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AUTOGATES PRE-ADVICE: INDUSTRY WORK GROUP: POSITION PAPER:Version1 14 August 2009 version 1. Contents. Introduction and context Industry approach Objectives, deliverables and Work Group scope Work group recommendations Way forward. Introduction and context.
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AUTOGATES PRE-ADVICE: INDUSTRY WORK GROUP:POSITION PAPER:Version114 August 2009 version 1
Contents • Introduction and context • Industry approach • Objectives, deliverables and Work Group scope • Work group recommendations • Way forward
Introduction and context • TPT is in the process of introducing automated gates at their container terminals with the view to ensuring that these facilities/services contribute positively to optimal road/terminal interface and reduced vehicle processing times • In order for automated gates to justify the considerable investment and contribute optimally to the container supply chain fluidity it is TPT’s intention to make the pre-advice of export containers prior to arriving at the terminals’ gates mandatory • During TPT’s bilateral engagement with Shipping Lines and Industry forums the general consensus was that the pre-advice of export containers is critical to deriving the optimal benefit from the automated gates • The identification and assignment of roles and responsibilities together with the practicalities of routing information flows remain a challenge • The introduction of TPT’s new Terminal Operating System (NAVIS), fortunately presents opportunities for potential solutions in this regard • In order to effectively design and implement the required pre-advice business process it is critical that a holistic Industry approach be adopted
Industry approach • In order to ensure that workable pre-advice export business processes with clearly defined roles and responsibilities are developed and implemented as a matter of urgency, TPT approached SAASOA, SAAFF, Harbour Carriers division and Warehousemen to participate in an initiative to develop the required business processes • The content of this document is a direct output of the work group constituted from the above stakeholders • SARS were requested to participate in this initiative with the view to ensuring alignment with future SARS strategy/legislation/ business processes and computer systems. During a bilateral engagement between TPT and SARS, it was agreed that SARS would participate in this initiative as an observer. This approach was supported by SAASOA and SAAFF • This draft document does not reflect any input from SARS at this point in time. • Once the document has been ratified by the working group’s principals it will be made available to SARS for input • Refer to Appendix “A” for the work group members
Objectives, deliverables and Work Group scope • Objectives and deliverables of work group • To agree and sign off on the business pre-advice process option (s ) • To develop practical pre-advice information process flows for the agreed and signed off business pre-advice process option (s) that will facilitate achieving maximum benefit for the container supply chain • The agreed business process pre-advice options to be referred for Legal review in order to ascertain risk and liability implications • Work group scope: • Rail ex City Deep & Private sidings: Taken care of not part of this work group • Inter Terminal Transhipments: Taken care of, Shipping Lines to pre-advise pre-and on-carriers, not part of this work group • Empty container shipments • Pre-packed staged containers (I.e. depots and packing stations) • Major Shippers • Small Shippers
Work Group recommendations • Key principles • Critical Success Factors • Proposed pre-advice business process options and information flows • Go to market strategy
Key principles • The following key principles were agreed to: • Pre-advice of export containers will be mandatory • Pre-advice information (Booking reference, container number, seal number and container weight) to be provided preferably by EDI but could be web-based. • The Shipper (Packing point) is responsible for the source and generation of information • The pre-advice function can be performed by various parties, as is the case with the current CTO system, including the following: • Shipping Lines • Shippers • Container Depots • Clearing and Forwarding Agents • Trucking companies • 3rd party pre-advice service providers • The aforementioned parties pre-advise TPT on behalf of Shipping Lines provided they have been authorised/ accredited by the Shipping Lines • Given that TPT only has commercial relationships with Shipping Lines, the responsibility for the correctness of the information lies with the Shipping Lines , as is the case with the current CTO system • The to be agreed on pre-advice business processes to be subject to legal review
Critical Success Factors • The following critical success factors were agreed to: • TPT establish business processes/systems that will allow multiple parties to pre-advise (see previous slide) • TPT to ensure that the pre-advice business processes/systems have the necessary information security ( The pre-advising party may only have access to/ visibility of the units that it is pre-advising) and adequate audit trails ( Parties pre-advising, information being pre-advised and subsequent amendments being made are identifiable) • TPT to ensure that an interim solution is put in place and maintained to facilitate the acceptance of containers into all container terminals. • In order to ensure that the interim solution does not undermine the objectives of pre-advice end state the interim solution must have a defined lifespan • The CTO will remain in operation for containers pre-advised at the interim facility ( No faxes and e mails to be used as pre-advice instructions) • The current CTO paper based process to be replaced with EDI/WEB as an end state • The interim pre-advice facility needs to be off-site from the Container Terminals to ensure that pre-advising is not performed at the terminals whilst the trucks are queuing • Industry to agree on a date for pre-advice to be mandatory • Go to market strategy has to be implemented as an Industry initiative
Can the packing Point pre-advise TPT? Proposed pre-advice business process options and information flows: Effectively resulting in all containers being pre-advised using any of the 3 pre-advice options 1 year ? Life span Yes No Shipping Line to Authorise this party Shipping Line To pre-advise Pre-advice Performed using TPT interim Pre-advice facility Packer Pre-advises TPT Directly using WEB EDI Packer presents Information to Shipping Line During working hours Shipping Line Pre-advises TPT Directly using WEB EDI
Go to market strategy • Direct pre-advice value proposition (“What’s in it for me?”) packaged highlighting following benefits: • Cost effective business process using EDI/WEB • CTO no longer required • Transporter not disadvantaged having to wait for cumbersome pre-advice process before proceeding to the Container Terminal • A go to market strategy to be developed for the following target market segments in order of priority: • Empty container shipments (I.e. Depots) • Pre-packed staged containers (I.e. depots and packing stations) • Major Shippers • Small Shippers • Pilot projects to be accelerated with an Industry “go to market” strategy • Objective is to have 80% of volumes pre-advised by 1 April 2010 • Interim pre-advice service offering/facility to be packaged highlighting the following “hassle factors” : • Paper based with CTO remaining in force • Costly business process in that it is time consuming and likely to attract a service fee going forward • Transporters disadvantaged having to wait for cumbersome pre-advice process prior to proceeding to the Container Terminal
Way forward The key elements of the way forward are: • TPT/Industry, represented by work group, to agree and sign off on the business pre-advice process option (s ) • Development of practical pre-advice information process flows for the agreed and signed off business pre-advice option (s) • Agreed pre-advise business options to be reviewed from a legal perspective • TPT/Industry go to market strategy to be launched: • Pilot projects to be accelerated with an Industry “go to market” strategy • Industry to agree and declare a pre-advice mandatory date i.e. the implementation of “proposed pre-advice business process options and information flows as per slide 9” • Objective is to have 80% of volumes pre-advised by 1 April 2010