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About NTELX

Delivers solutions to automate and accelerate trade, logistics, security and other verticals to improve operational efficiency Founded 1999; headquartered near Washington, DC Serves agencies of the United States and other national governments, regional authorities and ports Deployed and currently manages solutions in North America, South Asia, Middle East & South America

Application Areas
Congestion Mitigation around Ports, Terminals & Industrial Areas Regional Transit Corridors & Border Crossings Trade Information Management

Import Screening & Risk Assessment


Cargo Tracking & Chain-of-Custody Transportation Asset Management

Government & Regulatory Compliance

Challenges
Poor physical Infrastructure, long transit times & frequent road accidents

Consequences
Limited intermodal systems & capabilities Poor road network & inland logistic infrastructure: reduced road capacity, unreliable deliveries, increased cost Congestion around ports, cities, industrial zones & border
Ageing truck fleet and broken rail cars Added expenses to reposition assets (e.g. ) Insufficient truck control & uncoordinated gating/pickup Wasted fuel & high-carbon environmental pollution Inability to manage performance of assets & personnel No data to guide policy & strategic decisions Poor planning & investment from lack of data/metrics

Sub-optimal utilization of transportation assets & personnel

Limited oversight, reporting & performance metrics

Challenges
Poor visibility into cargoes & transportation assets High instance of physical Inspection

Consequences
Poor coordination between transport providers & terminals/depots Delays through physical inspection by Customs stifles trade Pilferage/diversion adds to cargo costs & reduces service-level to customer Poor chain-of-custody & asset tracking mechanisms

Lack of standards & regulations; Noncompliance with government & industry regulations

Non-compliance with government & industry regulations results in process delays & added fees. Lack of safety enforcement & certification for vehicle and operators Delays in clearance processes & corruption Too many checkpoints along transit routes

Understanding Inefficiencies in the Supply Chain


Entry/Exit Points:
+ Seaports + Airports + Borders
High incidence of physical inspection by Customs Poor cargo arrival, discharge & release planning Manual handling of import/export processes

Inland Transportation & Logistic Systems

Poor road & rail network... Poor state where exist Low adoption of inland container depots (ICD) Uncoordinated movement of transport assets Transport service providers are not well organized

Risk & Regulatory Compliance Screening

Limited risk screening, valuation & reporting ability Increased dwell-time, hampers trade facilitation & adversely impacts supply chain security Poor cargo & asset transit monitoring

Infrastructure Realities

Goods Movement in Ports, Cities & Inland Corridors


Freight traffic is necessary evil
Trucks have out-sized impact on traffic congestion: 3-4x Increased pollution & environmental degradation Safety and security concerns Limited rail options

Expanded physical infrastructure not always possible, sufficient

but
Addressable universe with underlying processes & ICT Authorities to regulate Available win-win propositions

Enablers: Factors & Impact


Community

Rate of Change
Fast Economy Surging Slow

Technology

Governance Governance
Logistics

Existing Trade & Infrastructure Policy

Organization

Environment Environment

Existing Infrastructure

Adapted from: Understanding Smart Cities: A Integrative Framework, Chourabi, et al. (2012)

3 IT-enabled Ideas to Consider Now


Lower capital requirement Faster implementation
Manage Assets Target Resour ces Automate & Expedite Trade

Positive secondary effects

Improving Trade & Logistic Efficiency


one component at a time
Cargo Community System Port Community System Electronic (Single Window) Trade Processing Freight Traffic Management System Truck Control System Inland Corridor Management System Risk Assessment System Customs Screening System Transit Access Screening System
Process Trade Documents Improve Logistic Visibility Enhance Services

Eliminate Congestion Manage & Control Assets Track Cargo Movement

Improve Security Enhance Import Compliance Expedite Trade & Cargo Clearance

1. Automate Trade
Complex process Many stakeholders

Constraints
Uneven capacity Regulatory hurdles

Scope & Approach Are Critical


Terminals

Clearing Agents

Importers & Exporters

Forwarders

Haulers

Shipping Lines

Banks

Depots/ Stores

Single Window
Port Community
Terminal Operations Gate Management

eGovernment
Customs
Standards Consumer Safety

Food & Drug

Transport

Compelling Results
Enables single, consistent data usage and validation
Improves visibility & reduces discretion Reduces clearance times by 50% or more Facilitates real-time collaboration between agencies on admissibility decisions Motivates performance improvements in both the public and private sector With improved physical infrastructure, process issues become the bottleneck

Target Resources: Risk Screening & Valuation


Premise:
Large percentage of imports are compliant Focus on & isolate violative imports based on defined risk criteria Expedite import clearance & reduce delays

Enforce compliance & detect declaration fraud

Risk targeting for enforcement & security activities


Revenue, Security, Intelligence

Standards & Product Safety


Vehicle, Load, Road Safety

Optimizing other operational decisions & reporting

Resource Targeting Example


US FDAs new import screening system with Customs Automates processing and supports entry review
U.S. FOOD & DRUG ADMINSTRATION
External Parties Science Regulatory Operations

Importers Customs Brokers

Office of Science
Sciencebased rules

Office of Regulations & Policy


General Infobased rules

Entry Reviewers

Field Examiners
Line Items

Facility Inspectors

Labs

CUSTOMS

Import Declaration Forms & Supporting Documents Decisions

Entries & Line Items

Facilities

Samples

Static, Disjoint Risk Targeting PassHold Decision Rules System

PREDICT

FACTS

Field Activities & Compliance Tracking System

NXRTS
Field Experiencebased rules

PREDICTs Operational Impact


Fewer items are held for review

Field reviews and lab tests find More goods get to market more violations faster
Enormous returns to the public Efforts more productive Less FDA work Greater product safety to US$25 million/year more catch same number of violations without PREDICT Better products reach markets more quickly at lower cost

Source: FDA pilot program assessment study.

Other applications
Customs inspections

Weigh stations
Movement of containers to depots Vehicle safety inspections

Drive Efficiency: Maximize & Control Assets Operational objectives:


Minimize unproductive movements & waiting Relocate activities, including waiting, from congested areas Integrate multimodal capabilities

Organize transportation providers for efficiency


Integrate across trade & logistic communities and regulators

Distinct techniques:

Implement Truck Control & Border Transit Solutions


Integrate transporters with terminals/Customs Enable messaging for release, dispatch & border notification Use data to drive investment and policy decisions

Reduce checkpoints
Expand use of Inland facilities Enforce transportation standards

Logistic Management Example


Truck Control & Border Transit System (Aqaba, Jordan)
Controls movement of trucks from 5 entry points on road network reaching 39 specific destinations including 13 terminals Over 175 trucking companies with nearly 10,000 trucks use the system Several truck parks with capacities varying from 150 to 400 trucks Hundreds of concurrent users request permits, log events & receive instructions from the system Existing infrastructure at terminals (A.P. Moeller) & other destinations incorporated into TCS Captures events at very low cost from RFID readers deployed to monitor truck movements Jordan-Syria & Jordan-Saudi Border transit monitoring

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Impact of Solutions Sample Benefits


Inland freight rates 20% lower
Thousands

Higher Asset Utilization


20 18 16 14 12 10 8 6 4 2 0 2006 2007 2008 2009 2010 Trucks Operations 12 11 10 9 8 7 6 5 4 3 2 1 0

Truck fleet being modernized Over 200 direct jobs created

Drop in truck traffic affecting tourist & commercial areas


5,000 tons CO2 saved annually Estimated fuel savings: 365,500 diesel gallons/year Independent party estimated 100% annual ROI 3rd

x 100000

25% increase in truck productivity

TCS Operational Process


Trucking Company Management
Truck/cargo status Billing/payment info

INTERNET

Regulatory compliance and status reports

Government of Jordan

TCS IT Platform
Request entry & route Return Permit Number

Trucking Company Dispatchers

NXFTMS

Verify truck, driver, route, cargo Provide Permit Number Provide paper permit with routing instructions Track truck enroute & waiting yards Record cargo pickup at terminal

Record truck exit

Simplified Integration Schema & High-Level Process Flow


Trucking Companies Ministry of Transport 1 Apply for permits (equipment, cargo, operation, route, driver, and other data) Receive approval 4 5

Provide registry of trucks and trailers by company and cargo type (XML)
Jordan Customs (ASYCUDA) 2

Truck Drivers
Receives entry ticket from trucking company Receive permit with all details on operation Gate Operations Oversee movement of trucks through ASEZ Receive instructions from TCS Provide event data to TCS

Nafith TCS 7

Provide Cargo releases (XML)


3 ASEZA Provide other releases for cargo pickup, e.g. fuel

Validate data Approve permits Capture events Manage capacity Provide reporting and alerts Support invoicing
Container Terminal Operations Use TCS to validate container pickup operations

Container Terminal Activity

Container Terminal Activity shows user the pre-advice information provided by the trucking company and the projected value by the system corresponding to the preadvice.

Trade Information Gateway, Real-Time Exchange (Pakistan)


Initial areas of focus:
Karachi Ports access control International transit corridor management (Afghan-Pakistan) Electronic marketplaces for truck freight to/from terminals Nationwide databases of registered equipment, drivers and companies Integrated vehicle and load tracking services with virtual routing management

Mobile interfaces using customized cell phone applications

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

Conclusions & Paths Forward


Intelligent Logistics Systems (ITS) works - multiplies impact of other investments and efforts Time is right ICT infrastructure now in place High impact quickly & economically Rapid deployment (approx. 3-months) Adaptable to range of situations

Addresses a range of challenges in developing regions

Thanks for your time


For more information: Email: mivenso@ntelx.com Tel: Web: +1.240.494.6691 & +234.706.617.8563 www.ntelx.com