1-Stop s Vehicle Booking System drives improvements for Ports of Auckland

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1 1-Stop s Vehicle Booking System drives improvements for Ports of Auckland Customer Profile Company: Country: Industry: Ports of Auckland New Zealand Logistics Employees: 419 Website:

2 1-Stop Connections Vehicle Booking System (VBS) was introduced to Ports of Auckland (POAL) in 2007, enhancing their port management. As early as one week following the introduction of the VBS to POAL, truck turn-around times and queues were reduced. 1-Stop s VBS is a capacity management system that has proven to increase productivity and provide demand management over the landside. This case study will look at the details of the VBS: how it works and what the impact has been on POAL and their employees. Ports of Auckland Formed in 1988, Ports of Auckland operates in three locations in the Auckland region in the economic hub of New Zealand. POAL services over 1400 ships from 176 international ports in 69 countries every year. The Auckland seaport is New Zealand's largest container port, handling more than 818,000 twenty-foot equivalent container units (TEU) per annum, with total container volumes representing 31.3% of New Zealand's total container trade. POAL s Multi-Cargo Facility handles 4.4 million tonnes of bulk and breakbulk (non-containerised) cargo each year, including over 70% Ports of Auckland, New Zealand of the total vehicle imports to New Zealand. POAL employ approximately 419 full-time staff and operates 24 hours a day, 7 days a week. Its primary Fergusson Container Terminal is located next to Auckland s CBD and provides convenient access to a third of New Zealand s population not to mention the largest regional economy in the country. POAL are committed to enhancing their operations as a premiere port. Being an island nation, New Zealand is reliant on effective port systems for import and export. Our vision is to be the best port company in Australasia with world-class performance. What is the Vehicle Booking System? ships per annum - 800,000+ TEU per annum % of national trade Fergusson Container Terminal - 200,000+ TEU per annum - CBD location full-time staff The VBS from 1-Stop Connections is a web-based booking system, designed to streamline the supply chain. It allows road carriers to book in any of the 24 time zones per day, which leads to reduced truck queues. The VBS also allows carriers to validate empty container return information and empty container release data coming from the shipping lines. Sydney-based port community solutions provider 1-Stop Connections are committed to providing streamlined and integrated software and communication to the port and freight industry.

3 Their VBS was introduced to Ports of Auckland (POAL) in 2007, joining other major port cities, with all eight DP WORLD and Patrick terminals in Australia now using the software. The 1-Stop VBS solves a range of efficiency problems faced by stevedores and their customers shipping lines and road carriers but the productivity and capacity management gains also impact government and port authorities. Vehicle Booking System in POAL: What has it meant 2007-now? POAL s commitment to improvement led to the launch of 1-Stop s VBS in The VBS introduction was achieved as a result of widespread industry collaboration, which included representatives from border security, shipping lines, trucking companies and freight-forwarders. Initially presented in a trial format at the Axis Fergusson terminal, the early results of the VBS quickly proved it was creating a more efficient platform for trucks to operate within. Three months into the trial, POAL reported a pleasing 100% electronic VBS booking rate and a 75% on-time truck arrival. Yvonne Theuerkauf was the Axis Intermodal Logistics Manager and worked on the VBS trial. This is a lot higher than we expected at this early stage of the system in progress. It is an excellent response from the industry and compares extremely well with overseas practice, said Theuerkauf in Within the first year, truck performance improved by 50%. Turn-around times halved from 1hr 4mins in 2006 to 31mins in , shortly after the introduction of the system. The trial proved to be successful from a very early stage and staff working for POAL during the trial were impressed at the quick results seen from the VBS. While prior to the VBS introduction, POAL was seeing truck queues waiting for containers for up to four and a half hours. This turnaround time has now been significantly reduced, thanks to the new booking system. The VBS has been highly successful in achieving its aim of reduced truck queues and consistent turnaround times. The efficiencies created via the trial process and the Working Group provide real benefits for the transport community and the supply chain as a whole, said Ports of Auckland Transport Manager Jon Ward in Following the trial, the VBS now allows road carriers to book timeslots for the pick-up or delivery of containers at either of the two container terminals. The system has been instrumental in helping POAL cater for increased truck volumes while simultaneously reducing turnaround times. The VBS allows each truck to enter the port facility gates and use a verified PIN code to signal its arrival and alert the straddle to collect and deliver the correct container. [The reduction in turn-around time] is a lot higher than we expected at this early stage of the system in progress. It is an excellent response from the industry and compares extremely well with overseas practice. - Yvonne Theuerkauf, Logistics Manager, Axis Intermodal

4 Four months following the introduction of the VBS, POAL was still seeing positive results. The average truck turnaround time at the Axis Fergusson container terminal for January was 24.5 minutes, down from 36 minutes for the same month in Overall truck turn times have reduced and truck demand has flattened over the course of the day. The port has operated VBS under considerable load (in excess of 1150 truck moves on one day). Over this busy time of the year resources are stretched at times and although turn times have exceeded 30 minutes on some days, queues have been minimal, said Project Manager Finn Jensen in TTT Minutes Truck Movements vs. Truck Turnaround Times Total Truck Movements ( 000) Truck Turnaround Time (TTT) - Minutes POAL total truck movements and the average truck turn-around times for the years The introduction of the VBS reduced turn-around times, even as container loads increased. Since the introduction of the VBS in 2007, truck turn-around time has been reduced, despite the fact that truck movements continued to rise. In 2007 there were over 250,000 truck movements and the truck turnaround time was close to 31 minutes. By 2013, truck movements had increased by almost 50% to almost 400,000, but by utilizing the VBS, the turn-around times decreased by 22%. The VBS is the perfect tool with which to manage an expanding freight market and has the capacity and flexibility to meet the needs of a growing industry. The best part as far as I ve seen is the planning perspective. Our productivity is faster, better, says Barton. This forward-planning element of the VBS has been attractive not only to Barton as the VBS coordinator but also for other stakeholders. The best part is the planning perspective. Our productivity is faster, better. Janita Barton, VBS Coordinator, Ports of Auckland

5 We know [how to manage] heavy vessel days the carriers can plan their trucks better for the day and their customers can plan better because they know they re going to get [a certain amount] of containers in and out in a day, says Barton. In addition to improving transport and communication synergy across POAL, the VBS has also streamlined off-peak truck travel times, as part of POAL s commitment to their local community, avoiding excess noise and traffic congestion. The introduction of the VBS has resulted in not only improved results for the terminals and transport industry, but also a more positive working environment for the employees. POAL staff is pleased to be able to offer accurate data to customers, rather than relying on guesswork to meet deadlines. Carriers are excited because they [would have] some reassurance of what they can get done in a day, says Janita Barton, current VBS Coordinator for POAL. Drivers are no longer spending time waiting aimlessly in queues for port availability and instead have specific booking times. This has enabled carriers to meet client demands much more effectively. The VBS requires trucks to book slots in advance for picking up and dropping off containers. The VBS is an important way of encouraging off-peak truck travel and improving travel predictability. Transporting containers outside peak traffic times is positive for the community and the environment, as well as helping to smooth workflow at the Port. 1 Further Benefits of the VBS The VBS offers a distinct competitive advantage. Resource utilisation and container management directly impact the ability to effectively manage capacity at the terminal. The module keeps you ahead of competitors who are still manually keying in data. With enhanced control of your terminal your operation is leaner, smoother and ready to respond and grow, in addition to being connected electronically to the community. Reduced queue times and congestion Use the easy 1-Stop VBS slot booking to coordinate drop-offs to manage volume and type of containers received into the terminal for each zone (hour) as well as the number of trucks to be serviced per hour. When truck arrivals are co-ordinated and queues are reduced, the congestion around the port precinct will also reduce. No spontaneous truck arrivals means that the truck queues will be reduced. Increase utilisation and optimise resource allocation Organise container stacks based on bookings. Know which trucks are coming to get which containers. Effectively plan equipment and staff to support the workload. 1 Ports of Auckland; Noise and Traffic Management; accessed 18 May 2014.

6 Increase terminal capacity with better yard planning Increase capacity without increasing land size by organising container stacks. Reuse the same stack space when you efficiently move containers out of the terminal, reducing dwell time. Respond to change with flexible rules Built in flexibility means VBS rules can be updated on the fly to accommodate new requirements or changes to industry rules and regulations. This also facilitates changes within the yard. Adapt business models to cut costs Use the VBS to encourage the community to utilise the less populated shifts so that you can further maximise efficiency which flows through the supply chain. Integrate with existing systems to minimise implementation headaches Integration with your terminal operating system means a single data entry point, saving you time. Further integration with other stakeholders means that you ll get updated information as it occurs. Simple management of a simple, automated communication channel. Reduce administrative and data entry overheads Pre-populated information means less room for error and automated data updates ensure reliable information all the time. Easily manage carrier contact information and monitor activities from your central system. Speed response times with clear communications Communicate effectively to those who need to know using in-built messaging via multiple channels. Build stronger stakeholder relationships Keep stakeholders informed with VBS messages when events occur that could impact cargo, such as stops on containers, vessel delays, road congestion or empty park redirections. With multiple communication channels including the 1-Stop Mobile App, the people who need to know right now- are getting the message when and where they need it. Increase customer satisfaction and reduce the need for customer service calls by providing more information in real time.

7 Benefit from better financial forecasting and financial analysis Integration with your existing systems and easy export of financial files, means that after creating, reviewing and sending invoices using the VBS simple interface, you can export billing files and easily import into your existing billing systems for better reporting and analysis. Improve stakeholder relationships Effective planning and clear communications mean better relationships. Clear billing cycles and fee structures provide transparency for a procedure where penalties apply for users who don t abide by the guidelines. The VBS caters for those who like to think ahead: it allows for more effective time-management and enhanced productivity, without compromising operational success, while still being flexible enough to address the challenges specific to your terminal. The VBS [also helps] with resource allocation, addressing the unpredictable peaks and troughs of truck arrivals caused by the mismatch between 24/7 port operations and the business hours of the freight community. - Jens Madsen, former Ports of Auckland Managing Director, VBS Features Designed for usability, and with an industry focus that stems from a commitment to consultative development, VBS functionality is presented online in an interface that has been industry tested by terminal operators and carriers. Key features of the 1-Stop VBS include: Timeslots, with the facility for terminals to set maximum numbers for each of the 24 time zones. Timeslots can also be allocated to individual companies. Updates are applied in real-time. Messages are sent at setup and if updates have been applied. Work calendars with multiple day types that can be set up well in advance and modified as required. Clear multi day matrix presentation provides status and working day information at a glance configurable business rules, across multiple categories such as booking, manifesting, stack run-in and run-out, billing & invoicing and more. Set by terminal operators, the business rules determine how the VBS is used at specific terminals and can be updated in real time in response to regulatory or environmental changes.

8 Integrated booking and manifesting so that carriers know exactly when to arrive at the terminal. The system eliminates queues, reduces wait time and increases utilisation. Drop-off and pick-up management is so sophisticated that bookings can be allocated to a specific truck and driver. Road usage is reduced by large trucks and controls their movements in and around the port. User-defined billing processes that works with your financial systems, allowing adjustment of fee structure as needed. Invoices are delivered straight to the carrier for payment, and the administrator can set up invoice distribution, reminder notices, and even arrange to discontinue service to defaulting debtors. Data is imported directly into financial systems for reporting and analysis. Real-time messaging via multiple channels including message board , browser pop-up and mobile device application. Allows easy, real-time notification of important information, including events, availability and safety notices. Copyright 1-Stop Connections Pty. Ltd., June All rights reserved. For more information, visit This case study is for informational purposes only. 1-Stop Connections makes no warranties express or implied in this case study.