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Analysis of Port Community System Introduction in Croatian Seaports - Case Study Split

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The introduction of a Port Community System (PCS) is identified as one of the key elements facilitating seaport development. In this paper, the analysis of seaport stakeholders and Maritime Single Window systems in Croatia is performed, including NSW (National Single Window), MNSW (Maritime National Single Window: CIMIS - Croatian Integrated Maritime Information System), their interaction and development of the national model for a PCS, ongoing in the form of a pilot project in the Port of Rijeka. This development is selected as a precedent for creation of the nation-wide PCS to be used also in other cargo ports of national interest, including Split. Further building on this newly gained knowledge and taking into consideration the development of the national PCS model, we explain the inherent characteristics of the Port of Split in terms of traffic evaluation in various port basins. We also provide a comprehensive set of operative guidelines for adjustment of the functional PCS module architecture to be deployed in the Port of Split and serving specific business needs of all identified port cluster’s stakeholders after the initial development in the Port of Rijeka is completed.
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Trans. marit. sci. 2020; 02: 331-341
a. Jadroagent Rijeka PLC, Croatia
e-mail: torlak.ivan@gmail.com
b. University of Rijeka, Faculty of Maritime Studies, Croatia
e-mail: etijan@pfri.hr
c. Aksentijevic Forensics and Consulting LTD, Viškovo, Croatia
e-mail: axy@vip.hr
d. Adria Polymers LTD, Omišalj, Croatia
e-mail: renato.oblak@ri.htnet.hr
The introduction of a Port Community System (PCS)
is identied as one of the key elements facilitating seaport
development. In this paper, the analysis of seaport stakeholders
and Maritime Single Window systems in Croatia is performed,
including NSW (National Single Window), MNSW (Maritime
National Single Window: CIMIS - Croatian Integrated Maritime
Information System), their interaction and development of the
national model for a PCS, ongoing in the form of a pilot project
in the Port of Rijeka. This development is selected as a precedent
for creation of the nation-wide PCS to be used also in other cargo
ports of national interest, including Split. Further building on
this newly gained knowledge and taking into consideration the
Analysis of Port Community
System Introduction in Croatian
Seaports - Case Study Split
Ivan Torlaka, Edvard Tijanb, Saša Aksentijevićc, Renato Oblakd
KEY WORDS
~ Croatian searports
~ Split cargo port,
~ Seaport cluster
~ Port community system
1. INTRODUCTION
Six publicly open ports operate in the Republic of Croatia
and have the status of ‘port with special international economic
interest’ for the state. These are the Ports of Rijeka, Ploče, Zadar,
Šibenik, Split, and Dubrovnik. Taking into consideration cargo
operations using piers of port basins under the Port of Split
Authority's management, the Port of Split can be characterised
as one of the most complex port areas on the Croatian side of the
Adriatic. The port itself oers various types of stevedoring and
cargo handling services in its port basins. In order to improve the
business processes and increase the level of quality of services
oered by the port and port's stakeholders, it is of utmost
importance to plan mid-term implementation of information
technologies that strive to increase the quality of the provided
services and enhance timely data exchange. Due to the use of
information from dierent sources, the common problems
are inconsistency and contradictions, which ultimately lead to
ineciencies of information systems in management support
(Asproth, 2007).
The literature review shows that the trend towards
collaborative innovation in the maritime supply chain implies a
good understanding of the actors and their roles, and an ecient
exchange of information (Carlan et al., 2016). Information systems
This work is licensed under
doi: 10.7225/toms.v09.n02.015
development of the national PCS model, we explain the inherent
characteristics of the Port of Split in terms of trac evaluation
in various port basins. We also provide a comprehensive set
of operative guidelines for adjustment of the functional PCS
module architecture to be deployed in the Port of Split and
serving specic business needs of all identied port cluster’s
stakeholders after the initial development in the Port of Rijeka
is completed.
332 Ivan Torlak et al.: Analysis of Port Community System Introduction in Croatian Seaports - Case Study Split
have become indispensable to the competitiveness of ports,
facilitating communication and decision making for enhancing
the visibility, eciency, reliability, and security in port operations
under various conditions (Heilig and Voß, 2017). Strong
facilitators of the digitalisation are investments into technology
and cooperation for promoting information sharing and a better
coordination and collaboration (Heilig et al., 2017).
Signicant eorts have been done to enhance eciency,
eectiveness, and transparency of the port information ow by
implementing dierent kinds of collaborative Port Information
Systems, such as the Port Community Systems (PCSs). A PCS is
an open electronic platform that enables information exchange
among public and private port stakeholders, and its scope may
cover a wide number of activities (Zerbino et al., 2019). PCS
connects port community actors, enabling commercial services
and information exchange between the port to their customers
and a variety of stakeholders (Moros-Daza et al., 2020). It is
very important to emphasize that a PCS must customize its
services based on the type of users (Moros-Daza et al., 2018).
PCSs are rapidly being developed in order to enhance the
communications among ports and other port-related institutions
and gain competitive advantage against the world’s leading ports
(Aydogdu and Aksoy, 2015). Analysing international solutions
and good practice in the application of PCS, Constante (2019)
provides valuable guidelines for cost-eective development of
PCS.
Tsamboulas et al. (2012) assessed the changes in port
performance resulting from the introduction of PCS, which
directly aects the eciency of port management in a
competitive environment. Caldeirinha et al. (2020) analysed
the various mechanisms that allow ports to adapt and develop
PCS characteristics as well as new features that aect port
performance.
The PCS helps port authorities to take the lead by providing
a logistics solution to private actors, encouraging them to share
information that may lead to lower logistics costs, to faster
delivery/pickup in the import/export chain, and to higher
customer satisfaction. Bringing all users together enhances the
eciency of the physical ow of freight, drives economic growth
and, as a secondary result, assists in reducing externalities such as
pollution, congestion, and land use impacts (Irannezhad, 2017).
Preliminary research (Tijan et al., 2014) has shown that
the achieved level of development of PCS in Croatia is modest
in terms of their use in the management of port facilities. The
reasons identied for this issue are:
• The general issue of inadequate rate of ICT (information
and communication technology) implementation in comparison
with the speed of its overall development;
• Inadequate level of knowledge and adjustment ability
of the entrepreneurs and the management caused by rapid
scientic and technological development;
• Lack of knowledge and understanding of ICT as major
economic resources;
• Inadequate level of employee education.
In addition, it has been noted that complex systems like
the Croatian seaports are exposed to challenges of modern, de-
materialised economy (Tijan et al., 2012).
Therefore, this paper will provide an overview of the
development of a PCS in the Republic of Croatia so far (specically,
Ports of Ploče and Rijeka will be analysed, representing the
bearers of the development of port information technologies,
and the inuence on the Port of Split). This paper will also analyse
the involvement of the stakeholders of the seaport system and
the transport chain. In order to achieve a satisfactory level of
system usefulness in the Port of Split, the Split Port Authority
should work closely with the Port Authorities of Rijeka and Ploče
in order to derive benets from their accumulated expertise in
developing PCS Rijeka and Ploče that can help in the further
development and implementation of a PCS in Split. Finally, this
work will propose arrangement of macro-level modules for the
processing and distribution of data, in a manner that will enable
the system as a whole to function properly.
2. PCS SPLIT AS PART OF CROATIAN NATIONAL SINGLE
WINDOW
As stated before, a PCS is an electronic platform that
interconnects multiple information management systems
operated by a variety of organizations and stakeholders that
make up a port community cluster. A PCS is a platform that
allows exchange between public and private operators in a port,
by creating ecient processes, reducing procedure time and
the use of paper documents (Vaghi and Lucietti, 2016). A PCS is
also a digital solution for the optimization of port's commercial
activities, and should represent an intermediary between all the
users, CIMIS (Croatian Integrated Maritime Information System)
and the Customs system of the Republic of Croatia, if it is given
the role of a local Single Window under prescribed conditions
and with appropriate authorisation and certicates for such
purpose (Ministry of the Sea, Transport and Infrastructure, 2011).
The denition of a PCS determines the role of the system
in port activities as support to all the commercial processes and
activities within given process regulations. Its utilisation generally
increases the use of electronic communication in the port cluster's
businesses; the PCS's role is not management or administration
by nature; in fact, it provides support to the commercial aspect of
all stakeholders involved in seaport business. The nal goal of the
PCS implementation is an enhanced exchange of information,
maintaining set standards of quality, reliability, and timeliness.
Port-collaboration physical, information, and nancial ows are
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interdependent, thus causing many coordination challenges for
the parties in the port. As multiple organisations rely on a PCS,
even for business-critical processes, eective governance of the
collaboration is crucial (Chandra and van Hillegersberg, 2018).
Implementation of a PCS results in signicant improvements
to the time consumption of ship’s arrival to the port that can
be expected after process reengineering and especially after
introduction of a PCS, which would result in increased eciency
and variable labour cost reduction (Tijan et al., 2014). For
example, research has shown that only administrative labour
savings related to ship processing can amount to 48.5% if proper
reengineering is used and PCS is implemented (Tijan et al., 2014).
The National Single Window (NSW) can be dened as
the standalone information system operating at national level,
providing connectivity and data (document) exchange with
other systems by using standard and well-established ways
of communication, accepting information in strictly dened
structure and making information available to various dierent
stakeholders within the country in a harmonised manner
(Mihai-Cosmin and Minea, 2016). Single Windows may also be
supranational or regional. According to the Directive 2010/65/
EU of the European Parliament and of the Council (Directive
2010/65EU, 2010), each Member State should implement the
Maritime National Single Window (MNSW) in order to optimise
and facilitate the process of announcement and registration of
ships that arrive to ports and/or depart from ports of the Member
States (Tijan et al., 2017).
In order to achieve the cohesion goals during the
implementation of the NSW, the European Commission has issued
in mid-2019 a National Single Window Data Mapping Report,
identifying full set of data to be exchanged using NSW among
member states, aligned with the new requirements according to
revised PAX legislation (European Commission, 2019).
PCS needs to be connected to the surrounding systems
(such as CIMIS) with the underlying goal being avoidance of
multiple data entry and facilitation of data exchange between
stakeholders. Along with all the other systems enabling electronic
communication in maritime trac, PCS forms an important
constituting and participating element of the NSW platform. The
"Project of setting up a single national Port Community System"
is currently underway, with the Ministry of the Sea, Transport and
Infrastructure being the bearer of the project (Ministry of the Sea,
Transport and Infrastructure, 2018). Cooperating parties in this
project are, among others, the Port of Rijeka Authority and the
Port of Ploče Authority. The latter maintains the only functional
PCS system in the country used by the stakeholders in the port
community, whose initial design started in 2009. (Buis, J., 2009)
Since then, it has been constantly upgraded, so it presents a
positive precedent for the development of a national PCS system
to be implemented in other Croatian ports. Once the mentioned
project is completed in 2021, all the Croatian Port Authorities
will have a fully functional PCS system at their disposal, which
will be adaptable to all Croatian cargo ports with very little
changes and adaptation dependent on the local characteristics
of each individual participating port. The Port of Split Authority,
managing the second largest port in the Republic of Croatia
(trac of over 3.1 million tons of cargo), is currently not actively
involved in the development of this project. This PCS system
will follow all supranational guidelines set by the European
Commission and UNECE, and especially those outlined by the
European Port Community Systems Association. (European Port
Community Systems Association, 2020). Furthermore, a set of
guidelines presented by IPCSA (International Port Community
Systems Association) will also be respected in the creation of
a national PCS model. The IPCSA objectives are the following
(International Port Community Systems Association, 2020):
• To ensure that the importance of Port Community Systems’
Operators is recognised internationally and in the EU and its
member States, and that the sector is consulted substantively on
any measure likely to aect it;
• To ensure that the Port Community System Operators play
their full part in delivering e-services internationally;
• To promote the highest possible standards in the European
and International Port Community System Operators;
• To encourage all port communities to be proactive in the
Port Community System development.
Stakeholders and users of PCS system can be divided into
two groups (Tijan et al., 2017): stakeholders controlling the
entered data, and commercial data users and providers.
Supervisory part of the application, i.e. agencies controlling
the data entered are:
• Harbour Master's Oce,
• Port Authority,
• Border police,
• Phytosanitary and veterinary inspections,
• Sanitary inspection, and
• Customs oce.
Commercial users providing the data are:
• Waste disposal concessionaires,
• Mooring, piloting and tug service providers,
• Ships’ agents,
• Freight forwarders,
• Cargo terminal concessionaires, and
• Land transport companies.
•
2.1. PCS in Croatian Ports
The Port of Ploče has made the most signicant progress
in the development and implementation of the PCS system. It is
important to emphasise that the system developed in one port
334 Ivan Torlak et al.: Analysis of Port Community System Introduction in Croatian Seaports - Case Study Split
cannot be translated to another port in its entirety, but certain
segments and basic logical settings of the system can.
The idea of the Port of Ploče was to make the port itself a
hub where processes of trade and transport would be integrated.
This project was designed under the title ‘Project of Integration,
Trade and Transport’ (Port of Ploče Authority, 2018). The idea of
this project was to transform the Port of Ploče from a traditional-
type port, an intersection of land and sea transport, into a
modern logistical hub. This would create conditions to develop
the Pan-European Corridor Vc (Poletan Jugović, 2006) whose
route is Ploče - Osijek - Sarajevo, originating in the Port of Ploče.
The Port of Ploče PCS is in its mature development stage. It
was intended to serve as a "local single window", and some of the
basic implemented and supported processes are (Port of Ploče
Authority, 2018):
• Integration of Notice of call with CIMIS,
• Integration with Terminal Operating System (TOS),
• Exchange of data based on XML (EXtensible Markup
Language) and UN/EDIFACT (The United Nations rules for
Electronic Data Interchange for Administration, Commerce and
Transport),
• Customs procedures,
• Linking other forms of transport (road, rail),
• Procedures of cargo entry and exit, and
• Entry/exit and movement of cargo through the Port's Free
zone.
Currently, the implementation of PCS module for the needs
of operators of the liquid cargo terminal is underway in the Port
of Ploče. In the Port area, the PCS system is used depending on
the needs of the terminal operators and the concessionaires.
Considering that the Port of Ploče Authority has built a new entry
terminal, their goal is to automate the processes of this particular
terminal. The PCS platform plays a key role in the process
automation. Data is exchanged between dierent subsystems
via dened business rules using the PCS platform. It is the priority
to develop and integrate in the near future the module for the
Notice for trucks’ arrival. The intention is to connect the modules
for permit issuing, Customs module, and module for port security.
Finally, all terminal operators will be obligated to use a single
system of notice, regardless of which Terminal Operating System
(Tijan et al., 2010) they use.
Currently, the PCS is not implemented in the Port of Rijeka
even though implementation was initially planned for 2008,
and an international request for quotation was announced that
received four valid oers and the selected vendor started with
initial analysis and implementations. The project was suspended
in 2011, partly due to the development of the CIMIS system and
a change of focus. The eectuation of PCS continued in mid-2017
with preparations for the involvement of the project Technical
Assistance (TA) whose the full implementation is planned by
the end of 2021. The project is nanced with the support of
Connecting Europe Facility, in the amount of 1.6 million EUR. The
Government of the Republic of Croatia will provide 15% of that
amount (Ministry of the Sea, Transport and Infrastructure, 2018).
The project is well underway and executed on time. The contract
for Technical Assistance for design and implementation of PCS
in Rijeka, whose value is 297,312.50 Croatian kunas, was signed
on 19 April 2018. The Technical Assistance team comprised of
subject matter experts from Sarda Ltd., Aksentijevic Forensics
and Consulting, Ltd., Faculty of Maritime Studies of the University
of Rijeka, and Kiss Patterns immediately started with the activities
whose goal is to produce the required PCS tender documentation
including the involved Port stakeholders’ process description,
required hardware, system software and information security
levels, rules for the transfer of intellectual property and business
continuity. The public counselling process was announced on
time on 24 December 2018. After the comments of interested
public members were incorporated, the public procurement
announcement was issued on 31 December 2018. Commercial
oers were collected, requests for clarications were issued,
and the oers were technically and nancially evaluated within
rules set by the public procurement legislation rules according
to which the Port of Rijeka Authority has to abide, with the nal
goal being the selection of an economically most viable oer
for the implementation of PCS in Rijeka, which will serve as a
basis for the nation-wide implementation of PCS after specic
adjustments, including the Port of Split. The vendor was selected
according to public procurement rules, and development and
integration services contract was stipulated in April 2019. Within
the portfolio of Connecting Europe Facility of the European
Union instrument (Innovation and networks executive agency,
2016), this project carries the code "CEF-POR2CORE-PCS". (Port of
Rijeka Authority, 2017)
The Port of Rijeka is situated on a Pan-European route called
Corridor Vb (Croatian encyclopaedia, 2018). Its route is Rijeka -
Zagreb - Budapest. Apart from the corridor, the oil pipeline of
great signicance is connecting Rijeka to reneries in Croatia,
Hungary, Serbia and Bosnia and Herzegovina.
Rijeka GATEWAY (Port of Rijeka Authority, 2018) project’s
goal is to develop and modernise the above-mentioned trac
route, i.e. to develop and modernise the Port of Rijeka as the point
of intersection of maritime and land trac. This project signies
a large breakthrough for Rijeka as a port hub. The following
activities are planned as parts of the project: extricating piers
from the city centre, modernising all the segments of operative
port business, modernisation of the state road D 403, which will
remove road trac from the city centre (City of Rijeka, 2019), and
implementing a modern PCS system. The particularity of the Port
of Rijeka in comparison with the Port of Ploče is the dispersion of
port basins and land terminals, which is limiting the development
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of the project since it requires additional human and nancial
resources to support diverse locations and modalities of
cargo transport inside the Port itself. The development project
should include all possible future users and stakeholders, and
especially companies that operate within the seaport cluster.
This applies most of all to the ports that have dislocated basins
and dierent piers concessionaires. The current processes require
multiplication of data, i.e. the same information needs to be
entered several times delivered to multiple addresses, which
increases the possibility of error and reduces the eciency of the
administrative and cargo-related procedures.
2.2. Trac Evaluation as Basis for Development of PCS
in the Port of Split
While the Port of Split is primarily considered as a passenger
port, its function as a cargo port that has handled over 2.9 million
tons of cargo in 2019 cannot be disregarded. According to the
latest available data from year 2019, the Port of Split was the
leading passenger port in the Republic of Croatia, with over
5.6 million passengers, and was the 3rd port in the tonnage of
handled cargo (Port of Split Authority, 2020). The Port of Split
operates in diverse and dislocated basins and several dock areas,
as shown in the following Figure 1.
Figure 1.
Dock areas within competence of Port of Split Authority.
Source: Port of Split Authority, 2019.
In 2017, using the cargo handling piers of the Split basin
area, 3,136,347 tons of cargo were handled, which is a 14%
increase in relation to the weight of goods handled in 2016.
Most goods were handled in June, 357,566 tons (a 31% increase
in comparison with June 2016), and in July, 334,039 tons (a 55%
increase in comparison with July 2016) (Port of Split Authority,
2018).
The majority of cargo was handled at the piers for handling
cement and cement products, 31.36% (983,535 tons), at the
terminal for handling oil and oil derivatives - 13.88% (435,170
tons), the North Port - 12.12% (380,125 tons), and nally, at the
silo-terminal for handling and storing grains - 6.62% (207,477
tons). A large portion of cargo was transported by trucks to the
islands or to Italy (967,330 tons) (Port of Split Authority, 2018).
Seven Port basins operate under the management of the
Port of Split Authority, four of which are areas where cargo is
handled. The Port basins where cargo is handled are Vranjic -
Solin basin, Kaštela basin B, Kaštela basin C, and City Port of Split.
In the Port basin City Port of Split, truck trac embarking on RO-
RO ships can be considered as cargo trac. The other Port basins
are used for passenger trac.
2.2.1. Vranjic - Solin Basin
In the area of Vranjic - Solin basin, two Port concessionaires
operate: Luka Inc. Split and Ameropa žitni terminal Ltd. Luka
Inc. Split manages the area known as the North Port Split. The
services it provides as a concessionaire are handling bulk cargo,
general cargo, and RO - RO container manipulations. It is open
for public trac and has several outdoor and indoor warehouses,
both conventional and refrigerated. In 2017, 380,125 tons of
cargo were handled (8% increase in cargo). Most of the cargo
handled was in cargo containers, i.e. 115,624 tons (30.4%). The
North Port (Port Inc.) handled 12.12% of all the cargo handled on
piers under the management of Port of Split Authority (Port of
Split Authority, 2018). In 2017, the North Port achieved 158 calls
of cargo ships on commercial voyages (Port of Split Authority,
2018).
336 Ivan Torlak et al.: Analysis of Port Community System Introduction in Croatian Seaports - Case Study Split
Ameropa žitni terminal Ltd. manages area known as Vranjic
silo, which specialises in handling bulk grain - primarily corn,
wheat and barley. In 2017, 207,477 tons of grains were handled,
and a decrease of 34% in cargo manipulations was recorded
in comparison with 2016. Vranjic silo (Ameropa žitni terminal
Ltd.) handled 6.62% of all the cargo handled on piers under the
management of the Port of Split Authority (Port of Split Authority,
2018) in 2017 and recorded 56 calls of cargo ships (Port of Split
Authority, 2018).
2.2.2. Kaštela Basin B
Kaštela basin B is the area of the pier of Sv. Juraj (Eng. St.
George Pier) – CEMEX Hrvatska Llc cement factory, concessionaire
of the Port area. The area is used for the needs of the cement
factory: cement, clinker, ground granulated blast furnace slag
(GGBFS), petrol coke and thermal coal cargo manipulations. In
the year 2017, 983,535 tons were handled, 310 calls of cargo
ships were recorded, and an increase of 31% was achieved in
comparison to 2016 (Port of Split Authority, 2018). The Pier of
St. Juraj factory handled 31% of all the cargo handled under the
management of the Port of Split Authority (Port of Split Authority,
2018).
2.2.3. Kaštela Basin C
Kaštela basin C incorporates several piers, of which the
most important are:
• INA - tanker terminal, and
• St. Kajo - CEMEX Hrvatska Llc, cement factory.
The national integrated oil company INA Inc. of Zagreb is
the concessionaire of INA - tanker terminal area. The terminal is
used for the coastal shipping of fuel, which is usually loaded in
the Port of Bakar and unloaded at this terminal. In 2017, 435,170
tons were handled, and an increase of 23% was achieved in
comparison with 2016. INA - tanker terminal handled 13.88% of
all the cargo trac (Port of Split Authority, 2017) and achieved
127 commercial ship calls (Port of Split Authority, 2018).
St. Kajo - CEMEX Hrvatska Llc is a concessionaire of the Port
area and uses the piers for manipulation of ground granulated
blast furnace slag (GGBFS) and cement. In 2017, 211,260
tons were handled and an increase of 15% was achieved in
comparison with 2016 (Port of Split Authority, 2018). St. Kajo -
CEMEX Hrvatska Llc recorded 48 commercial ship calls (Port of
Split Authority, 2018).
3. PROPOSAL OF FUNCTIONAL PCS MODULE
ARCHITECTURE IN THE PORT OF SPLIT
Plans for the development of the Port of Split, unlike the
above-mentioned Ports of Ploče and Rijeka, do not contain
implementation and execution of a PCS project of such
magnitude for the entire Port cluster. However, according to the
plans of the Ministry in charge, the future system implemented in
the Ports of Ploče and Rijeka will have inherent ability to function
also in other Croatian Ports, after installation and adjustment of
the system to the needs of each particular Port. The important
part of preparation for implementation is adapting the business
processes and achieving compliance with the legislative
framework. The introduction of ICT business process support
(such as PCS) can be counterproductive if the state agencies in
charge do not fully endorse implementation of e-commerce
principles and standards. The implementation and subsequent
utilisation of CIMIS system indicates the possibility of such a
problem because certain state bodies still require both electronic
and paper documentation, with the paper documentation being
mandatory.
As mentioned above, the Port of Split will have the option
of PCS implementation after the Ports of Ploče and Rijeka. The
systems comprised of modules are either already implemented
or are in the process of implementation in those Ports. Each Port's
system should have the same basic modules, while additional
modules would dier depending on the specic needs of an
individual Port. The proposed modules belong to the class of
business application software that also includes information
router service and certicate server used for user authentication.
General composition of PCS modules is shown in Figure 2.
Figure 2.
General composition of PCS module.
Source: Tijan et al., 2009.
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The authors propose the following modules for initial
implementation in the Port of Split PCS:
• Port administration module,
• Module for notices of arrival,
• Module for ISPS (International Ship and Port Facility Security
Code) control of Port areas,
• Modules for bulk, liquid, and general cargo, and
• Interconnection module connecting TOS of the container
terminal and PCS.
The implementation of these modules will enable all the
three macro-functions of PCS, which are data and documentation
storage (recording), information processing, and information
management (Naglić et al., 2015).
All the business processes facilitated by the PCS should
be fully aligned with the needs of the members of the Port
cluster, with the objective of reengineering and digitalization
of the business processes currently conducted using traditional
methods (paperwork and physical document ow, and
management). They should also be in line with the legal and EU
regulations and requirements, and the respect of good business
practices of the seaport cluster.
3.1. Port Administration Module and Module for Notices
of Movement of Ships and Cargoes
Several processes can be grouped under the umbrella of
‘notice of arrival of ships’, all of which serve the purpose of fullling
administrative procedural requirements for the preparation
of ships and cargo for the execution of Port operations. The
processes governing the arrival of ships in the Port of Split are
outdated in comparison to the contemporary processes used by
modern Ports, and have not been changed for over four decades
in the cargo management part, except for the introduction of
CIMIS system, related to ship formalities, which will be integrated
with the PCS system.
Currently, CIMIS system performs the role of a single
national interface for the registration of arrivals and departures
of ships, and management of the mandated formalities. Among
other functions, its role as the collector of data should be used
in the future setup of the Port's PCS. (Puškarić, 2013). Below are
listed those processes that are currently executed in dual manner
through CIMIS system and by physical delivery of the paper
documents. Such processes slow down business execution in the
seaport cluster.
The procedure of registering the arrival of ship to the
Customs oce in charge is carried out dually. Via CIMIS system,
the Customs oce is provided by the shipping agent with data
and information such as:
• IMO (International Maritime Organization) crew list,
• IMO crew eect declaration,
• Cargo manifest and stowage plan,
• IMO ship store declaration,
• IMO narcotic and nil list,
• ISPS list of last ten Ports visited, and
• Declaration of dangerous and polluting goods (only if
applicable).
The Customs oce still requires paper (i.e. physical) version
of the documents listed above in the so-called Cargo statement,
and the operators’ TOS systems are not used for this purpose. This
results in the slowdown of the operative work of those in charge
for cargo management and creates avoidable delays.
The arrival of cargo is registered by using the ‘Customs
e-expediter’ application. This application, with CIMIS system,
constitutes the national system of registering the movement
of ships and cargo. Currently, these two systems have no
interconnectivity. The same as CIMIS, ‘Customs e-expediter’
should have the role of a data collector for the future PCS in the
Port of Split. It has a dual role while registering ships:
• Security registration of cargo done by the ship's agent:
Customs oce uses this process to assign the MRN (Movement
Reference Number) numbers. When the agent acquires the
requested MRN numbers and the permission to enter the
cargo into the Republic of Croatia's territory, the ship's agent is
obligated to deliver the above-mentioned data to the Customs
oce.
• Summary cargo declaration is a document used by the
cargo agent to report to the Customs that the cargo is stored
in the Customs' warehouse. After the Customs release this
document to the agents, they need to present it again to the
Customs oce before each further action with the cargo.
During its stay in the Port and under the Customs'
supervision, every movement of the cargo through the Port
needs to be reported by physically handing in a document called
‘Cargo disposition’. This document is made using the Port of Split
TOS. The authors suggest connecting the TOS application to the
future PCS to avoid the multiplication of paperwork.
All the mentioned processes can be simplied by increasing
the level of interconnectivity of the already existing information
technology solutions used by seaport cluster's stakeholders. The
PCS's administrative module, CIMIS, and the Customs e-expediter
can help the cluster's stakeholders to simplify their own
administrative procedures and facilitate mutual communication.
3.2. Module for ISPS Control of Port Areas
A basic prerequisite for any business, especially for
businesses closely related to international trac, is a high level
of security regarding the ow of cargo and persons. International
Ship and Port Facility Security (ISPS) Code (IMO, 2019) states the
minimal conditions prescribed by the International Maritime
Organization (IMO) via SOLAS (IMO, 2019) convention that
Ports open for international trac have to full. In its essence,
338 Ivan Torlak et al.: Analysis of Port Community System Introduction in Croatian Seaports - Case Study Split
it is a system of controls of movement through the Port areas.
As dened by the IMO, ISPS code is a comprehensive set of
measures used to enhance the security of ships and Port facilities,
developed in response to the threat to ships and Port facilities
in wake of 9/11 attack in the United States (Steenbergen et al.,
2013).
As seaports are places where land and sea trac meet,
control of the entrances and exits to and from the Port area is
necessary. Due to its dispersion, there is no uniform system of
movement control in the Port of Split. The authors suggest that
the Port of Split's PCS establishes a module that will satisfy the
conditions of the ISPS system regarding tracking of the movement
of persons, goods, and vehicles in Port areas. It is necessary to
enable the entry of the notice or arrival via the ISPS module of
the PCS. The authorized users that would conduct those entries
could easily and eciently ensure the passage for persons and
vehicles into the Port area. This could achieve a multitude of
positive eects with the primary one being an increased level of
security.
Possible commercial benets for the Port itself are various.
As every private and legal entity doing business in the Port
area must pay concession fees, this would eliminate those
commercial activities that are not subject to fees. This system
would be most benecial to the area under the management
of Luka Inc. (the North Port). Since the highest level of vehicle
trac is found precisely at the entrance to the area of this Port
basin, a higher degree of control and charging entry to persons
and vehicles could be achieved. The Customs could precisely
follow the movement of cargo and vehicles if the system is to be
linked to truck scales. This would also simplify the processes of
delivering cargo dispositions and controlling cargo movements.
Perhaps the most important eect could be achieved in the peak
moments of the trac at the Port's entrance if the entrance itself
is to be ‘ICT-enabled’. If the entrance is to be able to recognise
the vehicles announced via the PCS, unnecessary delays at the
Port's gates could be avoided. This would result in shorter waiting
times, which in turn usually means nancial savings.
In the medium term, an important role of the ISPS module
will also be the management of data gathered from the Internet of
Things (IoT) and similar platforms used in the logistics processes
in the Port. The convergence of various technologies will raise
numerous questions, and maritime cargo logistics sector will
certainly not be left out of the development. These questions
can be divided into several categories that need to be addressed,
among them the most important being information security,
design, sustainability and environmental impact and privacy,
autonomy and control (Aksentijević et al., 2015). Considering the
rapid adoption of this technology, its position can be naturally
recognized and situated within the ISPS module. From the recent
developments, it is evident that traceability of this information
will be crucial for security purposes, and it is quite possible that
storage will be achieved using blockchain or similar general
ledger technology (Tijan et al., 2019).
3.3. Module for Bulk, Liquid and General Cargo
The most important module of the proposed Port of Split's
PCS is the ‘Module for bulk and general cargo’. Its importance is
visible in two functions: the rst is the Port's primary function of
cargo manipulation and storage. The second function is specic
to the Port of Split, whose primary type of cargo is bulk cargo,
which is handled by the majority of the Port cluster’s stakeholders.
The bearers of the development of this module should be the
largest concessionaires, Luka Inc., CEMEX Hrvatska Llc cement
factory, Ameropa Žitni terminal Ltd., and INA tanker terminal. The
Port of Split’s advantage over e.g. the Port of Ploče is the fact that
the TOS is used only by one concessionaire, i.e. Luka Inc., and is
not used for handling bulk cargo, but only for container trac
management.
The processes included in this module should be connected
to other processes in the modules pertaining to administrative
processes of the movement of ships and cargo. Connecting
data in such a way can accomplish the basic purpose of the PCS
system, i.e. process optimisation and the reduction of multiple
data entry. The data entered through this module would be
available to other modules since the underlying logic of the
system is to distribute information through the whole system.
The basic purpose of this module is to track entry, internal
movement, and exit of all the cargo covered by this module.
The documents used in these processes in the Ports in the
Republic of Croatia are diverse and sometimes depend on the
Port-specic practices of each Customs oce. They include
various tracking documents and dispositions that follow cargo
movement and storage, and all the data on the Customs' records.
The PCS facilitates these processes since a large number of these
documents currently need to be handed in physically to the
Customs oces, a procedure which complicates and slows down
the work of cargo agents and shippers.
Since the PCS is a process-based system, it should entail all
the procedures in cargo trac, a fact that is especially reected
in this module where the emphasis is on the cargo management
and all the processes necessary for the Port cluster's business.
3.4. Connecting TOS to PCS Module
The Port of Split TOS system was developed solely by the
concessionaire Luka Inc., and it is exclusively used as a support
for container trac. The system serves only a small number of
the processes necessary for recording actions involving cargo
containers. The TOS records the processes through which the
Port communicates with its own system, and these are:
TRANSACTIONS ON MARITIME SCIENCE 339
Trans. marit. sci. 2020; 02: 331-341
• Cargo storing request,
• Order for loading and unloading of cargo into containers,
• Container status reports, and
• Booking of containers.
According to Gekara, et. al., (2020), “Ports, and particularly
container terminals, are the central nodes in these complex
supply chains, so much so that their individual performance
determines the performance of entire global supply chains. They
are therefore under increasing innovative pressure to maintain
optimum performance in terms of productivity and eciency.
Consequently, the past four decades, beginning in the mid-1980s,
have seen a proliferation of ICT products specically designed for
the optimisation of container port administration, management
and operations. These systems are generally known as Container
Terminal Operating Systems or CTOS in abbreviation.
Cargo and ship agents have access to these processes, but
they do not have the ability to enter information into the system,
which slows down the business processes. Delivery orders,
notices of cargo's arrival into Port and cargo manifest cannot
be exchanged with the Port via TOS. Instead, they are sent using
e-mail or fax. The Customs oce does not use the data available
in the system, but instead, requests the Port and the agents to
deliver the data as paper documents.
Once the implementation of the PCS into Port of Split is
well underway and achieves high level of adoption, it will be
necessary to connect TOS and the PCS to achieve the complete
exchange of information. In order to avoid synchronisation, if
commercial stakeholders decide so, it would be fully feasible
for them to stop using TOS for cargo-container handling and
use TOS functionalities within the PCS itself. Such a solution will
be possible when the PCS attains high level of development.
In addition, this scenario needs to be mutually agreed with the
managing body of the Port of Split, i.e. the Port of Split Authority.
4. CONCLUSION
The PCS implementation should be viewed as the
continuation of digitalisation of seaport cluster operations in the
Republic of Croatia. The current level of e-commerce adoption
is not satisfactory, and that it is one of the reasons why Croatian
seaports are less competitive than other competing Adriatic
seaports. The bearer of the PCS development endeavour is the
Ministry of the Sea, Transport and Infrastructure, also in charge of
all the seaports of the state interest, among which are the Ports of
Split, Rijeka, and Ploče. The introduction of CIMIS was supposed
to have been the rst step towards the development of a single
window for maritime business in the Republic of Croatia. Without
the legislative changes that would obligate all the stakeholders
of the seaport cluster (especially government bodies) to accept
new methods of processing data within the Port businesses, the
implementation of the PCS will not entirely full the expectations
of the involved stakeholders. As the PCS is a service aimed at
seaport cluster stakeholders, the architecture of the system,
implemented processes, and all other segments necessary for the
creation of such a complex system should not be dened before
a high-quality analysis of the needs of the cluster's stakeholders
is conducted. By using this approach, it is possible to upgrade
the logic within the procedures and achieve an adequate level of
optimisation that would certainly decrease expenses in the later
phases of implementation and increase the level of satisfaction
and eciency of all the stakeholders involved. The PCS alone
cannot be a generator of the development of seaports, i.e. a high
level of system implementation will not increase the handled
tonnage in the Croatian seaports regardless of its quality, but will
surely be an important segment in the development of seaports
and their preparation for a faster business growth.
Taking into consideration that the tentative instance of PCS
in the Port of Split will be the third PCS system in the Croatian
Ports, the process of implementation will be simpler in Split than
in Rijeka and Ploče. Each Port’s system should have the same
basic modules; additional modules must cater to specic needs
of each individual Port. Each process that is facilitated in the PCS
should be fully aligned with the needs of the members of Split
seaport cluster and with the objective of increasing the level of
business optimisation.
ACKNOWLEDGEMENT
This paper has been nancially supported by the University
of Rijeka under the Faculty of Maritime Studies' projects.
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During the last decade there have been increasing societal concerns over sustainable developments focusing on the conservation of the environment, the welfare and safety of the individual and at the same time the optimal allocation of available natural and financial resources. As a consequence the methods of risk and reliability analysis are becoming increasingly important as decision support tools in various fields of engineering. In this book, the risk and reliability research community looks beyond the horizon. The technology we deploy to fix today’s problems is based on research that started more than two decades ago. What we are doing today should make a difference for tomorrow. Developing innovative new knowledge and applications helps engineers to better play the important role they have for society in establishing the basis for decision making. Safety, Reliability and Risk Analysis: Beyond the Horizon contains the papers presented at the 22nd European Safety and Reliability (ESREL 2013) annual conference in Amsterdam, The Netherlands. The abstracts book (785 pages) + full paper CD-ROM (3426 pages) cover a wide range of topics for which risk analysis forms an indispensable field of knowledge to ensure sufficient safety: Uncertainty Analysis, Accident and Incident Modeling, Human Factors and Human Reliability, System Reliability, Structural Reliability, Safety in Civil Engineering, Quantitative Risk Assessment, Prognostics and System Health Management, Occupational Safety, Mathematical Methods in Reliability and Safety, and Maintenance Modeling and Applications. Applications in different industrial areas are shown: Natural Hazards, Land Transportation, Aeronautics Aerospace, Chemical and Process Industry, Critical Infrastructures, Manufacturing, Security, Nuclear Industry, Energy, Maritime Transportation, and Information Technology.