Hong Kong will launch a multi-modal digital cargo tracking and data exchange network in January that will initially focus on cargo flows between Hong Kong and China but is expected to be extended to other countries.
Willy Lin, chairman of the Hong Kong Shippers'Council (HKSC), said the port community system (PCS) will be a“game changer”for shippers and Hong Kong's port community by improving cargo visibility and operational efficiencies.
The use of real-time cargo status data is expected to make trade finance more efficient, reducing credit costs and processing and payment times, the Hong Kong government said. Government officials estimate the PCS could generate cost savings of $406 million a year by improving cargo handling efficiency for ocean, air and landside operators while costing a total of just $28 million to operate for the first three years.
“The benefits to shippers include real time track and trace, increased transparency of the status of cargo shipments including customs clearance, and the automatic transmission of data and documents," Sunny Ho, HKSC's executive director, told the Journal of Commerce.
Ho said the system will be free for users, at least initially.
“There is no promise that it will be free forever,”he said.“The system needs maintenance and regular updates, and these could be expensive. We've had no answers from the government on [who] would be paying for these.”
Ho described the issues as“teething problems.”
Wide range of expected users
The Hong Kong government expects about 50,000 users, including shippers, freight forwarders, customs brokers carriers, terminal operators, airlines and trucking companies to sign up to use the system and incorporate their own digital platforms. These include Crown Logistics, which will integrate its proprietary platform, CrownCompass, with the PCS network. This will provide its customers with real-time tracking of shipments and “automate workflows for customs declarations, cargo release, and trucker assignments, significantly reducing administrative overheads,”Crown Logistics said.
The system will be operated by the Hong Kong government-backed Logistics and Supply Chain MultiTech R&D Centre (LSCM) to maintain its neutrality and ensure commercial confidentiality, Ho said. LSCM has signed an agreement with the Guangdong e-Port Management Company that will allow the system to complete and submit ocean manifests before vessels enter ports in South China to provide faster Chinese customs clearance.
“This digital collaborative platform will provide cargo tracking functions and connect sea, land and air transport networks, enhancing cross-sector information interconnectivity and increasing the Hong Kong Port's efficiency and overall competitiveness,”Mable Chan, Hong Kong's secretary for transport and logistics, said.