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port services<br />

CargoNet's PortNet initiative allows port users access to an extensive<br />

information network increasing efficiency and helping to maintain<br />

<strong>Hong</strong> <strong>Kong</strong>'s premier port status.<br />

the sphere of services in order to<br />

maintain its lead.<br />

A new port community network<br />

operated by CargoNet -<br />

Transportation Community Network<br />

Ltd - is providing <strong>Hong</strong> <strong>Kong</strong>'s ocean<br />

shipping industry with a powerful<br />

new tool to keep the shipments<br />

flowing. CargoNet's PortNet project<br />

— which is backed by a consortium<br />

representing local and international<br />

transport and IT interests — became<br />

fully operational in May 1998.<br />

PortNet was one of the first, and a<br />

significant piece, of CargoNet's<br />

unique suite of applications which<br />

applies a shared real time<br />

information network to the task of<br />

transacting international trade.<br />

Global IT services giant EDS — one<br />

of CargoNet's major backers —<br />

plans to use <strong>Hong</strong> <strong>Kong</strong>'s<br />

PortNet as the model for similar<br />

developments in other major<br />

global trading centres.<br />

According to Ian Craig, Chief<br />

Executive of CargoNet, PortNet uses<br />

intelligent network technology to<br />

enable much of the workflow<br />

involved in the trade process to<br />

take place in parallel, rather than<br />

through the traditional multi-stage,<br />

paper-based process.<br />

"From the outset our concept was<br />

to speed up the trade cycle by<br />

introducing the ability for trade<br />

information to be routed to multiple<br />

parties at the same time/' said Mr<br />

Craig. 'Through PortNet, the<br />

information needed by the different<br />

players in the trade process is<br />

delivered as soon as it is generated<br />

by whoever 'owns' that particular<br />

piece of information. <strong>The</strong> level of<br />

control inherent in the realtime<br />

technology we're employing means<br />

everyone gets the information they<br />

need to do their job — nothing<br />

more and nothing less."<br />

PortNet employs standard Internet<br />

technologies and marries them to a<br />

more sophisticated real time<br />

information transport mechanism.<br />

<strong>The</strong> result is a real time<br />

e-commerce extranet in which core<br />

infrastructure is shared between<br />

PortNet members with different<br />

applications, and interfaces are<br />

provided to meet specific sector<br />

and company requirements.<br />

<strong>The</strong> concept of a realtime<br />

electronic commerce extranet has<br />

been under development by<br />

CargoNet since 1996, with much<br />

of the detailed planning for PortNet<br />

taking place during a six-month<br />

analysis of information workflow<br />

at <strong>Hong</strong>kong International<br />

Terminals (HIT), another major<br />

CargoNet backer.<br />

HIT puts a lot of emphasis on<br />

information infrastructure in its<br />

strategy of continuously increasing<br />

efficiency to maintain <strong>Hong</strong> <strong>Kong</strong>'s<br />

position as the region's hub for<br />

container transport. PortNet plays a<br />

key role in the strategy by enabling<br />

terminal operators to add value by<br />

acting as information hubs and<br />

help the ocean shipping industry<br />

as a whole to become more<br />

customer-focused.<br />

<strong>The</strong> first phase of PortNet was<br />

rolled out in December 1997 with<br />

support for real time information<br />

links between terminal operators<br />

and shipping lines, among which<br />

K-Lines and Maersk were among<br />

the first to sign up for the new<br />

service. Phase two, which extended<br />

PortNet to include freight<br />

forwarders such as Cargo Services,<br />

Calberson and Kuehne & Nagel,<br />

went live in March 1998.<br />

Network applications to support<br />

shippers — along with links to<br />

government agencies such as<br />

Customs and Excise and other<br />

business partners — were delivered<br />

in May 1998, establishing PortNet<br />

as a complete community system for<br />

the Port of <strong>Hong</strong> <strong>Kong</strong>.<br />

According to Mr Craig, CargoNet<br />

will continue to expand the scope of<br />

the network to bring in other parties<br />

in the trade and transport cycle such<br />

as marine insurers and banks that<br />

are active in the <strong>Hong</strong> <strong>Kong</strong> trade<br />

finance market.<br />

"We anticipate having all the<br />

important players in the ocean<br />

industry participating in PortNet<br />

by the end of 1998. As the<br />

number of real time participants<br />

in the community network<br />

expands, the value of the whole<br />

i<br />

65

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