1 ICT for Transport and Logistics Competitiveness Maurizio Campanai - Regione Emilia Romagna Stefano Dondi – Institute for Transport and Logistics

Outline ITS for transport, why ? ICT and ITS Projects in the area of Freight Transport The European Context and European Transport Policy The challenge of involving SMEs in multimodal transnational freight transport Conclusions

ITS and Freight Transport, why ? New requirements Timely and correct information is a vital part of any transport and logistic solution Internal ICT management systems are developing rapidly Advanced Information exchange between organisations is still complicated “Standardised” solutions are missing –Technology is not the major issue –Organisational and commercial issues are critical Advancing inter-organisational communication requires some basic “rules of the game” - interaction infrastructure – to support the physical infrastructure Providers of such interaction infrastructure are/could be: –Standardisation bodies & European/national initiatives

ITS and Freight Transport: Why ? Reduce congestion –25% of traffic due to freight distribution Improve Quality of Life –Reduce pollution (> 40% of PM10 and NO.x) Improve efficiency –Business sustainability (against “diseconomy”) –timely and useful information exchange between supply chain partners (stakeholders) –exchange of information between public and private organizations (statistics). Enhance safety and security –ensure that critical information is captured and disseminated to the appropriate facilities and organizations.

Why ITS for transport? ICT and ITS projects in freight transport The European Context and European Transport Policy The challenge of involving SMEs in multimodal transnational freight transport Conclusions

In e-Freight e-logistics –ICT services applied to production, transport and distribution e-freight –Components of e-logistics correlated to transport of goods e-freight/IATA –Part of e-freight correlated to air transport of goods e-maritime –ICT applied to maritime transport e-navigation –e-maritime – management of navigation

e-Freight and e-logistics: The development of interfaces between the different modes of transport in terms of interoperability Definition and promotion of the one stop- administrative shopping, with a common approach for all the transport modes Unified standards about e-documents and electronic flows (EDI, XML, etc) Once identified, act accordingly.

ITS, ICT and Logistics FREIGHTWISE (Management framework for intelligent intermodal transport) -- DG TREN EURIDICE (data acquisition, data analysis, )--DG INFSO SMART-CM + INTEGRITY (door-to-door container management / secured lanes)--DG RTD Good route (Dangerous goods routing and monitoring) –DG INFSO; SMARTFREIGHT (ICT in urban area)--DG INFSO Marnis in support of eMaritime initiative—DG TREN. SHORTSEA XML (Standardised Messages for Door-to-door Shortsea Based Logistics Chains)-- Marco Polo Chinos (Container handling in intermodal nodes)—DG RTD KOMODA (supports an e-Logistics platform; open standards, ems and future developments)--DG RTD Good road (urban freight systems)--DG RTD MOSCA (decision support systeM for integrated dOor-to-door delivery: planning and control in logiStic ChAins) …….

Expected results T&T capabilities should not be based on the transport mode –Standardizaztion of the information related to position and unit of transport Electronic flow (paperless) of information associated with transport and logistics activities "secure" management of the information flow to customs and other business partners Practical solutions and best practices about adoption of tecnologies (RFID, GPRS,...) Assure interoperability among modes with the development of mode-indipendent platforms. Facilitate integration of sea transport and other modes (e-maritime)

Outline Why ITS for transport? ICT and ITS projects in freight transport The European Context and European Transport Policy The challenge of involving SMEs in multimodal transnational freight transport Conclusions

European Transport Policy White Paper on European Transport Policy (2001) –Recognizes the hughe upsurge in traffic in towns and the related problems of pollution, congestion and safety –Principle of subsidiarity: Comission confines itself to promote good pracice White Paper Mid-Term Review (2006) –Green Paper on Urban Transport (2007) to identify added value for local initiatives at EU level Strategy on the Urban Environment (2006) –Importance of high quality urban areas in delivering the objectives of the EU Lisbon Strategy –Transport plays a key role in the sustainable development of cities –The commission stronlgy recommends local authorities to develop and implement Sustainable Urban Transport Plans (SUTP) –SUTP concept developed by Expert Working Group on Sustainable Urban Transport Plans (2004)  Urban Transport is a priority for the EU Commission in 2007  "Action Plan for the Deployment of Intelligent Transport Systems in Europe”, (2008)  Action Mobility Action Plan (2009)

Why ITS for transport? ICT and ITS projects in freight transport The European Context and European Transport Policy The challenge of involving SMEs in multimodal transnational freight transport Conclusions

Producer “Raw materials” Customer Producer “Raw materials” Customer Ambition in Multimodal Transnational Transport Letting compete with involving SMEs as users and service providers

Barriers to more sustainable multimodal- intermodal-comodal Transport Chains High complexity of intermodality due to number of players, including SMEs Lack of agreed standards in freight transport operations Lack of interoperability (business and technical) between operators and their systems Lack of communication interfaces Low market transparency (visibility of services and evaluation of alternatives) Lack of compatibility of ICT systems with the in- house systems and monitoring technologies and devices 14

A need for transport chain management 15

Internet for Travel

OpenTravel Architecture Freightwise: Decentralised reservation system Freightwise “Architecture”

Implications More Interoperability Need for standard definition of Transport Service

How to respond to challenges? StrategyAction To promote of modal shift of cargo from road to intermodal transport Creation of an open market for cargo (e-Freight) To improve cost-efficiency of the European freight transport industry Transparency of services and prices improving information access To improve coordination between operators Solutions for operational and technical interoperability To harmonise regulations from different EU countries Production of a reference framework for freight transport operations in EU. 19

The Freightwise solution Freightwise project ( ) by EC under the FP6 It identifies: roles (to be performed by actors); agreed processes along the transport chain; shared standard messages and information flow; ICT platform for communication between operators with communication interfaces. Reference framework architecture involving operations and standards from all transport modes

21 3 Business phases Planning Execution Completion 4 Roles Transport User Transport Service Provider Transportation Network Manager Transport Regulator Standardised functions Standard messages: Information Packages The Freightwise Framework

Information flow between companies 22 Companies exchange Information Packages (as XML files). TSD – Transport Service Description TEP – Transport Execution Plan TES – Transport Execution Status TOS – Transport Operation Status TNS – Transportation Network status GII – Goods Item Itinerary Transport User Transport Regulator Transport Service Provider Transportation Network Manager TEP TES TNS TOS TEP TNS TSD GII A software tool allows actors to send/receive IPs.

Added value of Freightwise  Open market for intermodal transport, based on transparency.  Transport Service Providers publish their services (makes them available on the Internet)  Transport Users search among them.  “Publish” and “Search” are realised by means of 2 standardised Information Packages: Transport Service Description (TSD) and Transport Execution Plan (TEP). 23 SW Publish Search

Examples of implementation Freightwise creates an open market (Internet for Cargo). 24 This requires technical interoperability: how? Transport User searches for transport services Transport Service Provider publishes transport services Transport services available

Communication using Web Services 25 TSP and TU interoperate thanks to a third party. 1.Transport Provider (TSP) publishes his services in a Repository 2.Transport User (TU) is informed about the “web” services (where and how to find them) 3.TU searches the services that meet his requirements 4.TSP and TU can communicate.

Communication using P2P 26 1.T.U. specifies its transport needs -> (generic) TEP; 2.T.U. searches transport services (in the form of TSDs) published by T.S.P.; 3.T.U. finds the sequence of TSDs that satifies the initial TEP; 4.T.U. negotiates conditions of each TSD with its T.S.P. 5.Booking of each transport service.

2 - Communication using systems interfaces (connectors) This allows interoperability of freight management systems. 27 The operators develop an application to use the IPs. It may include specific interfaces for IT systems or it can be a simple web interface or a GUI.

Web interface TSDTEPTES FWF interface FWF interface connector Validate FWF compatibility TIS Systems interface TSDTEPTES XXXYYYZZZ Existing system, e.g. INTTRA, SAP, … Freightwise connectors (sample diagram) FWF interface FWF interface connector Validate FWF compatibility Mapping and Transformation Systems interface connector System specific information objects TIS FWF community Providing connectors to: Inttra Oracle SAP …

FWF Connectors

Interaction Infrastructure Supports communication and cooperation Defines some basic principles, rules of the game and/or a “language” For information which is agreed on to be important enough to be subject to common definitions, formats and quality. Does not consider the information content “Someone” has to take responsibility for the establishing and maintaining the interaction infrastructure and facilitate the agreements 30

Physical transportation PolicyStandardisation bodies ITS Guideli nes Hard Infrastructure Soft Infrastructure Green corridors Freightwise as a Soft Infrastructure

ITS for Developing multi-modal logistics cooperation Priorities for the adoption of ICT and ITS systems  Foster a multimodal logistic cooperation to meet the requirements of economic development  establishing cooperation among logistic centres and networks  developing Information and Communication Technologies (ICT) for cooperation in logistics  putting cooperation between inter-modal and logistics platforms into practice  implementing multi-modal logistic solutions

ICT and alternative solutions for enhancing access promoting ICT for access to and provision of public services using ICT as an instrument to reduce transnational traffic (e.g. video-conferencing, websites, supply-chain-management…) applying ICT to develop efficient traffic management systems and traffic information systems of transnational freight transport flows improving the access to infrastructure and services of general interest with alternative solutions to enhance personal mobility

Co-opetition  Sharing vehicles, warehouses & distribution centres  Increase load factors & decrease dead running All schemes require ITS for successful implementation

Technology as a driver Information & Communication Technologies (ICT) ITS for Commercial Vehicle Operations (CVO) –2 ways Communication Systems, Automatic Vehicle Localization (AVL); –GPS Supply Chain Management (SCM) –EDI; ERP; MRP; RFID Large amounts of real-time information on state of system at lower cost Technological

The impact of Technologies Costs of technology: –the total amount of money invested to design, realize, implement, and sustain the Urban supply chain Technologies ?: ICT solutions, Advanced Warehouses, Intelligent gates, RFID solutions, Delivery Certification, Green Vehicles, ICT Interoperability, T&T, …… Benefits of a technology are the positive monetary gains on the supply chain actors, including: Cost savings resulting from improving processes Cost savings resulting from eliminating activities Reduction or elimination of miscellaneous costs such as customs fees, pilferage, etc.

Shippers Want Automated Coordination Real-time status of orders from the time a Purchase Order is issued until product is delivered Visibility, accountability, flexibility, efficiency, performance monitoring An Open Information Sharing System with a secure exchange of data to support/facilitate decision making

ICT: The Situation Today for SMEs Integrated solutions are only available in closed systems Manual Inputs are required to support sharing of data

Conclusions/1  There is the need for the creation of an open market for cargo based on transparency and easy access to information.  Support to the easy implementation of intermodality by means of a cross-modes framework architecture.  Interoperability between operators (operational) and their systems (technical).  Information electronically exchanged.  Standards valid for more transport modes.  The FWF is being tested in a number of Business Cases and Guidelines to the use of FW solutions are being developed with final users involvement  Configuration Guidelines  Interfacing Handbook  Business Guidelines 39

Conclusions/2 ITS are becoming popular Transport planning is mainly focused on passenger transport. Freight transport is a significant threat and needs a higher policy and action priority The involved actors in freight transport should not ignore the problem but need to realize that they are part of it. –Knowledge and awareness rising for freight transport in multimodal transnational transport –More focus on evaluation and dissemination of ITS solutions –Failure projects and underlying reasons should be presented as frequent as the successful ones. SMEs are part of the strategy: their involvement in the e-logistics area of competition is matter of competition of the production companies at European level. Promotion of transport services, e-logistics and global standard for SMEs is required to have more involvement of actors in transport and logistics initiatives.

...THANK YOU 41 Stefano Dondi Institute for Transport and Logistics Foundation phone: Maurizio Campanai Regione Emilia-Romagna