REGIONAL POLICY DIALOGUE- TRADE AND INTEGRATION NETWORK Designing and Implementing Single Windows in the Caribbean: Good Practices and International Standards

Port of ,Trinidad y Tobago – April 10th, 2015

Linking Single Windows to Community Systems: The Valenciaport Case

Carolina Navarro cnavarro@fundación.valenciaport.com Objetives of the presentation

• Short introduction: Valenciaport • Challenges for and the role of ICT systems • What is a PCS? Difference with SW? • Valenciaport case study: Valenciaportpcs.net: • Need to manage complexity • Towards a port connected to the world • Adding value • Some recommendations The Port of …. “Wecolme to Valenciaport” The Port Authority of Valencia (PAV), which trades under the name of VALENCIAPORT, is the public body responsible for running and managing three state-owned ports along an 80km stretch of the Mediterranean coast in Eastern Spain: Valencia, and Gandía The Port Authority of Valencia and the Spanish Port System

Public Entity in charge of the implementation of the Central Government’s general Port Policies and of the coordination and control of the efficiency of the Spanish Port System

Public Entity with legal responsibility and ManagesGestiona its functional sus Intereses and administrative bajo el Organismo Público con ownership of its own assets Principiointerests General autonomously de Autonomía Personalidad y Patrimonio Propio. Funcional y de Gestión. Our three port at a glance

Sagunto: 7,33 Mio. Tons

35.442 TEU

TEU TEU Mio

Valencia: 59,53 Mio. Tons ; 4,44 4,44 ; 4,4 Mio. TEU

692.471 Passengers Tons 319.458 Regular Lines Passengers 373.013 Cruise Passengers Mio

437.544 Vehicles 67 : :

Gandia: 0,32 Mio. Tons

3.837 TEU Valenciaport Traffic throughput PAV, tons/type of presentation

80,000,000

70,000,000

60,000,000 50,000,000 The container 40,000,000 our main traffic 30,000,000

20,000,000

10,000,000 74%

0 2009 2010 2011 2012 2013 2014 Liquid bulk Solid bulk Containerized General Non Containerized General Cargo Traffic throughput PAV, TEUs/type of operation

Gate/transhipment port (Mixed hub concept) Container Traffic by Geographical Areas (TEUs)

NORTH / BALTIC SEA 3,64 MIDDLE & FAR EAST USA / CANADA NORTH EUROPE / BALTIC SEA SPAIN MEDITERRANEAN / BLACK SEA 9,74 30,74 7,21 25,99 MIDDLE & FAR EAST SPAINNORTH AFRICAMEDITERRANEAN / BLACK SEA CENTRAL AMERICA / CARIBBEAN 4,58 5,17 WESTNORTH AFRICA AFRICA SOUTH AMERICA 5,01 6,59 SOUTH & EAST AFRICA AUSTRALIA & NEW ZEALAND WEST AFRICA 0,76 0,52 SOUTH & EAST AFRICA AUSTRALIA & NEW ZEALAND

% Port of Valencia container traffic by geographical area in 2013 (Import/Export/Transhipment) “Challenges for ports” Challenges for ports

Maritime transportation is undergoing more change in recent years than it has in the past hundreds of years

Growth

Security Consolidation Port Challenges Maritime transportation is undergoing more change in recent years than it has in the past hundreds of years

Growth

Export trade is growing twice as fast as GDP mainly due to industrial off-shoring

Security Consolidation Assuring container Maritime transportation is security is the most Port clearly in a consolidation important issue facing phase as companies maritime transportation. Challenges combine to extract Few players have been greater utilization from willing to pay for it fixed assets

Modern logistics chain demands efficiency at each step of the process; ports are no longer isolated elements

Leading ports have also reacted to these challenges by investing in technology… Port Community Systems “The need to manage complexity” Each TEU movement requires multiple communications among members of the port community, thus creating a complex information web

The diversity of actors around a port requires the harmonization of procedures for organizing and standardizing operations in the logistics chain.

IMPORTADOR AGENTE MARÍTIMO EXPORTADOR AUTORIDAD TRANSITARIO AGETE DE ADUANAS PORTUARIA OTRAS AUTORIDADES

ADUANA

NAVIERA

TRANSPORTISTA

CONTAINER CONTAINER DEPOT TERMINAL All the Port Community at the same Virtual Table

EXPORTER SHIPPING AGENT CUSTOMS AGENT IMPORTER PORT FREIGHT AUTHORITY OTHER FORWARDER AUTHORITIES

CUSTOMS CARRIER

TRUCK COMPANY

CONTAINER CONTAINER DEPOT TERMINAL What is a port community system (PCS)?

A PCS is an electronic platform that connects the multiple systems operated by a variety of organisations and make up a seaport or airport community. It is shared in the sense that it is set up, organised and used by firms in the same sector – in this case, a port community. Is a PCS a software product?

No, a PCS is a value added service offered by an operator to participants in the port community with the following characteristics: • It shall be neutral and open to the entire port community, enabling secure exchange and an intelligent use of information between public and private actors in order to improve the competitive position of maritime and air port communities it serves; • It shall optimize, manage and automate logistics and port processes efficiently based on the unique provision of data and linking logistics and transport chains. The huge diversity of management systems needs to achieve a connectivity at enterprise, inter- company and inter-government levels.

PCS deliver Business to Goverment (B2G) and Business to Business (B2B) messages and in some cases Goverment to Goverment (G2G)

B B B B B B B B B B B B B2B B B B2B B B2B B B B2B B2B B2B

B B B Business Bilateral communications Business portals e-marketplace Value Added Networks (VAN) Online shops Sectoral Portals Port or Cargo Virtual Private Networks (VPN) Online access Service Aggregator Community Systems Virtual offices Intra-governmental Administrative Single Window (PCS o CCS) communication networks eGovernment B B G B2G G2G B2G

B B G G2G G G B2G G B2G B B G G G B B

Government G What is a Single Window?

GOVERNMENT SERVICE TO LODGE STANDARDISED INFORMATION AND DOCUMENTS THROUGH A SINGLE ENTRY POINT.

GOVERNANCE PHILOSOPHY AND MANAGEMENT TO IMPROVE THE CONTROL AND SECURITY, AND FACILITATE AT THE SAME TIME INTERNATIONAL TRADE.

Are PCS and SW the same concept? REPORTING FORMALITIES DIRECTIVE 2010/65/EU

The directive 2010/65/EU aims Local Single to simplify and harmonise the Window administrative procedures applied to maritime transport by establishing a standard electronic transmission of information and by rationalising reporting National Single formalities for ships arriving in Window and ships departing from European Union (EU) ports. Port Community Systems “Towards a port connected to the World” valenciaportpcs.net provides complete coverage of land, port and sea

Sea Port Land

Schedules Call Request Dangerous Inland Transport Goods

Bookings Goods Customs Declaration Information

Railway Transport

Shipping Instructions Container List Orders

Integral Track and Trace Quality Monitoring and Reporting

21 valenciaportpcs.net is the result of a large process that aimed the improvement of port community productivity through IT

Stage 4: A port community connected to the world Stage 3: Objective: The port community •Increase efficiency by automating operations in a paperless, error-free process Stage 2: Objective: •Modernize logistics The connected port •Build communities both into the management land side with land carriers, and •Increase connectivity by full into the sea side with shipping Stage 1: Objective: integration with external agents companies •Foster integration by connecting •Connect with port agents for The isolated port –Community Information Sea-Port-Land operations, critical business processes System –Cargo Manifest improving the cooperation of the Objective: –Development of Infoportals Port Community –Customs Declaration –Seal of Quality Guarantee •Automate internal processes –Berthing Management •Reinforce bonds with partner –Internal information systems –Hazardous Materials ports Technology: Technology: •Microsoft .NET solutions •Web services/ RFID •Community portal Technology: •XML •Integration with web technology/ •Voice services Technology: RFID •Image services • EDI •Data services 1980 1992 1999 2005 Evolution of infostructures Developing a PCS from scratch is a high risk long-term project that typically takes 10 to 15 years and costs tens of millions

Stages of evolution of a Port Community System Associated risks from developing a PCS from scratch

Value for the agents operating in the port

Stage 4: A port community $ • Cost overruns connected to the world

Stage 3: The port community • Project delays

Stage 2: The connected Developing the port Port Community • Lack of acceptance in Port Community

Stage 1: The isolated port 10-15 years A project such as valenciaportpcs.net requires the involvement and support of the whole PC

Port Community Involvement...

... assuming the following roles

Administration Shipping Co

Project leader and infrastructure supplier

Institutional and financial support

Port Port Society Forwarders Shippers Authority Community Institutional support and promote community creation

Information suppliers and portal users

Main user of the portal Entrepreneurial Road and Associations Rail transport Promotional area users

Port authorities can play a major role by leading the creation of the port infoestructures for their PCS valenciaportpcs.net Adding Value Saving Money 28 233 logistics shipping operators companies

> 190,000 71 28 empty daily maritime container agents depots messages

99% of valenciaport 296 road 3 container traffic use at least transport terminals companies one of the PCS services

2 ro-ro 5 railway terminals operators

27 Container List orders for Load/Unload (with Automatic Customs Check for Export and transshipments)

Container List Orders Customs Information Efficiencies and benefits • Checking a list of 5000 movements took 4 hours before having this tool. • Now only 3 minutes. • Time required to verify the transshipped containers of a vessel has been reduced by ten times both for the shipping agencies and the customs’ police.

1h 2h 3h 4h Building a PCS Some recommendations Source: IPCSA REGIONAL POLICY DIALOGUE- TRADE AND INTEGRATION NETWORK Designing and Implementing Single Windows in the Caribbean: Good Practices and International Standards

Port of Spain,Trinidad y Tobago – April 10th, 2015

Thanks for your attention!

Carolina Navarro cnavarro@fundación.valenciaport.com