1 Forum on e-Business Interoperability and Standardization Digital Trade and Transportation Network Friday 14 May 2004

2 Digital Trade and Transportation Network u Background u DTTN Role and Requirements u DTTN Interconnection Example u DTTN Standards Group and the Way Forward

3 Background of DTTN (1) Chief Executive: Policy Address 2001 “Develop into a logistics hub to link the mainland with the world ….. development of an inter-modal system …. To speed up the flow of goods and information ….. strengthen HK’s competitive advantage as a supply chain base” Hong Kong Logistics Development Council (Logscouncil) 40 public and private sector members to “Implement logistics polices”, and provide forum for “Logistics Hong Kong” Supported by five project groups P hysical-Logistics, E lectronic-Logistics, H uman Resources-Logistics, M arketing-Logistics, S ME-Logistics

4 Background of DTTN (2) Accenture Report November 2002 “Study for the development of a Digital Trade and Transportation network (DTTN) system to support the development of Hong Kong as an international logistics hub” Project benefits of HK$11.8 billion from investment of HK$3 billion over 17 years Logscouncil April - July 2003 u Request private sector proposals for DTTN u Three proposals submitted u Recommends Government commences discussions with Tradelink with a view to Tradelink establishing the DTTN

5 The Role of the DTTN u Neutral, stable, reliable, state-of-the-art e-platform to facilitate HK / PRD, regional and global information flow and service integration  Stimulate innovative value added services  Catalyst to promote SME e-business adoption  HK e-logistics hub of choice  Improve competitiveness of Hong Kong

6 DTTN 3-Layer Model Value-added services such as multi-modal integration, distribution & transportation management Value- added Services Core Messaging Infrastructure Standards and Protocols Open, neutral, secure, reliable and shared electronic infrastructure messaging Local and international standards for security, trade documents, codes, protocols Layer 3 Layer 2 Layer 1

7 DTTN Core Messaging Infrastructure Community Role of the DTTN Sellers Carriers Carriers Portals -Inttra -GTNexus -CargoSmart Buyers/ Buying Offices Freight Forwarders Terminals Insurance Institutions Banks & Financial Institutions Inspection Agencies Value Adding Service Providers -Tradelink Regional/ Global Service Providers * Bolero * TradeCard * PAA Government & Agencies (via ASP) Document Exchange & Transformation Communications Gateway User Management Security Services Reporting Web Services ~53,000 import / export traders ~132,000 Pan-Asian traders

8 Business Processes Prepare delivery Establish sales / purchase contract Establish sales / purchase contract Obtain insurance coverage Obtain insurance coverage Process L/C Arrange inspection Arrange inspection Apply license/ permit/ certificate submit notifications Apply license/ permit/ certificate submit notifications Arrange / execute transportation (single or multi-modal) Arrange / execute transportation (single or multi-modal) Presentation to financial institutions Presentation to financial institutions Submit trade declaration Submit trade declaration Payment & receipt management Payment & receipt management

9 DTTNCo Core Services u Reliable delivery – local, China, globally u Encryption / decryption & signature verification u Documents / audit trails on-line for 2 years / off- line for 7 years u Document format validation and transformation u Core implementation of the DTTN adopted XML canonical format for 60 business documents in the 10 trade & logistics business flows

Business Documents (1)

Business Documents (2)

Business Documents (3)

Business Documents (4)

Business Documents (5)

Business Documents (6)

16 DTTNCo ’ s Facilitation for Trade or Application Service Providers u Trade Service Providers as Direct “Face” to customer –Agreement between Service Provider and DTTN (authorization, information access, interconnection, billing)  Single Window and Single Sign-On to all Trade and Transportation related Services & Service Providers via DTTN (SAML) u Seamless Integration with Web Services Integration –Authorization checks –Direct access to DTTNCo Information for seamless application integration into logistics service providers services (SOAP) u Core support for ebMS V2.0 and canonical XML formats to facilitate cost effective, reliable. guaranteed document exchange

17 DTTN Interconnection Example (Purchase to Delivery)

18 DTTN Standards Group 1. Define and recommend standards for adoption by DTTN and where appropriate their trading partner communities 1. Business related standards to facilitate information and application integration (i.e. document structure / format standards) 2. Protocol specifications 2. Representative of HK’s trade and transportation industry and their trading partners 3. Links with standards related organizations 4. Pragmatic, open approach

19 The Way Forward for HK ’ s DTTN 1. Appoint non-exclusive DTTN service provider 2. Define and endorse standards 3. Confirm interest of potential DTTN participants to assist in defining specifics of DTTN pilot services 4. Develop and implement the DTTN 5. Implement DTTN Interconnections by Logistics Industry

20 Spearheading Hong Kong's Development of Electronic Commerce