Inland Transportation Improvement
using Trade and Transport Data
A New Tool for Logistics Performance
Improvement
World Bank
Oct 26, 2010
Outline
• Our Background
• This Presentation
– How can we improve inland transportation using
available trade and transport data
– Applications in Jordan, Syria and Pakistan
– Additional potential applications in South Asia
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About Us
NTELX
Delivers advanced operational
decision-making systems
Example Programs:
– PREDICT – U.S. Food & Drug
Administration
– Global Trader – U.S. Dept of
Defense
– Aqaba TCS (Jordan)
– TIGRE (Pakistan)
Amrinder Arora
– Vice President –
Technology
– Solution Lead, Nafith
TCS and PREDICT
– MS, DSc - GWU
– Adjunct Faculty, GWU
Larry Kahn
– Director
– Business Lead – SyriaJordan FTZ
– BA - Yale Univ.; MBA MIT
– Advisor to Carlyle
Group and Thayer
Capital; Former Corp
Officer Northwest
Airlines and Marriott;
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Where Things Stand
While past efforts have realized
gains…
• Expanding and modernizing infrastructure
• Better management of transportation
assets
• Improving regulatory regime
…performance still falls short.
• Demands growing at a faster pace
• Infrastructure expansion may be hitting
limits
• Some root problems not addressed
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Adding Intelligent Logistics to the Mix
• Uses process, data, and technology to improve the
flow of goods and equipment through logistics chain
bottlenecks
• Has been applied successfully in developing
economies
• Can be adapted to specific situations
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Example Applications
– Aqaba Truck Control System, Aqaba, Jordan
• In production since 2006
– Syria-Jordan Free Trade Zone Truck Control System
• In production since 2010
– Trade Information Gateway and Real-time Exchange
(TIGRE) Port Access Control, Karachi, Pakistan
• In development
– TIGRE Transit Corridor Monitoring, PakistanAfghanistan
• In development
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ASEZA TCS Coordinates Use of Roads, Waiting Areas,
and Terminals within 375 km2 Zone
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4
• 13 terminals
• Over 40 specific
destinations
• Hundreds of routes
• Over 3000 truck moves daily
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Aqaba Truck Movement – Before TCS
The Process
Trucks queue
outside Aqaba.
Spillover in city.
Terminals call
queue for
trucks.
Trucks race to
enter pick-up
queues.
Indeterminate
waits
Truck picks up
load and leaves
Zone
The Problems
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•
•
•
•
•
•
Recurring congestion problems in
Aqaba city and at key port terminals
Long, indeterminate wait times in
queues due to truck/load/docs
problems causing 3x longer
roundtrip times than necessary
High truck transport costs
Poor coordination between trucks
and terminal activities
Limited shipment status visibility for
government and cargo owners
Pollution and disruption of popular
tourist areas (exhaust/noise/traffic)
No performance measurements
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The New Process
Create permit for
entry to Zone
Enter Zone as
directed by Permit
Proceed thru Zone
checkpoints and pick-up
load, as directed
Key Elements of the Solution
• Process redesign implemented through an
Intelligent Transportation System
• Clears trucks to access terminals by
combining information from multiple data
feeds
• Gate coordination: Manages truck access
to terminals when goods and space are
available
• Road capacity: Algorithms keep trucks
moving and minimize congestion and
chaos – starting 30 kilometers from the
gates
• System designed/implemented in 3
months
Monitor truck,
system and people
performance
Results
 Estimated 20% reduction in
inland shipping costs
 Same size truck fleet handles
25% more freight than in 2005
 Congestion and chaos
eliminated
 Trucks diverted from tourist,
commercial, and residential
areas
 Reduced fuel consumption,
pollution, and accidents
 Improved security, visibility,
and data
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TCS Capability
Operational Impact
Manages capacity across the
logistics network.
Prevents congestion. Ensures
roads and terminals are not
overwhelmed.
Enforces Ministry of Transport Trucks only proceed after
and Customs rules through
authorization – no time wasted or
real-time validations
caused by trucks on operations
they cannot complete.
Calculates and disseminates
Trucking companies spread
turnaround times and wait
operations to less congested times
times for day and week.
to realize faster turnarounds.
Supports combining
operations when feasible, i.e.
drop-off plus pick-up as part
of same trip.
Operators combine moves to
reduce non-revenue travel and
improve profitability.
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Environmental Impact
Analytical Findings
• Estimated gas emission savings:
3,650 metric tons of CO2/year
• Estimated fuel consumption savings:
365,500 diesel gallons/year
Assumptions and Caveats
• Only first-order effects for regulated traffic considered
• No allowance for the fact that newer trucks have lower
emissions than older trucks (1980s – 2001)
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Syria-Jordan FTZ
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Syria-Jordan FTZ – Before FTZCS
The Process
Trucks queue at
FTZ and nearby
villages.
No check on
capacity; trucks
enter FTZ.
Operations slow
as trucks congest
FTZ.
Indeterminate
waits
Trucks
unload/load
and leave
FTZ.
The Problems
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•
•
•
•
•
Sense of disorder and chaos concerns FTZ and Customs officials
Long, indeterminate trip times due to truck/load/docs problems
Poor coordination between trucks and businesses within FTZ
Frequent altercations between truck drivers and villagers
FTZ unable to keep up with demand
No performance measurements
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The New Process
Dispatcher requests
appointment with
specific FTZ business
TCS checks capacity
at gate and business.
Confirms request.
Key Elements of the Solution
 Connects decision-making at
trucking companies to
operations within the FTZ
 Less complex capacity
management requirements than
Aqaba TCS
 Appointments drive capacity
management at entry gate and
locations within the FTZ
 System suggests alternative
times when capacity is not
available per initial request
Trucks dispatched for
appointments enter FTZ
without delay
Monitor and report
truck, system and
people performance
Results
 FTZ and Customs have greater
comfort with orderliness of FTZ
operations
 Less variable processing times
for trucks
 Village councils have confirmed
reduction in incidents between
truck drivers and villagers
 Greater volumes handled by FTZ
 Total time requirement for truck
operation at FTZ reduced
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Trade Information
Gateway, Real-Time
Exchange (Pakistan)
 USTDA supported
 Initial areas of
focus:
 Karachi ports
access control
 International
transit corridor
management
(AfPak)
 Working to
implement
systems that
improve transport
sector
performance
during 2011
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The Problems
 Congestion problems in Karachi and at key port terminals
 Overloaded trucks and miss-matched loads common
 Lack of visibility of truck arrival times impacts turnaround times
 Limited shipment status visibility for government and cargo owners
 Limited if any registration of equipment or drivers
 Limited utilization of trucking companies waiting yards
 No performance measurements
 Long, indeterminate wait times
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Relevant challenges in South Asia
• Foreign Port Access; Transit Corridors
 Guwahati (to Chittagong: 674 km; to Haldia: 1006 km)
 Imphal (to Chittagong: 895 km; to Haldia: 1484 km)
 Aizawl (to Chittagong: 454 km; to Haldia: 1600 km)
• Integrated Cross-modal
Logistics
 Modeling and Evaluation
• Corridor Performance
Management
• Others?
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Government Initiatives
India-Bangladesh Joint Statement, January 2010
– #14: The two Prime Ministers agreed to put in place a comprehensive
framework ... cooperation in water resources, power, transportation....
– #22: It was agreed that Ashuganj in Bangladesh and Silghat in India
shall be declared ports of call....
– #23: It was agreed that Bangladesh will allow use of Mongla and
Chittagong sea ports for movement of goods to and from India through
road and rail.
– #35: The PMs agreed to operationalize land customs stations at
Sabroom-Ramgarh and Demagiri-Thegamukh, including putting in
place necessary infrastructure and issue necessary notifications ....
agreed to take measures for strengthening infrastructure.
http://www.satp.org/satporgtp/countries/bangladesh/document/papers/indiabangjoint2010.htm
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Sample Pilot Project
• Develop a demonstration system allowing direct port
access involving an international border crossing
• A 3-12 month pilot project involving a limited number
of trucks taking the “control” route, and taking the
“direct” route utilizing the demo system
• Analyze and Assess
– Transit Time and Processing Time
– Impact on trade competitiveness and cost
• Can be done in preparation of, or in parallel to an
infrastructure project
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Where Intelligent Logistics Fits
• Pilot projects for port access and corridor
development – both domestic and
international
• Part of major port, terminal, and road
infrastructure projects
• What else?
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Conclusions and Paths Forward
• Intelligent logistics works Multiplies impact of other
investments and efforts
• Time is right – ICT infrastructure
now in place
• High impact – quickly and
economically
• Adaptable to range of situations
• Addresses a range of challenges
Dr. Amrinder Arora
[email protected]
Larry Kahn
[email protected]
Dhiren Patel
[email protected]
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