PMAESA Port Congestion Consultative Meeting Mombasa Date: 25/09/2008

Port Congestion’s Other Face  Immediate focus is usually on quay side and in-terminal operations  Limited maneuvering room for getting cargo out of the terminal  Off-port yards are a costly, difficult solution  Coordinating truck operations with cargo availability is key to immediate improvements  Hence, NAFITH TCS…

NAFITH Profile  NAFITH (National Freight Information and Transportation Hub) is a freight transportation logistics service to facilitate cargo movement countrywide  Concept developed by FreightDesk Technologies (USA) and Nafith Logistics PSC. Jordan  Has been adopted by Jordan through a Public – Private Partnership with Nafith Logistics PSC., operated as privately-funded, publicly-chartered utility, financially supported by users and beneficiaries

How TCS Started  Jordan Created Aqaba Special Economic Zone  ASEZ Authority privatized the only Container Port  Congestion and chaos continued to prevail  Clearly, more reform was needed to span the transport cycle, outside all of the ports

5 More than 2000 truck transits per day Recurring congestion problems in Aqaba city and at key port terminals Long, indeterminate wait times causing 3x longer roundtrip times than necessary Poor coordination between trucks and terminal activities Limited shipment status visibility for government and cargo owners Pollution and disruption of popular tourist areas (exhaust/noise/traffic) High truck transport costs No performance measurements The Situation Government support and legal authority required for improvements Pervasive corruption problems Incumbent trucking cartel resistant to changes to status quo Limited use of computer- based systems in transportation sector Limited infrastructure to support 24x7 operation of computer systems The Challenges ASEZ Truck Movement – Before NAFITH

Before NAFITH TCS

Need for TCS  De-clogging ports and roads congestion  Deregulation of legacy queuing system  Controlling flow of trucks through key corridors to various border exits/entries  Decreasing unnecessary truck traffic in the city of Aqaba  Regulating truck movement in the ASEZ

Other Objectives of TCS  Enhancing security and safety in the zone  Decreasing truck emissions and pollutants  Decreasing cost of freight from and to ports  Abiding by the regulations of MoT  Providing information on transportation and freight nationally

NAFITH TCS Inception  High-Level Business Process Design Dividing the Zone into Five Entry/Exit Points Four Marshalling Yards that feed into 39 Destinations Operating all locations with entry/exit Operators Developing entry Rules and Procedures

Main Stakeholders  Ministry of Transport  Port Authorities  Terminal Operators  Customs  Trucking Companies, Truckers  Border Control Authorities  NAFITH

Yards – after TCS

13 INTERNET Truck/cargo status Billing/payment info Request entry & route Time & route assignment Verify truck, driver, route, cargo Provide truck ticket with routing instructions Track truck enroute and at marshalling yards Record cargo pickup at terminal Record truck exit Nafith Truck Control System FDfolio™ Government of Jordan Regulatory compliance and status reports Truck Company Manager Dispatcher ASEZA Truck Movement – The Solution Electronic validation and compliance checks

TCS IT Systems  Automation of Business Flow implemented by NAFITH Developing a Web Based, Multiple Language system, including Arabic Automated and manual capture of detailed logistics event data across cargo and vehicle movement life cycles Flexible management of Capacity of the marshalling yards, destinations and roads through Advanced Queuing Algorithms Verification of Trucking Companies and Availability of Cargo through integration with MoT and National Customs Creating an easy-to-use matrix of adding/removing destinations and roads on a need basis Complete Transparency and Control between ground operation and administrators An information Hub to retrieve Statistical Information on truck flow within the ASEZ through an extensive reporting module for future projections (congestions areas, truck turn over, truck flow, … etc) High Volume of Transactions and Large User Base

Logistics Event Capture  Screen based entry  System to system integration  RFID  GPS  Barcode

Detailed Operational Data

Planning Statistics

18 Avg permits daily/18,000+ daily events Validates truck, driver and cargo information and routes traffic to reduce congestion and enhance security Freight rates dropped 20% due to improved efficiencies and trucking company profits rose Transparent, automated system removes manual decisions thereby reducing corruption Improved visibility of information used to support cargo tracking, equipment/driver utilization and regulatory compliance Fully localized user interface Requirements gathering began mid-August; system operating three months later by mid- November 2005 Received 10-year services contract to operate business and manage 200 people and IT systems ASEZA TCS – After NAFITH

National Impact of TCS  Quantum increase in transport efficiency Terminal operators focus on terminal operations Coordinated moves, e.g. drop off/pick up, on the rise With TCS, regulators are removing operational constraints on trucking companies System keeps traffic moving with seasonal and other spikes in volume  Data from TCS facilitates better short and long term planning  TCS can give priority to strategic supplies, e.g. fuel, grains, when necessary  Better environment with less pollution  Improved road safety and incident management

Enhancements Underway  Pre-notification of containers and shipments  Coordination of express permits  Appointment system for containers and bulk cargo, enabling stakeholders to have longer term planning  Terminal operator staff planning for overtime or higher than usual loads  Implement RFID network and tags to capture events more efficiently  More timely information for all stakeholders (clearing agents, truck companies, shipping agents, and ports)

NAFITH: Conclusion  TCS in Jordan, like PierPASS in Los Angeles and GEM in New Orleans, is leading the way to improve truck logistics around ports  NAFITH is well-suited to implement solutions that can work in the cargo transport environment in East and Southern Africa  Our experience with coordinating and monitoring transit cargo can enhance services to land-locked countries  NAFITH TCS approach can increase capacity without major new physical infrastructure