Seaport cluster information systems - a foundation for Port Community Systems

architecture

Edvard Tijan
1
, Saa Aksentijevi
2
, Dragan ii
3
1,3
University of Rijeka, Faculty of Maritime Studies
Studentska 2, 51000 Rijeka, Croatia
Tel: +385 51 33 84 11 Fax: +385 51 33 67 55 E-mail: etijan@pfri.hr, dragan@pfri.hr
2
Aksentijevi Forensics and Consulting, Ltd.
Gornji Sroki 125a, Vikovo, Croatia
Tel: +385 51 65 17 00 Fax: +385 51 65 17 81 E-mail: axy@vip.hr



Abstract - Numerous stakeholders are involved in
operations of modern Port Community Systems:
container terminals, customs, border police, coast
guard, government ministry in charge of sea traffic and
infrastructure, seaport agents, port authorities etc.
Traditionally, all of these entities use separate and
heterogeneous business information systems.
Integration of these complex systems presents a
challenge: the common goal should be the creation of one
interconnected system, able to provide all vital
information to various stakeholders while being
efficient, financially viable and avoiding data and
process duplication. In this paper, the authors will
present main characteristics of existing seaport cluster
information systems, their possible overlapping
dependencies and initial component analysis, as a basis
for decision-making related to architecture of future
Port Community Systems.

I. INTRODUCTION
This paper is an introductory research into characteristics of
seaport clusters, based on technologies and organization
used in Republic of Croatia at the time of research (2013.).
Various stakeholders (container terminals, customs control,
police, port authorities, port agents etc.) utilize different ICT
systems that should be thoroughly analyzed before
integration into integral business information systems of the
port clusters (PCS Port Community Systems). In order to
fully understand the complexity of the different systems, it
is important to outline and study them [1]:
- Concession owners use heterogeneous ICT systems and
their inclusion in one single system can incur elevated
levels of risk imposed on information and integral
security.
- Port authority and concession owners have to be
organized in a way to be aligned with ISPS code
(International Ship and Port Facility Security Code).
ISPS code development is caused by increased number
of hijackings and attacks on vessels and ports.
- Handling of dangerous cargo, its packaging, labeling,
storage, separation and emergency procedures have to
be in charge with IMDG code (International Maritime
Dangerous Goods Code).
- Port authority is performing tasks related to safety and
oversight in those segments that are related to
uninterrupted traffic flow in areas of their responsibility
and it is involved in search and rescue operations and
inspections.
- Traffic tracking in port area is accomplished by using
modern VTMS system that utilizes GPS equipment.
- Service user oversight is performed by usage of ID
cards and integrated business information systems.
Integration of ICT systems in complex environments like
seaports is a challenge for all subjects involved in port
operations. It involves not only the creation of physical
and logical networks and connections, lifeware and
orgware, but also control from a single point over all
delivered services, while respecting all basic principles of
disaster recovery and business continuity.

II. THE PURPOSE OF SEAPORT
INFORMATION SYSTEMS

Port information systems serve the following purposes
[2]:
- To increase the speed of cargo loading and unloading
operations.
- To adjust the duration of physical and administrative
operations in order to provide services to users and to
speed up the traffic and enable optimal usage of the
ports infrastructure.
- To provide information systems support to
stakeholders, equally for basic applications and
extranet portal used by external stakeholders.
- To create relations toward external databases.
- To manage the information flow by enabling
connections between stakeholders and using different
information sources while ensuring information
security and confidentiality.
- To manage the infrastructure by optimizing critical
resources.
- To optimize cash flow by simplifying the
accompanying documents.
Preliminary research has shown that the achieved level of
development of port community systems in Croatia is
modest in terms of their use in management of port facilities.
Identified reasons for this condition are:
- The general issue of inadequate rate of ICT technology
implementation in comparison with the speed of its
overall development.
- Inadequate level of knowledge and adjustment ability
of the entrepreneurs and the management caused by
rapid scientific and technological development.
1774 MIPRO 2014/DE-GLGPS
- Lack of knowledge and understanding of ICT
technologies as major economic resources.
- Inadequate level of employee education and low levels
of ICT investments.
However, most stakeholders inside the seaport cluster own
and use information systems as part of their daily and
routinely executed operations. These systems are diverse,
mainly because of size of the company, operations and
characteristics of the branch the company is operating in.

III. CONTAINER TERMINAL ICT
SYSTEMS
Information flow and exchange in modern container
terminals is complex. Cargo agents are exchanging all
necessary messages with the container terminal operators,
who are in turn exchanging messages with the authorities
(customs, port authority). Information is accessible also to
cargo haulers, trucking and railway cargo companies and
other terminals the cargo will reach in the future.
Information systems of container terminals are in fact
systems used to operate the transport of goods stored in
containers that involves computers, clients, servers and
networks, with intention to collect the data about transport
process, information processing, decision making, creation
of messages and documents, order and document
transmission and actions. In order to facilitate flawless
transport process, it is necessary to understand crane and
container timing and bottleneck analysis. This role is
nowadays entrusted to management information systems
that enhance automatization of the container terminals.
Enhancement of the cargo transport inside terminals can be
achieved in the following ways [3]:
- Introduction of the communication network inside
terminals with a complete centralized database.
- Correct evaluation of duration of cargo transport and
loading-unloading operations.
- Development of the automatic operations management
(driverless vehicles, cranes without operators).
- Inclusion of the system buffers.
The most important function of ICT in the container
terminal operations is creating the possibility to connect
container terminals with other port community stakeholders,
therefore creating an electronic community of the whole
seaport system (Port Community System). Container
management system that is well envisaged and possesses the
proper architecture can increase terminal efficiency, with
the main benefits being [4]:
- Faster container unloading and loading with increase of
productivity,
- Better container storage oversight,
- Higher percentage of correct data and valid
information.
Container terminals typically use TOS (Terminal Operating
Systems), computerized systems used to enhance the
process of cargo management. TOS basis is several decades
old, but it is still in use today, even though heavily modified
and modernized. Usage of the TOS system enables the
terminal management to follow up individual container
status (size, weight, type, content, special instructions),
resources (free operative area, equipment location), limits
(characteristics of the operative area and required
equipment) and processes (optimal container placement and
loading priorities).
ICT systems typically used in container terminals are the
following [5]:
- Gate System, used to control and identify containers,
perform X-ray checks and detect trucks,
- Corporate System, used for business functions, to
analyze human resource deployment, create accounting
and financial reports for the management,
- Engineering System, used for implementation of
technological innovations on transport utilities and
malfunction diagnostics,
- Anciliary System, used for management of empty areas
and container repair,
- OCR Handling System, the system used for container
tracking based on optical recognition and tag reding,
- Equipment Control System, follows up the equipment,
current position of the cranes, controls RFID readers,
- Equipment PLC/SCADA System, used to track and
control cranes and AGV (automatic guided vehicles)
[6],
- Information Technologies Analysis and Design
System, top-level system that manages all other
elements of the hardware and software, and
- Community System that connects all stakeholders in
the seaport cluster by exchanging information and
electronic messages.
As a conclusion, advantages of introduction of ICT systems
and electronic data exchange systems in container terminals
are timely information collecting, data organization, ability
to accept large amount of information, possibility of
implementation even in smaller terminals, simple data
disclosure, less document errors and decrease of volume of
paper documents and required staff support.

IV. CUSTOMS CONTROL ICT SYSTEMS

Customs control documents were traditionally filled
manually and stamped by persons in charge, resulting in
slow data processing and occurrence of errors. In 1995. the
customs has started importing data using magnet media
(floppy disks). Since year 2000, the goods that are a part of
customs procedure can be processed using electronic data
exchange. The first step to implement this type of data and
form management was creation of the Web application for
customs declarations, that has enabled participation of
importers, exporters and haulers. Every such declaration can
be submitted even outside of customs working hours, and is
formally and logically controlled before submission.
Further step in development of the customs informations
system was completed as a part of PHARE 2005. project
that has strengthened abilities of Croatian customs to
achieve alignment with EU standards. Three such systems
were subjects of development that ensured full compatibility
and interactivity with EU information systems [7]:
MIPRO 2014/DE-GLGPS 1775
1. TARIC (acronym for French TARif Intgr de la
Communaut) is a database of all customs fees related
to imports, exports and applicable tariffs dependent on
the tariff code of the goods
2. NCTS (eng. New Computerized Transit System),
necessary for insurance of transit goods, and
3. EMCS (eng. Excise Movement Control System),
required for efficient control of goods subjected to
excises (alcohol, cigarettes, fuels and electric energy).
Development of these systems was done in six stages and
three twinning projects. Execution of Phare 2005. project
started in September 2007. and was completed by July 2009.
Phare 2006. project had a goal to ensure full compatibility
and functioning of the information systems with customs
systems of the EU in the areas of customs tariffs, customs
transit control and export of goods subjected to excises.
One of the main results of the above mentioned projects was
the creation of Customs tariff application, which is shown
in Fig 1.
Fig. 1: Customs tariff application in Republic of Croatia


The customs has also created a procedure named Rules of
usage for electronic data exchange system and service
delivery of the e-business of Ministry of finance, customs
(e-Customs), that governs the basic principles for data
exchange and delivery of services of Ministry of finance,
customs and all users of the electronic date exchange
system, based on laws and regulations related to customs,
excise, taxation and official statistics. Since 1
st
November
2011., NCTS, the first electronic system of business
operations on the national level has started operating [8]. It
enables uninterrupted transit of goods under customs
supervision, and it is iat the same time the first interoperable
trans-European customs system. Development and
implementation of a fully functional NCTS system was one
of the main conditions EU Commission has assigned to all
EU member states, so Republic of Croatia has opted for its
own NTA (National Transit Application) that supports all
NCTS functionalities. With implementation of the NCTS
system, entered data is the only legally accepted evidence,
in comparison to old system where paper declaration was
treated as a legal warrant.
V. BORDER (MARINE) POLICE ICT
SYSTEMS
ICT systems used by the border (marine) police are specific
by nature. They have to adhere to the highest information
security standards, and use a number of legal,
organizational, logical and technical measures and standards
in order to protect information confidentiality, integrity and
availability. They are executed through five recognized
areas of information security: background checks, physical
security, data security, information system security and
business cooperation security). Implementation of these
measures ensures alignment with NATO and EU security
politics [9].
NBMIS (eng. National Border Management Information
System) is a new tool for efficient border control that at the
same time ensures flawless traffic of people and goods. It
was built by using EU CARDS program (project 2002.
NBMIS). The project that is enhancing this system has
started in 2010 and was completed at the beginning of 2012.
The goal of the project was to upgrade and expand
functionalities of the NBMIS application and develop a
mobile platform. New equipment was installed in 25
international border crossings (11 road crossings, 5 sea
crossings, 4 airport crossings, 4 railway crossings and 1
river crossing). The system operates by using the principle
of reading bar code on travel documents and enables police
officers to check the passengers in a quick and efficient
manner.
ANPR (eng. Automatic Number Plate Recognition) is an
additional subsystem that during the border crossing checks
whether the vehicle was stolen and whether it is properly
registered. The system takes a photo of the vehicle and
checks all data related to the vehicle. If some irregularities
are identified, the system will alert the police officer.
Another important system that will have to be implemented
is SIS (eng. Schengen Information System). SIS is a
database of European countries that stores information
about people and goods. The purpose of this system is to
safeguard national security, control borders and support the
rule of law. Second generation of the SIS (SIS II) will
contain warnings about people and objects and it will be
used by the border police, customs control and state bodies
issuing visas [10]. SIS II consists of the central system
(Central SIS II), national systems (National SIS II) in all
member states that will exchange data with Central SIS II
and communication infrastructure between central and
national system that will ensure encrypted data exchange.
Every member state has to provide a national S.I.Re.N.E.
office (Supplementary Information Requested at the
National Entries), according to preset conditions. The role
of these offices is consulting, notification exchange and
implementation of checks and safeguards in order to avoid
multiplication of warrants and priority setting.
Also, a manual was issued in form of set of guidelines,
general and special procedures that have to be followed by
authorized instances in order to exchange information about
entry or residence denials, arrests and extraditions, missing
persons, legal procedures, discrete and specific checks and
objects that have to be temporarily confiscated because they
might be used as evidence [11].
1776 MIPRO 2014/DE-GLGPS
VI. MINISTRY OF MARITIME AFFAIRS,
TRANSPORT AND INFRASTRUCTURE
ICT SYSTEMS
Ministry of maritime affairs, transport and infrastructure is
managing several information systems, whose purpose if the
oversight and management of the maritime traffic, its safety,
collection and distribution of the meteorological
information. One such system is the VTS (Vessel Traffic
Service), established in order to enhance traffic safety and
efficiency and protect sea environment. This system has to
provide information to all who participate in sea traffic in
the area of VTS surveillance. This role can be divided in
three different categories:
- provisioning of the information to ships in the area of
VTS (information services)
- provisioning of the assistance in navigation through
VTS area (navigational assistance services), and
- organization of the sea traffic in the area of VTS
supervision (traffic organization services)
VTS consists of a set of Croatian and international
regulations that ensure safe traffic on rivers, lakes and seas,
practically executed by VTMIS (Vessel Traffic
Management and Information Service). This service has
been put in the spotlight of the system by a law passed in
2008. Also, establishment of the VTMIS service was the
obligation of the Republic of Croatia, as a part of accession
process to the EU.
VTMIS is a complex technical and information system
whose purpose is to track, manage and organize overall sea
traffic. It consists of Coastal Automated Identification of
Ships System, VTS Radar System, maritime radio-
communication system and other systems that enable insight
in sea conditions and interaction with all involved
stakeholders.
Project documentation shows that VTMIS has to contain
one or both of the following elements:
- electronic data exchange and service provisioning
towards the immediate environment, region or remote
subjects (horizontal data exchange),
- electronic data exchange with other sea traffic subjects
officials (vertical data exchange).
VTMIS system is financed within PHARE 2006 program of
the EU in amount of 75 % of the total project cost. Republic
of Croatia has started VTMIS activities since 2004. In 2005.
and 2006. the first phase was successfully completed when
AIS system was put in service. This system is used to
automatically identify ships. Full coverage was achieved in
2006. by creation of five AIS base stations. In second phase,
additional 13 base stations were made functional and the
system has achieved total area coverage. Data collected by
VTS operators is forwarded to the police and customs, but
only the Ministry is operating the system.
AIS (Automatic Identification System) is based on SOLAS
convention [12]. It operates on maritime VHF band and
transmits static and dynamic route data. Static data is
entered manually, and it includes MMSI ship identification
number, IMO number, name and call sign of the ship, its
length and width, type, and antenna location. Dynamic data
is entered automatically, and it requires integration with
ships navigation equipment installed on the bridge. This
data includes ships position, course, speed, several sets of
technical data and navigation status. The purpose of AIS
system is ship identification, tracking assistance, simplified
data exchange and collision avoidance. AIS system is
primarily aimed towards enhancement of the VTS service.

VII. PORT AGENT ICT SYSTEMS

Port agents are shipping companys representatives and they
perform all formalities related to ship being in the port. Port
(shipping) agent is in fact a shipping companys
representative in seaports where the company does not have
its branch or office. Agent conducts all business in the port
on behalf of the shipping company. Port agents use
information systems which are usually based on
server/client technology. ICT equipment of the system can
be integrated in the port information system, so data and
information are distributed using standardized documents.

Agent information system consists of several modules or
databases:
- Docking database, contains data about ships docking,
from its announcement, to accounting and archiving,
- Cargo database, includes separate tracking of announced
and really performed offloading cargo operations,
including related data: operations, cargo type, units,
quantity, code and description
- Database of advances, contains data about requested and
paid advances with related data: date, obligated party,
requested amount, paid amount, type of payment, bank,
document number, date of payment, notification
- Database of ships, contains data related to the ship, its
code, flag, owner, port of origin and the following data:
Call Sign, Gross Tonage, Net Tonage, Deadweight,
Length Over All, Summer Draft, Max. Draft, Air Draft,
Vessel Type, Built, Capacity: Grain, Bale, TEU, IMO
No., notification.
- Code database, contains data about the flag according to
ISO standard, port according to UNs port code list,
information about cargo, currency, type of docking,
business unit and packing type
- Event database, contains all data related to important
events on the ship and in its surroundings that are
neccessary to create document called Statement of Facts:
date and hour of the beginning of the event, code and
description, responsibles, warehouses and notifications
- Database of costs, follows up all costs and accounting of
the ship and contains also agent costs that will be
transferred to the Disbursemenet Account.
- Business partner database, a database of all business
partners that work together with the agent.

Agent business information system usually has a graphical
user interface (GUI) for data entry and applications used to
print various documents that agent process produces, like
cargo and freight manifest, invoicing, credit notes, statistic
reports and other.
MIPRO 2014/DE-GLGPS 1777
VIII. PORT AUTHORITY ICT SYSTEMS
Port authorities in Republic of Croatia use several ICT
systems, where some of them (like VTS and VTMIS) are
very similar to those used by the relevant Ministry. These
systems are usually controlled from Port control centers,
that become centers in charge of traffic oversight
improvement and preventive environment protection.
Except VTS and VTMIS, systems used to control sea traffic
and ship communication can contain electronic charts
(ECDIS) over which data from radar systems and automatic
ship identification systems is integrated [13]. These systems
can be further upgraded by using communication radio VHF
system, meteorological data acquired from stationary
sensors and meteorological buoys, video surveillance of the
sea and port area using CCTV. All these systems are based
on TCP/IP protocol using different communication links
(telephone lines, ISDN, optical cables, broadband,
microwave and satellite links).
The main difference between port VTS and VTMIS systems
and those managed by the state systems is that they oversee
exclusively the seaport area, while state managed systems
are concentrated on sea ways and state see territory.
Efficient functioning of the seaport system is achieved by
development of information management tools that allow
seaport system management adequate support when
executing management functions. These systems are called
PMIS Port Management Information Systems. Such
systems are in fact composed of several information
systems: data processing and office applications,
information systems of external business units and
information systems related to the environment of the ports.
Management information systems enable communication
between different functions within port clusters, by using
the common database. Management reports is a separate
functionality inside PMIS used by the management to
extract information about business events and transactions
and to enable control of the past transactions and plan the
future ones. Using different data sources, it is possible to
analyze the balance sheets, cash flow, income and costs, key
performance indicators, trends, analysis of the reports
through several time periods, structure of the long term and
short term assets and debts etc.

IX. INTEGRAL BUSINESS INFORMATION
SYSTEMS IN SEAPORT CLUSTERS
Integral business information systems in seaport clusters
(Port Community Systems PCS) are focusing all
information, data and messages that are part of business
information systems of various stakeholders in the port
cluster. While individual business information systems that
relate to individual stakeholders process and store only data
and messages that are relevant for them, PCS can exchange
data that is useful for a wider number of users. PCS can be
defined as a system delivering information to supply chain
members operating in the port. PCS are used to deliver,
control, distribute and safeguard data. Its electronic platform
connects various information systems used by different
organizations that together make port community. PCS are
holistic, geographically bound information centers in global
supply hubs that serve interests of the heterogeneous
collective that consists of various business entities. Main
goal of PCS is to gather all stakeholders at a virtual table
and establish virtual coordination by providing exact
information about arrival and departure operations and
cargo loading/unloading.
It is possible to identify four different phases of introduction
of ICT and business information systems in seaport
communities:
1. Isolated port. Stakeholders operating within
seaport clusters are isolated, ICT systems are used
only for internal processes of individual
stakeholders.
2. Connected port. Introduction of ICT and business
information systems spreads outside boundaries of
internal cohesion and opens up to wider
community and users of port services. This is
achieved by usage of common Electronic Data
Interexchange (EDI) system used to exchange
documents and information.
3. Port community. ICT and business information
systems are connected with land transport and
shipping companies. New technologies like RFID
(Radio Frequency Identification) are being used.
Subjects of the seaport community are connected
by Web applications.
4. Globally connected port. This is the highest level
of integration and implementation of ICT
technologies in the seaport community. On this
level, all paper documents are replaced by
electronic documents, logistic management is
modernized, full integration with external subjects
is achieved and all cooperation between ports is
accomplished by using ICT technologies. This
phase of implementation usually uses RFID and
optical recognition (OCR) technologies, service
oriented architecture and solutions based on XML
(Extensible Markup Language).
Four different phases or development and integration of ICT
technologies in seaport communities and achieved level in
Croatian ports are shown in Fig. 2. [14].

Fig. 2: Phases of port community integration


Croatian seaports are currently between first and second
phases of development and integration of ICT technologies
in seaport community. There are two main reasons for this
state of affairs: partially, the situation is caused by lowered
investments in sea ports during 1980s, when ports in
neighboring countries were heavily investing in port
infrastructure and technology development. In 1990s,
because of war events, large portion of cargo was lost to
Isolated
port
Connected
port
Port
community
Globally
connected
port

1778 MIPRO 2014/DE-GLGPS
other ports. After the war, ports have started investing in
renewal of their infrastructure by using World Bank loans.
Implementation of PCS in Croatian ports is a complex and
demanding task that requires active cooperation of all
stakeholders in seaport clusters. The process of PCS
implementation has to be based on adequate standards that
will ensure efficiency, simple data and document exchange
and information security. This process also includes
implementation of relevant Data Classification and
Information Lifecycle Management processes and measures
for Disaster Recovery (DR) and Business Continuity
Management (BCM).

X. CONCLUSION
Seaport clusters bring together various stakeholders -
container terminals, customs, police, port authorities,
shipping companies and agents - each of them having a
complex set of different information systems serving their
own purposes. All this makes the interaction between those
systems very complex and elevates overall levels of the
integral risk. Different stakeholders in Croatian seaport
clusters had to implement various business information
systems in order to be compliant to requirements imposed
by the European laws and legislations. Majority of those
were funded by applicable EU programs and World Bank
loans. Due to lowered investments and recovery of traffic
that was lost in the past two decades, Croatian ports are now
in transition between isolated and connected ports, as the
first two stages in the creation of integrated port community
and eventually, a globally connected seaport system. Further
efforts should be undertaken to align Croatian seaport
business information systems with modern requirements
and therefore increase efficiency, productivity, decrease
costs and facilitate the underlying logistics chain.

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