted to 22 million TEU in 2019. The Busan Port can be classified as a hub port in terms of container cargo volume. Considering the characteristics of a hub port, it handles both import/export containers and transshipment cargos. The transshipment cargo means that it is transloaded to another destination via the Busan Port (an intermediate destination), although the original and destination ports differ. The concept of a hub port was developed 085 according to changes in port logistics toward the Hub & Spoke model. CHAPTER

[Figure 1-40] Changes of Container Cargo Volume in the Busan Port 01 Review of the Port Baku

14,000

11,638 12,000 10,105 10,000 10,354 7,836 9,363 8,000 6,579

6,000 6,276 5,179 4,000

Container Throughout (1,000TEU) 2,000

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172018 2019

Export & Import Transhipment

Source: Compiled by the author based on PORTMIS data (Accessed on July 16, 2020). operation system and port the law / System for port information The establishment of parties’ system national and other The connection of the The model of one stop service customer-oriented Steps to Develop BPA-NET Steps to Develop Introduction of BPANET (Busan Port Authority, data obtained on July 16, 2020). (Busan Port Authority, of BPANET Introduction

• project to build the port logistics information system has implemented BPA-NET BPA In the past, the port logistics information system of the Busan Port Authority (BPA) (BPA) system of the Busan Port Authority In the past, the port logistics information to develop and implement the port logistics information system decided Therefore, BPA Likewise, the Busan Port handles a large volume of cargo containers, and many of of many and containers, cargo of volume large a handles Port Busan the Likewise, Establishment of the customer-oriented port Information System to get the competitiveness customer-oriented port Information System Establishment of the logistic business advantage of Busan port providing an integrated port logistics information by connecting the information of the connecting the information of the port logistics information by providing an integrated recorded a low level of user satisfaction for the following reasons. First, a lack of diverse for the following reasons. First, a lack of diverse recorded a low level of user satisfaction to provide the users with various information, information services and usability failed such for need the heightened others, despite and bunkering, vessels, for including supplies information. There were many information providers, and they used different codes, which slow information processing and low reliability were led to user inconvenience. Meanwhile, also indicated as factors that decreased user satisfaction. to build an integrated or “BPA-NET”) of the Busan Port (hereinafter referred to as “BPANET” increase and information, the with linked services related reinforce system, management the user convenience (Lee Hong-gul, 2014) them are for transshipment. Hence, the port logistics information system is considered an is considered an system the port logistics information Hence, for transshipment. them are on information the instance, For competitiveness. its determine to barometer important are critical for users to conduct and containers and the berth allocation the arrival of ships handle their cargo based on such they develop the logistics plan and their business as information. Source: Source: [Figure 1-41] Development Goals of BPA-NET 1-41] Development [Figure 086 Feasibility Study on Automation of Business Processes in the Port of Baku port users—including shipping companies, carriers, and stevedores—information of the Ministry of Oceans and Fisheries, and the transport infrastructure data with the injection of approximately KRW 14.9 billion over 3 years from 2011 to 2014. Consisting of 11 systems in four sectors, the BPANET was launched in December 2013. With the integrated information system, shippers, shipping companies, and carriers can track the location of their containers in real-time through the Internet and mobile devices with the hope of significantly saving their time and money. In addition, the system allows drivers to find the information on traffic congestion in advance with the comprehensive information on road transport and traffic conditions near the port. Hence, the carriers can increase the rotation rate with an efficient allocation of vehicles, and stevedores can expect to promptly carry in/out the cargo (The Board of Audit and Inspection of Korea, 2015).

The BPA-NET was implemented as a part of the government’s information strategy planning (ISP) initiative. The ISP approach is a series of activities used to identify the need for strategic information in an organization, define tasks and related data areas to be fulfilled, and the current level of information support. It also provides an integrated framework to develop the information system to establish a unified information system to achieve the goal 087 based on information technology. The ISP project largely consists of three stages: planning, CHAPTER execution, and completion. In the planning phase, the project owner prepares a business 01

plan and request for proposal, decides on the project provider, and commences the project. Review of the Port Baku In the execution phase, the environment and status are analyzed, and a conceptual modeling and implementation plan are established based on the analysis. In the project completion phase, the project performance is reviewed, final deliverables are submitted, and payment for the implementation of the project is made. Guidelines containing the details of the ISP project are prepared, distributed, and managed by the National Information Society Agency (NIA, 2015).

• BPA-NET Overview

BPA-NET consists of 11 systems encompassing four areas, and the details of BPA-NET are as follows. First, unified port services are provided from three systems. Among them, the Busan Port Gateway System provides integrated services regarding tug and pilotage by linking the data on vessels and berths. The port administrative support system links inspection data at the request of a civil petitioner to promptly correct the information reported while providing various statistics required to conduct activities for port administrative services. The strategic information support system has built a database (DB) on massive port-related data as a data warehouse (DW) to provide services to assist with various management activities and the decision-making process. Next, there are four systems established to provide the ultra-logistics services. The services. The provide the ultra-logistics established to are four systems Next, there port-hinterland the (1) systems: two of consists it service, value utmost the to regard With the Lastly, ubiquitous infrastructure service has two systems. The integrated DB system transshipment cargo support system offers an optimum transshipment schedule based based schedule transshipment offers an optimum support system cargo transshipment data on provides business-to-business schedule-sharing system The vessel on simulations. cargo provides system monitoring real-time integrated the and real-time, in logistics port support cargo transport data in real-time. Moreover, the and logistics handling transport of vehicles at the port terminal. ETA system provides the linking the on the cargo volume by system provides precise information (complex) support green the (2) and the complex, in stationed companies of system data with the inspection the contamination of the port and prepares countermeasures against monitoring system supports related management activities. information system and to build an integrated collects non-computerized information The wireless portal system is established to search provide the information-sharing service. 2020). in real-time (BPA, the handling of civil complaints reported Introduction of BPANET (BPA, data obtained on July 16, 2020). data obtained on July 16, (BPA, of BPANET Introduction Source: [Figure 1-42] BPA-NET System Configuration 1-42] BPA-NET [Figure 088 Feasibility Study on Automation of Business Processes in the Port of Baku 3.2. Implications of the Busan Port Case for Application to the Port of Baku

BPA expects that BPA-NET will help users reduce the time and money required to carry out activities related to port logistics by providing the various information they need. The authority also wisely uses the accumulated data in various aspects. For instance, the port logistics big data analysis system, which began to provide services recently, presents various information, such as changes in cargo volume, status of ships in waiting, demurrage, and vessel fleets. Moreover, the BPA analyzes such data within the authority to forecast future events, gradually expanding the scope of data applications.

Some vulnerabilities were found in the system linkage during the early stage of adoption. It was difficult to come up with an agreement to determine the scope of the data disclosed and linked to agencies engaging with the system to provide tug/pilotage information. Also, companies stationed in the port-hinterland complex were reluctant to disclose the information on their cargo volume due to trade secret concerns.

089

We have learned many lessons while establishing the port logistics information system CHAPTER as in the case of BPANET. First, preemptively adopting a port logistics information system is required to facilitate port operations. Today, a port is deemed as a place for comprehensive 01 Review of the Port Baku logistics activities that create various added values while also serving as a hub connecting the inland to the sea. To support a port in conducting carry in/out activities of cargo and other value-added tasks, building-related systems in advance is required to assist with such activities.

Second, there is a need to adopt a unified system to establish a port logistics information system so that various agencies and stakeholders can access such a system. Countless activities are handled at the port, and it means that multiple stakeholders—including stevedores, operators, port authorities, and carriers—are operating at the port. Similar to the Busan Port, having separate systems for each agency or company hinders efficient logistics activities, and decreasing efficiency can disrupt competitiveness, increasing logistics costs. Therefore, a thorough review of the links among information related to the provision of services should come first, before introducing the port logistics information system.

Third, a consultative body among information providers should be installed. The information to be provided contains trade secrets and other confidential data regarding the business of the companies concerned, which may serve as a reason for limiting the scope of the information disclosed, as in the case of Busan Port. Hence, it is deemed Conclusion and Implication Conclusion Azerbaijan, which is located in the Middle East and the CIS region, has established and and established has region, CIS the and East Middle the in is located which Azerbaijan, new port, the limited previous experience of the Despite the construction and operation in cargo vessel discharging operations example, regarding the process of general For 4.1. Summary of the Study 4.1. Summary

promoted the “National Economy and Macroeconomic Development Strategy Roadmap” in Roadmap” in Strategy and Macroeconomic Development Economy promoted the “National the Especially, on the oil industry. from the high economic dependence 2016 to move away the New Port of Baku, a main facility that is intended government had started constructing Port (Alat New Port) was opened in early 2019. The to become a logistics hub, and the New development of the New Port of Baku consisted of two phases. The first phase included the cargo berths, and one Ro-Ro berths, seven general construction of two ferry berths, two service berth. The schedule for the second phase development is not yet decided, but five during constructed be will tons million 10 handling of capable berths container additional the second phase. have caused technology (IT) infrastructure and the lack of information of the port operations increased in 2019 (4.06 million tons) compared usability problems. Although cargo volume irregular an appeared in and steady growth has undercut the tons), million to 2015 (3.30 seeks solutions to these kinds of Baku (PoB) Authority pattern each year. Therefore, the Port total the increase to expects and (KSP) program knowledge-sharing the through problems of cargo volume through informatization. cargo volume, including transshipment the are indeed prepared before a cargo vessel arrives. Initially, the PoB, the operations in the port (SMD) e-mails information about the coming department sales and marketing Department and the teams and departments, including the Operations vessel to several letter for the Marine Services Department. An agent in the PoB signs and sends a permission planned discharging operations to the customs headquarters. The SMD drafts a letter to be sent to an agent in Azerbaijan Railways to request wagons for serving the vessel. A series arrive at the Alat of mechanical and commercial inspections are performed as the wagons station, and the empty wagons move to the port. railway 4. necessary necessary to proactively promote the benefits and implications of building the port logistics provider. each information gain support from a consensus and system to reach information participants before body among the a consultative is a need to install there Simultaneously, the related activities. system to share opinions and carry out establishing such a 090 Feasibility Study on Automation of Business Processes in the Port of Baku When the vessel berths, a port agent commissions a team for customs, border, and sanitary services to the vessel. The agent also receives the following from the vessel: bill of lading (BL), manifest, cargo plan, and invoice documents. The agent passes the copies of the first three documents to a warehouse officer, and a customs officer receives the necessary documents from the vessel. The customs officer seals all the information in their system on a document basis, especially assigning a barcode to each BL. The customs headquarters electronically approve the created barcodes, and then, the port starts discharging operations for the vessel.

During the operations, the customs and sender seal each wagon with cargo. An agent in the Alat Railway station periodically dispatches wagons to the shunting yard on request. A warehouse assistant issues the following three documents: the General Act that indicates discharged cargo, a sturman invoice at the end of each shift, and a list of loading operations performed directly from the vessel to the wagons. A port-assigned broker sends the loading operation list document to the railways, which prepare railway invoices for each wagon. After all discharging operations are completed, the broker takes railway bills to the Customs Head Office in Baku for the declaration. The customs declare and approve the transit and 091 close their management system. CHAPTER 01 In terms of a logistics process, the cargo flow includes limited information on loading and Review of the Port Baku discharging operations in general cargo terminals in the PoB, and therefore, it is challenging to identify the processes thoroughly; for instance, no dictionary has a description of a sturman. Also, there is no processing time required for the study in identifying the main drawbacks of current terminal operations in the PoB.

Nevertheless, valuable data and information are available from the documents provided by the authority. They include an overview of cargo-handling processes in different terminals and show various stakeholders working with the PoB. Notably, the discharging operations in the general cargo terminals are especially well-explained. Besides, the PoB marks such processes and work, which can be automated and improved by the study. In other words, potential operation processes would be chosen as improvement targets from the marks.

To reduce inefficiency, the PoB launched its own port operation program, called PCS, in November 2019, and the program is now being tested. In addition to establishing an internal operating system of PoB for informatization, it is essential to integrate the existing systems involving stakeholders in Azerbaijan and the CIS region. The PoB works with many stakeholders, such as Azerbaijan Railways (ADY), the Customs, and nearby NET and Conclusion As one of the major ports in Korea, the Busan Port has constantly grown to establish establish to grown constantly has Port Busan the Korea, in ports major the of one As 4.2. Policy Implications from the Experience of Establishing BPA- 4.2. Policy Implications from In addition to the current operational status of Baku Port, this study introduced a case a case this study introduced status of Baku Port, to the current operational In addition itself as a global hub port. Owing to the characteristics of a hub port, transshipment cargo cargo of a hub port, transshipment the characteristics itself as a global hub port. Owing to accounts for a large share of the total shipment, and it requires an advanced information processing system to handle cargo in such massive quantities. the Previously, Busan Port faced difficulties in sharing the information on cargo handling because related agencies and stevedores, customs office, and tug/pilotage operators, companies, such as the port authority, service providers operated their own systems. The need to establish a unified port logistics Developed with an injection of information system led to the development of BPA-NET. largely provides four services and has 14.9 billion (1,243 USD), BPA-NET approximately KRW Busan the in BPA-NET building while lessons following the learned have We systems. eleven Port. ports (Turkmenbashi and Aktau), and such work requires data exchange in cargo transit interchange. for data and ADY with the Customs is now negotiating The PoB operations. Korean to the similar System Information Logistics Port Busan a BPA-NET, building for high a and has volume handles a large-scale container Port The Busan experience. logistics information service system the port which makes proportion of transshipment, (from years three For port. a of competitiveness the judging for measure important an the information of logistics- integrated and linked Busan Port Authority 2011 to 2014), the of Oceans and Fisheries, shipping the Busan Port, such as the Ministry based parties using is composed of 11 BPA-NET and terminal operators. companies, companies, transport detailed systems in four fields, involved an investment of about 1,243 USD for construction, shipping companies, like stakeholders, Various and was launched in December 2013. status of the cargo via the Internet or mobile the real-time shippers, and carriers, can track business hours and costs. Based on the experience phones, which can be expected to reduce such PoB, the of informatization the for suggestions gives research this Korea, South of of a port logistics information system, building as making a consensus for the necessity actual work, and organizing a council with system that can be utilized in an integrated in information sharing. This study also suggested related organizations that participate of international organizations and the with the research the possibility of collaboration subsequent research, such as a human resource strengthening project to improve the Baku efficiency protest port automation and operational 092 Feasibility Study on Automation of Business Processes in the Port of Baku First, forging a consensus on the need to adopt a port logistics information system is a prerequisite for establishing such a system. All agencies and companies that engage in the port logistics service should recognize the necessity of a unified port logistics information system—considering the constraints of the existing system and inconveniences in sharing the information comprehensively.

Next, the new system to be built should be an integrated one, allowing all participants to utilize the system in carrying out their activities in practice. Introducing an integrated system helps them save their time and money, ultimately contributing to securing the competitiveness of the port. To make this happen, the diagnosis of a conventional system and the possibility of information sharing should be reviewed thoroughly.

Lastly, there is a need to install a consultative body that consists of related agencies and companies providing their information. The information used for port logistics is highly sensitive and often contains trade secrets or other confidential information about their business. Hence, there could be some limitations to sharing such information. To resolve this issue, a consultative body can be helpful to share their opinions and reflect them in the 093 system. CHAPTER 01

4.3. Indications for the Follow-up Study and Possibility of Review of the Port Baku Linking it with Other Projects (EDCF, KOICA, International Organizations, etc.)

The PoB Authority is committed to promoting the port by increasing the operating efficiency by establishing a port logistics information system, improving the fee collection system, and constructing a complex transport system connecting railways-ports-vessels— aiming to automate 90% of the port operations in the next five years. According to a self- assessment by the authority, the current port automation level is about 50%. To support the authority in achieving its automation target, we recommend the following approaches: (Phase 1) adoption of terminal operating system (TOS) with basic features and network integration; (Phase 2) reinforcing the functions of the TOS; and (Phase 3) restricting the business process after replacing and upgrading the automation facilities and equipment.

Introducing the TOS, network integration, supplementing the automation equipment (expected to provide a substantial impact on improving the port efficiency by reducing the time spent on cargo handling), improving the control and monitoring of cargo, and securing the statistics required for terminal operation. Also, there is a need to receive financial support from the government, international organizations, or the ODA from Korea to secure Reinforcing the TOS and rebuilding the business process can play the role of software the role of software can play the business process and rebuilding the TOS Reinforcing Phase 3, which are and tasks encompassing Phase 1 to strategies implement the To the budget to implement the project. to implement the the budget could Moreover, they of the HW. the construction after completing hardware to operate cargo handling monitoring of reinforce data analysis, support basic materials for provide terminal along with the management in the enable cargo and traffic information and system. Such management management system and transport adoption of a warehouse activities require follow-up studies, including policy recommendations to improve operating port automation. efficiency regarding to nurture talents helping them the goal of port automation, activities needed to achieve to carry out be completed in advance. It is desirable adapt to the automation process should to enhance the automation skills of the port employees a project to strengthen the technical similar to the case of the current ADB efficiency, process and increase the operating of operation for more efficient building program capacity “technical titled the program, ports in India”. 094 Feasibility Study on Automation of Business Processes in the Port of Baku References

https://new.portmis.go.kr (Searching date: 2020.07.16.). https://www.busanpa.com (Searching date: 2020.07.16.).

Hong-Girl Lee (2014),˹A Study on the Satisfaction Analysis of Information Service for Port Lo- gistics˼, Journal of Korea Port Economic Association, Vol.30, No.1, 57-71.

KOTRA(2018), ˹Business trip in Azerbaijan Baku˼.

Kuhdayar Hasanli, ˹Processes to be digitised˼, Port of Baku 2020.

Ministry of Foreign Affairs(2019), ˹Overview of Azerbaijan˼.

Ministry of Oceans and Fisheries(2015), ˹International Cooperation for Shipping and Port Lo- gistics Development in the Black Sea and the Caspian Sea˼. 095 CHAPTER National Information Society Agency(2015), ˹E-Government Support Project Informatization Strategy Plan (ISP) Output Inspection Guide˼. 01 Review of the Port Baku Study based on on-site survey, local experts’ reports, internal data of PoB.

The Board of Audit and Inspection of Korea(2015), ˹National Integrated Traffic Information System Construction and Operation˼.

World Bank(2018), ’AGGREGATED LPI 2012-2018’ (Searching date: 2020.07.04.).

CHAPTER Keywords Data Process, Port Automation Field, Port Automation Analysis, Equipment, Operation Information System Process, Exchange 1. Introduction 2. Status of Port of Baku 3. Experience of Korea 4. Conclusion

the Port of Baku Song (SM Line Gyeong-In Terminal), Seung Ho Jung, Myoun-Soo Lee, Hyang-seop University), Park Ho (Kunsan National Sang-youl Kim (Pusan National University), Azerbaijan LLC) (CAT Hidayat Hamidov Port Automation and Feasibility Analysis for Port Automation 02 096 Feasibility Study on Automation of Business Processes in the Port of Baku Port Automation and Feasibility Analysis for the Port of Baku

Seung Ho Jung, Myoun-Soo Lee, Hyang-seop Song (SM Line Gyeong-In Terminal), Sang-youl Kim (Pusan National University), Park Ho (Kunsan National University), Hidayat Hamidov (CAT Azerbaijan LLC)

Summary

Because digitization is one of the goals to be achieved, the Port of Baku must prioritize linking online service to all its stakeholders. E-mail is the only method that the Port of Baku uses to communicate and transfer necessary data. Fortunately, they are implementing the system. However, it does not seem enough to only offer a good service to the customers. 097

Moreover, to reduce non-collected losses, they must complement the management system. CHAPTER 02 In the operation process—from vessel calling to work allocation and to the appropriate Port Automation and Feasibility Analysis for the of Baku equipment—necessary data should be transferred in advance to the right person in charge. Also, the mutual sharing of real-time data through the online system between relevant stakeholders will enhance their productivity and customers’ satisfaction.

Bulk-oriented, multi-purpose terminals may overlook the importance of the systemized procedures and accuracy due to the characteristics of the cargoes. Luckily, the Port of Baku has a plan to establish and open a container terminal, which is easily automized.

To solve the problem that the Port of Baku faces, the most appropriate method is implementing an online system and management system. Moreover, to make them user- friendly, the Port of Baku must also establish the file transfer system to get the shipper and manifest information directly. A visualized menu of planning and job allocation is another option for a user-friendly terminal management system.

Because the Port of Baku is a multi-purpose terminal, a productivity comparison analysis of the current equipment status is less important. This will be the last topic to discuss after implementing the online system and updating the procedures. ReeferReefer Introduction To analyze the port automation level of the Port of Baku, the current status of the analyze the port automation level of the Port of Baku, the current status of the To 1.1. Background In terms of manpower management, the Port of Baku has a different structure from from structure different a has Baku of Port the management, manpower of terms In of Baku and its relevant parties without online services, the Port In terms of the cost, implement the online system we stress that the Port of Baku should Through this paper, The Port of Baku must establish a specific mid- to long-term marketing plan internally

port activities should be discovered, and then, a sequential plan of port automation field the and opportunities the level, automation port the analyzing By made. be can adoption other terminals around the world. It hires people for manpower and has a fixed cost cost and has a fixed people for manpower world. It hires around the other terminals to improve port profits. another option they choose concept. Therefore, Assuming the basis of the cargo expend more time and manpower. who handle the cargo volumes of the Port of Baku, the additional direct costs, including labor costs ($43,836), ship waiting costs ($3,066,667), cargo value interest costs ($345,205), truck waiting costs is $5,040,619. unloading costs ($434,663), ($1,150,249), and round-trip If schedules efficiency and productivity. to enable operational specifically and accurately arrive at to one hour before the ship and train and cargo information are sent 30 minutes cargo when bulk hours and waiting costs. Especially, the terminal, they reduce the working the if However, real-time. in measured is bulk the of weight the unloaded, and loaded is an Therefore, delay. a time causes inevitably it made, manually are and links number cargo cargo information on a volume basis. Accordingly, online system should automatically link Introducing an online system is not for one the amount of unpaid bills will be reduced. and organizations. departments other with collaborating be done by should but department that the European Union (EU) spurs the development The Port of Baku should also consider unifying different the efficiency of the work by of a single-window platform to increase countries between EU-member transactions systems in the case of trade Based on the plan, they must move forward one to set the direction of the port automation. must set up the complete online system not only for the step at a time. First, the Port of Baku measuring the accurately process but also for billing by smooth and quick loading/unloading improvement and productivity between the correlation of in consideration cargo volume work efficiency as the volume increases. 1. 098 Feasibility Study on Automation of Business Processes in the Port of Baku threat factors for port automation introduction are determined. Moreover, the result of the analysis can be used for the basic data to suggest the area of por​​ t automation promotion and to propose effective policy directions for the Azerbaijan government and the Port of Baku. In the case of proposals, we share our experiences and knowledge related to the port automation design and operation with a domestic port automation system and process.

The Busan Port temporarily reduced the volume of cargo due to the COVID-19 outbreak, but as of June 2020, as the world’s fourth-largest container cargo handling port, it is still a model for countries that would like to develop an automated port. Therefore, to realize the port automation that only the Port of Baku would like to promote, it is necessary to find a direction for improvement by comparing and analyzing the operation system and the work type of the Port of Baku and the Busan Port’s new port and determining whether port automation in the Port of Baku is feasible. Moreover, it is also necessary to estimate the implementation period and analyze the cost. Based on the analysis results, the necessity and possibility of automating the Port of Baku is judged, and the policy direction to achieve the goal is presented. Through this, this study will be helpful in presenting guidelines so that Korea’s excellent technology and know-how can be benchmarked in the Port of Baku. 099 CHAPTER

1.2. Configuration 02 Port Automation and Feasibility Analysis for the of Baku To discover and select the field of port automation by analyzing the current status and level of automation in the Port of Baku, the equipment, operation process, information exchange process, and information system are compared between the Port of Baku and the Busan Port through data acquisition and analysis with local experts’ cooperation. This is almost in line with the components for the port automation of a famous consulting company. First, the automation equipment requires the largest investment cost, but it can be operated 24/7. Second, the equipment control system refers to elements such as systems and procedures for equipment operation, and third, the terminal control tower is the core of the terminal operation. Fourth, “human-machine” refers to an element system for interactions between equipment, such as robots and virtual reality due to technological advancement, and fifth, “port community” refers to the exchange of data through connections in a value chain.

Because the Busan Port is one of the world’s leading ports, procedures and infrastructure are well maintained following international standards. Therefore, after comparing the current status data of the Port of Baku (related to the cargo handling network, terminal operation, information system, and status data of Busan Port), referring to the port automation part that should be improved is the top priority to derive the necessity and of Baku of Baku Port of Baku in Port of Baku in Port of Baku Process in Port IS Evaluation of Network of Port Information System Information System Equipment Specification Data from Port of Baku Review Process Information System Annual Cost Analysis Infrastructure and Network and Infrastructure Equipment Status and Level Port Necessity and Possibility review Terminal Operation Process Evaluation Operation Terminal Gate of Ship, Yard, • Unit : External Work Ancillary Work • Reefer, Dangerous Goods, Customs Quarantina, • Security, System in Busan Port in Port of Baku Information System Information System Written by Researchers. by Written Process in Busan Port Busan Port + Overseas Status of Port of Baku Equipment Specification Standard of Busan Port 2.1. Infrastructure and Network 2.1. Infrastructure through of the Port of Baku are transferred Most of the document work and information Port of Baku, A total of eight shipping companies, whose vessels are called in the

IS Evaluation of Busan Port email alone. Stakeholders—such as shipping companies, customs, ministry of transportation, as shipping companies, customs, ministry of transportation, email alone. Stakeholders—such which platform, single one to information their input to people—need related other and describes the standard format. The related would not willingly share the ship schedules in advance of the vessel berth. email or fax. Then, to customs after the vessel berthing by ship information is transferred after checking the document by the information to a terminal operator customs transfers 2–3 hours for those processes, the calling ship should be waiting to email. Assuming it takes initiate the cargo operation. Source: Source: 2. possibility accordingly. possibility Flow and Comparison Review Process 2-1] [Figure 100 Feasibility Study on Automation of Business Processes in the Port of Baku There is government guidance on the advance notification of cargo arrival by rail or truck. However, it does not regulate shipping transportation, and most of the forwarders and agents handling cargo do not follow the guidance.

The functions corresponding to the online system consist of a Server, Admin, Client, Vessel, Yard, and Gate. As a result of the gap analysis of a total of six functions, the Port of Baku implemented 45.24% for the online system, but no Client menu was available to receive information from customers.

In this section, we tried to benchmark Busan for adopting the port automation, and a review was requested from a macro perspective rather than a detailed perspective. Therefore, because the Busan Port is the standard, this analysis is intended to first determine whether the standard is retained and, second, to conduct a quantitative evaluation.

The Online System

Items Functions Rate

Server - 101

Admin - CHAPTER

Client - The online system 02

(45.24%) Port Automation and Feasibility Analysis for the of Baku Vessel 100.00%

Yard 100.00%

Gate 71.43%

Source: Based on the terminal operation system menus of Total Soft Bank (Appendix).

To improve work productivity, provide high-quality port operations for customers, and improve the work of the government office, the system above should first be developed.

2.2. Operation Process

The Operation Process consists of seven functions: Berth Operation Plan, Loading/ Unloading Plan, Ship Loading/Unloading Operation, Manpower Comparison, Yard Operation Plan, Gate-in/out Container Information Process, and On-Dock.

As a result of the gap analysis of the seven functions, the Port of Baku implemented 31.43% for the Operation Process, compared to the port operation system of Total Soft Bank Co., but no system was established for the Loading/Unloading Plan and Ship Loading/ Unloading Operation. That must be improved in the future. - - - - Rate 80.00% 40.00% 100.00% On-Dock Functions Yard Operation Plan Operation Yard Berth Operation Plan Berth Operation Loading/Unloading Plan Ship Loading/Unloading Operation Ship Loading/Unloading Gate-in/out Container Information Process Gate-in/out Container Information Manpower Comparison (Gang/Shift and Vessel) Manpower Comparison Items (31.43%) Based on the terminal operation system menus of Total Soft Bank (Appendix). system menus of Total Based on the terminal operation 2.2.2. Loading/Unloading Plan will carry out a manual declaration company If the system is not in place, the shipping and online is implementing method appropriate most the problem, the solve To also It operations. cargo for time deadly in result can system a such build to Failing Because the online system is not used, an internet version of a terminal berth berth of a terminal version used, an internet system is not Because the online Even bulk-oriented multi-purpose docks must be systemized for efficient management 2.2.1. Berth Operation Operation Process Operation of cargo (i.e., cargo manifest declaration along with arrival and departure port declaration). with arrival and departure port declaration). along of cargo (i.e., cargo manifest declaration system for the shipper has an online declaration Therefore, in the case of normal terminals, do not that In countries and leaves. ship enters the before unloaded be to needs that cargo the report through printed materials at the terminal have a system, the shipper must accept and manually enter the container number and freight input into the system. management systems. The second option is establishing a filetransfer system because the service file and manifest are already standardized. shipper’s management creates a problem for customs management systems due to cargo information in the port logistics system. errors. This system is the root cause of delays management system seems necessary for efficient information exchange management with and terminals. customers who use most shipping companies and sales operations. Source: Source:

Operation Process 2-2> Operation

The shipping company, not the terminal, is responsible for the operation of the vessel. Therefore, the terminal performs only the loading and unloading operation, which is not suitable for international terminal operation standards. Currently, the operation of the terminal includes the absolute sharing of real-time data information between carriers and terminals for the purpose of increasing their operational efficiency and productivity, but the Port of Baku does not have a basic data interchange.

2.2.4. Manpower Comparison (Gang/Shift and Vessel)

To realize and plan port automation, it is necessary to accurately grasp the current status of the manpower for shipbuilding. Even if the Port of Baku is not a container-oriented terminal, it is possible to understand the status of the manpower operation. However, if it reflects the reality of the Port of Baku, which is currently operating as a multi-purpose terminal focusing on bulk cargo, it should be detailed and evaluate labor performance and perform an economic analysis at the time when the container exclusive terminal planned 103 by the Port of Baku is constructed and operated in the future. The productivity of bulk CHAPTER operations is a very important factor to reduce labor costs and resource input management costs. However, considering that the Port of Baku’s workforce uses the in-house work 02 Port Automation and Feasibility Analysis for the of Baku method, it means the importance of work productivity is low. In general, bulk terminals operate on a part-time basis, so productivity and time management are important factors that correlate, but the Port of Baku is operated by its own manpower, which implies a fixed cost. Therefore, the importance of cost reduction solutions through analysis is low because it does not have a direct impact on improving port revenue management through improved manpower operation.

2.2.5. Yard Operation Plan

The yard allocation part is included in the current system development, but it is difficult to analyze the productivity impact because it is difficult to grasp the exact “REHANDLING” value when the stacking height is high by processing the work location in the current “TEXT” type instead of the “GRAPHIC” screen.

Yard allocation does not allow for mixing bulk and containers and thus needs to be managed by “BLOCK”. In addition, if VMT is not installed, it is highly likely that the container will be lost while working due to the difficulty of accurate positioning. Consequently, it is difficult to identify the cargo reliability at customs and the accurate cargo import and Because the low-level system is self-constructed and the online system and interface and interface Because the low-level system is self-constructed and the online system 2.3. Information System Operations 2.3.1. Shipping and Terminal Regarding On-Dock, it is presumably managed by the test version related to billing in billing in to related version test the by managed presumably is it On-Dock, Regarding calls is suitable for a multi- hand and level provided by The shipping support traffic 2.2.7. On-Dock Basically, the gate operation does not have an online system between the carrier and carrier and have an online system between the does not the gate operation Basically, of the carriers is almost the efficiency of information support It is judged that the gate due to a freight waybill not operate In the case of the Port of Baku, it does 2.2.6. Gate-in/out Container Information Container 2.2.6. Gate-in/out system connect the shipping liner, the terminal and the customs are not established; not established; system connect the shipping liner, the terminal and the customs are in-house the to upload and input to time long a takes operation simple a even accordingly, the On-Dock management system. Billing is not a problem with this system, but the actual actual the but system, this with problem a not is Billing system. management On-Dock the the number of cargo containers and such as determining is not guaranteed, productivity rate so on. for actual customers. Considering that support traffic purpose pier. However, there is no the relationship between shipping shipping liners in is performed by LLA (Local Line Agent) are to operations liners and the terminals in the world and that agency functions related it is to the terminal, except for sales during LCA (Local Cargo Agent), being transferred absolutely necessary to improve the system. terminal, but it is partially developed. However, it is not linked with the traffic management the On-Dock service below. system, which provides such as website or homepage it is not built with a support system, insignificant because On-Dock service, the problem information. Moreover, even if it supports regarding terminal of a system to interface with shipping liners occur due to the lack of real-time service may related to container equipment management. operation. export at customs, which may cause problems in customs. It requires a yard planning and operation. bulk and container for a simple version management system monitoring 104 Feasibility Study on Automation of Business Processes in the Port of Baku developed system. Therefore, it is necessary to check whether the file can be uploaded.

Shipping & Terminal Operation

Function Description Baku

Berth window (terminal) N

- Actual arrival time on the pilot station Performance Report - Actual berthing time (divided Mother and - Actual working time by crane Y feeder) included - Actual working completed time by crane - Productivity per crane

Vessel Particular calling vessel N

Receiving time of container detail information from shipping line N and the online system or paper Discharging Process Discharging planning base on server upload Y

Information of second vessel for local T/S container Y

Receiving time of container loading list N

Ratio of non-arrival containers by container crossing time per one Y vessel 105 CHAPTER Time of container crossing Y

Ratio of container information 02 Loading Process Y

(POD, Vessel information, Weight, etc.) per vessel Port Automation and Feasibility Analysis for the of Baku

Time for loading planning base on server upload Y

Methodology of transaction information between terminal and N shipping/trucking company

Structure of union and manpower N

Source: Based on the terminal operation system menus of Total Soft Bank (Appendix).

2.3.2. Ship Planning

The functions corresponding to Ship Planning consist of Data Input, Inquiry, View Option, View, Ship Plan, Ship Auto Plan, Capability, and Report.

According to the gap analysis of a total of nine functions, the Port of Baku developed 15.74% for Ship Planning, and only data input and query level are implemented, so the management of the mariner’s plan cannot be carried out.

Considering the Port of Baku’s work traffic volume and vessel type, many functions are meaningless. However, the berth management function is needed because it affects the direct service visibility for customers. ------Rate 75.00% 66.67% View Report Option Inquiry Stability Ship Plan Data Input Functions View Option Ship Auto Plan Ship Auto Items (15.74%) Ship Planning Based on the terminal operation system menus of Total Soft Bank (Appendix). of Total system menus Based on the terminal operation A Simple inquiry level of On-Dock service and cargo management system is in place. by done management is container) and (bulk freight unit B/L forwarder’s the Because 2.3.2.2. Inquiry This menu includes the functions related to the vessel information and destination. to the vessel information and destination. This menu includes the functions related 2.3.2.1. Data Input Moreover, Moreover, to improve work the productivity, VMT is required for each piece of hand, the visibility of cargo and linking information with customers is not possible in the possible in the hand, the visibility of cargo and linking information with customers is not terminal operations. Without Import and Export Tank data that come through the program used by Shipping Shipping by used through the program that come data Export Tank and Import Without vessel information is not resilience is not calculated because the relevant Co., the vessel’s are not performed, so the system is needed for received. Moreover, irregular data checks check received from the WEB or shipping plan. If there is no “FILE” a stable operation occur for which someone will be responsible. that problems will it is very likely company, equipment equipment or each staff member, especially where inspection work is performed. Therefore, is needed. planning function a mere vessel Source: Source:

Ship Planning

It is not easy to immediately identify the problem when there is much traffic or the ship’s calling port has no graphic screen. However, considering the current function and the role of Port of Baku, it does not seem to have a decisive effect on productivity even if there is no such function.

2.3.2.4. Planning Option

To increase productivity, today’s unloading process aims to improve productivity by performing shipment planning and yard cleaning in advance when the time is available. Thus, this function is necessary; however, it is meaningless considering the volume, vessel sizes, and the operation process in the Port of Baku.

2.3.2.5. Plan View

For overall terminal management, a graphic management technique is needed. 107 CHAPTER 2.3.2.6. Ship Plan 02

Because the function above is absent, it is not possible to implement a VMT (Vehicle Port Automation and Feasibility Analysis for the of Baku Mounted Terminal) and real-time monitoring system to increase the productivity of the workers. Furthermore, considering the current volume of work at the Port of Baku, workers do not feel uncomfortable, even without this function.

2.3.2.7. Other Menu

Considering the Port of Baku’s work traffic volume, the vessel type, functions of the Ship Auto Plan, Stability, and Report are meaningless.

2.3.3. Yard Planning

The function corresponding to Yard Planning consists of Yard View, Yard Plan, Remarshalling Plan, and Inquiry.

Considering the volume, vessel pattern, and cargo pattern of the Port of Baku, this function is necessary. A bulk and container management mixed-system management is possible. Also, it is necessary for terminal cargo inventory management. - - - - - Rate Rate 66.67% Inquiry Yard Plan Yard Yard View Yard Functions Functions Reefer Operation Remarshalling Plan Reefer Checker (Web Version) (Web Reefer Checker (0%) Items Items (16.67%) Yard Planning Yard Reefer Planning Based on the terminal operation system menus of Total Soft Bank (Appendix). of Total system menus Based on the terminal operation Based on the terminal operation system menus of Total Soft Bank (Appendix). system menus of Total Based on the terminal operation 2.3.5. Dangerous Goods Operation Goods 2.3.5. Dangerous Operation. DG and Code Operation DG a of consists Planning (DG) Goods Dangerous for DG Based on a gap analysis of the two functions, the Port of Baku is 100% developed 2.3.4. Reefer Operation and Reefer Planning consists of Reefer Operation The function corresponding to Reefer the have not does Baku of Port the functions, two analysis of gap the of result a As As a result of the gap analysis of a total of four functions, Baku has 16.67% of the the of 16.67% has Baku functions, four of total a of analysis gap of the a result As DG cargo management system may be constructed to be suitable for the IMO management be constructed to be suitable for the IMO management DG cargo management system may regulation. Planning. Checker (Web Version). In the absence of a customer support system for frozen cargo, it is is it cargo, frozen for system support customer a of absence the In Version). (Web Checker for future frozen cargo claims. difficult to pinpoint the responsibility technical skills for Reefer Planning. technical skills for Yard Planning. skills for Yard technical Source: Source:

Reefer Planning
Yard Planning 2-5> Yard
Dangerous Goods Planning

Items Functions Rate

Dangerous Goods Operation Code 100.00% Dangerous Goods Planning (100%) Dangerous Goods Operation 100.00%

Source: Based on the terminal operation system menus of Total Soft Bank (Appendix).

2.3.6. Operations Management

Operations Management consists of Code, Export, Import, Vessel, Document and Service, Report, Inventory, Inquiry Data, and Admin.

It is necessary to establish an online system. There is a concern that productivity problems, over-injection of manpower, work delay, etc. may occur, and there is a high possibility that an error with the submitted documents will occur in the management of refrigerated cargo-creating big problems related to cargo damage during operation.

The Port of Baku must improve its quality management service for shipping liner 109 support management traffic and the on-dock service through this function. If there is a CHAPTER problem between the equipment management and the carrier between shipping liners, 02

service problems can be resolved in the shipping liner. Port Automation and Feasibility Analysis for the of Baku

According to a gap analysis of a total of nine functions, the Port of Baku was 50.25% configured for Operations, but nothing was developed for import and export, documents, and services.

Operations Management

Items Functions Rate

Code 100.00%

Export -

Import -

Vessel 100.00% Operations Management Document & Service - (50.25%) Report 88.89%

Inventory 80.00%

Inquiry Data 83.33%

Admin -

Source: Based on the terminal operation system menus of Total Soft Bank (Appendix). - - Rate Functions Delivery Reservation Inter-Terminal Delivery Inter-Terminal (0%) (0%) Items Delivery Reservation Based on the terminal operation system menus of Total Soft Bank (Appendix). system menus of Total Based on the terminal operation Inter-Terminal Delivery Inter-Terminal The feature is not a determining factor in productivity. It is practically impossible to give to impossible practically is It productivity. in factor a determining not is feature The the Delivery, to a gap analysis of the Delivery Reservation and Inter-Terminal According 2.3.7. Delivery Reservation The real-time sharing system between the customs system and the terminal was not not was terminal the and system customs the between system sharing real-time The This system has difficulty in providing quality management service regarding shipping Above all, if there is a claim between equipment management and a shipping liner, it 2.3.6.2. Documents and Service 2.3.6.2. Documents 2.3.6.1. Import loading/ before manually checked are documents system, online an of lack the to Due a function to a system that does not have an online system or a system that helps efficiency. a function to a system that does not have Port of Baku did not have the corresponding function. established, and simultaneously, the function of the CFS operation and the external truck and the external truck the function of the CFS operation established, and simultaneously, has not been built, and the functions above are not and the online system information established. and On-Dock service. support management traffic is very likely that the shipping liner will point out the service quality problem along with accountability. unloading. In this case, large cargo claims may be generated due to disagreement of cargo of cargo to disagreement due be generated cargo claims may In this case, large unloading. of manpower, over-injection with work problems, such as productivity, management along cargo, there is a high refrigerated Especially in the management of and waiting for work. will occur and the cargo will be a error with the submitted documents probability that an verbal communication. big problem during Source: Source:

Delivery Reservation and Inter-Terminal Delivery Delivery Reservation and Inter-Terminal 2-9>

Functions corresponding to Billing consist of Code, Rate, Gathering, Invoice, Report, Inquiry, and Interface. An electronic billing system is an important part of sales and management. In other words, it is a very important part in terms of managing sales revenue and cost management by grasping terminal operation cost and sales in real time.

Moreover, shipping liners are also placing an emphasis on verifying their trade receivables. Improving business management is necessary.

According to a gap analysis of the seven functions in total, the Port of Baku implemented 42.86% of Billing, but important functions, such as invoicing and reporting, were found before the development process.

Billing

Items Functions Rate

Code 100.00% 111

Rate 100.00% CHAPTER

Gathering 100.00% 02

Billing Port Automation and Feasibility Analysis for the of Baku Invoice - (42.86%) Report -

Inquiry -

Interface -

Source: Based on the terminal operation system menus of Total Soft Bank (Appendix).

2.3.9. Statistics

According to a gap analysis of the Statistics Opportunity, the Port of Baku showed a development situation of 33.33%.

Statistics Occupancy

Items Functions Rate

Statistics Occupancy Statistics Occupancy 33.33% (33.33%)

Source: Based on the terminal operation system menus of Total Soft Bank (Appendix). - - - - - Rate 85.71% 70.00% 44.44% 75.00% 47.06% 50.00% 80.00% 80.00% 50.00% 76.92% 66.67% 80.00% 25.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Codes Billing Billing Planning Operation Functions Registration Billing Tariff Configuration Yard Planning Yard Billing Invoice Cargo Booking User/Authority Planning Deployment Billing Data Gathering RORO Cargo Operation RORO Planning Roaster Set-up Planning Non-Manifested Planning Resource Booking Cargo Booking NON-VESSEL Common operation Monitoring Common operation Break/Dry Bulk Cargo Operation RORO Cargo Operation Monitoring Cargo Operation RORO Break/Dry Bulk Cargo Operation Monitoring Break/Dry Bulk Cargo Operation Items (62.21%) Multi-purpose system Based on the terminal operation system menus of Total Soft Bank (Appendix). system menus of Total Based on the terminal operation 2.3.10. Multi-purpose system 2.3.10. Multi-purpose User/ users, including consist of 23 a Multi-purpose system corresponding to Functions the Port of Baku implemented analysis of a total of 23 Functions, As a result of the gap Because the Port of Baku deals with bulk, RoRo, and general cargo more than containers, cargo more than containers, Because the Port of Baku deals with bulk, RoRo, and general Authority, Codes, Configuration, Registration, Billing, and Cargo Booking. Billing, Registration, Configuration, Codes, Authority, further to be developed by system, which is expected 62.21% for the Multi-purpose section. reinforcing the planning ment. To enhance the capacity of loading/unloading, primary systems are developed. ment. To The Appendix includes more system is more necessary. a Multi-purpose-oriented operation detailed information about each menu. Source: Source: and manage the Port of Baku possesses a few systems for planning, operations, onsequently,

Multi-purpose System 2-12> Multi-purpose

Because the Port of Baku is a multi-purpose terminal, its equipment is better intended for bulk operations more than container operations. However, without containers, it is hard to standardize the work process. The Port of Baku plans to open Phase II for container trading, and then, automated equipment should be introduced. Currently, the port’s mobile cranes help the bulk operation.

Container Crane (STS) Automation Factor Comparison

Item Busan New Port Port of Baku

Number of STS

Twin 65 ton

Rated Load Single 50 ton

Hook (beam) 80 ton

Upward Hoist Height (from STS Rail Surface) 40.0 m

Downward Hoist Height (from STS Rail Surface) 25.0 m 113

STS Rail Gap 30.5 m CHAPTER

Twin 65 ton 70 m/min 02

Hoisting Speed Single 50 ton 90 m/min Port Automation and Feasibility Analysis for the of Baku

No Load 180 m/min

Trolley Travelling Speed 210 m/min DO NOT HAVE STS Travelling Speed 45 m/min

Working Hour 20 m/sec Wind Speed Stop Hour 55 m/sec

Hoisting 2.0 sec Acceleration Hour Trolley Travelling 5.0 sec (under rated load) STS Travelling 3.4 sec

Twin Spreader Twin Spreader [Y]

CPS (Chassis Positioning System) CPS [Y]

Camera System Auxiliary Camera

Inspection System Mobile

Anti-Swag System (8–16 Wires) Y

Source: Based on Internal information from a Busan Terminal Operation Company and that of Port of Baku. Port of Baku DO NOT HAVE DO NOT Y Y Y Y Y Y Y Y Y Y Y 2.0 sec 5.0 sec 3.4 sec CPS [Y] 20 m/sec 55 m/sec 70 m/min 90 m/min 45 m/min 180 m/min 210 m/min Auxiliary Camera Auxiliary Busan New Port Busan New Cantilever Type [Y] No Load Hoisting Stop Hour Twin 65 ton Single 50 ton T/C Travelling Working Hour Working Trolley Travelling Number of T/C Item Camera System Camera T/C Travelling Speed T/C Travelling Load Position Sensor Target Position Sensor Target Chassis Position Sensor Trolley Travelling Speed Trolley Travelling Truck Anti-Lifting System Automatic Landing System Automatic In & Outside Car Separation RCS (Remote Control Station) RCS Truck Position Detection Unit Anti-Swag System (8–16 Wires) System Anti-Swag Spreader Micro-Motion System CPS (Chassis Positioning System) Automatic Crane Management System Crane Automatic Automatic Position Identification System Position Identification Automatic Wind Speed Hoisting Speed Acceleration Time Acceleration (Under Rated Load) Based on Internal information from a Busan Terminal Operation Company and that of Port of Baku. Operation a Busan Terminal Based on Internal information from Source: Source:

Transfer Crane (T/C) Automation Factor Comparison (T/C) Automation Crane 2-14> Transfer
Yard Tractor Automation Factor Comparison

Item Busan New Port Port of Baku

Number of Y/T 6.5 per STS

Number of Y/T for one STS 5.5 per STS Same as Busan Moving Speed 30 km/h

Average Travelling Distance (Average 20 times Moving Check)

Source: Based on Internal information from a Busan Terminal Operation Company and that of Port of Baku.

Miscellaneous Equipment–Portal Crane Max radius Min radius Brand No. SWL (ton) Regime SWL (ton) (meter) (meter)

Grab mode 30 32 8

40 32 8 2 80 Hook mode 50 26 8

Heavy mode 80 18 8

New Ardelt crane Grab mode 20 32 8 2 40 115

Hook mode 40 32 8 CHAPTER

Grab mode 16 32 8 02

2 32 20 32 8 Port Automation and Feasibility Analysis for the of Baku Hook mode 32 20 8

Modernized cranes 2 32 Hook mode 32 32 8

[Figure 2-2] Portal Crane

Source: Port of Baku. 6,300 kg weight / per unit 25,000 kg 40,000 kg 13,000 kg 33,500 kg Operating Operating 2017 2017 2017 2017 2017 Date Product

Specifications or Models Specifications Model: CPCD40 - RG24 Diesel engine Use quality: 6,300 kg Maximum climb: 20% Rated weight: 4 T Lift height :3,000 mm shift fork Lateral Air conditioning 5% spare parts Model: zz425s 3247d1 tractor Drive form: 6*4 t mass: 25 Total Engine power: 249 KW Engine: state IV Pull quality: 40,000Kg 400 l Tank: Maximum speed: 101km/h Air conditioning 5% spare parts low-plate semi-trailer Model: TAZ9400TDP Three axis, leg linkage 30,000 kg Weight: Plate spring: 8 pcs front and back double Brake: 5% spare parts Model: CPCD100 - RG17 Diesel engine Use quality: 13,000 kg Maximum climb: 20% Rated weight: 10 T Lift height: 3,000 mm shift fork Lateral Air conditioning 5% spare parts Model: CPCD200 - W36 Engine power: 243 HP Diesel engine Use quality: 33,500 kg Maximum climb: 20% 300mm Minimum clearance: Rated weight: 20 T Lifting height: 4,000 mm 6,000 mm Minimum turning radius: shift fork Lateral Air conditioning 5% spare parts HC HC HC Brand HOWO HOWO Qty 3 set 2 set 3 set 3 set 3 set Neck Goose Name Trailer Tractor Forklift Forklift Forklift

Miscellaneous Equipment - Assorted Equipment 2-17> Miscellaneous
Continued Operating Product Name Qty Brand Specifications or Models weight / Date per unit

Model: CPCD25N - RG2 Diesel engine Use quality: 4,130 kg Maximum climb: 20% Forklift 4 set HC Rated weight: 2.5 T 2017 4,130 kg Lift height: 3,000 mm Lateral shift fork Air conditioning 5% spare parts

Model: CPCD15N - RG26 Diesel engine Use quality: 3,020 kg Maximum climb: 20% Forklift 4 set HC Rated weight: 1.5 T 2017 3,020 kg Lift height: 3,000 mm Lateral shift fork Air conditioning 5% spare parts

Model: XT760 Power: 80 HP 117

Unload height: 2,405 mm CHAPTER Skid Unload distance: 680 mm 4 set XCMG 2017 3,670 kg Loader Turn radius: 2,290 mm Air conditioning 02 5% spare parts Port Automation and Feasibility Analysis for the of Baku The bucket has a rated capacity of 0.6 m to the third

Model: XT760 Power: 80 HP Unload height: 2,405 mm Unload distance: 680 mm Skid 1 set XCMG Turn radius: 2,290 mm 2017 3,700 kg Loader Air conditioning 5% spare parts Two sets of strip brush The bucket has a rated capacity of 0.6 m to the third

Model: YW - BP - 001 Rated load: 20T Nylon Length:16 m 4 lines YEWEI 2017 - Sling Width: 250 mm Thickness: 15 mm Weight: 3.8 kg/M

Model: RS45-31 ch - W45 Diesel engine Use quality: 72,200 kg Reach 2 set HC Rated weight: 45 T 2017 72,200 kg Stacker Lift height: 15,260 mm Air conditioning 5% spare parts weight / per unit 71,870 kg Operating Operating 2017 Date Product Details

The Port of Baku has a traditional dock type of work for bulk and cars, The Port of Baku has a traditional an old terminal type before the redevelopment of the which looks like Busan Port. form, not a dedicated should be in a multi-purpose configuration System terminal type. at Although C/C is more stable and productive for cargo operations using a Harbor significant time to persuade operators present, it takes to replace the equipment. Crane and reality of the Port of Baku are reflected, a If the characteristics analysis of the productivity through a current equipment comparative status analysis is of little significance. Specifications or Models Specifications None None Air conditioning 5% spare parts Maximum climb: 50% Lifting arm: 14.1 m Longest main arm: 63.5m main lifting arm + the Lifting height: the longest secondary arm 94.7 m Arm length: 13.6 m Longest main arm: 64 m + the Lifting arm length: the longest main lifting arm secondary arm 96 m type: disc type Brake Machine weight: 71.87 T (with weight) Weight: 220 T Weight: Engine power: 593 HP 23,000 mm Minimum turning diameter: 270 mm Clearance: Maximum speed: 72 km/h country IV Engine emission standard: On Hand On Hand Evaluation XCMG Brand Qty 1 set Yard Crane Yard Yard Trailer Yard Equipment Port of Baku. Harbor Crane Container Crane Currently, the Port of Baku is of low importance for container unloading operations due the Port of Baku is of low importance for container unloading operations Currently, All- Crane (Transport Equipment) (Transport Name terrain terrain to the multi-purpose docking situation and government operations of some bulk-oriented bulk-oriented some of operations government and situation docking multi-purpose the to the profits of container and bulk unloading operations containers. Nevertheless, to maximize the following is required: (1) productivity improvement, (2) cost reduction, operating and (3) the internally, feasibility; and will the about uncertainty also is There investment. rational trafficvolume forecasting work should be preceded by forecasting the increase in volume port operation is expected that an accurate plant type. After understanding this point, it by policy will follow. Written by Researchers. by Written Source:

Evaluation of Equipment
Continued

The productivity of bulk operations is a very important factor in reducing labor costs. However, considering that the workforce of the Port of Baku includes commercialized in- house workers, the importance of work productivity is low. Therefore, many other terminals are using part-time workers for most bulk unloaders.

To improve productivity in the multi-purpose operation, the CC work should be introduced in the current Harbor Crane work and the passivation work. If the budget is not enough, even used CCs should be used. Mainline crane productivity is based on the input of transport equipment, including yard support (such as software programs). In particular, the productivity of the main crane itself is very important. See photos of our bulk salt operation.

[Figure 2-3] Photo of Our Bulk Salt Operation

119 CHAPTER 02 Port Automation and Feasibility Analysis for the of Baku Sum 2 346.4 pcs/ Partner 406.03 TON 4466.32 TON Port of Baku Union 2 0 0 7 8 1 99 11 In GC -house Cargo WEIFANG, CHINA WEIFANG, (GC 2 sets) Number of Productivity 1 4 4 4 1 2 2 1 Sum 11 3,810 ner Part- (A Company) Union Port Busan New Port Number TON bag TON Total Hour Total 1 4 4 4 1 2 2 1 In -house Incl. Incl. General General Position Directors Manager, Team leader Team Team leader Team GAIN TOP SALT, SODIUM SALT, 2018.07.31. 00:30 2018.07.31. 11:30 2018.07.31. 15:00 2018.07.30. 19:00 - 2018.07.31. 08:00 – 2018.07.31. 13:00 – HR CEO Labor Team Billing Admin. Executives Accounting Description Cash Receptionist Internal material of SM Line Gyeong-In Terminal Internal material of SM Line Vessel Name Vessel Working Hour Working Cost Cargo Contents 2.5. Annual Cost Analysis 2.5. Annual Cost multi-purposed terminal and has a relevant Because the Port of Baku is a bulk-oriented, Centre Personnel Managerial operation method, it cannot directly be compared with the container’s terminal operation terminal operation with the container’s method, it cannot directly be compared operation most of them consist of in-house operation, manpower. However, in terms of manpower Busan The world. the around piers bulk other from different is which resources, human Port is a container-oriented terminal and has different from characteristics the Port of Baku, is impossible to compare them in terms of manpower which is a multi-purpose pier, so it and refer to the current status of the manpower composition. Nevertheless, to understand and ranks duties and into was divided its manpower Port of Baku, the of composition compared with that of the Busan Port.

Manpower Formation Comparison 2-19> Manpower
Continued Busan New Port Description Port of Baku (A Company) Cost In Part- In Team Position Union Sum Union Partner Sum Centre -house ner -house

Planning 1 1 6

Managerial Team leader Procurement 2 2 4 Personnel Incl.

Legal Insurance 0 3

Team leader Sales 2 2 14 Incl.

Managerial Secretary 0 9 Personnel Chauffeur 1 1 30

Sum 24 1 25 194

Operational Plan & Team leader Incl. 2 2 58 Statistics

Planner 13 13 121 CHAPTER Control 16 16 7 Center 02

Advisor Port Automation and Feasibility Analysis for the of Baku 17 17 0 (Forman)

Tally 61 61 0

Underman 0 0

QC 40 19 59 0

SC 0 0 Operational Personnel Y/T 166 94 260 0

RMGC 0 0

ARMGC 22 22 0

RS/EH 20 20 0

Gate 5 5 0 Inspection

Gate Control 0 0

Reefer 9 9 0

CFS (CIS) 3 3 0

Field Support Team leader Incl. 0 162

Facility 1 9 10 0 787 593 Sum 8 1 9 61 57 136 136 Partner 787 Port of Baku Union . 8 0 0 0 96 22 In 651 457 104 -house 2 3 5 2 0 0 2 0 11 10 18 13 588 563 Sum 8 1 10 18 13 191 190 ner Part- 588 246 246 (A Company) Union Busan New Port Busan New 3 1 3 5 2 0 2 In 151 127 -house Y/T Position Driver Mobile Electric Engineer Spare Part Equipment Mechanical Maintenance Management Admin. Officer Admin. Service Engineer Team leader Incl. Team Sum Team IT Total Sum Total Goods Driver Health Docker Description Security On-dock Customs Stevedore Controller Dangerous Fire-Fighting Maintenance Based on Internal information from a Busan Terminal Operation Company and that of Port of Baku Operation a Busan Terminal Based on Internal information from Cost To To quantitatively show the problems caused by the absence of online services related to Centre Personnel Operational Operational port automation, several conditions are set, and when the existing procedures are followed, conditions are set, and when the existing procedures are followed, port automation, several be the online system—can the additional costs incurred—compared to those processed by calculated.

Continued

Additional Direct Cost due to Non-found Online Service (unit: USD)

Labor Cost ($) 43,836

Husbanding Cost ($) 3,066,666

Cargo Value Interest Cost ($) 345,205

Truck waiting Cost ($) 1,149,431

Round-trip Unloading Loss ($) 434,354

Total Direct Cost/Year ($) 5,039,492

Source: Written by Researchers.

123

First, the assumptions for calculating annual labor costs are as shown in

. CHAPTER

The volume of bulk handling and vehicle handling were presented based on the annual 02 Port Automation and Feasibility Analysis for the of Baku data of the Port of Baku, and it was assumed that the volume of container traffic and the number of ship calls per year would be at that level if the Port of Baku runs an exclusive container terminal operation. Assuming that the terminal, shipping company, customs, and other related companies must have two additional personnel each due to the absence of online services, if eight additional working hours are needed and the annual salary per manpower is 6,000 dollars, the annual labor cost is $10,959.

Annual Labor Cost for Non-found Online Service Additional Labor Cost Number of Annual Labor Annual Cost per Labor Cost Working per Hour for Manpower Cost ($) vessel ($) Hours Manpower ($)

Terminal 8 2 6,000 10.96 10,959

Shipping Company 8 2 6,000 10.96 10,959

Custom 8 2 6,000 10.96 10,959

Bonded 8 2 6,000 10.96 10,959 Management

Total Annual Labor Cost 43,836

Source: Written by Researchers. ($) 51,141 76,712 345,205 115,068 102,283 ($) 750,000 800,000 666,666 850,000 Annual Cost 3,066,666 Husbanding Cost 400 300 200 100 Ship 4 4 8 6 Expected (hr) time Number of Waiting Waiting 625 500 127.85 255.71 575.34 Ship 1,022.83 833.34 708.34 Cost (hr) Husbanding Cost/Ship ($) Chartering 4 4 6 8 (hr) 12,000 20,000 17,000 15,000 Husbanding Cost (day) Ship Chartering 280,000 560,000 840,000 Volume 1,120,000 Interest for Total of Husbanding Cost ($) of Husbanding Total Cargo Value Cargo Value 400 100 200 300 Total Cost for Cargo Interest Expense Total Expected Number of Ship 3,500 7,000 10,500 14,000 40 10 20 30 (%) Rate (day, MT) (day, Volume/Ship Volume/Ship Written by Researchers. by Written Written by Researchers. by Written 5,000 (dwt) 20,000 15,000 10,000 5,000 To calculate the annual freight cost based on an assumed 10% bank interest rate, a a rate, interest bank 10% assumed an on based cost freight annual the calculate To Based on the data collected from shipping companies using local ports to calculate the the ports to calculate using local from shipping companies the data collected Based on be would Baku of Port of authority the by level automation self-assessment the If (dwt) 10,000 15,000 20,000 Ship Size Ship Size freight value of $800 per ton is divided by the hourly cargo volume per day and multiplied ship size, resulting in a total of for each the incidental time to calculate the freight rate by $345,205. annual ship waiting cost, we assumed there would be 1,000 incoming ships, 5,000 tons (40% ships, 5,000 tons be 1,000 incoming assumed there would waiting cost, we annual ship each ship tons (10%) of tons (20%), and 20,000 tons (30%), 15,000 portion), 10,000 of the total hours. and the waiting time is four to eight size arriving in port, improved from 50% to 90% within five years, the waiting time is expected to be reduced to the daily charter fee was divided by on the above assumptions, the about 2–4 hours. Based waiting the multiplying calculated by was cost incidental the of amount the total hour, and ship arrival ports was $3,066,666. the cost of the expected time. Finally, Source: Source:

Cargo Interest Expense Interest 2-23> Cargo
Husbanding Cost for Shipping Company 2-22> Husbanding Cost

Truck Waiting Cost and Round-trip Unloading Losses Total Amount Unloading Round-trip (70% of Amount for Number of Truck Item travel hours unloading the inland one vehicle vehicles Waiting Cost (hr) ratio (%) transportation)

Bulk 2,839,900 MT 35 MT 81,140 2 50 999,645

Car Carrier 30,948 Vans 6 Vans 5,158 2 0 63,546

Container 14,000 TEU 20ft 2, 40ft 1 7,000 2 50 86,240

Total Cost for Truck Waiting 1,149,431 125 CHAPTER Source: Written by Researchers. 02

Regarding bulk and containers, the round-trip unloading ratio is 50%. If its target Port Automation and Feasibility Analysis for the of Baku decreases by 30%, round-trip unloading trucks for bulk and container lose $434,354 for eight working hours due to the round-trip unloading ratio decrease without non-found online services.

Losses for Round-trip Unloading Ratio Decreases No. of No. of vehicles vehicles Losses that Target that Round-trip Working per No. of applied round-trip applied Losses Item unloading hours working Vehicle round- unloading target ($) ratio (hr) hour trip ratio round-trip ($) loading loading ratio ratio

Bulk 81,140 50% 60,855 30 52,741 8,114 8 399,858

Container 7,000 50% 5,250 30 4,550 700 8 34,496

Total Losses for Round-trip Unloading 434,354

Source: Written by Researchers. Port Lines Other Weigh bridge Systems Customs Shipping Railways Authority OCR/RFID Interface Integration Port Vessel / Vessel Railways Schedule Manifest Port Info e-document Community Port Management EDI Report Request Customs Booking & Ship Yard Basic Define Define Setting Version Security Utility Management CFS Billing Reefer Service Reports Request Terminal Container Booking & Management Gate Yard Bulk RORO Vessel Terminal Operation System Operation Terminal Railway HHT/VMT Container Operation Rail Ship Yard Berth Plan TSB. Resources Analyzing the online system of Port of Baku revealed that the overall functions of the the functions of Analyzing the online system of Port of Baku revealed that the overall 2.6. Port Automation Necessity and Possibility Review Necessity and Automation 2.6. Port to introduce an online on its plans Port of Baku commented interim report, the After the than the online system system of this study is more comprehensive However, the online the online system of the Port fully reviewed the plan to introduce Although we have Terminal a of consists and system online the of overview an is figure following The online service for port automation are not implemented, or even if some functions are functions are online service for port automation are not implemented, or even if some system (Port to Port) between September and November of this year. September and November to Port) between system (Port between agencies (such as which refers to the exchange of information of the Port of Baku, (such as Ship Planning, operations shipping, and terminals) and terminal shippers, customs, of cargo. related to the receipt and disembarkation and Billing) Information System, be introduced to establish a port system mentioned in this study must of Baku, the online automation Port Management, and Integration. System, Operation Source: Source: [Figure 2-4] A Full Terminal Operating System Operating 2-4] A Full Terminal [Figure 126 Feasibility Study on Automation of Business Processes in the Port of Baku present, they are not fully executed. This phenomenon also appears in the areas of Port Management and Integration.

The most urgent part is that the functions for operation and Electronic Data Interchange (EDI) in the terminal operation system must be strengthened, and through this, sufficient data for basic operation must be secured.

It is also important to remove factors that delay terminal operation by securing information about ships and cargo in advance, such as the Port Management’s Vessel/ Railways Schedule and Manifest, to enable preparation for cargo handling. Accordingly, information linkage with customs, railroad authorities, and shipping companies should be accompanied.

It is equipped with the function to secure basic essential information for terminal operation and analyze the data through BI (Business Intelligence) or DW (Data Warehousing) on ​​the accumulated operating data to more efficiently improve the work process and the corresponding function. There seems to be a need for a gradual, reinforcing approach. 127

After that, it seems to be an effective method to achieve overall port automation through CHAPTER automation and automation tools for equipment and other items. Detailed plans for this will be described in Chapter 3. 02 Port Automation and Feasibility Analysis for the of Baku

Currently, the Port of Baku is still growing and expanding its port market share among neighboring countries. Because there are several steps left to construct a container terminal and port automation in the future, the Port of Baku moves forward step by step. According to the first construction plan of the new port that has been completed, the number of port activities is increasing.

By analyzing the equipment, process, and systems of the Port of Baku, its blueprint for modernized port operation is described. We expect full port automation in the future after necessary systems are transformed through port modernization. Port Lines Other Weigh bridge Systems Customs Shipping Railways Authority OCR/RFID Interface Integration Port Vessel / Vessel Railways Schedule Manifest Port Info e-document Community Port Management EDI Report Request Customs Booking & Ship Yard Basic Define Define Setting Version Security Utility Management CFS Billing Reefer Service Reports Request Terminal Container Booking & Management Not Exist Gate Yard Bulk RORO Vessel Terminal Operation System Operation Terminal Railway HHT/VMT Container Operation Not Enough Rail Ship Yard Berth Plan TSB. Resources Exist Source: Source: [Figure 2-5] Current Terminal Operating System of Port of Baku System of Port Operating Terminal Current 2-5] [Figure 128 Feasibility Study on Automation of Business Processes in the Port of Baku 3. Experience of Korea

3.1. Infrastructure and Network

In Korea, stakeholders (shipping companies, forwarders, and ship agents) who operate vessels and deal with cargo, use EDI (Electronic Data Interchange, one of the online services) before vessel arrival in ports to provide and request information. EDI is a single platform that all the stakeholders use to input the data. Through not only E-mail but also web-based systems that are linked to the planning system, work management system, and operation management system, information is transferred in advance of the job allocation.

Almost all the advanced ports have government or port authorities that adhere to the regulation that information on the calling vessel and cargo must be transferred to terminal operators at least two hours in advance. If vessels from overseas enter one of their ports, the ship agent should provide that information 12 hours in advance of the calling.

Considering vessel information and the amount of the loading/unloading, the planning 129 system and work management systems make a job plan to allocate the necessary equipment CHAPTER and human resources. Also, the general work, such as statistics, billing, and facility 02

management, are performed in parallel with it. Port Automation and Feasibility Analysis for the of Baku

Information from the planning and work management system is transferred to the operation management and controls systems to check the equipment status within the area of the ship, yard, and gate. On the field, there are some problems with performing the plan and the operation control system’s requests to rearrange the equipment for the smooth work process.

As a whole, this is called a port operation system and each system systematically works. Weather Forecaster WEB QC Work Result Work Statistics Into Gate Advance Info Advance Yard Tractor Yard Maintenance Statistics Maintenance & Repair & Fisheries Billing General Facility Strategy Ministry of Oceans Work Management System Work EMAIL Work Result, Equipment Status, Work Container Info Advance Info Advance Approval Info Request Performance Order Performance Yard Yard Equipment Equipment EDI Use Terminal Terminal Related Co. Provide Info Request Info Central Control Central Operation Control System Operation Operation EDI Operation Operation Management System Operation Resource Simulation makes Ship Equipment On-Dock Berth Gate Advance Info Advance ARMGC Load/Unload Ship Planning System Yard Bond EDI Planning Info Request Replan Planning Info Customs

Integrated Informaition System Shipping Co, Shipping Co, Internal material of SM Line Gyeong-In Terminal. Port Operation System Forwarder Shipper Forwarder Source: Source: [Figure 2-6] Port of Busan Infrastructure and Network Port of Busan Infrastructure 2-6] [Figure 130 Feasibility Study on Automation of Business Processes in the Port of Baku 3.2. Operation Process

3.2.1. Berth Operation Plan

In general, shipping liners who wish to use a container terminal must submit a monthly port entry plan by the 25th of the previous month and submit a berthing request to the terminal at least five days prior to berth docking.

The terminal receives and reviews the berth application documents from the liners by writing, fax, wire, or oral transmissions and notifies the crews of the results.

If there is a change in the scheduled use of the berth, such as the arrival time of a ship that is scheduled to arrive at the port from time to time, the shipowner shall notify the terminal planner room immediately so that the berthing schedule may be adjusted in advance.

A long-term berth plan is established by considering the berthing pattern for each service 131 lane, and the ship time is automatically calculated by considering the volume pattern. It is CHAPTER useful for strategic berth planning, stable yard operation, and equipment management. 02

A calling Schedule supports the berth plan, ship berthing plan, and berthing or departure Port Automation and Feasibility Analysis for the of Baku information management by hand after the departure. Graphical and textual interfaces are supported, and data can be viewed by period using GUI.

A berth assignment should display berth information, berth status, and a berth plan display showing berth information.

STS allocation status assigns STS cranes by ship for calling schedule and identify available or preassigned STSs in the chart and incorporate them into the revised berth plan.

Port berth management is a variable that determines the number of crane inputs and the number of personnel working on ships. This part should be thoroughly operated. In particular, the harmonious resource management of small vessels is very important due to the trend of larger vessels.

Currently, in the case of the Port of Baku, a fixed berth management method is adopted as a method of matching specific ships and fixing berths, rather than a business-oriented management method, which is a method of increasing investment value through the purpose of maximizing resource management. Loading/Unloading Lashing Remote Control Waiting room for Lashing Waiting Internal material of SM Line Gyeong-In Terminal. 3.2.2.2. Yard Operation Plan Operation 3.2.2.2. Yard The equipment plan establishes a minimum land use method to facilitate the efficient the container, The distribution factor of the export container is the size and weight of container size, and shipping by vessel, shipping company, Import containers are classified 3.2.2. Loading/Unloading Work 3.2.2. Loading/Unloading Operation loading/Unloading 3.2.2.1. Ship according to the vessel operations work, we carry out perform the loading/unloading To use of terminal device space and the speed of unloading operations. It is usually divided into It is usually divided use of terminal device space and the speed of unloading operations. and empty containers. (transportation), export, import, transshipment it should be placed vessel, which helps allocate the area where port of destination, and among the yards near the berth. classify shippers, container terminals must obtain shippers’ manifests, To liner if necessary. vessel’s operation plan. For safe cargo delivery and to avoid crunching containers, lashing containers, lashing delivery and to avoid crunching safe cargo plan. For operation vessel’s regular inspection, we have to work should be completed. Through work and line handling status as much as possible. maintain the vessel Source: Source: [Figure 2-7] Ship Loading/Unloading Operation [Figure 132 Feasibility Study on Automation of Business Processes in the Port of Baku which are classified by forwarder, before shipping. When classifying by forwarder, much device space is required, so the space utilization efficiency is reduced.

Empty containers are classified for two device purposes, such as the one for the quantitative work of the general import and export container shipping, and the other one for storage containers for on-dock operations and rentals. A storage plan should be developed separately for the purpose of the device and for each owner or carrier.

3.2.2.3. Gate-in/out Container Information

Pre-booking by the online system is a method of sending information, similar to the entry/exit boundary from the carrier to the terminal before the truck arrives at the gate.

The logistics company transmits the container import/export schedule information using the online system supplied by the online system communication provider.

3.2.2.4. On-dock Service 133 CHAPTER On-dock work has a coordination function between the shipping liner system and each

terminal system. Among the cargo delivery functions, the empty container management 02 functions, and the relationship between inland transporters and shipping liners, a dedicated Port Automation and Feasibility Analysis for the of Baku container terminal operates with each collectively and manages some of the inland transporters.

On-dock work is carried out by contract between the shipping liners and container terminal. In the container terminal, we extend the basic yard stacking period, manage re-distributed empty containers, provide container inspection services, clean and repair containers, and provide agency services for import and export.

3.3. Information System

As in [Figure 2-8] below, the shipping company, terminal operators, authority, etc. in Korea who handle cargo delivery, use an information system to transfer the necessary data in advance under the regulation (or policy).

To compare the information system implementation from that of Korea, refer to the Appendix. Web EDI Web System Authority Stowage Planning Shipping Company Loading/Unloading Planning Information Vessel entry/departure Vessel Port Service Customs etc.. System Company Terminal Transport Transport Transportation Transportation Terminal Operating Operating Terminal Management System Loading/Unloading Planning Information Loading/Unloading Cargo Information Ship Information Ship Storage System System Storage Company CY / Warehouse Internal material of SM Line Gyeong-In Terminal. Loading Computer As a crane specially designed for unloading containers, it runs on a rail attached to an attached to an it runs on a rail specially designed for unloading containers, As a crane making it less flexible than on the rails, is fixed RMGC (Rail-Mounted Gantry Crane) with spans of six a rubber-wheeled yard crane is Crane) (Rubber-Typed Gantry The RTGC 3.4. Equipment Status and Comparison Warehouse Management System Warehouse apron and winds up a container suspended on a hook by a hydraulically expanding spreader spreader expanding hydraulically a by hook a on suspended container a up winds and apron The determination of outreach is the most to perform loading and unloading operations. important for the quay crane, and along with the enlargement of the container ship, the speed are also increasing. the hoist, and the trolley lifting height of the crane, However, the loading block cannot be changed freely. the RMGC because the container’s wide and speed, high to due productivity high stopping, and running precisely of possibility to increase the container load. RMGC has a larger span it highly possible width make rail spans 14 to 15 rows, making it easy to achieve high levels so the standard RMGC than RTGC, of automation. container rows and one truck lane and can be operated with four or five gear units. When be rotated in the stationary state, and the turning point the tire should rotating the RTGC, should be reinforced with a solid steel plate or epoxy resin to rotate the equipment. RTGC so it is suitable when there are scattered loading places, and has excellent maneuverability, Source: Source: [Figure 2-8] Standard Systems in Korea Systems in Standard 2-8] [Figure 134 Feasibility Study on Automation of Business Processes in the Port of Baku it can be added as the quantity of cargo increases.

YT is the equipment used to move containers mounted on the chassis within the yard. For simplicity, the driver does not have to get off each time he raises and lowers the landing gear of the chassis. After the chassis is connected, the front of the chassis is lifted slightly by hydraulic pressure and the device can be automatically removed when stopping or removing the chassis.

[Figure 2-9] Port Equipment

135

CHAPTER 02 Port Automation and Feasibility Analysis for the of Baku

Source: Busan Port Authority.

4. Conclusion

4.1. Infrastructure and Network

Digitization is a goal that the Port of Baku must achieve in the future, and the first priority is an online service that can connect all stakeholders. The Port of Baku uses e-mail because its main method of information exchange. Although the system is currently being Strategy Web Facility Statistics Bond Online First Priority Second Priority Operation Online Operation Email QC Gate Equipment Maintenance & Pepair General Billing for reduction of non-collected losses Load/Unload Control Central ARMGC Yard Tractor Yard System Management Online System Operation Operation Stakeholders Control System Operation Management Operation System Planning Manual Yard Yard On-Dock Resource Simulation Maintenance Not Enough Ship Ship Gate Berth Written by Researchers. by Written Exist Equipment 4.2. Operation Process 4.2. Operation the appropriate calling to work allocation to process from vessel operation In the equipment, necessary data should be transferred in advance to the right person in between relevant charge. Also, mutually sharing real-time data through the online system their productivity and meet customers’ satisfaction. will enhance stakeholders Source: Source: developed, developed, it is necessary to supplement the port management system to provide quality Port of prioritizes the losses. [Figure 2-10] unnecessary customers and reduce services to improvement. areas of Baku’s Priority of the Port of Baku and the Improvement Flow 2-10] Operation [Figure 136 Feasibility Study on Automation of Business Processes in the Port of Baku 4.3. Information System

Bulk-oriented, multi-purpose terminals may overlook the importance of the systemized procedures due to the characteristics of the cargo. Luckily, the Port of Baku has a plan to establish and open the container terminal, which provides easy automation.

To solve the problem that the Port of Baku faced, the most appropriate method is implementing online and management systems. Moreover, to make them user-friendly, establishing a file transfer system is necessary to get the information from shippers or manifests directly. A visualized menu of planning and job allocation is another option for a user-friendly terminal management system.

4.4. Equipment Status

Because the Port of Baku is a multi-purpose terminal, a productivity comparison analysis through current equipment status analysis is less important. This will be the last topic for discussion after the implementation of the online system and update the procedures. 137 CHAPTER 4.5. Annual Cost Analysis 02

In terms of manpower management, the Port of Baku has a different structure from Port Automation and Feasibility Analysis for the of Baku other terminals around the world. They formulate the fixed cost concept by hiring people as their own manpower. Thus, they would rather choose other options to enlarge port profit.

In terms of the cost, without the online system, the Port of Baku and its relevant parties who handle the cargo spend more time and need extra workers. Because we make assumptions on the basis of the cargo volumes of the Port of Baku, the additional direct costs, including labor costs, ship waiting costs, cargo interest costs, truck waiting costs, and round-trip unloading costs are generated at $5,039,492 per year.

Labor Cost $ 43,836

Ship Waiting Cost $ 3,066,667

Cargo Value Interest Cost $ 345,205

Truck waiting Cost $ 1,149,431

Round-trip Unloading Loss $ 434,663

Total Direct Cost/Year $ 5,039,492 4.6. Necessity and Possibility of Port Automation of Port and Possibility 4.6. Necessity implement the online of Baku should that the Port this paper, we stress Through The Port of Baku must establish a specific mid- to long-term marketing plan internally is increasing through the share in neighboring regions Considering that the port market Port the and terminal, semi-automated a Port, Busan the comparing in limits are There in be discussed to need ma tters indispensable report, this in outlined parts the Among system specifically and accuratelyto enable the operational efficiently and If productively. one hour in advance before the ship information are sent 30 minutes to schedules and cargo waiting costs. Especially, they reduce the working hours and arrive at the terminal, and train real-time. in of the bulk is measured weight the and unloaded, is loaded bulk cargo when made, it inevitably causes a time number and linkage are manually If, however, the cargo entering cargo automatically implement links by Thus, the online system should delay. will be reduced. of the unpaid bill the rate basis. If so, accordingly, information on a volume department but should be done the online system is not only for one The introduction of should Baku of Port The organizations. and departments other with collaboration through development of a single-window platform to increase also consider t that the EU spurs the transactions between trade in the case of by unifying different systems the efficiency of work EU-member countries. Based on the plan, they must move forward one to set the direction of the port automation. eco-friendly factors, such as the use of eco-friendly step at a time. The Port of Baku considers mobile cranes for loading and unloading equipment, but the first thing to consider is the as mentioned above so that it is possible to of the online system introduction and operation fast importing and exporting. and perform facilitate business progress among stakeholders the correlation measuring cargo volume includes considering billing, accurately For work efficiency as the volume increases. between productivity improvement and visit, to need will Baku of Port the of authority The Baku. of Port the of growth continued the Port of Baku to become an advanced analyze, and benchmark more prominent ports for port. of ports multi-purpose port. However, considering that only 1% of Baku, which is a general combine digital in the world are automated and 2% are semi-automated, solutions that etc.) were introduced step step by technology to (smart increase system, the IoT, efficiency of due to the introduction the port. This should be considered, and the port will develop rapidly effect. 138 Feasibility Study on Automation of Business Processes in the Port of Baku detail, and I hope that this KSP project will provide an opportunity to draw a blueprint from how the Port of Baku has developed.

[Figure 2-11] A Full Terminal Operating System

Terminal Operation System Port Management Integration

Plan Operation Management Utility EDI Port Interface

Vessel / Booking & Booking & Port Berth Bulk Security Railways Authority Request Request Schedule

Ship Container Terminal Yard Customs Manifest Customs Service Define

Ship Yard Railway Reefer Report Port Info Railways Container Define

Basic Rail RORO CFS e-document Shipping Setting Lines

Version Weigh Resources Vessel Billing Community Management bridge

Yard Reports OCR/RFID 139 CHAPTER Other Gate Systems 02 HHT/VMT Port Automation and Feasibility Analysis for the of Baku

Source: TSB. Y Y Y Email ± 3 hr No Container Port of Baku Port of Baku No online system Dedicated Terminal Y Y Y Y Y File] File] System System System System guarantee) guarantee) × [No cases] × [No cases] On demand On demand On demand Within 30 sec Within 30 sec System & file System with a vessel] information is (Also, contract (Also, contract Busan New Port Busan New Port exchanged directly [If necessary, vessel [If necessary, Berthing time ± 3 hr [the online system or [the online system or Reception Method of unloading quantity Bay Plan Data [Reefer] Bay Bay Plan Data [General] Bay If manual, required time If manual, required time Direct Gate-out Cargo List Estimated Unloading Time Bay Plan Data [Dangerous] Bay Customs [Manual or System] Reconcile [Manual or System] Reconcile [Manual or System] Average Reception Time [After Average Bay Plan Data [Over Dimension] Plan Data [Over Bay If different, notification method to Notification of Direct Gate-out Cargo confirmation of Unloading Quantity] Spending time for final confirmation Item Item and Info berthing time] Manifest advance, advance] Complete Reception Unloading Overseas – Crane Job Status Check Frequency Job Status Check Crane - 2 hours in 12 hours in Information [Notification Short distance before berthing: Vessel Information Exchange on Demand Before Berthing Vessel Plan Unloading The Method of Receiving and Registering a Calling Vessel’s Schedule and Registering a Calling Vessel’s The Method of Receiving STS Crane Use Status [Contract Guarantee status: based on Schedule] Guarantee Use Status [Contract Crane STS Long Term Schedule Change Rate [Average change time compared to change Schedule Change Rate [Average Long Term [Appendix Table 2] Loading/Unloading Plan [Appendix Table [Appendix Table 1] Berth Operation Plan 1] Berth Operation [Appendix Table Appendix 140 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 2] Continued

Item Busan New Port Port of Baku

Unloading Plan [Manual or System] System

If manual or automatic, required Within 1 Minute Unloading Plan time for planning Unloading yard assignment Unassigned

If assigned, required time Real-time [System]

Booking Information [Booking × [Statistics application] prospect]

CLL [Container Loading List] Reception Method [Manual or System System]

2 hours in advance of CLL Reception Time unloading completion

Reconcile with container in terminal System [Manual or System]

If manual, required time Within 30 sec

Dangerous Goods Loading List System checking

Reefer Loading List Checking System 141

Lengthy Cargo Loading List Checking System CHAPTER

Direct Gate-out Cargo List System

Estimated Loading Time Notification 02 System No Container

of Direct Gate-out Cargo Port Automation and Feasibility Analysis for the of Baku Dedicated Terminal Loading Instruction Reception/ Loading Plan System Movins [Manual or System]

Loading Plan checking with Movins and CLL System

System [Human can Loading Plan [Manual or System] complement]

Required Time for Loading Plan Within 1 hour [Based on 1000 Moves ]

Before Unloading work Loading Plan Completion Time completion

Possibility for Partial Loading Possibility

Vessel Change Rate [Based on Overall 10% Loading quantity]

POD [Port of discharging] Change 15% Rate

Weight Accuracy [Gate-in and CLL] 40%

2 hours in advance CCT [Cargo Closing Time] before Unloading Completion

Resiliency Information Reception ×

Crane Assignment [Manual or System Crane System] Assignment Required Time Within 30 sec 1Vessel/4G No Container Port of Baku Dedicated Terminal Terminal Port of Baku No Container-Dedicated [1Gang/shift] Y Y Y Y Exist System Pooling Job ordering System & file & System Within 1 Minute By Inspection Co. By × (By Lashing Co.) × (By Lashing Co.) × (By Busan New Port Busan New 8.0 8.0 1.0 6.0 0.0 6.0 6.0 1.0 17.0 24.0 12.0 66.0 1Vessel/4G Busan New Port 2.0 2.0 6.0 1.5 0.0 3.0 1.5 1.5 4.25 0.25 0.25 16.5 [1Gang/shift] Inspection Tally Exist Status Tally [Yard Pooling Status] [Yard Customs in Real-Time Item ordering] Lashing Plan Inspection Check by Mobile PC Mobile Inspection Check by Y/T Assignment Method for Crane Information Sharing in Real-Time Mounted PC Installation in Y/T Vehicle Lashing Manpower Plan Container Loading/Unloading List Transfer to Container Loading/Unloading List Transfer Items Work Order for Planning [Manual or System] Order for Planning [Manual Work If Loading/Unloading work changed, required time If Loading/Unloading work Corn Man Lashing Forman Lashing Vessel Apron Deck Departure and Arrival Time Notification for Line Handling Departure and Arrival Time Lashing Yard Drivers Yard STS Operators STS Signal man Forman [Based on 4 cranes for a vessel] [Based on 4 cranes Forman STS Use STS Crane Work Method on Planning Work Order[Job Request or Job Method on Planning Work Work Crane Tally Tally Vessel Operation Vessel [Appendix Table 4] Manpower Comparison (Gang/Shift and Vessel) 4] Manpower [Appendix Table [Appendix Table 3] Ship Loading/Unloading Operations Ship Loading/Unloading 3] Table [Appendix 142 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 5] Yard Operation Plan

Item Busan New Port Port of Baku

Yard Assign Method [Grouping or Scattering] Scattering Y

Unloading Yard Assignment [Manual or System] System Developing System

Input Variable Value for Loading/Unloading Yard Assignment System Developing System [Manual or System]

Required Time for Loading/Unloading Yard Assignment Within 1 minute Y

Additional Assignment method, if yard is not enough [Manual or System] System Developing System

[Appendix Table 6] Gate-in/out Container Information Process

Item Busan New Port Port of Baku

Gate-in/out the online system [COPINO] System

Cross-check Gate-in/out and Yard Information [Manual or System] System

Gate-in/out Container Damage Information + Number Recognition System Automation [Camera system or Manual]

Required Car Passing time for Gate-in/out Within 1 min 143

Developing System CHAPTER If Error occurs, handling method for Gate-in/out [Manual or System] System

On Gate-in, Yard Assignment [Manual or System] : Link to Yard Planning System 02

Gate-in/out Information Transfer to Customs System [Manual or System] System Port Automation and Feasibility Analysis for the of Baku

On Gate-out, Delivery Order Transfer [Manual or System] System

Shipper and Trucker Information Sharing [Manual or System] System Y Y Y Y Y Y Y Y Y Y Y Y Y Baku Port of Y Y Y Y Y Y Y Y Y Y Y Y Y Busan New Port Description Lease/Selling Imported Container MOVE Lease/Selling Imported Container MOVE Management assignment Return RENT Container and PORT management and special container management Long-term stay Damaged Container management and Repair Request Management and Shipper Overdue Storage Settlement [Ship Agent] management LIFT ON/OFF Fee Daily Stock Change, etc. Disembarkation Report Confirmation Assignment to CFS Container Gate-in Declaration Gate-out Request Reception Gate-out Container Unloading at other ports and Gate-in/out Container Transshipped Gate-out Container Declaration Check Unloading Container Quantity SOC Input Management Unloading List Management Return-Confirmed Container Management Empty or Special Container Management Gate-out Empty Container Plan Gate-out Empty Container Gate-out Transfer After Checking Door Order, Information to a Management of assigned container Separate port Booking List Reception Gate-in After Checking Container records, Transfer Truck Information [through COPINO] Check CLL Reception and not-arriving Container Check Shipping List and Container Quantity management List Overdue Storage Loading List Reception from Shipping Co. Shipping Co. publishes Door Order Shipping Co. confirmation and port Vessel Gate-in/ records, Transfer After checking container out Information Shipping Co. due to Designate Port and Contact Lease Container Import

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Stage Loading List Reception Door Order Reception Gate-in an Exported Container Shipping and Billing Management Gate-in/out and Declaration Gate-out Container Billing Management Gate-in/out MOVE Management Inventory Record Management Billing Management Statistics Management Loading/Unloading Container Management Gate-in Empty Container Gate-out Empty Container Export Import Container Management [Appendix Table 7] On-Dock 7] Table [Appendix 144 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 8] The Online System Server

Function Description Baku

Creating/Mapping Message Creating/Mapping Message

Translate Message Translating Message - Translating the online system to FLAT - Translating Flat to the online system

Communication with FTP Server Communicate with FTP server N

Communication with E-mail Communicate with E-mail Server Server

Communication with the Online Communicate with the Online System Client System Client

[Appendix Table 9] The Online System Admin

Function Description Baku

User Set authority

Group Register user group and set authority

Terminal Register Terminal Data (Port Code, Terminal ID...) 145 CHAPTER Register Trading Partner Trading partner - Commination ID (OTP ID, DTP ID)

- File Name Rule 02 Port Automation and Feasibility Analysis for the of Baku 1) Inquire registered users and groups Message 2) Register message

Syntax Register message syntax

Convert Code Register convert code for each trading partner N

Error Code Register error code

Register directory for interchanging between translating process Directory and mapping process

Convert Code Refresh Refresh convert code

Register configuration for communication with FTP server and Communicator E-mail

Register auto mapping process, translator process, creating Interchange Agreement interval for each message trading partner

Monitoring Set configuration for main scheduler interval Y N Baku Baku Description Description The user can inquire on the handling volume by vessel. The user can inquire on the handling volume by The user can inquire about the productivity either by vessel or by The user can inquire about the productivity either Service Lane. the vessel The user can check about the yearly evolution of throughput. of increase of the vessel handling The user can check the rate volume for one year. between years. he or she can compare the ratio Additionally, The user will be able to compare the vessel handling volume between years. The user can inquire monthly basis vessel productivity. The user can inquire about the quantity of different PODs. move type during a by The user can inquire about QC operation given period. 1) The online system: Receive and Upload to Database system: Receive and Upload 1) The online Status Inquiry (Vessel/Voyage) 2) The online system: File Data Cancel (Vessel/Voyage) 3) The online system: File Plan Data Manual Input 4) (I/B) Bay Creation (Sending O/B BAPLIE) 5) The online system: Message and Upload to Database 1) The online system: Receive 2) Received Data Inquiry Data Cancel (Vessel/Voyage) 3) The online system: File 4) Moves Data Manual Input 1) The online system: Receive and Upload to Database 2) Received Data Inquiry 3) The online system: File Data Cancel (Vessel/Voyage) Search specific text in the message Function Function Throughput by Vessel Throughput by Vessel Productivity Vessel Throughput Evolution Throughput Accumulative Throughput Compare Productivity Monthly Vessel Port Summary By Operation Vessel Rotation Move Type By QC Operation Message Upload Message Monitoring Message Generate Message Search [Appendix Table 11] The Online System (Vessel) [Appendix Table [Appendix Table 10] The Online System Client The Online System 10] Table [Appendix 146 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 12] The Online System (Yard)

Function Description Baku

The user can check the handling time in minutes/hours for all Yard Handling Time the in/out transactions and remarshalling jobs during a selected period.

Handling Quantity By Working The user can analyze the yard jobs by comparing the handling Type quantity of each working type over a period.

The user will be able to inquire about the distribution of the Y Yard Handling Distribution workload within a day over a period. Also, he or she can check on the busiest times in a day.

The user can inquire about the Y/T turnaround time during a Y/T Turnaround Time given period.

The user can inquire about a yard block utilization ratio during Yard Utilization Ratio a given period.

[Appendix Table 13] The Online System (Gate)

Function Description Baku

The user can check on the distribution of gate movements within a day. 147 Truck Cycle Time Distribution Y

Also, he or she can learn how long the truck stayed in the CHAPTER terminal and the average cycle time.

The user can check on the distribution of gate movements 02 Truck Moves Distribution N within a day. Port Automation and Feasibility Analysis for the of Baku

The user can check on the monthly container quantities, which Gate Handling Quantity Y were handled by the gate and

The user can check on the yearly evolution of container Gate Handling Quantity Evolution Y quantities, which were handled by the gate.

The user can check on the quantity of containers, which were Handling Quantity by Truck Y handled by each truck.

The user can obtain the quantities of the containers and Handling Quantity by Truck trucks, which were handled by each of the registered Trucking N Company Companies.

The user can inquire about the average transaction time of Gate In/Out Average Time Y external trucks during a given period. Y Y Y Y Y Y Y Y Y Y Y Y Y N N N N N Baku Baku Description Description Select Vessel and Voyage for Inbound/Outbound Ship Planning for Inbound/Outbound and Voyage Select Vessel Register vessel particular Import vessel define information to DB Import vessel define information cargo Inquire about the distribution and list of dangerous Upload plan results to DB and APP server Upload plan results to DB and second Show delivery type, second service lane, T/S carrier, POD of Transshipment Cancel upload plan results Inquire with container number Import tank data from the program used by Shipping Co. used by program Import tank data from the Inquire in ship/yard view Export tank data to the program used by Shipping Co. used by Export tank data to the program of discharging container Change the wrong position Inquire user information using Ship Planning Change the position of loaded container Change the position of loaded Show irregular container data during opening data crane stoppage of quay Set the working time, productivity, Download Plan Data for the selected vessel and voyage Function Function Vessel & Voyage Vessel particular Vessel Import Vessel Define Import Vessel Ship IMDG Map Allocation Color Information of Transshipment Deallocation Search Container Import Tank Data Import Tank Inquiry Container Export Tank Data Export Tank Set Inbound Position Connected User List Set Loaded Container Position Irregular Data Time Set QC Working Refresh All Plan Data Refresh All Plan Data & Yard Define Data Refresh All Plan Data & Yard [Appendix Table 15] Ship Planning Inquiry [Appendix Table [Appendix Table 14] Ship Planning Data Input Ship Planning Data 14] Table [Appendix 148 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 16] Ship Planning View Option

Function Description Baku

View Ship Cell With Sequence View mode with planning sequence in ship cell

View Ship Cell with Weight View mode with container weight in ship cell

View Yard Cell with Sequence View mode with planning sequence in yard cell

View Yard Cell with Weight View mode with container weight in yard cell

View Cell with F/E Color View mode with container F/E in ship cell

Change Ship Bay Plan Info with the following options - TS Local - All - T/S Carrier - Second POD - Second Service Lane - TS indicator - Operator - POL Display Ship Cell - Custom/Terminal Hold - UN NO - Weight - Weight Group - SZTP 149

- SZTP2 CHAPTER - Not Arrival - With OB Container’s POD prefix 02 - With ROB POD Color N Port Automation and Feasibility Analysis for the of Baku

Change Yard Bay Plan Info with the following options - TS Indicator - Operator - POL - Custom/Terminal Hold - UNNO Display Yard Cell - Weight - Weight Group - SZTP - SZTP2 - POD - Not Arrival

Blink Ship Bay Plan Info with the following options - None - Reefer Containers - Restow Containers - BB&AK Cargo - Dangerous Cargo Blinking in General Plan - Irregular Reefer Usage - Irregular Container Size - 8-Foot Container - Hi-Cube Limitation - Not Arrival - Discharge/Loaded - Include ROB Container N N Baku Baku Description Description Planning mode with twin spreader Planning mode Hatch Plan By of Inbound Bay representations Show graphical Plan (Entire of Inbound Bay representations Show graphical Vessel) Bay Plan By of Inbound Bay representations Show graphical Hatch Plan By of Outbound Bay representations Show graphical Plan (Entire of Outbound Bay representations Show graphical Vessel) Bay Plan By of Outbound Bay representations Show graphical of Outbound Loading Containers representations Show graphical Block By of Outbound Loading Containers representations Show graphical POD and Block By filterShow list of outbound loading containers with user-defined and sort keys of Outbound Loading Containers representations Show graphical with multiple filtering option Inquire 1 Time Restow List Inquire 2 Time Restow List Position for 2 Time Restow Containers Assign Yard Container List Inquire about Transshipment Inquire/Reconcile yard container & Profile & Planned container plan/Inquire about specific loading container to specific Make position Planning mode with tandem spreader Planning mode with tandem in Ship direction of drag Planning mode with vertical in Ship direction of drag Planning mode with horizontal to yard direction for loading Planning mode with ship to ship direction for loading Planning mode with yard authority for multi-user planning Set up user’s Function Function Twin Plan Inbound Hatch Plan Plan Inbound General Plan Inbound Bay Outbound Hatch Plan Plan Outbound General Plan Outbound Bay Detail Plan View Outbound Yard Block View Outbound Yard Container List Outbound Yard Filter Block View Outbound Yard 1 Time Restow List 2 Time Restow List Position for 2 Time Set Yard Restow T/S Loading List Comparison Summary Yard/Ship Set Container List Tandem Plan Tandem Ship Vertical Ship Horizontal Loading from Ship to Yard to Ship Loading from Yard Lock Multi-User Plan [Appendix Table 18] Ship Plan View [Appendix Table [Appendix Table 17] Ship Planning Option 17] Table [Appendix 150 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 19] Ship Plan

Function Description Baku

General Arrangement Sequence crane working

Crane Working Inquire interference among cranes

Inbound Ship Planning Make bay sequence for inbound

Inbound QC Assign Assign GC manually by container

Exchange containers for inbound, through, and restow Inbound Exchange Containers containers

Inbound Move Container Move containers for inbound, through, and restow containers

1 Time Restow Plan Assign To-Position for 1 Time restow container

2 Time Restow Plan Make 2 Time Restow Plan

Outbound Ship Planning Make bay sequence for outbound

Outbound Loading Profile Make profile for outbound plan N Outbound QC Assign Assign GC manually by container

Outbound Ship Re-Planning Assign bay sequence newly without planning 151

Outbound Set Container Make Plan specific loading container to specific position CHAPTER

Loading without Profile Make outbound plan without profile 02

Exchange containers for outbound, through, and restow Port Automation and Feasibility Analysis for the of Baku Outbound Exchange Containers containers

Outbound Move Container Move containers for outbound, through, and restow containers

Dual Cycle Planning Set up dual planning with inbound plan and outbound plan

Delete All Crane Plan Delete whole crane plan

Delete Discharge Plan Delete discharge plan partially

Delete Load Plan Delete load plan partially N N Baku Baku Description Description Inquire about whole container volume and crane plan in vessel plan in and crane whole container volume Inquire about side view among cranes Inquire about interference plan automatic crane Make automatic discharge plan Make automatic load plan Make plan for crane Set up configuration plan, and twin for plan direction, grouping Set up configuration plan for tier limitation Set up configuration Set up factor for grouping plan for loading plan Set up configuration for equipment coverage Set up configuration Operator Inquire about Discharge Summary by Cargo Inquire about Discharge Summary by Bay Inquire about Discharge Summary by Size POD, by Stacking Container Summary Inquire about Yard and F/E Size POD, by Stacking Container Summary Inquire about Yard and F/E, Block Size POD, by Stacking Container Summary Inquire about Yard and F/E, Block/Bay summary by Remain (not planned) container Inquire about Yard Size and F/E POD, Remain (not planned) container summary by Inquire about Yard Size and F/E, Block POD, Remain (not planned) container summary by Inquire about Yard Size and F/E, Block/Bay POD, Size and F/E by POD, Inquire about Loading Profile Summary Size and F/E by POD, Inquire about Loading Profile Summary and Ship Bay Size by POD, Inquire about Loading Remained Profile Summary and F/E Size, by POD, Inquire about Loading Remained Profile Summary F/E and Ship Bay Inquire about Loaded Container Function Function Plan Overview & Hatch Working Crane Plan Crane Auto Discharge Plan Auto Load Plan Auto Plan for Crane Configuration Working for Configuration for Tier Limitation Configuration Plan for Grouping Configuration Plan for Loading Configuration for Equipment Configuration Coverage Discharging Summary (Operator) Discharging Summary (Cargo) Discharging Summary (Bay) Stack (POD) Yard Stack (Block) Yard Stack (Block/Bay) Yard Remain (POD) Yard Remain (Block) Yard Remain (Block/Bay) Yard Ship Profile (POD) Ship Profile (Ship Bay) Ship Remain (POD) Ship Remain (Ship Bay) Loaded Container [Appendix Table 21] Ship Plan Summary [Appendix Table [Appendix Table 20] Ship Auto Plan 20] Table [Appendix 152 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 21] Continued

Function Description Baku

Plan Status (Discharging) Inquire about Discharging Planning Status by Hatch

Plan Status (Loading) Inquire about Loading Planning Status by Hatch

Crane Working Time Inquire about Crane Working Estimated Start Time by Hatch

Inquire about Crane Working Procedure Summary with the Crane Working Procedure Number of Discharging/Loading Containers and Remarks for Special Containers

Inquire about the Accumulated Container Quantity by QC, Job Crane Working Summary Bay

Loading Sequence by Ship Bay/ Inquire about Loading Sequence Summary by Ship Bay and Yard Yard Block Block

Loading Summary by Ship/ Inquire about loading summary by ship/equipment Equipment

Inquire about the estimated YQ Confliction Container According Yard Confliction List to ETW of the quay crane with configuration interval (min) and distance (bay)

Yard Re-Handling List Inquire about yard re-handling container list by quay crane

Inquire about yard equipment job quantity by crane working Equipment Sequence sequence

Inquire about quantity and weight of discharging containers by Discharging Weight Summary 153

POD, OPR CHAPTER

Inquire about quantity and weight of loading containers by POD, Loading Weight Summary OPR 02

Loading Weight Group Summary Inquire about weight group of loading containers by POD, size N Port Automation and Feasibility Analysis for the of Baku Check Irregular Stowage after ship plan is done - Wrong Position in Vessel - Missing Position in Vessel - Duplicated in Vessel - Not Match Size Position - Wrong Position in Yard - Missing Position in Yard - Duplicated in Yard - Duplicated Container No. - Missing POD - Missing SzTp2 - POD not match Irregular Container List - Size not match - Missing delivery type or shift time - Stacking Weight - Reefer Receptacle - IMDGS segregation - Void Space - Over Slotted - Hatch Cover Clearance - Cell Guide Clearance - Incorrect Container No. - Restow Check for Hatch Cover Operation - Restow Check for Port Rotation - Hi-Cube Limitation in Hold

Inquire about inbound/outbound container summary by OPR, Recapitulation Size, F/E and class/classification N N Baku Baku Description Description Inquire about stability with cargo summary Inquire about summary draft Inquire about stability with Set tank volume for stability displacement summary Inquire about stability with stability summary Inquire about stability with longitudinal stress Inquire about stability with torsion moment Inquire about stability with of container VCG average Inquire about stability with Inquire about stability with sea water density simulation "Inquire about working stablity by sequence working Print crane hatch or deck/hold with the following options Plan by Print Bay - With discharge/load sequence QC - By - Include Through Bay - Selection for all discharging and load and load discharge - Selection by - Bold Line - Without Through clearance - With HCC - Print with Color - With BL Number - With T/S vessel or Print discharging / loading sequence for the entire selected bays hatch or deck/hold with the following Print Master Plan by options - With discharge/load sequence QC - By - Include Through Bay - Selection for all discharging and load discharge and load - Selection by - Bold Line - Without Through clearance - With HCC - Print with Color - With BL Number - With T/S Function Function Master Plan Cargo Summary Summary Draft Data Edit Tank Displacement Summary Stability Summary Longitudinal Stress Moment Torsion of containers VCG Average Density Sea Water Stability Simulate Working Plan Working Crane Plan Bay Sequence List [Appendix Table 23] Ship Planning Report [Appendix Table [Appendix Table 22] Ship Planning Stability 22] Table [Appendix 154 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 23] Continued

Function Description Baku

Print Inbound/Outbound/Outbound Profile Plan with the following options - General Stowage Plan - Special Cargo Plan - Special Container Plan General Plan - Delivery Type Plan - Gateway Type Plan - Handling Instruction Type Plan - Class Type Plan - Weight Plan N - Symbol option

- With Through Cargo Yard Loading Plan - Print With Color

- Cargo Summary - Tank Summary Stability Summary - Stability Summary - Longitudinal Stress Summary - Torsional Moment Summary

155 [Appendix Table 24] Yard Planning Yard View CHAPTER Function Description Baku

Provide Graphical Representations of each yard block with 02 Block Stacking View detailed information on the cells Port Automation and Feasibility Analysis for the of Baku Y Provide Graphical Representations of each yard bay with Bay/Row Stacking View detailed information on the cells

Define filter by - Mode - F/E - Size - Vessel - POD - Service Lane - Operator - Cargo Type - Delivery - Discharging VVD - Weight Group Color Filter N - FPOD

Define Color Legend by - Mode - Vessel - POD - Service Lane - Operator - Cargo Type - Tier - Quay Crane - Size Type N N Baku Baku Description Description Define Job Headers to describe Re-Marshaling Job Type (user Define Job Headers to describe Re-Marshaling Job definable) Create Remarshalling Work Orders by typing container numbers Orders by Create Remarshalling Work Orders or using container search tools and Allocate Requested keys using filter Find Containers for Remarshalling by Manage grouping patterns for in-coming containers patterns for in-coming Manage grouping for in-coming containers based various positioning rules Make on yard utilization and efficiency. containers vertically a mixture Rule - How to stack Make of Container Property and or horizontally with mixture Information rule to give different score to each tier Set Stacking Volume grouping patterns, positioning planning patterns based on Make blocks etc. scattering rules, booking Qty, mode planning pattern from registered specific Copy logic for in-coming containers, there should apply grounding To stacked. be boundaries where this container is going to be C3IT Server within this boundary Grounding can be done by the system supports two kinds of boundaries. Basically, Boundary - General Block level Create boundary planning by - Specific Boundary level Row-Bay Create boundary planning by lane and block for Set the priority of grounding between quay discharging containers or Block- Block-Bay-Row, Position (Block, Block-Bay, Assign Yard Containers for Inbound Bay-Row-Tier) Function Function Group Code Remarshalling Plan List Retrieve Container Boundary Plan View Grouping Pattern Positioning Rule Mixture Rule Rule Stack Volume Planning Pattern Manipulate Planning Pattern Block Priority for Grounding Import Assignment [Appendix Table 26] Remarshalling Plan [Appendix Table [Appendix Table 25] Yard Planning Yard 25] Table [Appendix 156 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 27] Yard Planning Inquiry

Function Description Baku

Inquire & Reset Boundary Plan Inquire about boundary plan and reset (delete) boundary plan

Inquire about Planning Pattern for mode, service lane, vessel Inquiry Planning Pattern schedule

Inquiry Boundary Plan History Inquire about boundary plan history

Inquiry Remarshalling Plan Inquire about remarshalling planned container N Inquiry Bay/Row Stacking List Inquire container stacked in specific Block/Bay (Row)

Inquiry Container List Inquire about container filtered by conditions

Inquiry Berthing Schedule Inquire about Berthing Schedule

Yard Capacity & Empty Slot User can inquire about Yard capacity and Empty slot statistics Statistics

[Appendix Table 28] Reefer Operation

Function Description Baku

Display Plug-In Job Automatically 157 Inquiry, Insert, Update, Delete Plug-In Data including Temp, Plug Plug In & Out CHAPTER Status, and Plug-In Time Display Plug-Out Job Automatically 02 Inquire Plug-In Container List in Reefer Area Port Automation and Feasibility Analysis for the of Baku Reefer Monitoring Input Reefer Monitoring Data Inquire Container Detail History N

Inquire/Modify temperature check time for each reefer Container Monitor container

Unplugged Reefer Retrieve only the unplugged reefer containers

Inquiry, Insert, Update, Delete Plug In & Out Info and Monitoring Reefer Update Info

[Appendix Table 29] Reefer Checker (Web Version)

Function Description Baku

Inquire order list by All, Plug-In, Plug-Out Plug In/Out Inquire and complete Plug-In order

Inquire Plugged-In Container with Digits Reefer Monitoring Input Reefer Monitoring Data N

Inventory Control Adjust container location

Password Change Reefer Checker can change his or her own password for log-on

Login Validation System will validate user account Y Y Y Baku Baku Baku Description Description Description Register the terminal code and detailed information of the Register the terminal code and detailed information terminal Inquire about the container type and size codes (Inquiry only) Inquire about the container type and size codes Set the scope of container weight group the minimum Set the maximum weight of the full container and type weight of the empty container of each container code of each The user can inquire about and input the stoppage terminal equipment Inquire and register the vessel service lane in and out by Register mapping FPOD and mapping FDEST service lane Inquire about port codes such as the UNLocode and other private code Register detailed vessel information Inquire about and register detailed information of partner and shipping companies including operators Register Alliance for Shipping Agency Hold code Set user authorization for Terminal The user can set/change the color for distinguishable POD The user can set/change the color for distinguishable Operator Gate Data and Actual Set the items to compare between COPARN OPR by Register IMDG code Register IMDG Hazardous Confirm Cargo Inquire Confirm Hazardous Inquire DG Container List Inquire DG Container List for Inventory Inquire/Input/Excel import for Hazardous Cargo DG Reconcile between Hazardous document & Inventory information Register Premium class Rules Define and Inquire Segregation Rules (2K) Define and Inquire Segregation Function Function Function Terminal Information Terminal Container Type Size Group Weight Limit Weight Stoppage Code Service Lane Rotation Next service lane Mapping Port Code Particular Vessel Partner Code Alliance Mapping for Terminal User Authorization Hold Voyage POD for Vessel Voyage for Vessel Operator OPR Compare Items by IMDG Code Hazardous Confirm Detail DG Container List DG Container List (Inventory) DG Cargo Mapping List Hazardous & Inventory Reconcile Premium Class Segregation Rules Segregation Rules(2K) [Appendix Table 32] Operation Management Code 32] Operation [Appendix Table [Appendix Table 31] Dangerous Goods Operation 31] Dangerous [Appendix Table [Appendix Table 30] Dangerous Goods Operation Code Goods Operation Dangerous 30] Table [Appendix 158 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 33] Operation Management Export

Function Description Baku

Input Booking Information for Export by Size and Type of Booking List Container

Inquire about COPRAR List (Loading list Data received by the Export COPRAR List online system) (Summary is provided)

Inquire about Loading Instructions Data that is received by the MOVINS List online system

Inquire Container Loading List (Total) N - Reserve Container (Reservation Tap) Loading List - Loading Cancel and/or Return Container (Loading List & Cancel Tap) - Summary is provided

COPRAR & Loading List Reconcile Reconcile data between COPRAR and loading list

Moves & Moves Reconcile Reconcile data between Moves (New) & Moves (Old)

Not Arrived Container List Inquire about Not-Arrived Export Full Container List

[Appendix Table 34] Operation Management Import 159

Function Description Baku CHAPTER

Stowage Bay Plan List Bay Plan Data that is received by the online system

- Container List that will be discharged at the port) 02 Port Automation and Feasibility Analysis for the of Baku Bay Plan Data that is received by the online system - Container List which won’t be discharged at the port) - Through Container Data will be Changed (Through Container & Through Container List Reservation Tap) - Through Container will be discharged at the our port (Change of Destination Tap)

Inquire Manifest List (BL Information received by the online system) Manifest List - Each BL Information is displayed - Each Container Information is displayed by BL N Inquire COPRAR List (Discharging list Data received by the Import COPRAR List online system)

Coprar & Baplie Reconcile Reconcile data between Stowage Baplie & COPRAR

Manifest & Baplie Reconcile Reconcile data between Baplie and Manifest

Baplie (A) & Baplie Reconcile Reconcile data between Baplie (old) and Baplie (New)

Not-Delivered Container List Inquire Not-Delivered Import Full Container List

Inquire Overlanded or Short landed Container List Over/Short landed Container - Overlanded: more discharged container list - Short landed: less discharged container list Y N Baku Baku

Description Description age [Import of Empty Container], age [Import of Empty Container], Storage -> Import (Rollback) Storage Import -> Stor Operate Terminal Hold information of Container Terminal Operate information of Container Customs Hold Operate Damage Re-check Container Operate Inspection Operate Un-Stuffing container Stuffing & Operate Re-stuffing (Cross stuffing) of container Operate such as DG Inquire/create special service request from operators or Boat Loading Sticker Bundle Container (Bundle & Un-Bundle Operation) Operate Break-Bulk Container Operate Inquire/Update Stoppage List Manage External Truck List Manage External Truck Driver List Inquire Vessel Calling Schedule List Calling Schedule Inquire Vessel Input taking Notes of Vessel Schedule Input taking Notes of Vessel Change Vessel Operate & Canceled] Change [TBA - Export Vessel Import (Rollback) Export -> - Import -> Export [Transshipment], Export -> Import (Rollback) - Import -> Export [Re-Export], - - Export -> Storage [Only Unverified] - Export -> Storage -> Export - Storage Change Vessel - Storage for Discharging Barge Vessel Operate for Loading Barge Vessel Operate Inquire/Update Lashing Assignment Inquire/Update Hatch cover movement Inquire/Update gear box movement job cancel movement Input Vessel Function Function Terminal Hold Set/Clear Hold Terminal Customs Hold Set/Clear List in Container Gate Storage Damage Re-Check Inspection List CFS Operation Re-Stuffing Special Service Request Bundle Cargo Break-Bulk Cargo Stoppage List Truck List Truck Driver List Vessel Calling Schedule List Vessel Vessel Change Vessel Taking Notes Of Vessel Schedule Notes Of Vessel Taking Barge Discharging Operation Barge Loading Operation Lashing men Assignment Hatch Cover Moves Gear box Moves job Cancel list Vessel [Appendix Table 36] Operation Document & Service 36] Operation [Appendix Table [Appendix Table 35] Vessel Operation Vessel 35] Table [Appendix 160 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 37] Operation Report

Function Description Baku

Inquire Vessel Operation Report Y

Inquire Vessel Working Summary Y

Inquire Vessel Working List Y

Inquire Loading Container List Report Y

Vessel Inquire Discharging Container List Report Y

Inquire Shifting Container List Report Y

Inquire Daily Operation Report Y

Inquire Hot Connection List Report N

Preview and Print Terminal Departure Report Y

Inquire Gate In/Out Container List Report Y

Gate Inquire Gate In/Out Average Time Check Y

Inquire Inter-Terminal In/Out Container List N

Inquire Yard Shift Container List Report Y 161 CHAPTER

Yard Inquire Y/T Turn Around Time Report Y

Inquire Y/T Working Time Report Y 02 Port Automation and Feasibility Analysis for the of Baku

Other Report Inquire Over Size Container List Y

[Appendix Table 38] Operation Inventory

Function Description Baku

Container Particular List Inquire about Container Particular Info Y

Container Warning Information Container Warning Information by container series Y

Container Inventory Inquire about Container Inventory Y

Bay/Row Stacking View Inquire about Block Detail Y

Print Yard Status Plan (Include Yard Detail View for a vessel/ Print Yard Status Plan N Block Bay) Y Y Y Y Y N N N Baku Baku Baku Description Description Description Create, Update, Delete, Inquire COPARN for Gate In and Out for Create, Update, Delete, Inquire COPARN (including Create Gate out Request for Empty positioning out Empty Pick up) Loading - Positioning Out, Vessel Inquire Pickup order list Define Pick-up Priority order pickup a by assigned is which schedule, vessel the Confirm a pickup Unassign the container, which is already assigned by order Manage Truck Visit Information Configure Timeslot Information Data change for each container and container list for each container and Data change Inquire DB Schedule Job for TOS Manual Operation Reserved Containers - Manual Stacking For Stacking Containers - Manual Delivery For Stacking Container Container To - Rollback From Delivered Reserved Container Container To - Rollback From Stacking information for Reference No wise Inquire Container detail Inquire Scheduler log scheduler job for DB Set parameter Inquire data Rehandle list Inquire Container Change History Inquire Container Change Inquire Updated History by Type (Specific item) by Inquire Updated History Function Function Function COPARN List COPARN pickup order General Pickup order list Pickup priority Confirm List Vessel Unlink reservation Visit List Terminal Timeslot Configuration Data Change Schedule Job Manual Operation Reference No. Inquiry by Schedule Log Setting Scheduler Configuration Data Rehandle List Audit trail by container no by trail Audit Update History By Type Update History By [Appendix Table 41] Delivery Reservation [Appendix Table [Appendix Table 40] Operation Admin 40] Operation [Appendix Table [Appendix Table 39] Operation Inquiry Data Inquiry Operation 39] Table [Appendix 162 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 42] Inter-Terminal Delivery

Function Description Baku

ITT Advise Manage ITT Advise Data From/To Other Terminal

ITT Request & Pre advice Reconcile Create ITT Request, Create Remarshalling Job Order for ITT In (In) N

ITT Request & Pre advice Reconcile Create ITT Request, Create Remarshalling Job Order for ITT Out (Out)

[Appendix Table 43] Billing Code

Function Description Baku

General Code Inquire and register the all the codes using the TOS program

Inquire about and register detailed information of partner Partner Code including operators and shipping companies

Holiday Set Holiday

Bill Code Set Bill code

Tariff Code Register Tariff Code by Bill Code 163 Invoice Template Set Invoice Template Y CHAPTER

Mapping Code Set Mapping Code for Tariff Codes 02 Pattern Code Input/Update Partner Code Port Automation and Feasibility Analysis for the of Baku

Free Storage Days Register Free Storage Days by a Contract

Free Storage Days List Inquire Free Storage Days

Free Pool Register Limit Volume of Free Pool (only Ven Pool) by a Contract

Applicable Operator By Job Mode Set Bill Operator by Job Mode

[Appendix Table 44] Billing Rate

Function Description Baku

Standard Rate Register standard rate

Discount Surcharge Rate Register surcharge or discount rate

Over Storage Rate Register over storage rate Y Over Storage Rate List Inquire over storage rate

Over Vanpool Rate Register over vanpool rate

Exchange Rate Register daily exchange rate Y N N N Baku Baku Baku Baku Description Description Description Description Inquire about invoice Inquire about audit trail for invoice Inquire about audit trail Inquire about Standard Rate History Register standard rate Register standard period or vessel schedule base on Issued credit/cash invoice by gathering data after issued invoice status Confirm payment Register surcharge or discount rate Register surcharge or discount rate Register over storage rate Inquire about storage Register over vanpool rate rate Register daily exchange Issued manual invoice after issued invoice status Confirm payment Inquire about vanpool summary data Container List based on gathering data Inquire about demurrage Inquire about reefer container list container list Inquire about un-invoiced storage for or Operator Vessel Report group by Inquire about Operation period Function Function Function Function Inquiry Invoice Inquiry Audit Trail Inquiry Audit Inquire Standard Rate History Standard Rate Invoice Summary Payment Discount Surcharge Rate Rate Over Storage Rate List Over Storage Rate Over Vanpool Exchange Rate Manual Invoice Confirm Payment Pool Summary Van List Container Over Storage Reefer Container List List Container Un-Invoiced Storage Report Daily Operation [Appendix Table 48] Billing Inquiry [Appendix Table [Appendix Table 47] Billing Report [Appendix Table [Appendix Table 46] Invoice [Appendix Table [Appendix Table 45] Billing Gathering 45] Table [Appendix 164 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 49] Billing Interface

Function Description Baku

COPA Interface Interface to SAP COPA (Operation Volume) N

[Appendix Table 50] Statistics Occupancy

Function Description Baku

The user can inquire about general peak times and reefer peak Peak Time List N times during the selected days.

Inquire about how many containers (or TEUs) have stayed in Stack Quantity the yard over a specific period and also check on the average Y quantity of containers that stayed for one day.

The user can check the total stack days of containers. Stack Days In addition, he or she can check on the distribution by stack N days.

The user is able to check on the daily evolution of stayed Daily Stack Evaluation containers so that he or she can estimate the future occupancy Y of the yard by referring to the trend line.

The user can check how many containers were moving out and coming into the terminal over a specific period. 165 Period Stack Evaluation N

Also, a comparison can be made for the quantity of stayed CHAPTER containers between two points of time.

The user will be able to check the average quantity of operated 02 Cycle AVG In Day Y containers per day. Port Automation and Feasibility Analysis for the of Baku

The user will be able to check the daily quantity of stacked Reefer Occupancy Daily MAX N reefer containers as a Max.

The user will be able to check the daily quantity of stacked Reefer Occupancy Daily AVG N reefer containers as averaged.

The user can check how long the containers were connected per Days of Connection N month. Y Y Y Y Y Y N N N Baku Baku (Must Have) Description Description The user can check on the stoppage hours of each piece of check on the stoppage The user can equipment. about the total stoppage hours of Moreover, the user can inquire basis. all the equipment on a monthly analyzing the problem equipment by He or she can also identify such as the total stoppage hours and the stoppage information, the reason of each stoppage. of the terminal, Registered companies can be partners or clients shipper, such as a shipping line, shipping agent, forwarder, customs, other governments, or third consignee, truck company, parties. use the system The system only allows registered companies to with. and be traded Inquire equipment productivity a group of users in the system. Group is An Authority can have its own access authority to Group Each of Authority system functions. Group. This is to create/modify/delete the name of Authority Authority" "Access Each access authority can be defined in the screen. Used to manage menu to be used by a particular authority Used to manage menu to be used by group. Used to manage control functions to each of menu assigned Used to manage control functions to each of menu which are Retrieve, Create, Save, Delete, and Preview. Used to register menu of screen. Used to register user to system. Used to manage and control buttons of screens to be used or not. Used to manage and control buttons of screens to Function Function Equipment Stoppage Register Company Equipment Productivity Group Authority Program Apply Program Access Authority Access Menu Register User Register Access Control Items Access [Appendix Table 52] User/Authority [Appendix Table [Appendix Table 51] Equipment 51] Table [Appendix 166 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 53] Codes

Function Description Baku

Brand/Model Code Used to register codes of Brand and Mode in RORO. Y

Used to register codes of delays that can be vessel delay, equipment delay, and any others. Delay Code (It is better to make the delays in the form of fixed entries N with dedicated codes to decrease the human error and use for generation of reports.)

Commodity Code Used to register codes of commodities by cargo type. Y

Capacity Code Used to register capacity codes of equipment. N

Used to manage all of codes to be used in system excluding the Code Master Y codes in Code/Config module.

Used to manage the code of dangerous goods which is UNNo and Dangerous Goods Code Y Class.

Used to manage UN location code which is United Nations Code UN Location Code Y for Trade and Transport Locations (UN/LOCODE).

Usedto manage the code of berth/wharf location including its Berth/Wharf Location Code Y position (meter). 167

Country Code Used to manage country code which is ISO 3166 alpha-2. Y CHAPTER

Used to manage PAD information to be used in deck for RORO PAD Information N

vessel. 02 Port Automation and Feasibility Analysis for the of Baku

[Appendix Table 54] Configuration

Function Description Baku

Used to define terminal information, which is port code, Terminal Definition Y terminal official name, and rough size of terminal.

Used to manage email templates that are used when the system sends an email with the template defined in advance to reduce time to compose it. Email Template N (PMIS lacks the proper notification procedure that can be done (Must Have) internally by the system or by generation of emails to be sent to respective parties.)

Usedto manage staff information, which includes employee number, name, job position, role of operation, regular or contract, etc. Staff Registration This data is utilized in a roster and staff deployment to vessel/ Y cargo operations. (PMIS lacks the details for the creation of a dispatch plan: worker info is absent.)

Used to manage group data of staff. Staff’s Group Config N It can add/remove staff to/from a group.

Used to manage work shift information. Terminal Shift Config Standard shift is basically used to all of operations like vessel, Y yard, and gate operations. Y Y Y Y N N N Baku Baku Description Description Used to manage equipment, which includes name, type, capacity, type, capacity, Used to manage equipment, which includes name, and so on. includes Used to manage truck and driver information, which and deletion. modification, new registration, a specific (PMIS cannot reserve vehicle announcements for enter the operational vessel before the vehicle will physically is PMIS area. Only after confirming the arrival of the vehicle, able to perform the "Plan load" function and then, confirm the load of the truck.) Used to manage items of the Service Order, which allows items of the Service Used to manage they can provide to to define what services terminal users clients besides cargo operations. bunkering, collection, fresh water supply, example, garbage For and so on. ship chandelling services, and handle within service (PMIS cannot create an extraordinary are the module. The only allowed additions the operational module of PMIS.) Service" within the Billing creation of "Extra includes Used to manage yard/warehouse information, which attributes, and so on. row), layout, and position, size (bay Used to manage configurations of business functions. Used to manage configurations Open and to control the Yard (PMIS lacks the functionality and of traffic for limiting the movement Close parameters Yard cargo.) the rule of berth segregation, which Used to manage and set to berth next to indicates what type of commodities are allowed each other. Used to manage the holding functions to which operations apply. Used to manage the holding functions to which operations of operations (The PMIS has the function to record the blockage not affect the inside the vessel visit events, but this function will modules. This means that we processes within the operations blocking status to will not receive a notification message or any the respective cargo candidates.) Function Function Equipment Info Truck/Driver Registration Service Order Setting List Yard/Warehouse BP Configuration Berth Segregation Rule Configuration Of Holding Of Holding Configuration Operation [Appendix Table 55] Registration [Appendix Table [Appendix Table 54] Continued 54] Table [Appendix 168 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 56] Billing

Function Description Baku

Used to manage invoice unit, which consists of UNIT1 (Weight), Invoice Unit Y UNIT2 (Time), and UNIT3 (Others).

Used to manage invoice templates, which includes a set of tariffs to be grouped by a particular purpose. Invoice Template This enables users to easily check which tariffs are not generated N by comparing it to the template. (The filtering options are currently limited within PMIS.)

Used to manage foreign exchange rates, which are used for Foreign Exchange Rate Y billing.

Currency Code Used to manage currency code in billing. Y

[Appendix Table 57] Cargo Booking

Function Description Baku

Shipping Note (S/N) is cargo information to be loaded to vessel for export cargo, which is similar to bill of lading in import cargo. The List of Shipping Note Y It is to register/update/delete S/N information. It has functions to modify S/N after approval and to input 169

payment manually. CHAPTER

Goods Receipt (G/R) is a unit of a truck carrying cargo.

It is used to transport export cargo to terminal by truck through 02

gates. Port Automation and Feasibility Analysis for the of Baku N The List of Goods Receipt Every driver presents a G/R slip to gate clerk to enter terminal. (Must have) It provides printing G/R slip. To issue G/R slip, pre-payment and customs permission should be done.

Delivery Order (D/O) is a kind of a certificate to grant to take the cargo out of terminal. It is used for import cargo and can be issued when pre-payment N Delivery Order for Import is done and customs permits its release. (Must have) D/O slip (print) is available. Truck drivers have to present a D/O slip at gate to pick up cargo.

Forwarders assign trucks and drivers to take cargo out by B/L. N Truck Assignment It is for break, dry and liquid bulk, not RORO. (Must have)

N Assigned Truck List It is the list of showing assigned trucks with its document. (Must have)

Sub B/L is cargo information to be discharged from vessel for import cargo. It should be defined cargo type, commodity, MT/M3/Qty, Shipping The List Of Sub B/L Agent, Forwarding Agent, Shipper, Consignee, Marks and Nos, Y and so on. It has functions to modify S/N after approval and to input payment manually.

The List of Master B/L Master B/L is a list of Sub B/L like a manifest. Y Y Y Y Y Y N N N N N Baku Description In case of RORO cargo, it has a concept of "Sub Delivery Order it has a concept of "Sub cargo, In case of RORO "Delivery Order (D/O)". (SDO)" under Time" and "Truck/Driver A SDO has "Estimated Arrival Assignment". D/O. pick-up time of cargo unlike This enables to manage different trucks and drivers to SDO are Printing SDO slip and assigning provided. truck driver to presented at gate by The issued SDO should be cargo. pick up RORO Forwarders register truck companies they trade with. truck companies they trade register Forwarders cargo out and assigning trucks to take It should be done before is enough. one-time registration It is to assign trucks and drivers to bring by to Shipping Note for It is to assign trucks and drivers to bring by export cargo. RORO It is to manage vessel’s particulars such as Vessel Name, Vessel Name, Vessel such as Vessel particulars It is to manage vessel’s and so on. DWT, GRT, NRT, Owner, LOA, Type, Call Sign, Vessel It is to manage vessel schedule such as Ship Call No., Purpose of It is to manage vessel schedule such as Ship Call Previous Port, Next Port, ~ ATD, ATA ~ ETD, ETA Call, Draught, and so on. It is used when reserving some space in warehouse/yard to stack It is used when reserving some space in warehouse/yard cargo in advance is required. be Shipping Both terminal users and external users who can a reservation for that. can make Agent and Forwarding Agent supervisor confirms the request. Warehouse Used to manage customs release information from customs Used to manage customs release information from manually. only are entitled to use it. users Terminal All cargo types are managed in this screen. data is also provided by transfer customs data Automatic interface. Used to make a request of shifting vessel berthing location. Used to make Both terminal and external users can request it. supervisor needs to check and approve it. Terminal Used to control cargo movement by putting a hold on particular Used to control cargo movement by inspection or payment some reason such as temporary cargo by matter or others. a hold on each of operations. It is possible to make (The PMIS has the function to record the blockage of operations inside the vessel visit events, but this function will not affect the modules. This means that we processes within the operations blocking status to will not receive a notification message or any the respective cargo candidates.) It is a localized business process of customs release. Only cargo of import and customs inspection inside terminal is available. Function Delivery Order for Vehicle Truck Company Association Truck Company Truck Assignment for RORO Truck Assignment for RORO Export Vessel Particular Vessel Vessel Schedule Vessel Space/Movement Request Customs Cargo Release Control Vessel Shifting Request Vessel Terminal Hold/Release Control Terminal Volante Customs Release (Manual) Volante [Appendix Table 57] Continued 57] Table [Appendix 170 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 57] Continued

Function Description Baku

SUNAT is customs organization and its users are able to put a hold on particular cargo for their inspection purpose. (The PMIS has the function to record the blockage of operations Terminal Hold by SUNAT inside the vessel visit events, but this function will not affect the N processes within the operations modules. This means that we will not receive a notification message or any blocking status to the respective cargo candidates.)

It is a localized business process of customs release. RD 3014 Only cargo of export and customs inspection inside terminal is N available.

The List of Holds It is the list of all terminal holds. N

[Appendix Table 58] Cargo Booking NON-VESSEL

Function Description Baku

Shipping Note for Non-Vessel is used for export cargo, which The List of Shipping Note for Non- should be located inside of the terminal when the vessel to load Y Vessel is not arranged yet. It is the same as normal Shipping Note, except no vessel.

Goods Receipt (G/R) for Non-Vessel is for the case that the vessel The List of Goods Receipt for Non- 171 is not arranged yet. N

Vessel CHAPTER It is the same as normal Goods Receipt, except no vessel.

Truck Assignment of GC for Non- It is to assign trucks and drivers to Sub B/L for general cargo, Y Vessel import and Non-Vessel. 02 Port Automation and Feasibility Analysis for the of Baku It is to assign trucks and drivers to Sub B/L for RORO cargo, import and Non-Vessel. (Currently, PMIS can create truck announcements, and save Truck Assignment of RORO for them. Next, when the truck physically arrives to the entrance N Non-Vessel gate, the gate officer will check the announcement within (Must Have) the system and the information within the accompanying transportation document CMR. If everything is aligned, then gate officer validates. PMIS does not have electronic validation.)

[Appendix Table 59] Planning Roaster Set-up

Function Description Baku

Used to make a roster of terminal users for vessel operations. It is assigned by shift and group of staff with graphical user interface. Roster for Vessel Operation (PMIS can create shifts and assign group (gang) names; breaks N and specific equipment. However, the system is not able to assign specific individuals and form groups in this way. There is no graphical interface for setting a shift schedule.)

Used to make a roster of terminal users for warehouse operations. It is assigned by shift and individual with graphical user interface. Roster for Warehouse Operation N (PMIS can create shifts and assign group (gang) names; breaks and specific equipment. However, the system is not able to assign specific individuals and form groups in this way. There is no graphical interface for setting a shift schedule.) Y Y Y Y Y N N N Baku Baku Baku Description Description Description It is a warehouse/yard plan. users select cargo to locate and designate the position Terminal of warehouse/yard to be stacked. user interface. It provides graphical It is the list and summary info of warehouse/yard plan. It is a terminal resource plan, which is manpower and resource plan, which It is a terminal for all cargo operations. be dispatched and used equipment to which stands for Mechanical Equipment It is also called "MEGA" and Gear Acquisition." vessel and shift. It is planned by two steps in MOST. Resource plan consists of Equipment (MEGA)" which is a step to First, is "Manpower and is going to be dispatched and which plan of what equipment is staff and external contractor manpower between internal dispatched. to plan of who which is last step Second, is "Staff Deployment" be dispatched and assigned which internal staff is going to equipment. "idle" by plan for equipment (controlled (PMIS has deployment plan but does not have a deployment statuses) and "occupied" for manpower.) cargo operations Used to assign internal staff to be dispatched in vessel and by based on the plan of "Manpower and Equipment" shift. "idle" plan for equipment (controlled by (PMIS has deployment plan but does not have a deployment statuses) and "occupied" for manpower.) cargo with It is to plan yard position to be located for RORO user interface. graphical It is the same as “Manpower and Equipmen”, however, this It is the same as “Manpower and Equipmen”, however, specialize in warehouse/yard "idle" plan for equipment (controlled by (PMIS has deployment plan but does not have a deployment statuses) and "occupied" for manpower.) It is the list of yard plan for RORO. It is to plan yard position to be located for RORO cargo of Non- It is to plan yard position to be located for RORO Vessel. Function Function Function Space/Movement Plan Space/Movement Summary Manpower And Equipment Staff Deployment Plan of RORO Yard Manpower And Equipment For Manpower And Equipment For Yard Plan of RORO The List of Yard Yard Plan of RORO of Non-Vessel Plan of RORO Yard [Appendix Table 62] Yard Planning 62] Yard [Appendix Table [Appendix Table 61] Planning Deployment [Appendix Table [Appendix Table 60] Planning Resource Booking Planning Resource 60] Table [Appendix 172 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 63] Planning Non-Manifested

Function Description Baku

Non-Manifested cargo is a kind of excessive or additional one than the document (B/L). Actually, it is not declared to customs yet. It has to be registered in system when it is found and then to register B/L and get customs clearance. This is for general cargo. Non-Manifested Cargo for GC N (PMIS is able to display the difference between the declared weight and quantity of cargo and the actual values. The Billing will consider the actual ones; however, there is no notification message to inform about the identified difference. PMIS only has Cargo Discrepancy Report in MUTOS and the difference can also be observed within the generated documents.)

It is for RORO cargo and is the same concept as "Non-Manifested Non-Manifested Cargo for RORO N Cargo for GC."

[Appendix Table 64] Planning

Function Description Baku

It is the list of vessel schedule that gets approved by terminal. It is to register ATA to ATD. Y It has "Confirmation Slip (1)" and "Confirmation Slip (2)", which (No 173

Vessel Schedule - Internal CHAPTER means the current vessel schedule is final. Confirmation And slip (1) is for break and dry (solid) bulk, slip (2) is for liquid Sip) bulk. 02

Berth approval is a kind of permission from operational Port Automation and Feasibility Analysis for the of Baku Berth Approval department of vessel berthing after approval of vessel schedule Y from marine department.

Used to make a berth plan with graphical user interface. Berth Plan Application Y It can register ATA to ATD.

It is the list of vessel schedule and its detail vessel information Y by mouse double clicking. (No Vessel Schedule - External "Confirmation Slip (1)" and "Confirmation Slip (2)" are available Confirmation to Shipping Agent. Sip)

Ship in Port It is the list of vessels which are currently berthing at terminal. Y

Shifting Approval Used to approve the request of shifting vessel’s berthing location. Y Y Y Y Y N Baku Description Used to operate all cargo operations except Gate In/Out, which is except Gate In/Out, all cargo operations Used to operate application. Weighbridge done by Handling Out for import cargo, They are Discharging and for export cargo. Handling in and Loading how much cargo and cargo operations It shows the progress of is operated. For billing purposes, the port needs to know which cargo (B/ billing purposes, For sometimes, there happens to be L) is actually closed because, as marked data, which is already an adjustment of operational “Finally Finished" in system. as Finally it has not been marked Also, we have cases where but actually it is already done. mistake, Finished by it check if all cargo finish and makes So, this screen enables to B/L wise. close by consists of two cargo operations. Rehandling Operation Re- for the cargo of Transshipment, One is Loading operation Export and Non-Vessel. The other is Handling-Out for "Return to Shipper." they have to be already registered rehandling operations, For for General as rehandling cargo in system using "Rehandling Cargo" screen. Handling-Out or Loading either using operations do can we Also, screen. in "Rehandling Operation" in the "Cargo Manual Controller" screen. are Normal operations For the cargo of Transshipment, Re-Export, Non-Vessel, and Re-Export, Non-Vessel, the cargo of Transshipment, For cargo to Return to Shipper, it has to register them as rehandling the system for their own purposes. Re-Export and Non-Vessel, the cargo of Transshipment, For the already we need new vessel data to be loaded instead of new vessels assigned one. So, in this screen, we need to register for them. the cargo of Return to Shipper, we need a certificate like For it and pass Deliver Order (similar to Pick up Order) to take to Shipper) and through gate. It is a G/R (Goods Receipt of Return enabled them to print it out after the registration. cargo and This is the screen to register them as rehandling define necessary information for the operations. It is the cargo operations for Non-Vessel cargo. for Non-Vessel It is the cargo operations It contains Handling-In and Handling-Out. application at gate. Gate In/Out is carried out in Weighbridge Loading is carried out in Rehandling Operation. Function Cargo Manual Controller Master BL Cargo Closing Control Master BL Cargo Closing Rehandle Operation Rehandling for General Cargo Rehandling for General Cargo Manual Controller Non- Vessel [Appendix Table 65] Break/Dry Bulk Cargo Operation Bulk Cargo Break/Dry 65] Table [Appendix 174 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 66] RORO Cargo Operation

Function Description Baku

For RORO cargo, it has two steps of discharging cargo from vessel to the yard. One is the "Discharging Check", which is from vessel to ramp and Apron Checker records the time and who drives at ramp and guides the location to park cargo with a yard plan ahead. Confirm Discharging Y The second is the "Yard Check", which is from ramp to yard, and the Yard Checker confirms and records the time at yard and a location actually parked at. VIN No correction and Non-Manifested cargo registration also are provided.

Usedto confirm and record the time of taking cargo out of a yard to deliver to consignee. Two types of delivery mode are provided. This is the Driver and Confirm Handling-Out Y Truck mode. Truck No and its driver’s ID are recorded together with UNIT No (VIN No).

Used to record the result of cargo survey of what kind of damage The List of Damage Check of RORO and inventory (accessories) it has, by UNIT No (VIN No). N The place to carry out the survey is Vessel and Yard.

It has two steps of Loading process in RORO cargo. 175 The first is the "Yard Check", which Yard Checker confirms and records the time of cargo leaving to vessel and internal driver’s CHAPTER Confirm Loading of RORO Y ID (Stevedore ID). The second is the "Loading Check", in which Apron Checker 02 confirms and records the time of the cargo loaded to vessel. Port Automation and Feasibility Analysis for the of Baku

Used to confirm and record the time of the cargo arrival and its Confirm Handling-In of RORO Y location at yard with Truck No. and Driver ID for export cargo.

In a case when it needs to return the export cargo back to shipper for some reason, Rehandling Operation for we register it to the "Return to Shipper" through the "Rehandling Y Handling-Out for RORO" screen. Then, using this screen, we do Handling-Out operation to deliver it to shipper.

Used to register cargo to be transshipped or re-exported or loaded non-vessel cargo prior to the actual operations. Rehandling for RORO Y After that, we can do the respective operations in the "Rehandling Operation" screen.

For the cargo of Transshipment, Re-Export, Non-Vessel, this Loading screen is used with two steps, which is first, the "Yard Rehandling Operation for Loading N Check" and second, the "Loading Check"—the same concept as the "Confirm Loading of RORO" screen.

Used to confirm and record the time of cargo arrival and its Non-Vessel Operation of Handling- location at yard with Truck No. and Driver ID for Non-Vessel Y In cargo.

For the Non-Vessel cargo of "Return to Shipper", it is used to Non-Vessel Operation of Handling- confirm and record the time of taking cargo out of a yard to Y Out deliver to consignee. Y Y Y Y N N N N Baku Description Used to record any delays of cargo operations with delay time, delay with operations of cargo delays any Used to record cargo number. reason, and as visit events inside the vessel delay (PMIS can only register a as a free text, and remark as a free in the form of a date, reason or billing modules.) of the operational text. It does not affect any Used to record actually dispatched and worked manpower and and worked Used to record actually dispatched equipment information. work location, etc. are equipment ID, Start/End time, staff ID, recorded. not but information shift and usage equipment record can (PMIS manpower information.) for liquid and Discharging operation It is to confirm Loading bulk cargo. is treated. Only the pipeline operation general by tank lorry are done the truck-like by The operations "Cargo Manual Controller" screen. in the cargo operation is provided as well. information registration Delay Setting. Operation It is short for Vessel close of a Used to record the time of each hatch lid open and vessel. of cargo They are used for the commitment and completion operations. goes for Actual The registered time of hatch open in this screen (ATW). Time of Work Time of Complete (ATC). The time of hatch close goes for Actual Used to record Vessel Shifting and Cargo Shifting information. Used to record Vessel Shifting requires previous berth location, current berth Vessel and reason of shifting. new ATB, location, ATU, hatch, (S2) Cargo Shifting has three (3) shifting types: (S1) same different hatch, and (S3) hatch to wharf. Used to display cargo data currently located in a yard/ cargo Used to display warehouse. or In case it needs to change the cargo amount (MT/M3/Qty) screen providescargo condition (normal/damaged/shut-out), this functions to be able to modify MT/M3/Qty or cargo condition to "Damaged Cargo" or "Normal Cargo". Used to record when an accident happens in the terminal with a damage report. The items of the Service Order defined in "Service Order Setting" module are listed up in this screen. in the Configuration etc.) can Agent Forwarding External users (Shipping Agent, request one of services. Once the service is provided, terminal users record its result and close it. Also, the service fee provided will be charged through the billing are done. process after all of the operations services as an "extra (PMIS can charge for extraordinary cases cannot be handled service". However, extraordinary modules.) within the operational Function Vessel Delay Vessel Resources Operation Liquid Bulk Operation OP Setting Vessel Vessel/Cargo Shifting Vessel/Cargo Yard/Warehouse Reconciliation Yard/Warehouse Accident and Damage Report List Accident Service Order List [Appendix Table 67] Operation 67] Table [Appendix 176 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 68] Break/Dry Bulk Cargo Operation Monitoring

Function Description Baku

VOR is short for Vessel Operating Report. VOR for Dry/Break Bulk It is used to show summarized data of cargo operations of a Y vessel.

It is the list of export cargo showing the transactions and status of Loading operation of Shipping Note (S/N) leveled. Export Manifest N It shows documented amount vs actual operational amount by S/N under a vessel.

It is the list of export cargo showing the transactions and status of Loading operation of Goods Receipt (G/R) leveled. Loading A G/R is a unit of a truck carrying cargo, which belongs to S/N. Y It shows the documented amount vs actual operational amount by G/R under a vessel.

It is the list of import cargo showing the transactions and status of Discharging operation of B/L leveled. Discharging Y It shows documented amount vs actual operational amount by B/L under a vessel.

It is the list of import/export cargo showing the transactions and status of Handling-In/Out operations of B/L and G/R leveled. Handling In/Out Y It shows documented amount vs actual operational amount by B/L and G/R under a vessel.

It is the list of import/export cargo showing the transactions of 177

Movement in Warehouse Movement operation in yard or warehouse. Y CHAPTER Movement means it is between yard to yard or in the same yard.

It is the list of import/export cargo showing the transactions of 02 Gate-In operation of B/L and G/R leveled. Gate In Y Port Automation and Feasibility Analysis for the of Baku It shows documented amount vs actual operational amount by B/L and G/R under a vessel.

It is the list of import/export cargo showing the transactions of Gate-Out operation of B/L and G/R leveled. Gate Out Y It shows the documented amount vs. actual operational amount by B/L and G/R under a vessel.

It is the list showing whether a cargo operation is working on or finally closed by B/L and S/N. Unclosed Operation N It helps to get to know the cargo that is still being working on at a glance.

It shows a layout of each of yard/warehouse with placed cargo Yard/Warehouse View Y information by graphical view.

It shows the history data of the movement transactions occurred Yard/Warehouse History in yard/warehouse. Y It helps to trace when and from where and to cargo is moved.

It shows all of cargo transactions under a vessel, which are Discharging, Handling-Out, Handling-In, Loading, Gate-In, Gate- Out, movement, operation time, amount (MT/M3/Qty), Truck No, General Cargo Job Monitoring and so on. Y By providing search conditions, it helps to easily monitor all of the cargo operations. This is for general cargo and standard operation.

This is for general cargo, rehandling, and Non-Vessel operation General Cargo Job Monitoring Of only. N Rehandling It is the same function as the "General Cargo Job Monitoring". Y Y Y Y Y Y Y Y Y Y Y N N N Baku Baku Baku Description Description Description Used to register tariff codes used for billing. function to define tariff It provides a basic configurable conditions. Used to register standard tariff rates against tariff codes defined Used to register standard tariff Codes. in Tariff rate to be applied than others. This is a more basic tariff This is for RORO cargo and inbound operation only. operation cargo and inbound This is for RORO Monitoring". Cargo Job "General It is the same function as a terminal with yard/warehouse by of the It shows a layout view. graphic is a kind of special rate, which tariff Used to register partner’s rate. to offer to particular partners besides the standard rate rate that is applied instead of the The tariffs have a partner tariff standard rate. It is the list of showing corrected UNIT No from and to. It is the list of showing corrected only. operation cargo and outbound This is for RORO Monitoring". Cargo Job "General It is the same function as hatch and how much cargo is It shows the cargo progress by user interface: discharged or loaded at three positions graphical on board, yard, and gate. This is for RORO cargo and Rehandling operation only. operation cargo and Rehandling This is for RORO Monitoring". Cargo Job "General It is the same function as placed that It enables one to find the current location of cargo one seeks. This is for RORO cargo and Non-Vessel operation only. operation cargo and Non-Vessel This is for RORO Monitoring". Cargo Job "General It is the same function as screen. to by It shows what and which data is changed from and and the user who(The PMIS can register the date of modification provide has performed the modification, but the PMIS cannot modified.) detailed information on which exact field has been hatch. It shows what equipment was dispatched by Function Function Function Tariff Codes Tariff Standard Tariff Rates Standard Tariff RORO Cargo In Yard RORO RORO Cargo Job Monitoring of Import View Terminal Rates Partner Tariff The List Of Unit No. Correction RORO Cargo Job Monitoring of Export Cargo Flow Cargo Job Monitoring of RORO RORO Cargo Job Monitoring of Rehandling Cargo Search Cargo Job Monitoring of RORO RORO Cargo Job Monitoring of Non-Vessel Trail Audit Equipment Flow [Appendix Table 71] Billing Tariff [Appendix Table [Appendix Table 70] Common Operation Monitoring 70] Common Operation [Appendix Table [Appendix Table 69] RORO Cargo Operation Monitoring Operation RORO Cargo 69] Table [Appendix 178 Feasibility Study on Automation of Business Processes in the Port of Baku [Appendix Table 72] Billing Data Gathering

Function Description Baku

Used to gather all of operational data which are used to calculate billing charges as defined in tariffs. It displays tariff code, finally applied rate, and computed final Data Gathering Y amount with gathered operational data to easily verify. Once the calculated billing amount is confirmed by users, the issuing invoice is the next step at the Invoice screen.

[Appendix Table 73] Billing Invoice

Function Description Baku

Prior to starting cargo operations, assigning payers are each asked about tariffs to prevent any unpaid charges from an unassigned payer. All tariffs by cargo type are listed up and needed to assign Invoice Advice List Y payers, which are confirmed by the Shipping Agent. For a pro forma invoice, it is automatically generated for the specified tariffs to pick up cargo. It is also provided to print out a pro forma invoice.

Used to create Credit Note and Additional Invoice automatically compared to the amount of Pro Forma Invoice. A Credit Note is generated when the MT of Pro Forma Invoice is Pro forma Invoice N greater than Actual Operation. 179 An Additional Invoice is generated when the MT of Pro Forma CHAPTER Invoice is less than Actual Operation.

It enables one to create new invoices and lists invoices that are 02

already created. Port Automation and Feasibility Analysis for the of Baku To generate a new invoice, all tariffs should first be verified by users at the previous step, Data Gathering. It used to select tariffs in the detailed list as users wish to create N Invoice List an invoice. (PMIS can create vouchers that consolidate respective operational data. The vouchers are planned to be imported into 1C software currently used by POB’s financial department. Integration is needed.)

It is to approve Credit Note as follows. - Approval to cancel Credit Note. Credit Note Approval N - Approval to discounted Credit Note. - Approval to delete discounted Credit Note.

[Appendix Table 74] Billing

Function Description Baku

It enables the user to create invoices as users define the tariff Special Service Request rate, payer, MT, and other options regardless of the currently Y defined tariffs.

It is the next step after Data Gathering, which is needed to review if each tariff is generated and set correctly as a final step before invoice issuing. Proof Sheet It provides the ability to change the payer, cost center, and Y invoice type (as a final check) and confirm or Verify. It also provides a Filtering option to filter tariffs that users define in advance and would like to see.

CHAPTER Keywords System (TOS), Operation Terminal Port Automation, Automated Terminal, Terminal, Korean Assistance (ODA) Development Official 1. Introduction and Background 1. Introduction status of partner countries 2. Current System Operating Terminal 3. Experiences Based on Korea’s 4. Conclusion and Suggestions

Port of Baku Lee Kang, Jeong-Hwan Choi, Young-Kwon Kyung-Won Baku Port Authority) Advisor, (Policy Aliyev Tural Establishing an Automation Strategy for the Strategy Establishing an Automation 03 180 Feasibility Study on Automation of Business Processes in the Port of Baku Establishing an Automation Strategy for the Port of Baku

Kyung-Won Kang, Jeong-Hwan Choi, Young-Kwon Lee Tural Aliyev (Policy Advisor, Baku Port Authority)

Summary

On top of the analysis in Chapter 2, which is mainly about the needs and feasibility of modernizing the operations of the Port of Baku, this Chapter elaborates on the ways to increase efficiency and build the automated terminal operation based on our experience during the system implantation in Korea. This chapter suggests specific strategies and 181 their expected effects and recommends advanced equipment, operating systems, and CHAPTER information systems for the state-of-the-art operation of the Port of Baku. Alat New Port, 03

which started being developed in 2011 and opened at the end of 2019, has implemented Establishing an Automation Strategy for the Port of Baku its Port Management Information System (PMIS). It covers cargo information, loading and discharging, yard stacking information, gate in/out information, and so on. Due to the port’s little experience in port operations and information technology (IT), including a terminal operation system (TOS), we consider it necessary to improve or modify the functions of the automated design and TOS to achieve its goal of 90% automation. To evolve the Port of Baku toward its goal of becoming an automated terminal, it is essential to establish a well- organized information system with related parties and to invest in the facilities, equipment, and SW required for automation. Based on the site inspection of the Port of Baku, this chapter also suggests a specific plan using the following steps: (1) upgrade the TOS functions of the Port of Baku, (2) build the information sharing platform together with related parties, and (3) achieve the goal of automating the Baku Port by focusing on improving the facilities, equipment, and systems.

Our analysis of the functions of the Port of Baku’s current TOS (PMIS) indicated that the total volume of the cargo amounted to 21.91 million TEU in 2019 and 1,158 million TEU in transshipment. Carrying out the gradual strategy for the efficient improvement of the Port of Baku’s TOS is a necessity. In comparison to the TOS of the Busan Port, which is ranked as the world’s sixth-largest container port and the world’s second-largest transshipment port, From the experience of building an automated system at the Busan Port, we studied the of building an automated system From the experience Among the three major areas to be improved in the Port of Baku, the first requires for the automation of the Port of strategy The following provides a three-step promotion we have determined a desirable future process and function and prioritized the criteria for criteria the prioritized and function and process future desirable a determined have we enhancing the efficiency has succeeded in The Busan Port at each stage. implementation a smart to conversion its in TOS automated an implemented it after operations port its of port. Going one step forward, the Busan Port is considering various changes in an effort to terminal. become a fully automated Korean by (PCS) System Community Port the and TOS the of functions and features main companies and uncovered the differences between theBusan TOS, Port’s the Portof Baku’s Considering standard multi-purpose terminal. in Korea’s standard TOS and a general, TOS, of to automate the Port strategies factors, we have developed three key all the mentioned we have presented a three-step strategy Baku Consequently, in a faster and more stable way. automation. to promote the Port of Baku’s is computerized to secure the data needed for the key that the data for all cargo handling Second, cargo information should operations. decision-making processes during terminal or planning as such port, the at jobs follow-up not, If arrive. ships be received before discharging, are delayed Terminal accordingly. and equipment laborers should obtain the the ship arrives, which will help to process the information on the cargo or ship before following required jobs with no Third, delay. information on the cargo weight should be wagons and trucks by for cargo transported automatically collected through a weighbridge, in the cargo delay ID) to prevent number (Wagon in the port, and combined with the cargo handling. Baku—implementing the basic modules and functions of the automation system first and adding advanced ones later. The first stage of the strategy is network integration. A flexible are shared cargo handling process can be made available when cargo and ship information functions basic with TOS A integration. network through organizations related between time cargo handling is also proposed in this phase. This includes reducing the overall through the preliminary acquisition of information on ship and rail schedules, automatic links to cargo measurement of cargo weight through the weighbridge, and automatic the second stage, information, computerizing detailed cargo handling information, etc. In network- a stage, first the in Specifically, functions. TOS’s the enhance to how suggest we the in and system, operating basic a provide to established is environment integrated enhancing the functions second stage, a method is proposed to maximize productivity by data for Through this enhancement stage, it will be possible to prepare basic of the TOS. 182 Feasibility Study on Automation of Business Processes in the Port of Baku analysis by expanding the detailed functions of railway and container cargo, strengthening monitoring functions for cargo handling information, analyzing cargo information data, and implementing business intelligence (BI). The last stage, Stage 3, achieves 90% automation. This stage proposes introducing automation equipment and rebuilding the business processes accordingly. Through this, it is expected that the cargo management function in the free zone will be strengthened through the introduction and application of a Warehouse Management System (WMS); moreover, vehicle traffic management and terminal traffic control and management will be possible through the introduction and application of the Transportation Management System (TMS).

Based on the approaches above, we estimate an investment volume for the automation of the Port of Baku. It was expected that $1.8 million will be required for the goals of all three stages, which is comprised of $622,000 for the first stage, $578,000 for the second stage, and $600,000 for the third stage. The project period is expected to be 26 months with 11 months in the first stage, eight months in the second stage, and seven months in the third stage.

This study also introduces organizations that can help finance the construction of 183 automated terminals, such as the Korea International Cooperation Agency (KOICA) and the CHAPTER Economic Development Cooperation Fund (EDCF). 03 Establishing an Automation Strategy for the Port of Baku

1. Introduction

1.1. Background

1.1.1. The Background and Context of the Policy Advisory

With the Port of Baku’s objective in mind, Azerbaijan implemented PMIS to manage the information needed for handling cargo information, loading/discharging, gate in/out, and more. Of further importance, PMIS is currently in use. According to the Port of Baku Authority’s internal analysis, however, automation is only at about 50%, which is far short of the desired level of 90%. Thus, to support the Port of Baku’s efforts to reach its goal, we offer phase-by-phase strategies based on the Korean experience of port operation, work analysis, system design, and implementation to identify expected results. We do this primarily through conducing a comparative analysis of the Port of Baku with Korea’s ports, and do so specifically in relation to allocated equipment and the functionality of both the operating and information systems. 1.2. Outline of the Research 1.2. Outline of we First, manner. following the in structured is and parts three This research consists of 1.1.2. Demand Research, Research Scope and Method, and Direction of Research of Research and Direction and Method, Scope Research Research, 1.1.2. Demand for the Port of Baku’s plans phased-implementation aim is to present Our immediate present our study on the current status of the information systems of countries surrounding information the current status of the present our study on functions features and TOS introduce Second, we Baku. of Port the near the Caspian Sea and in Korean sites and explain improvements made after installation. Third, we offer a specific plan for system implementation. and practical automation automation based on our analysis of the following: (1) equipment, (2) operation process, Because 2. Chapter in identified priorities the (4) and process, exchange information (3) a gradual suggest we prioritized, be should infrastructure information terminal building the information system has hardware automation process—after improvement of the period and professional insights on the project we share Additionally, already been built. with a globally well-known on our experience in system deployment the cost estimate based terminal operators. of many vendor, alongside the expertise TOS Korean 184 Feasibility Study on Automation of Business Processes in the Port of Baku 2. Current status of partner countries

2.1. Status and Features of Caspian Countries’ Port Systems

Status of TOS of Major Caspian Sea Ports

Ports of Caspian countries TOS Key Features

- Port Community System (PCS) - Terminal Operating System for Ro-Ro (TOS Ro-Ro) - Terminal Operating System for Multiuser Terminal Port of Baku PMIS (MUTOS) - Billing Module (BLL) - Port operations control room (POCC)

- Real-time management of cargo flow - Container handling equipment - Stowage planning - Container allocation in the yard Port of Aktau South Terminal Solvo - Crane automation - Gate operations - Empty depot management - Automated process optimization

- Vessel Call Management 185

- Agent & customer services CHAPTER - Pilot & tug operations - Managing commercial activities - CFS Operations 03

Port of Turkmenbashi Vtek Establishing an Automation Strategy for the Port of Baku - 3D Dock and Yard planning Customs Operations Gate in / out operations Warehouse operations Cargo/Container/RORO Handling Operations

Port of Astrakhan N/A N/A

Port of Anzali N/A N/A

Source: Written by local experts’ report.

Most of the Caspian ports (except Russia and Iran) have a terminal operating system. The Port of Aktau South Terminal uses TOS by Solve for terminal operations and managing invoices. However, the Port of Aktau’s system may need to optimize its management. We found that the Port of Turkmenbashi’s TOS does not offer enough functionality for the expert handling of cargo. We also identified that Azerbaijan Rail Authority and Kazakhstan customs are currently working on system integration to exchange cargo information, and that they are both planning a gradual expansion. 2.2. Identified Issues and the Improvement of the Port System of the Port System and the Improvement Issues 2.2. Identified that logistical hub is the key Baku, Azerbaijan, the Port of its geography, Regarding transportation. cargo its regarding information insufficient is obstacle first port’s The on cargo arriving for transshipment is waiting time: information The second hindrance documentation and paperwork. At is problematic The third identified encumbrance urgent issue to In summation: establishing an improved information system is the most connects Eastern European countries and China. However, most of the Caspian countries countries Caspian the of most However, China. and countries European Eastern connects particular, and information. In systems for managing both logistics have yet to build efficient identified have We flow. its logistical streamline of Baku Port that importance extreme is of it (below). fluid operation the port’s three causes hindering Consigners have trouble tracking cargo location and, furthermore, we quickly found often fact, cargo is In China. Europe to Eastern flow from in its distribution bottlenecks problems arise Notably, port. at a border or at a transshipment stalled en route, either be shared or delivered; furthermore, this cargo location updates cannot because accurate creates inefficient and such restrictions and ETD information. Naturally, is true for ETA inadequate cargo transportation management. To resolve these issues, we recommend each party involved—including consignors— building an information system that empowers information. to obtain access to real-time cargo transportation its own border. This causes waiting time in the can only be obtained as it passes through in advance; this is the cargo for transport port because it could not prepare transshipment location, at the border, transshipment delays both unnecessary and vital to fix. Furthermore, entire logistics process. Thus, we recommend either or customs ultimately influences the a new one altogether. existing information system, or implementing improving the Port’s customs obtain to period waiting unnecessary an is there location, transshipment each non-standard documentation process stymies a smooth documents. Furthermore, the Port’s As such, we highly recommend a standardized documentation process, as logistical flow. well as a simplified workflow. is a platform that empowers all relevant System Operating Terminal address. The Korean it is a limitations because parties to access real-time information without geographical these problematic areas will be resolved, TOS, adopting the Korean web-based system. By one to two hours, thus resulting in increased especially reducing cargo waiting time by productivity, 186 Feasibility Study on Automation of Business Processes in the Port of Baku 3. Experiences Based on Korea’s Terminal Operating System

3.1. A Case Study of Korea’s Terminal Operating System

3.1.1. Introduction to Korea’s Terminal Operating System

The Korean Terminal Operating System (TOS) is designed for a multi-purpose terminal; it maximizes the terminal’s productivity capacity for handling various types of cargo, including break-bulk, liquid, and so on. This system, which was developed by a Korean solution provider and is widely used in many terminals worldwide.

Among the benefits of using a comprehensive and integrated web-based TOS is that it is capable of handling all types of cargo, except for high volume of containers. Furthermore, a web-based TOS allows all users (e.g., within a terminal, shipping company, shipping agent, service agent, or government agency) to access real-time-information regarding terminal operation. 187 CHAPTER

The Korean TOS is comprised of three main parts: planning, operation, and management, 03 and each organically interacts with the other. For instance, without planned data in the Establishing an Automation Strategy for the Port of Baku planning part, data input cannot be possible in the operation part, without operation data, billing data cannot be produced. Thus, Korea’s TOS is expertly designed to follow the Plan- Do-See concept, which will help build an efficient and optimized terminal operation at the Port of Baku.

Multi-purpose Operating System for Terminals (MOST) is the name of a Korean industry bellwether’s solution. [Figure 3–1] (below) is a detailed diagram of the Korean TOS structure. Billing Other Partners Follow-Ups Customs Office Report / Statistics /Forwarders Shipping Agents Port Users Inland Transporters Port Authority Finance etc.) (ERP, Legancy Systems EDI Ro-Ro Operation Operation Warehouse Customization Execution Ship Operation Gate Operation Gate Operation MOBILE Real-Time INTERNET MOST Planning Planning Resource Warehouse Planning Configuration Berth Planning Re-handle *S/N(shipping Note) Standard User Register User Autority Weighbridge W/H Reconcile Manifest Report / Statistics Warehouse Plan Warehouse EQ Request Ordering Manpower & Goods Receipt Shipping Note Rail/Ro-Ro/Contaniner Documents - B/L, S/N* Manpower & Equipment Plan Manpower & Equipment HHT Codes Biliing Berth Plan Confiquration Berth / Bitt Loading / Discharging Equipment Warehouse Gate In / Out Handiling In / Out Resource Written by Researchers. by Written Written by Researchers. by Written Staff / Partner Definition [Figure 3-2] Diagram of Korean TOS function TOS of Korean [Figure 3-2] Diagram Planning Operation Management Source: Source: Source: Source: Function TOS of Korean 3-2] Diagram [Figure [Figure 3-1] Korean TOS System Structure TOS Korean 3-1] [Figure 188 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 3-3] Workflow of Korean TOS Function

Cargo Type Most Cargo Type Most Process

General Cargo Break Bulk - Steel, Coils, pipes, girders Break Bulk Cargo - Project Cargo: OOG(out of gauge), heavy lift Process - Break Bulk: utilized bags(palletized/sling)

Bulk Cargo Dry Bulk Cargo Dry Bulk - Grains, soya meal, wheat ... - Edible Process - Cement, coal ... - Non-Edible

Liquid Bulk Cargo Liquid Bulk Cargo Liquid Bulk - Edible - Edible Oil ... Process - Petrochemical ... - Non-Edible

Ro-Ro Cargo Ro-Ro Cargo Ro-Ro Process - Vehicle, Accessary

189

Source: Written by Researchers. CHAPTER

Key functions are listed below. 03 Establishing an Automation Strategy for the Port of Baku

Cross-Browser: compatible with Internet Explorer, Google, Chrome, Mozilla, Firefox, Apple, Safari, and Opera.

[Figure 3-4] Korean TOS Key Function—Cross-Browser

Source: Written by Researchers. Written by researchers by Written Written by Researchers. by Written Graphic User Interface (GUI): The graphic-based interface helps users to have an intuitive intuitive an have to users helps interface graphic-based The (GUI): Interface User Graphic Multi-Languages grasp of the terminal workflow, which reduces both working time and mistakes. of the terminal workflow, grasp Source: Source: [Figure 3-6] Korean TOS Key Function—GUI Key TOS 3-6] Korean [Figure Source: Source: [Figure 3-5] Korean TOS Key Function—Multi-language Key TOS Korean 3-5] [Figure 190 Feasibility Study on Automation of Business Processes in the Port of Baku Resource planning: a discharger can request required labor through the system, which means the terminal can draft an efficient resource plan.

[Figure 3-7] Korean TOS Key Function—Resource Plan

191

Source: Written by researchers CHAPTER

Warehouse/Yard plan: the relevant employee (such as a consignor or someone on the 03 Establishing an Automation Strategy for the Port of Baku shipping line) requests use of a warehouse or a yard for storage. A storekeeper allocates locations to store the cargo. Located cargo information is shown in the actual warehouse workflow.

[Figure 3-8] Korean TOS Key Function—Warehouse/Yard plan

Source: Written by Researchers. Written by Researchers. by Written Written by Researchers. by Written Vessel Monitoring Vessel Holds Placed by Customs/Agent: Customs/Agent: by Holds Placed the system, which to cargo is linked will authorize on whether customs Information enables the terminal to hold unauthorized cargo during loading/discharging the job. during loading/discharging unauthorized cargo terminal to hold enables the Source: Source: [Figure 3-10] Korean TOS Key Function—Vessel Monitoring Function—Vessel Key TOS 3-10] Korean [Figure Source: Source: [Figure 3-9] Korean TOS Key Function—Holds Placed by Customs/Agent Function—Holds Placed by Key TOS 3-9] Korean [Figure 192 Feasibility Study on Automation of Business Processes in the Port of Baku Terminal Monitoring:

This function monitors cargo stocked in the yard, and enables easy location tracking with a filtering option.

[Figure 3-11] Korean TOS Key Function—Terminal Monitoring

193

Source: Written by Researchers. CHAPTER

Audit Trail: tracking all records of data revision 03 Establishing an Automation Strategy for the Port of Baku

Billing advice: before cargo transportation begins, carriers can appoint who will pay the terminal service charge per taxable item. The payer can then accept it. This process ensures that there will be no dispute or confusion about who is liable for the payment. Thus, all delays regarding payments will be avoided.

[Figure 3-12] Korean TOS Key Function—Billing advice

Source: Written by Researchers. Written by Researchers. by Written Written by researchers by Written Collecting output data: With its one-click functionality, collecting and correcting output output and correcting collecting its one-click functionality, output data: With Collecting data are available per the pre-determined tariff. Thus, in comparison to advance data and billing is possible. more accurate actual data, Source: Source: [Figure 3-14] Korean TOS Key Function—HHT Key TOS 3-14] Korean [Figure Source: Source: [Figure 3-13] Korean TOS Key Function—Collecting output data Key TOS 3-13] Korean [Figure 194 Feasibility Study on Automation of Business Processes in the Port of Baku Weighbridge: weight is automatically registered in the system by interfacing with weighbridge and TOS, and it also works with other functions.

[Figure 3-15] Korean TOS Key Function—Weighbridge

195 CHAPTER 03 Establishing an Automation Strategy for the Port of Baku

Source: Written by Researchers.

3.1.2. Introduction of the Korean Port Community System (PCS)

The Port Logistics Unifying System (PLUS), one of Korea’s PCSs, is a comprehensive, integrated, and web-based port management information system that provides internal and external port users with real-time online access to a full range of port services. Complete with a structured framework and an efficient workflow, PLUS supports users to capture, process, notify, and share information appropriately to manage a vessel’s journey through port in an efficient and timely manner. Additionally, PLUS is a hub that links every person in the port community and supports them in exchanging port information via a single- window web application. PLUS also provides an accelerated, standardized, and collaborative workflow. One-stop service is another advantage of PLUS, thus helping users to manage a vast amount of information. Finally, PLUS guarantees effective and timely services for the port community and does so with a unified information network. Standardized system through re-engineering business process. Standardized system through re-engineering business between PCS and the legacy system via different communication Telecommunication protocols and a standard interface. among all relevant parties. Creating a community of users to share information System (BPMS) by the Business Process Management Expedited workflow facilitated Written by Researchers. by Written Accelerated Process Accelerated Moreover, introducing PCS would bring the following benefits to each of partiesas below the government would build an information network that fully connects all sea, First, would obtain all the information in real-time Operators Then, the Marine Terminal Key features of PCS are shown below. Key Standardized System Collaboration System Collaboration Interoperability System Interoperability (see also Figure 3-17). a into one logistics system. This network would also implement air, and inland operations knowledge-based decisions accurate systematic policy through statistical analysis and make information. leveraging by which electronically, will minimize the time required to make preliminary arrangements. port. in time waiting vessel’s a reducing by time turnaround the will shorten This, in turn, Operators can also expect an increase in terminal productivity by using the pre-notification feature. Source: Source: of PCS features 3-2> Key

Finally, for inland transportation companies, which have a relatively low investment in system implementation and maintenance, they will accelerate workflow and broaden the range of value-added services.

PLUS is comprised of three (3) sub systems: VCSPLUS, MSSPLUS, and CMSPLUS.

VCSPLUS is an extensive, single-window electronic port clearance system in regular operation today, and it has been designed to control vessel clearance tasks for both shipping and government agencies. Each related party (e.g., shipping agency, immigration, customs, quarantine, and others) has access to VCS via the Internet, and access is based on granted access and authorization. Each party precedes the vessel clearance by submitting all relevant documents through a single-window. Furthermore, each party can access the approval 197 status at a glance. CHAPTER

[Figure 3-17] VCS System Specification 03 Establishing an Automation Strategy for the Port of Baku

• Processes • Rules Workflow Application ISPS Code Control Approval Permission Criteria Reject / Suspension

• Vessel Particular • Vessel Schedule Vessel Create Vessel Particular Inquire / Modify Information Create Vessel Schedule

• Country Code • Port Authority Code • Port Code • Radio / Navigation Equipment List • Type of Vessels / Voyage / Service • IMDG Code Class Code • Purpose of Call • Ship’s Store List • Rank List

• User • Manu Manager • Authority Menu Register Administrator Authority Code Program Manager Authority Group Access Authority

• Document • Form Document / Form Retrieve Document Government Dept Submit Basic Document Private Company Submit Other Document

Source: Written by Researchers. Bunkernig Service Request Bunkernig Certificate Bunkernig Access Pollution Control / Vessel Ops Inspection for Bunkernig Tariff Invoice Log Book for Harbor Tug Oil Record for Tug for Oil Tug Requisition Form Report • Billing • Tugs • Bunkering General Code General Register Equipment Pilot Log Book Ship Master Report Ship Movemont Shipping Lines Goverment Officials Dock Master Log Book Spacing of Vessels Daily Shipping Movements Damage Report for Bollard & Berth • Code • Order Management • Pilotage • Mooring • Fresh Water Record • Fresh Water Services • Request for Vessel services • Record for extra • View Confirmation form Revenue to start operation • Light House • Pollution Control Service • Radio / Radar • Maintenance (Light Shop, Buoys) Code Service Other Service Miscellaneous Marine Service Order & Billing Written by Researchers. by Written CMSPLUS trends in logistics and supply chain have been accelerated, streamlined, and and streamlined, CMSPLUS trends in logistics and supply chain have been accelerated, The Marine Service System (MSSPLUS) is a web-based harbor master application application harbor master is a web-based (MSSPLUS) Service System The Marine simplified. Thus, CMSPLUS has led the for way organizing global interests into special value- to a free trade adding zones in port areas (and in the wider hinterland); each region refers web-based zone expected to bring strong economic benefits. CMSPLUS is an integrated, services. manifest multiple, the of operations the eases that application management process that To end, it is designed to allow for electronic control of all application and confirmation and import/export manifest balancing. processes: import, export, transshipment, supporting all relevant parties to accomplish optimal marine services. The MSSPLUS is is services. The MSSPLUS optimal marine to accomplish all relevant parties supporting it services; bunkering and mooring tugs, pilotage, handling Controller Marine of comprised and Pilot Duty Master, Report Master, Code & Administration also includes the Management as berthing/un-berthing, private support all marine logistics such these Roster. Together, main of the MSSPLUS’s and more. Some shifting, escort, towage, lay-up, boat hiring, vessel below. features are shown Source: Source: [Figure 3-18] MSS System Specification [Figure 198 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 3-19] CMS System Specification

• Balancing • Monitoring • Job Assignment Process Auto Balancing Late Submission Assignment Management Manual Balancing Balance Monitoring Completion CUSDEC Review Double Declaration Controlled Cargo

• Auto Approval • Controlled Cargo Configuration • Submission Deadline • Download Schedule

• Shipping & Forwarding Agent(Manifest & Cargo Declaration) • Customs(Manifest, Cargo Declation & Customs License Info.) EDI & B2B • Statistics(Cargo Movement Statistics)

• Document • Reporting Manifest Submission Individual Document Reports Document / Report Cargo Declaration Summary & Statistics Reports Application for Cargo Movement Document Approval

199 Source: Written by Researchers. CHAPTER

3.2. Comprehensive assessments of Korea’s Terminal Operating 03 Establishing an Automation Strategy for the Port of Baku System

3.2.1. Case studies on Korea’s Terminal Operating System

APM Terminals Callao (APMTC) is Peru’s largest Multi-purpose terminal and the gateway to Peru; Callao is also the fourth largest economy in South America. Located just 15 kilometers from the capital city, Lima, Callao’s container volume grew by almost 50% between 2015 and 2017. Furthermore, Callao currently handles around 39.8% of the country’s total container traffic and 74% of Peru’s non-containerized (general) cargo (excluding minerals), including steel products, grains, RoRo cargo, cement, chemicals, and frozen fish.

As a multi-purpose terminal, Callao handles both containerized cargo and general cargo including metals, grains, fertilizers and chemicals, coal, vegetable and fish oils, and machinery. The terminal is also equipped to host cruise ships, RoRo cargo, break bulk, and project cargo.

APMTC was using a TOS called COMMTRAC V4. In assessing the functional fit, APMTC scored 38%; in contrast, MOST (a TOS from Total Soft Bank in Busan, Korea) scored 80%.

2020.

September

21

accessed

“APMT Launches Digital Latin America Platform,” portechnology.org, 18 July 2019, Latin America Platform,” portechnology.org, Launches Digital “APMT https://www.porttechnology.org/news/apmt-launches-digital-latin-america-platform/?utm_source=GatorMail&utm_ medium=email&utm_campaign=WP+-+Newsletter+18-07-2019&utm_term=%5bPTI+Daily%5d+APMT%27s+Digital+Latin+Am erica+Platform+-+HIT+Chooses+XVELA+Berth+Innovation+-+ShipChain+and+GTX+Unveil+Huge+Blockchain+Solution&utm_ content=40054&gator_td=6QbyPmIUcVsdqpKU4ax9SYGsetmkT%2fS8OFFGzWV8NmR%2bO86YZASiHoVf4fIPpfz3o7Eyppx2Uy x2ULbTl60SamtA8eSu7wSczuQQxDF7DQ4kKRJ8tj4ShJfWSFAqfk9WpmQNS0Gc87E7m4re8i8FDA%3d%3d&cn-reloaded=1  Title: APMT Launches Digital Latin America Platform Title: APMT Launches payments online make information, real-time view and cargo register to used be can MOST 67% by cut were operations and transactions complete to needed time the phase, pilot the During total country’s the of 40% for handles is and terminal Multi-purpose largest Peru’s is Callao APMT Cargo platform provides General the MOST this investment in With volumes growing rapidly, for monitoring operative interface provides a clear graphical In a statement, APMT said: “MOST “It provides the status of the cargo in terms of quantities, weights, detailed location and dispatch. 3.2.2. Case Study—Korea’s PCS (Busan Port Authority) 3.2.2. Case Study—Korea’s port biggest port, the second busiest transshipment The Port of Busan is South Korea’s and generate authorizations for the loading and unloading of all types of General Cargo from any Cargo from any unloading of all types of General authorizations for the loading and and generate time. location and at any and 12% respectively. cargo. non-containerized general than 70% of Peru’s and more container traffic customers with greater speed, versatility, accessibility, safety and efficiency for their foreigntrade operations. vessels. movements in the port, warehouses and onboard vessel berthing and departure times.” Furthermore, its vessel schedule shows real-time in the world, and the sixth largest container port worldwide. In 2017, over 20 million TEU 20 million TEU in the world, and the sixth largest container port worldwide. In 2017, over volume) was achieved. Since its opening, the Port of Busan the total handling terms of (in has continued to develop and now consists of five fully-equipped ports: North Port, South for Port provides facilities North The New Port. and Port, Dadaepo Port, Port, Gamcheon help, handles a higher cargo volume. The passengers and cargo and, with Gamcheon Port’s South Port is home to the Busan Cooperative Fish Market, which is Korea’s largest fishing https://safety4sea.com/perus-first-digital-customer-platform-launched-at-port-of-callao/, Source: They also expected to see an improvement in client service quality from the supporting zone time same the in is Colombia in center service Bank’s Soft Total management. system These are the a week. 7 days hours a day, support Callao 24 means it can as Peru, which successful MOST’s relays article news following The adopted. has MOST that factors key implementation. 200 Feasibility Study on Automation of Business Processes in the Port of Baku base, and the Dadaepo Port is located in the western part of Busan Port, mainly handling coastal catches. Finally, the New Port opened in 2006 and is dedicated to containerized cargo, with 23 wharves and aiming to operate up to 45 wharves by 2030, which would approach a capability of 30 million TEU.

In 2013, the Busan Port Authority newly introduced the customer-oriented port community system, called BPA-NET. This system ensured that the port would have a competitive edge and would improve the port’s logistical workflow. The following diagram shows the implemented system’s specifications.

[Figure 3-20] BPA-NET Diagram

Integrated One-Stop Information Service

Related Web Port Logistics Supporting Service Related Parties

SP-IDC POSS Ultra Logistics Operation Logisties Uni Port Service Service Port-MIS GICOMS Carrier 201 Information • Port-MIS • Vessels Schedule CHAPTER u-SCM CROSS • Vessels Clearance • Transshipment support Crew • Port Administration • Real-time monitoring shipping • Intellifence • Shipping support

GCTS Tug/polite 03 Information Information • Coastal / Rail connection Establishing an Automation Strategy for the Port of Baku Agent Intefrated Service Utomost Value Ubi Infra Shipper Transport Service Service Managing/ Trucker Operation • Busan Port e-Marketplace • Wireless portal • Hinterland Supports • Integrated DB Hinterland • Green Monitoring • Security Port Related Operation • Port tour information Terminal Organization Operter

Det. Of Port ICD/Rail Marine Admins Affaire tration rd Articles 3 Parties Port Maritime • One Stop • Pre- • Echo-friend • The best Authority Police Information Service information Port Infra Information Cruise Busan • On-line • Seamless • Value-added • Mobile Customs working information Acticities Convergence rd City 3 Parties

Source: Written by Researchers. Real time Notification Service Service Real time Import / Export Road Traffic Information Transportation Transship Terminal / Terminal Connection OGA System Support System Support System Marine Service Customs Network Conneciton Cargo Service Vessel Service Clearance Clearance Infra Wireless Written by Researchers. by Written Written by Researchers. by Written BPA-NET provides key functions for seamless communication among stakeholders. communication functions for seamless key provides BPA-NET Vessel Total Information Support Total Vessel / Management Cargo Transport Port Management Business Support System Control Port Total ASP Service Schedule Service Vessel System Contaniner Tradding Source: Source: [Figure 3-22] Workflow of BPA-NET of 3-22] Workflow [Figure Source: Source: [Figure 3-21] Service Diagram of BPA-NET Service Diagram 3-21] [Figure 202 Feasibility Study on Automation of Business Processes in the Port of Baku All relevant people will save valuable time because of BPA-NET.

Business Performance of BPA-NET

Stakeholders System Data Before After Result Performance

Vessel Clearance, Support Port Port Cargo Clearance, Reduce data BI, KPI, EIS 5 hrs. 20 min. Operation Authority Pilot/Tug Service, inquiring time Strategy KPI Vessel Schedule, Vessel Schedule, Reduce the Reduce Dwell Truck Monitoring, Truck Traffic, 2 hrs. 20 min. phone call Time Increase Company Transportation, Pick-Up Cargo handling time Efficiency Support Sysrem Port Traffic, Increase Monitoring, Reduce Dwell Vessel Position, loading / Terminal Transportation, 1 hr. 30 min. Time Increase Vessel Schedule, unloading Support Sysrem Efficiency Truck Traffic efficiency Vessel Schedule, Reduce Dwell Forwarder Vessel Schedule, Easy container Cargo Position, 2 hrs. 30 min. Time Increase (Consignee) Monitoring track and trace Truck Traffic Efficiency Provide Reduce Dwell Vessel Schedule, customized Time Increase VCS, MSS 3 hrs. 30 min. Pilot/Tug Service one-stop Efficiency service Saving Cost 203

Shipping Vessel Schedule, Reduce Dwell CHAPTER Transshipment Fast space- Line / Agent T/S Cargo Position 3 hrs. 30 min. Time Increase Support System sharing Yard Space Efficiency 03 Monitoring of Vessel Reduce Dwell Establishing an Automation Strategy for the Port of Baku Mobile System Clearance/Schedule, 1 hr. 5 min. Smart service Time Increase Statistics Efficiency

Source: Written by Researchers. Conclusion and Suggestions and Suggestions Conclusion 4.1. Summary Operating Terminal Korea’s of functions and features key the analyzed we study, this In To automate the Port of Baku both efficiently and we safely, identified key differences computerized data used in the decision-making First, the Port of Baku must secure fully cargo all receive and handling cargo in delays all prevent must port the Second cargo weights in the system. This will reduce Third, the port must automatically register using the computerizing cargo processing by Regarding the first issue, we suggest for the Port of Baku is shown below. System The structure of the To-Be

System, which is designed for multi-purpose terminals, and the Port Community System. We We System. and the Port Community multi-purpose terminals, which is designed for System, as well of Busan in South Korea, on our expertise in automating the Port based our analysis such as Kaohsiung, Abu Dhabi. as ports in other countries, Furthermore, System. Operating Terminal information system and Korea’s between Baku’s we pinpointed three essential steps that Baku can take to standardize both its workflow and do regard terminals. We for multi-purpose TOS implementing the Korean functionality by three crucial steps for improvement. the following recommendations as the processes pertaining to terminal operations. Port the enable will This rails. or vessels of arrival the to prior ETA with along information and equipment) beforehand. all required resources (e.g., labor of Baku to arrange by manual work. inefficiency caused any the For TOS. Korean Service of the Operating Service and Advanced Basic Operating will enable the Port of Baku to link information second issue, the Port Community Service we issue, final the regarding And advance. in countries Sea Caspian and cargo rail to and Service Operating Advanced the between interface the via computerization recommend the advance to contribute greatly will solutions three these that expect We Weighbridge. reliable port’s and efficient management in many importantways, such as gate automation, warehouse management, and truck traffic. this Consequently, will support the port’s decision-making process in attaining the ideal workflow for the whole cargo operation. 4. 204 Feasibility Study on Automation of Business Processes in the Port of Baku [Figure 3-23] Structure of To-Be System for the Port of Baku

205 CHAPTER

Source: Written by Researchers. 03 Establishing an Automation Strategy for the Port of Baku The four-in-one service provided by Korea’s Terminal Operating System is complementary interfaced and integrated. Currently, the Port of Baku is running the PMIS system and, according to the outcome of our function level study (see Chapter 2), it merely supports Basic Operating Service. Thus, we recommend that the Port of Baku implement a more advanced system that entails Advanced Operating Service, Port Community Service, and Automation Service.

As a practical implementation strategy for automation, we suggest that the Port of Baku employ basic modules and functions first. Once they are stabilized, then the Port of Baku can adopt additional modules per the three-stage implementation strategy and the roadmap. TMS WMS Level Extra Step 3 Ordinary Terminal Terminal Automation Automation & Business • Equipment Automation process Level Matured Terminal DW, BI DW, MOST Enhancement MOST 2nd Stage(Advance) 3rd Stage(Maturity) Railway Module(Advance) Railway Container Module(Advance) Step 2 Terminal Operating Terminal expansion Function • TOS & Improvement • Maximize productivity Operating Function Improvement Function Operating MOST As-Is MOST Report, Statistics Cargo Information Monitoring, Billing) 1st Stage(Primary) Truck Weighbridge (Document, Operation, Railway Weighbridge Railway Vessel/Railway Schedule Vessel/Railway Railway Module(Basic) Railway Customs Cargo Release Container Weighbridge Container Module(Basic) TOS Step 1 Port Network Improvement Phase (MOST) Network Intergration platform a network • Establish stakeholers between any delay elements • Efficiency by removing Written by Researchers. by Written Written by Researchers. by Written Statistics Terminal Operation Integration Management Source: Source: [Figure 3-25] The Three-stage Roadmap for Automating the Port of Baku 3-25] The Three-stage [Figure Source: Source: [Figure 3-24] The Three-stage Implementation Strategy for Automating the Port of Baku for Automating Strategy Implementation The Three-stage 3-24] [Figure 206 Feasibility Study on Automation of Business Processes in the Port of Baku Stage one of the strategy is network integration. In this step, we propose that the Port of Baku prepare for a smooth handling process for cargo through integrating the network facilitating information-sharing. Simultaneously, the Port of Baku is required to adopt the TOS system with its basic essential functions. As a result, the Port of Baku can expect to eliminate all waste in the cargo handling process by receiving cargo information in advance. Additionally, it will increase its operational efficiency by means of digitization and automating and utilizing data for terminal operations. Specific functions involved in this step are described below.

Modules and Functions in Stage 1

Module / Function Description

Multi-purpose Operating Systems for Terminals (MOST) is a TOS that was designed MOST: as-is for Korea’s Multi-purpose terminals. The system is composed of modules for (Document, Planning, documents, planning, operations, monitoring, and billing. This covers a considerable Operation, Monitoring, number of functions needed for the Basic and Advance Operating Service. Adopting HHT, and Billing) MOST is the efficient and safer way to approach port automation. For details, please refer to clause 1.2. of the Korean Terminal Operating System (TOS).

The vessel and railway schedule enables the port to plan for the necessary manpower and equipment for implementing a seamless cargo workflow. This 207

function is registers the information from shipping agencies (lines) or forwarders, CHAPTER Vessel/Railway Schedule and not from the railway company or customs, which is the Port of Baku’s (PoB) current process. The schedule includes all vessels in the Caspian Sea coming into the

PoB. 03 Establishing an Automation Strategy for the Port of Baku The cargo information function is a list of cargo and their specifications to be loaded or unloaded from/to vessels or trains. Like the vessel/railway schedule, the port must acquire that information before the vessel/train arrives to prepare for cargo Cargo Information operations. This function registers the information from shipping agencies (lines) or forwarders, not from the railway company or customs, which is the PoB’s current process. The cargo information function includes all of vessels in the Caspian Sea coming into the PoB.

Similar to the functions for managing rail cargo operations, the railway module Railway Module (Basic) consists of the rail schedule, rail booking, confirmation of loading/discharging, and the cargo list.

Similar to the functions for managing container cargo operations, the container Container Module (Basic) module consists of container specifications; container and cargo lists; and container operations, such as loading, discharging, and handling in/out and gate in/out.

Real-time cargo weight recognition, combined with the wagon ID, using OCR Railway Weighbridge technology.

Real-time cargo weight recognition, combined with the truck license plate number, Truck Weighbridge using OCR technology.

Real-time cargo weight recognition, combined with the container number, using Container Weighbridge OCR technology.

Interfacing data of releasing cargo from customs and the control functions for Customs Cargo Release allowing or blocking cargo operations at apron, yard, and gate.

Report, Statistics Core static reports and statistics for operations. Description Description DW is a system that was developed specifically for reporting and data analysis. DW developed specifically for reporting and data analysis. is a system that was DW data from one or repositories of integrated are central is a crucial aspect of BI. DWs sources. more disparate and technologies for enterprises to analyze business data. BI identifies strategies BI functions include reporting, online analytical processing, analytics, In general, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics, and prescriptive analytics. A warehouse management system will improve warehouse functionality and distribution center management. This system facilitates the management of planning, organizing, staffing, and directing, as well as utilizes the warehouse’s available resources. Enhancing the standard functions of Stage 1. Enhancing the standard of Stage 1. Enhancing the basic functions Enhancing the basic functions of Stage 1. (TMS) is specialized software for planning, System Management Transportation Users perform three main tasks executing, and optimizing the shipment of goods. order, services to ship a customer’s on a TMS: (1) find and compare available carrier movement through to delivery. the shipment’s (2) book the shipment, and (3) track reducing costs, shipping efficiency, The broader goals of using a TMS are improving and ensuring customer satisfaction. gaining real-time supply chain visibility, Source: Module / Function Module / Function Lastly, in addition to the previous stages, we also recommend introducing data data addition to the previous stages, we also recommend introducing in Lastly, Secondly, we identified a method for enhancing the Port of Baku’s terminal operating terminal operating of Baku’s enhancing the Port a method for we identified Secondly, DW (Data Warehousing) and (Data Warehousing) DW BI (Business Intelligence) WMS (Warehouse WMS (Warehouse Management System) TMS MOST Enhancement MOST Module (Advanced) Railway Container Module (Advanced) warehousing (DW) and business intelligence (BI), which provides data for enhanced (BI), which provides data for enhanced and business intelligence warehousing (DW) Installing a warehouse process improvement. decision-making and offers tips for warehouse management efficiency within the management system (WMS) will maximize in this step are described below. free zone. Specific functions involved system. Further building upon the foundation of IT infrastructure (built in stage one), stage one), in (built of IT infrastructure foundation upon the building system. Further which two, stage of target overall is the this productivity; the port’s to maximize we aim data sophisticated more a This includes TOS. to the Korean upgrading by be achieved can analysis and additional monitoring, BI, and more. Specific functions involved in this step are described below.

Modules and Functions in Stage 3
Modules and Functions in Stage 2 3-5> Modules and Functions

Cost estimation, by Project Stage, for System Implementation

Stage Cost (USD) Period (how many months)

Stage 1 622,000 11

Stage 2 578,000 8

Stage 3 600,000 7

Total 1,800,000 26

Please refer to Appendix 1. Cost estimated for port automation, broken down by each stages to ensure greater specification of pricing details.

4.2. Specific and Feasible Suggestions and Conclusions from the Korean Experience 209 CHAPTER With the target of attaining 90% port automation via digitalization, the Port of Baku

in Azerbaijan implemented a PMIS to manage its information needs for handling cargo 03 information, loading/discharging, gate in/out, and more. The PMIS is still used today, but Establishing an Automation Strategy for the Port of Baku according to the Baku Port Authority’s internal analysis, the level of automation has only managed to reach about 50%—far short of expectations.

First, our researchers analyzed what are the most urgent areas in need of improvement at this point. To that end, we identified three causes that are hindering a fluid operation in section ‘2.2.: Issue and improvement direction of port system’. As a result of our study, we have identified what is required for improvement.

First, the Port of Baku must secure the fully-computerized data that are required for decision-making pertaining to terminal operations. Next, the port must prevent delays in cargo handling by receiving all cargo information and cargo ETA prior to the vessels or rails arriving. This will enable the Port of Baku to arrange all its required resources of labor and equipment beforehand. Furthermore, the Port of Baku needs to weigh cargo and automatically register cargo weight via the system to reduce inefficiencies caused by manual work.

Taking these three points into consideration, we thus suggested three phase-by-phase Others issues on investment and risk. risk. and investment on issues a thorough feasibility study is an international conducted by financial organization. an international financial organization ‌ ‌ ‌ Dr Project implementation after Establishing a network with ADB (Asian Development Bank), EDBR (The European Bank for Reconstruction and Development), OSCE (The Organization for in Security and Co-operation Europe), UNDP (United Nations Development Programme), UN (United Nations) 4. afting acounterplanfor 2. 3. 1. Large-scale financing. yment or ative Korea favorable repayment terms. repayment favorable relationship. of insufficient domestic funds. investment. ‌ ‌ ‌ ‌ No liability of repa Building a cooper Overseas financing in the case A KOICA (Korea International (Korea International KOICA Agency), Cooperation EDCF (Economic Development Fund) Cooperation 1. 2. 3. 4. voiding thefinancialriskof ying Azerbaijan address the Baku Port needs Authority’s under the current business environment the principal and interest ‌ ‌ T No burden of repa Government funds. 1. Simple procedure. financing. 2. Fast 3. ailored businessto 4. Other Organizations Other Organizations This study analyzes the important role the system will play in the Port of Baku’s in the Port of Baku’s role the system will play This study analyzes the important 4.3. A Following Study and the Feasibility of Cooperating with of Cooperating Study and the Feasibility 4.3. A Following To reach this desired goal of 90% port automation, competent HW and SW—along with HW and SW—along goal of 90% port automation, competent reach this desired To Funds by Advantages automation, which will require implementation costs. Furthermore, we outline three In brief: these are described in the table below. plans for budgeting resources for this; and or other funds. Advantages funds, from using domestic funds, Korean options range described. disadvantages of each options are also

Financing plans
Continued

Azerbaijan Korea Others

1. Limitation‌ of focusing 1. A‌ dditional feasibility review on industry and location per the project required. MDB. 2. Prolonged‌ period of procedure 2. T‌ ough pre-qualification 1. Lack‌ of review on from application to financing. process on profitability and objective validity with 3. F‌ or EDCF, a payment guarantee forecasted debt repayment. other organizations. provided by the Azerbaijan Disadvantages 3. Less‌ understanding of the 2. Difficulties‌ in government may be needed. needs and circumstances of diversifying risk of 4. Difficult‌ to have all the the Port of Baku. investment. qualifications needed to apply. 4. Ma‌ y require a lengthy time to 5. F‌ or EDCF, the burden of obtain funds. repaying both the principal and 5. Burden‌ of repayment of both interest. the principal and interest.

This study demonstrates a way to use funds provided by Korean institutions, such as KOICA and EDCF.

There is a way to arrange the budget using the official development assistance (ODA) of KOICA. The main purpose of ODA is contributing to the economic development of developing 211

countries and thus increasing their welfare. Furthermore, funds must be granted to CHAPTER developing countries, international organizations, or development-focused NGOs by either the public sector or central and local governments and their respective agencies. 03 Establishing an Automation Strategy for the Port of Baku

Based on potential economic cooperation, countries are classified into ’countries of focus’ and ’general countries’, and support is often given primarily to countries of focus. The main fields of support include economic and social infrastructure sectors, which contribute highly to a developing county’s economic welfare and its health, education, environment, and others fields associated with conditions for basic life requirements. Thus, assistance is offered for projects and programs, technical cooperation, budget support, food support, disaster relief, debt relief, indirect aid through civil organizations, and other NGOs. The grant aid programs offer cash or the transfer of actual goods to recipient countries that do not have legal liabilities and are also developing countries. It is important to note that these countries do not have any legal liability to redeem the granted funds.

Transitioning to consider the EDCF: the EDCF was established in 1987 to support developing countries’ industrialization process and economic development, as well as facilitating exchanges between Korea and the countries. The EDCF’s main business focus is investing in social development and infrastructure that can greatly contribute to economic development in developing countries. Of particular interest are countries that are perceived as having strong potential ripple effects and to bring benefits from export of Korea. Korea food shortage. EDCF Expansion of Role Businesses per the economy development plan for focused countries. Businesses per the economy ADB (Asian Development Bank), and others. Businesses funded by the Export-Import Bank to foster exports and Businesses funded by expand fund availability. international aid. Businesses that assist mid-sized companies regarding Businesses that address global issues, such as climate change and global issues, such as climate change and Businesses that address Expansion of cooperation Expansion Prioritized business https://www.edcfkorea.go.kr/. Written by Researchers. by Written Developing Country Developing At the 21st International Development Committee in March 2015, Korea selected 24 24 selected Korea March 2015, in Committee Development 21st International At the the 2020, as per 24 focused partnership countries. By Azerbaijan is one of Korea’s and The EDCF plans to contribute to the construction of relevant infrastructure Focused business Focused loan cooperating Business by business Mixed credit granting company mid-sized Business driven by focused partnership countries. Since then, Korea has assessed the validity of this list though then, Korea focused partnership countries. Since the council of International Development Committee every three to five years. The Country to support the chosen countries are then (CPS) and priority sectors Partnership Strategy decided accordingly. supporting infrastructure an build to aims EDCF the strategy, development Azerbaijan economic to help convert Azerbaijan’s human resources, social capital, and the economy structure from a petroleum-centered one to a knowledge-based economy. sector. the continued enhancement of human resources for the telecommunication particularly Furthermore, the EDCF aims to focus on improvements in health and hygiene, public areas. Of additional importance to the EDCF is supporting the for vulnerable EDCF the Finally, productivity. and transparency greater create to system administration balanced the through poor, and rich the between disparity economic resolve help to wants development of the above areas. Source: Source:

Comparing Project Promotion Procedures between KOICA and EDCF between KOICA Procedures Promotion 3-9> Comparing Project

In this sense, we expect this study to align with ODA’s implementation strategy, especially with regard to the telecommunication and public administration sectors.

213 CHAPTER 03 Establishing an Automation Strategy for the Port of Baku ------form/?utm_source=GatorMail&utm_medium=email&utm_campaign=WP+-+New sletter+18-07-2019&utm_term=%5bPTI+Daily%5d+APMT%27s+Digital+Latin+Amer ica+Platform+-+HIT+Chooses+XVELA+Berth+Innovation+-+ShipChain+and+GTX+Un veil+Huge+Blockchain+Solution&utm_content=40054&gator_td=6QbyPmIUcVsdq pKU4ax9SYGsetmkT%2fS8OFFGzWV8NmR%2bO86YZASiHoVf4fIPpfz3o7Eyppx2Uyx 2ULbTl60SamtA8eSu7wSczuQQxDF7DQ4kKRJ8tj4ShJfWSFAqfk9WpmQNS0Gc87E7m 4re8i8FDA%3d%3d&cn-reloaded=1. nched-at-port-of-callao/. https://safety4sea.com/perus-first-digital-customer-platform-lau https://searcherp.techtarget.com/definition/transportation-management-system-TMS. Wikipedia Study based on an on-site survey, local experts’ reports, and internal data of PoB. local experts’ reports, and internal on-site survey, Study based on an (bpa_brochure_ko.pdf). Port Authority Brochure of Busan https://www.edcfkorea.go.kr/. https://www.porttechnology.org/news/apmt-launches-digital-latin-america-plat References 214 Feasibility Study on Automation of Business Processes in the Port of Baku Appendix

[Appendix Table 1] Estimated Implementation Costs for the Port Automation, by stages

Stage 1 (11 months) Cost (USD)

Vessel Schedule Management

Berth Planning

Resource Planning

Planning Document Management

Roster Setup

Document Management

Marine Service

Break/Dry Bulk Operation

Special Operation 215 CHAPTER Gate Operation

Warehouse Operation 03 Establishing an Automation Strategy for the Port of Baku License DG Operation 190,800

Service Order

Operation Resource Operation

Liquid Bulk Operation

Container Operation

RO-RO Operation

Rail Operation

Weighbridge

HHT

Statistics

Management Reports

Billing

Project 431,200

Subtotal 622,200 181,300 100,000 296,700 578,000 600,000 600,000 1,800,000 Cost (USD) Cost (USD) Project DW (Data Warehousing) (Data DW BI (Business Intelligence) Sub-Total TMS (Truck Management System) TMS (Truck Management Total (26 months) Total Stage 2 (9 months) Stage 3 (7 months) WMS (Warehouse Management System) Management WMS (Warehouse Subtotal Closing Remark: System Analysis, Business Management, stage includes Project each project in The 3rd Party 3rd Party Design, System Construction, System Implementation, and System Roll-Out. System Implementation, and Construction, System Design, System [Appendix Table 1] Continued 1] Table [Appendix 216 Feasibility Study on Automation of Business Processes in the Port of Baku Ministry of Economy and Finance (MOEF) Sejong Government Complex, 477, Galmae-ro, Sejong-si 30109, Republic of Korea Tel. 82-44-215-7746 www.moef.go.kr

Korea Development Institute (KDI) Namsejong-ro, 263, Sejong-si 30149, Republic of Korea Tel. 82-44-550-4114 www.kdi.re.kr

Korea Maritime Institute 26, Haeyang-ro, 301beon-gil, Yeongdo-gu, Busan 49111, Republic of Korea Tel. 82-51-797-4800 www.kmi.re.kr

Total Soft Bank LTD. 66-39, Bansong-ro 513beon-gil, Haeundae-gu, Busan 48002, Republic of Korea Tel. 82-51-955-3001 www.tsb.co.kr

Knowledge Sharing Program (KSP) www.ksp.go.kr

94320

9 791159 325625 ISBN 979-11-5932-562-5 ISBN 979-11-5932-556-4 (set)