Interim Report on

Cutting Cost and Time in Maritime Container Transport

Maritime Experts Group

23 May 2006 Hanoi, Viet Nam

27th APEC Transportation Working Group Meeting

Q1: Which organizations are taking measures?

　Central Government

Port Management Bodies

Terminal Operators

Shipping Companies

Others

Australia ○ ○ ○ 　 　Brunei 　 ○ ○ 　 　Chile ○ ○ ○ ○ 　Japan ○ ○ 　 　 　Korea ○ ○ 　 　 　Peru ○ ○ ○ 　 　Russia ○ 　 ○ 　 　Singapore ○ ○ 　 　 　Chinese Taipei ○ ○ 　 ○ 　

Q2:What actions are taken for cutting cost & time?

Australia-Cost-•Opportunities for Competition in Stevedoring•Accommodate Larger, Efficient Vessels•Expand Existing Facility•Removal of Impediments to 24 hour, 7 day Operation•Allocate Governmental Funds for Port Projects•Ensure That Ports, Roads & Railways Related is a Priority in Regional Plans•Enhance Rail Access

Australia (Continued)

-Time-• Increase the Port’s Capacity

• Enhance Rail & Road Access

• Reduce Road Congestion

• Coordination of Activities in the Freight Chain

• Secure Appropriate Service Levels through Agreements with the Port Authority

Australia (Continued)

-Time-• Greater Use of Technological Improvements

in Cargo Handling in Terminals

• Create a Seamless Freight & Logistics System

• Use Information Technology to Improve

Logistics-Chain Performance

• Create Real Time Tracking of Hazardous Cargoes in the Port

Brunei

-Cost-• Revise the Port Tariff and Incentives

• Joint Venture

-Improvement of Quay Crane Performance

Reduce Ship Berthing Time

-Time-• Introduce Computer Integrated Terminal

Operating System

Chile

-Cost & Time-• Conversion of State-own Ports to Independent

Companies →　 20- year Concessions　 BOT, Lease Contracts, JV

• Competition between Chile’s Top Two Container Terminals

• Invest in New Equipment and Technology

-15 m Berths, Gantry Cranes, Gate

• New Shipping Lines Reduce Freight Rate

Japan

-Cost & Time- “Super-hub Ports”• Promote IT Utilization

• Integrate Berth Operator

• Allocating Budgetary Funds for Important Structures (Deep Berths etc.)

• Offer Low Interest Loans for Quality Equipment (Vehicle Management System)

• Semiautomatic Cargo Handling System

• Automatic Gate System

Japan (Continued)

-Cost & Time- “Super-hub Ports”• Tax Exemptions for the Private Sector

• Tariff Discount for Heavy Users

• 24 hour Operation

Korea

-Cost & Time-• Increase the Scale of Logistics Facilities

• Reform Labor Union System

• Introduce RFID System, Web Based EDI System & Single Window System

• Cut Lead Time 1-3 Days in FTZ (Distripark)

• Merge Container Terminal Operator

• Custom Service Improvement Such as “Total Custom Clearance System”

Peru-Cost-• Introduction of Private Investments Partnership Participation, Concession Contracts etc.

• Modernization & Renewal of Equipment• Container Clearance at the Arrival Point-Time-• Coordinate Related Authorities to Reduce

the Time for Arrival (4 → 1 hour) • Electric Transmission of DATA prior to

Ship’s Arrival• Coordinate Vessel’s Arrival

Russia

-Cost-• Minimization of Port Charges• Reduction of Customs Duty Regulation

-Time-• Provide Efficient & High Quality Cargo

Handling• Cutting Time of Customs Procedures

Includes the Use of EDI• Construct Logistic Center and Provide

Permanent Freight Traffic

Singapore

-Cost & Time-• Reduce Port Due

• Provide Sufficient Capacity to Meet Future Demand

• Introduction of IT System and a Single Integrated Platform

Chinese Taipei

-Cost-• Build Port Facilities via Joint Venture, BOT• Tax Exemptions and Low Interest Loans to

Private Sectors• Volume Discount for Heavy-users• Upgrade of Handling Equipment• Flexible Rates• Set up a Free Trade Zone to Simplify

Administration Procedure

Chinese Taipei (Continue)

-Time-• VTS (Vessel Traffic System), CCTV

• Widen External Road Link

• Automatic Gate System

• Automatic Container Terminal

Cutting Cost and TimeImprove Operating Ratio 24hour 7day Operation Volume discount Flexible Tariff Coordinate Ship Arrival Shorten Custom Procedure Advanced Custom Clearance

Improve Port Productivity Accommodate Bigger Vessels Expand Port Facilities Improve Road & Rail Access Modernization (Install Cranes, Improve Terminal Operation) Integrate Operator (Operation Cost Cut) Automatic Terminals Automatic Gates

Construct Infrastructure, Install IT Equipment

Private Participation Install Legal Scheme (JV, Concession) Opportunities for Competition Secure Operation Level through Concession Reform Labor Union

Governmental Support Fund for Infrastructure or IT Equipment Tax Exemption, Low Interest Loan Other Incentives

Improve Freight Chain Logistics Seamless Chain FTZ Use

Proposal of Joint Study –Korea-

• Major Obstacles Which Prevent Seamless Container Flow in Individual Economies

• Compare Logistics Process from Port to Shipper’s Door and Reverse