The Future Of Container Terminal Software – 2012 Final Version
- 1. The Future of Container Terminal Software – 2012 and Beyond The Next Generation Solutions and the Benefits for a “IT One Stop Shopping Experience” 1
- 2. Key Objectives of this Presentation To highlight the changing face of the existing Technology available to the Container Terminal sector and to look at the Next Generation Solutions that will help drive greater efficiencies whilst delivering maximum financial returns and tighter asset control across the terminals operations. 2
- 3. The Current Trends Container Terminals in today’s climate are facing daunting times with Liner Operators demanding change and greater flexibility in the services they are offering Shipper clientele (exporters / Importers). Terminals have to adapt to these changes and mould new techniques to meet the changing market conditions. Container Lines are deploying the ultra large container vessels (13,000 – 18,000 teu (+) which bring significant pressures on the container terminals. Growing pressure to maintain vessel turn-times and reduce delays for calls are driving factors in towards greater efficiencies. Terminals are facing environmental restrictions which will have an impact on both operational activities and expansion.. 3
- 4. The Current Trends The Next Generation Vessels are being deployed are creating their own unique issues for the Container terminals that serve them . The Terminals need the ability to plan for the future with growing throughputs necessitate optimal layouts to achieve future success. 4
- 5. Ever Increasing Vessel Capacities 5
- 6. The Current Trends Container Terminals restrictions on TEU capacities creates greater demand for tighter control and better management of space as well as effective handling and processing of every unit that passes through the facility. Container Terminals are busy places and the demand for efficiencies is paramount to the operator’s bottom line results 6
- 7. Terminals Seek Advantages Terminals have to maximise resources and assets and are continually planning for maximum throughput and efficient cargo processing. 7
- 8. The Current Terminal Trends Terminals are also under pressure to perform and provide a stable and sustainable rate of return for their Investors. Productivity and container through- puts are the name of the game. With every element of the business being measured to achieve this end goal. Some existing Terminal facilities are facing potential issues with expansion with the following factors coming into play :- Environmental Restrictions Physical Land Restrictions Financial Capital Restrictions Land Side Capabilities 8
- 9. The Current Trends Global Carriers are looking for lower rates and better service levels from their terminal Operators. This ever increasing pressure is driving terminals to adopt newer methods for theircontainers operations. New Handling Technology, Software and Effective Planning are the answers for the Terminals Management to consider 9
- 10. Current Trends in Technology Traditional ERP Software Suite Terminal Human Purchasing Resource and Management Allocation Commercial and Contract Financial Management ERP Operations 10
- 11. The Current Generation IT Solutions Terminal Design Resource Yard Allocation Planning Central Core RFID and Equipment Real Time Planning Tracking Equipment Maintenance 11
- 12. Current Solution Overview Key Solution Providers Terminal Design Terminal Human Purchasing Resource and Management Allocation RFID and Yard Real Time Planning Tracking Commercial and Contract Financial Central Core Management ERP Equipment Operations Maintenance Operations Equipment Planning ORACLE / SAP ERP SOLUTIONS 12
- 13. Terminals Optimal Solutions Advanced Planning Modules can help terminal Operators assess the layout and land utilization of a new Green Field Site. Or to analysis yard configuration of existing Planning Models can terminal facilities. be presented in a 3 dimensional level which allows for the Terminal Operators to work out the best configuration and utilization of handling equipment. 13
- 14. 3 Dimensional Planning Software Flexible Planning Software can provide the capabilities for Managers to visualise the acreage available and thereby achieve the best terminal utilization. 14
- 15. Conventional Terminal Layout 15
- 16. Terminal Operations Financial Export and Booking and Billing and Import Vessel Commercial Documentati Administrati Cargo Operations Agreements on Process on Processing Processes SOFTWARE FOR MANAGING ALL ASPECTS OF VESSEL CALLS , COMMERICAL AND FINANCIAL AGREEMENTS AS WELL AS EVERY COMPONENT RELATED TO THE EXPORT AND IMPORT CARGO PROCESSING. THERE ARE A NUMBER OF LEADING PROVIDERS IN THIS FIELD WITH THE BEST COMING FROM CALIFORNIA. 16
- 17. Advanced Terminal Planning Solutions Planning the Terminals Yard space is a critical element for any operator. The Worlds leading Solution provider offers vessel stowage planning solutions for the export and import cargo. Precise planning on which containers are destined for each port of call allows for the Terminal Planners to pre-allocate slots and space within the Products like Expert Decking from the Worlds terminal as well as the Leader have been fundamental in allowing ship they are destined to maximum effective yard stowage of containers load. The discharge and load sequence are all calculated by patterns have helped turn advanced algorithms vessels and prevent 17 potential delays.
- 18. Terminal Equipment Planning Handling Equipment used within a terminal is the second largest capital investment after the terminal construction and associated land costs. Quay Cranes averaging US$5.0 million dollars , average Prices of Straddle Carrier can be in the region of U$750,000 and an RTG can be close to US$1.6million dollars. Every mile or lift these machines make equates to a cost or a revenue for the terminal. Software from the Worlds leaders can help maximize the asset utilization, reducing dead lifts /moves and maximizing effective usage of the terminals equipment . Planning can help prepare the load sequence and optimize on the physical moves to and from the quayside. Round trip of assets preventing deadhead moves reduces Co2 emissions and provides better returns on equipment utilization. 18
- 19. Terminal Equipment Maintenance Straddle Carriers Front ATGS Loaders Central Maintenance Software Quay RTG Cranes Yard Hustlers 19
- 20. Terminal Equipment Maintenance The ability for the software to track and schedule all repairs and service downtimes, this Consumable must be linked to the Engine and Terminals Planning Modules Materials Mechanical thus making certain that scheduled maintenance is performed during no critical times of the week / month. To Frame and prevent potential delays to a Structure vessels ETA and ETD. The Ability for all spare parts to be linked thru to the central ERP solution for ordering and purchases. 20
- 21. Terminal Equipment Maintenance Market Leaders VMC have designed a unique asset tracking software for the use of tyres on any moving equipment. 30% savings have been achieved through its deployment. 21
- 22. Terminal Equipment Maintenance MES HYSTER All Main Manufacturers provide Software for the maintenance and servicing of the equipment at KALMAR the point of sale, although most manufacturers will LIEBHERR provide a preventive maintenance service during ZPMC the warranty period of the machinery being deployed. MI-JACK NOELL To enable a smooth integration with the Terminals Planning and forecasting tools it would be HYUNDAI envisaged that interfaces be defined and CAVOTEC integrated into the ERP and TOS Solutions. GOTTWALD TAYLOR Kone Cranes 22
- 23. Terminals and RFID Terminals use RFID in Technology the initial costs can be many areas of their business significant but the longer term benefits are considerable. 23
- 24. Terminals and RFID Technology From the Gates to the Handling equipment RFID real time tracking can help eliminate backlogs and give provide accurate details on the terminals asset utilization 24
- 25. Terminals and Smart Gate Technology There are many areas in which the deployment of RFID solutions can help improve the efficiencies within a container terminal facility. The traditional bottle necks of any terminal has been at the Gates just as Containers arrive and depart. With many containers tending to arrive just at as the Terminal “cut off” for accepting cargo for a vessel is given thus creating delays and potential back logs. Having interactive RFID and camera recognition solutions much of the scanning, data collection and documentation can be performed electronically and stream line many manual processes. 25
- 26. Terminal Resource Allocation Terminals are seeking ways to manage their personnel to enable the correct number of staff are manning the terminal during peak times and being able to process work orders and roster teams to service clients and vessels calling at the terminal facility. Fundamental decisions have to be made in order to define work orders and schedule the effective running of the facility 24x7x365. Pay role and Overtime Tracking Health and Safety and Time off (Sickness / Holidays etc.) Tracking. There are a number of leading solution providers with some of the most advanced originating from Dutch based software providers. 26
- 27. GEN 2 Terminal Software The Future So what does the future hold for Container Terminals as their Carrier Clients push forward with the deployment of the larger next generation Ultra Large Container Vessels. Reference has already been made of the fact that Terminals will be facing greater pressure and that at some facilities physical growth restraints might be in play. So it comes down to better utilization of the facilities current infrastructure and leaning more towards advanced Terminal Operating Solutions. 27
- 28. Generation 2 Solutions Dashboard PLANNING Forecasting MIS Systems Technology ASSET USER Dashboard Optimization MANAGEMEN Configurable T Solutions Revenue Revenue SAAS based Retention Managemen t 28
- 29. Terminal Optimization Resources Berthing Handling Priority Equipment ADVANCED OPTIMIZATION ENGINE Stack Operations Utilization Land Utilization 29
- 30. Terminal Revenue Management Service Agreement Analysis Contribution Peak and Analysis on Seasonal container s Pricing Handled Advanced Mathematical Engine Contract Pricing Negotiation Model Tool Analysis Cargo Mix for revenue 30
- 31. Terminal Forecasting Projected Vessel Calls Projected Projected Space Gate moves Requirement Forecasting Engine Forecasting Projected Peaks Resources Equipment Demand 31
- 32. Terminal Dash Board Technology The Ability to monitor and track the progress of every attribute within the Terminal and provide real time data at the Senior Managers fingertips 32
- 33. Terminal Configurable Solutions Highly Configurable software solutions are being created in “CLOUD environments” with large data tables that reside behind these holding all the relevant data that any marine terminal could possibly require to run and manage their terminals. This allows the Users to define their own unique set of rules, procedures and reporting functionality from the solutions provided. Terminals in previous software models would require extensive system tailoring and this used to come from extensive client –software interaction with results costing more and taking time to deliver. The next Gen solutions allow for this type of on-line adjustments to be made by the terminals Super Users and can be tweaked as often as the Users require thus creating a true Bespoke solution. Terminals Gate Operations are the most comprehensive and differ considerable with each operator thus configurable gates procedures are the first logical steps in these next Generation Solutions. The Leaders in these Solutions are the Californian Based Operator Navis. 33
- 34. Terminal SAAS Solutions Terminals are looking at lower costs and more effective deployment and support services. The SAAS model allows for a stable web deployed platform. Reducing local support costs and improving the performance of the system being deployed while always maintaining the most current version of the application available. Additional support comes from secure access and database integrity. 34
- 35. The Terminals and the Future The Container Industry has seen change with the larger ships coming on stream and new challenges that the whole sector has faced with the economic downturn , environmental issues and ever increasing operational costs. Marine Terminals play a vital role in the Supply chain process – although they are faced with restrictions that they physically cannot move in the event that trade routes change or cargo volumes decrease. Operators are fickle and terminals have to adept in order to maintain and develop their on-going relationship with the Carriers and Shippers (Importers and Exporters) that utilize their facilities. By offering faster processing times from both a handling of vessels and quicker physical turn times of these ships calling will always help to offer a better mouse trap over their competitors. Having the right infrastructure and software solutions play a fundamentally important role in this process . 35
- 36. The Future for Terminals THE CONTAINER MARKETS IS CURRENTLY ON A DOWN CYCLE BUT THE TYPE OF CAPITAL INVESTMENTS BEING MADE ARE FOR THE LONG TERM . THE PHYSICAL NUMBER OF PLAYERS SERVING THE MARKET MIGHT FLUCTUATE BUT THERE WILL STILL BE THE LARGE GLOBAL PLAYERS MOVING THE CARGO. VESSELS WILL PROBABLY NOT GROW BEYOND 25,000 TEU CAPACITIES. BUT THE CURRENT CARRIERS 15,000 TO 18,000 TEU SHIPS WILL BE DEMANDING GREATER ATTENTION. CARGO PROCESSING WILL BE STEPPED UP A PACE TO DEAL WITH THESE VESSEL FROM PRE-ARRIVAL TO DEPARTURE THE TERMINALS WILL HAVE TO ADJUST AND BE PREPARED. ITS MOVING TO THE NEXT GENERATION OF SOFTWARE THAT WILL HELP THEM STREAMLINE PROCESSES AND DELIVER GREATER FINANCIAL RETURNS FOR EVERY CONTAINER HANDLED IN THEIR FACILITY. 36
- 37. The End Goal Result ONE STOP SHOPPING FOR SOFTWARE IS THE ANSWER DEALING WITH A LEADER THAT CAN BRING ALL THE APPLICATIONS TOGETHER AND OFFER THE MOST COMPREHENSIVE STATE OF THE ART 2ND GENERATIONS APPLICATIONS . FROM A GREENFIELD SITE TO AN EXISTING CONTAINER FACILITY THERE IS ONLY ONE SOLUTION PROVIDER THAT CAN DELIVER A TOTAL TURN-KEY SOLUTION AND THAT IS:- NAVIS, THE TRUE ERP PROVIDER OF SOFTWARE AND SOLUTIONS. THEY COLLECTIVELY HAVE SECURED THE BEST OF BREED TECHNOLOGY EMBRACING THEIR OWN STATE OF THE ART 2ND GENERATION SOLUTIONS AND GLOBAL SUPPORT AND INFRASTRUCTURE TO PROVIDE A “TRUE ONE STOP 37
- 38. CONTACT DETAILS Invicta management Service Ltd is a boutique Transportation Consulting Company that have been providing advisory services since their inception in 1979. Located in the UK we have a small highly skilled team of associate consultants that gained their experience at the cutting edge of the Container and Shipping Markets. We provide a comprehensive range of services and have worked with Container, Logistics, marine terminals and software companies during this time in providing a first class service to all the clientele we have served. For more information about our company please visit - www.invictasolutions.com Or contact the Author of this Slide presentation – Mr. Richard A Butcher Marketing and Sales Director - rbutcher@invictasolutions.com 38