The productivity improvements from TradeNet have been significant.

The turnaround is much fast, and we can speed up the movements of shipments to our costumers. There are also major logistics improvements. For example , we used to have to send clerks as couriers with documents to various offices here, at Changi International Airport, or downtown. Now there is no need to. The clerks do not have to wait in line and are always here in the office. This saves a lot of time and means better deployment of our staff. Also, weve been able to make better use of our trucks. Fast turnaround makes it possible for us to organize shipments onto outgoing trucks. Mainly, we benefit from improved service to our customers, more effective control of trucks and equipment, and of manpower resources. As a result, we experimence higher productivity in our operations. TradeNet has become a key part of our operations. Great Expectations While formal analysis of the cost impacts of TradeNet for subscibers have yet to be performed, several freight forwarders report savings of 25-35 percent in handling trade documentation. Expectations of benefits by TradeNet subscibers are significant. They are indicated by the experiences of Merchants Air Cargo, Pte. Ltd, a freight forwarder based at Changi International Airport. MAC has been an innovator in the use of computers for its operations for several years. By 1984 it had computerized most of its back office functions (accounting, statistics, etc.) using a NEC ASTRA minicomputer. Its software was custom-built by an outside contractor, but over time it took all system support activities in-house. In 1985 it embarked on computerizing significant aspects of its operations, but since most transactions involving shipments were tied to outside entities that were not computerized, the full potensial of computerized operations was difficult to realize. MAC was a participant in TDBs Trade Dial-Up Experiments in 1986-87, which confirmed the potential of computerization of trade documentation functions and MAC served as one of the exemplary site for development of the requirements described in the Air Community Subcommitte report. MAC continued to develop its in-house computer capabilities during the period when TradeNet was being constructed. It expanded its minicomputer system, and installed new terminals that gave it a terminal-to-employee ratio of 1:2. When TradeNet went on-line,MAC sent the first transaction over the system. Mr.Joseph Low,president of MAC, characterizes the potential of TradeNet for his company and for his industry: TradeNet really makes our bussiness work more effectiently. It is a 24-hour per-day system, which is a big improvement over having to work through offices that are only open eight hours a day. We can integrate our operatons now. For example, we can ge information on an incoming shipment prior to the arrival of the aircraft it is on, submit the documents, get the shipment cleared, and meet the plane with all th finished document s in hand. We can get shipments to the customers very quickly this way. Also, we can clear whole collections of shipments in a single transaction, which speeds things up. And we can consolidate shipment s on our trucks, which saves time and money. We also save money by not having to send people out to stand in line in queues, waiting to have documents cleared. Since we are computerized in our own operations, we are also save money and time by automatically completing most of the TradeNet documentation using information already entered in our own system. Between 60 and 70 percent of the information required for each TradeNet submission is automatically transferred from our own system each time we prepare

documentation forms. When the additional capabilities for banking and insurance interactions are installed, the benefitswill be greater. Even now, we are completely dependent on our systems. A couple of months ago we had major power failure here, and the system were all down. Everyone sat around, unable to work. But i dont mind that. The payoffs are worth it. The expectation of benefits for the subscribersis matched by the benefits to the various government agencies and statutory boards that use the system. For example, Customs and Excise has found TradeNet to be a major adjuncct to its operations. As Customs and Excise Director General Lee Yew Kim Expressed it, TradeNet is part of our larger scheme to improve performance through use of computers. Our earlier computerization efforts made our important procedural reforms work to our advantage. We were able to turn Customs and Excise into an agency that helps speed up trade, not slow it down. For example, we went from a procedure of post-approval of aplications to pre-approval. Duties are now prepaid and post-approval checks on an audit basis are then made. Violators are subject to penalties, such as fines and their subsequent whipments are inspected. This makes them uncompetitive, so he responsible companies never even try to avoid customs checks. This procedure change improved throughput dramatically, but most important, it made it possible for our computers to interface directly with TradeNet. We are also using TradeNet as the vehicle for payment of customs duties, which means we get paid much faster. Only a fraction of the traders are paying via TradeNet now, but his will grow rapidly. Benefits to the TDB, the clearinghouse for trade documentation in singapore, have been substantial in both direct and indirect ways. TDB CEO Yeo Seng Teck summarized the short-run and long-run benefits this way: We havent done a detailed study of the benefits yet, but the system is clearly a success. We have about 50 percent of transactions going through the system now, and we expect to have 90 percent by the end of 1990. Well cut over to use of TradeNet for almost all transactions around that time. The local benefits of TradeNet are very nice, but the big payoffs for us are international. TDB is not a trade control angency; it is a facilitator. We are trade promoters. TradeNet facilitates trade. It makes easier to do business in Singapore. That draws foreign investment to our economy, and makes us competitive internationally. We are very happy to say Hong Kong is now looking to us for inspiration. TradeNet, in conjuction with information systems innovations in the port and airport,permits faster total turnaround for ships and aircraft. For example, the Port of Singapore Authority has installed sophisticated computer-based systems that facilitate registration of incoming vessels to port facilities (e.g., container cranes), optimization of off-loading and on-loading sequences, and discharging of vessels that are ready to leave. Similarly, systems have been installed to facilitate movement of cargoes within the free-trade zone, into and out of customs warehouses, and be