In China, the companies that both operate container terminals and transport containers have their own information systems (i.e., electronic data interchange systems). However, subcontractors do not have such sophisticated computerized management systems and therefore they rely on other equipment to connect and communicate with business partners. The equipment provides the location and status of freight and containers. Some big carriers also have their own global positioning systems (GPS) and geographic information systems (GIS) to track their containers and vehicles.
China uses a Transport Management Information System (TMIS). It has the possibility of receiving advanced information on arriving containers, and within the next five to ten years, it will contain a multimodal waybill database for the transport of containers. In the next five years, a railway IT system will connect main ports and customs.
In the ROK, the transport and logistics information system can be divided into the government sector and the private sector. In the government sector, each ministry of government has developed various types of systems independently. The Port Management Information System (PORTMIS) was developed by the Korea Maritime and Port Administration (KMPA), known as the Ministry of Maritime Affairs and Fisheries (MOMAF) since 1996. Implemented in 1991, PORTMIS helps manage ships‘ entrances into ports, cargo transport in the port area, port facilities, the decision making, and other port-related issues.
The introduction of PORTMIS has served as a catalyst for promoting the information network among the relevant government ministries by reducing logistics costs and providing a paperless process. In 1991, the Ministry of Industry and Energy established the Korea Trade Network Company and developed the Korea Trade Network (KTNet). Under the purvue of the ROK Customs Administration, in 1997 KTNet began to electronically permit imports and exports, give customs clearances, and deal with financing for trading companies, shipping lines, insurance companies, banks, and other relevant parties. KTNet, the first electronic data interchange (EDI) system in the ROK, utilizes the Korean EDI for Administration, Commerce, and Transport (KEDIFACT) standards based on the EDI for Administration, Commerce, and Transport (EDIFACT) EDI standards developed in Europe.
The KMPA developed the Korea Logistics Network (KLNet) jointly with shipping lines, forwarders, and other stakeholders because KTNet did not provide cargo flow information to shippers and ports. In order to reduce the time and cost incurred in the process of exporting and importing, KLNet is providing EDI service to all logistics related firms such as shipping lines, forwarders, transport firms, inland container depots (ICD‘s), shippers, the Customs Administration and the National Railroad.
In addition, the Ministry of Construction and Transportation has established the integrated logistics network KTLOGIS, funded by manufacturing firms, transport firms, warehousing firms, and other key stakeholders. The first phase of the KTLOGIS development was completed in 1997, and the second phase was completed in 2000. The third phase will be completed in 2015.
The main services of KTLOGIS are EDI; the database system of import and export information (DBsystem), and commercial vehicle operations (CVO) for the key stakeholders.
At the present time PORTMIS is interconnected with KLNet by sharing the DBSystem. In addition to that, KLNet is linked with KTNet and with KTLOGIS by mediating the information.
Other ROK transport information systems include the Korea Railroad Operating Information System (KROIS) and the Korea Customs Information System (KCIS).
Information communication technology, especially the internet, has developed rapidly in the recent past with the private sector actively promoting electronic commerce. Most of the shipping lines such as Hyundai Merchant Marine, Hanjin Shipping Lines and Choyang Shipping Lines electronically provide their customers with ship schedules, cargo reservations, cargo tracking systems, notices of cargo arrival, and bills of landing. These private companies are competing with KLNet, KTNet, and KTLOGIS in the areas of electric commerce. Hanjin shipping line is allied with Cyber Logitech, an information and communication company, in order to facilitate quick decision making, to increase productivity and to provide inland transport services.
Companies such as The Korea Express, Samsung SDS, and SK also are operating logistics information services for their customers and are connecting their network with KTNet, KLNet, and KTLOGIS.
Table 2-18 Information systems in the ROK
Services Type and Description Current Trends and Development Plans
Commercial Vehicle Operations (CVO)
- Real time tracking service of vehicles and freight
- Vehicle operation management - Freight transport arrangement - Cyberspace logistic information - Weather, traffic conditions, map
information
- Used by 25,000 vehicles (less than 1% of total freight vehicles)
- Government will subsidize 50% of the purchasing price of CVO equipment to increase the usage of this service.
Electronic Data Interchange (EDI)
- Exchange information by logistic industry using standard electronic text data
- PORT-MIS service - KROIS Service
- Government: PORT-MIS (11 types), KROIS (5 types), and KCIS (39 types) - Private: land transport (6 types), sea
transport (26 types), foreign exchange (31 types), and insurance (4 types)
Integrated import/export logistic information
- Integrated database that provides information on freight status and location for efficient management of import/export freight
- Marine transport tracking service, air transport tracking service, and transport statistics service
- Logistic industry can receive
import/export logistic information service through the internet at KTLogis as of April 2000.
- Other government agencies also provide information on marine transport, customs, rail transport, seaport terminal (KLNet), and KTNet.
The main issues that have occurred in the process of providing logistics information are the complexity of the working processes and the variety of the interested parties. The first problem is the inadequate interconnecting capability of the service providers in collecting and managing the integrated information, which cannot be provided by individual logistics information providers.
The second is the deficiency of the connections within the information network system. The third difficulty lies in the huge difference between the service level of information systems among the logistics companies.
In order to overcome these problems, MOMAF will develop a Shipping and Port Internet Data Center (SPIDC) by 2005. The feasibility of the system is being studied by the Korea Maritime Institute. The construction of the integrated EDI network will include the utilization of extensible markup language (XML), introduction of an advanced logistics management system including a cargo tracking system, development of a standard program to connect the Application Service Provider (ASP) and Enterprise Resource Planning (ERP) system, and utilization of the existing logistics information system which has been used fragmentarily by each private company (see Table 2-18).