CONSULTING

Port Community Systems (PCS) as a competitive instrument to improve foreign trade

What are Port Community Systems (PCS)?

According to the International Port Community Systems Association (IPCSA), Port Community Systems (PCS) are neutral and open electronic platforms that enable the intelligent and secure exchange of information between public and private stakeholders to improve the competitive position of port communities. PCS optimizes, manages, and automates port and logistics processes through the unique presentation of data and the interconnection of transport and logistics chains. The tool is designed as a local Single Window for port operations, which is connected to other Single Windows within the port ecosystem, such as the Maritime or Customs Single Windows, thus promoting a more coordinated and integrated flow of documents and operations.

Although its initial focus was limited to the port area, PCS has evolved over time to encompass an ever-widening range of actors within the port logistics chain, including importers, exporters and even connections with ports in the hinterland. This gradual growth over the years has been driven by the tangible benefits they offer, supported by renowned maritime and port associations such as the International Association of Ports and Harbors (IAPH) and the International Maritime Organization (IMO).

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PCS originated in the early 1980s as simple information exchange systems in a B2A (Business to Administration) model, initiating the digitization of customs declarations and paper procedures. Ports in Germany (Port of Hamburg), France (Port of Le Havre) and the United Kingdom (Port of Felixstowe) were pioneers in this initial phase. Later, in the 2000s, data standardization promoted by UN/CEFACT and ISO significantly boosted and transformed PCS. Ports in Spain (Barcelona and Valencia) and the Netherlands (Rotterdam and Amsterdam) joined this evolution. In the last decades, ports of different capacities and dimensions around the world have adopted this type of system, showing that its impact is not limited to large ports handling mainly containerized cargo.

To see why more and more ports are choosing to develop their own PCS, consider the many benefits it offers:

• Neutrality and security: A neutral platform that provides greater data security and confidentiality to the port community.
• Added value: Provides greater reliability, more efficiency and total transparency and traceability of goods throughout the port logistics chain.
• Process standardization and optimization: Standardizes processes while simplifying procedures. For example, the Port of Abu Dhabi reduced administrative tasks by 48% and human errors by 54%.
• Decarbonization: Reduces the operating and travel times of ships, trucks, and cranes, helping to reduce traffic and noise in the port while reducing emissions. The Port of Valparaiso estimates an 83% reduction in CO2 emissions thanks to PCS.
• Time and cost savings: Reduces shipping, receiving and data processing times, promoting higher quality and faster decision making.
• Competitiveness: An effect resulting, among other things, from the reduction in waiting and operating times mentioned in the previous point. The PCS makes it possible to generate indicators and measure the quality of the service, improving the port’s positioning and competitiveness. The Port of Jamaica was able to reduce the departure time of import containers from the port by 5 days with the implementation of a new PCS functionality.
• Resilience: Ability to quickly adapt to disruptive situations and respond in an agile and flexible manner to the demands of an increasingly demanding market. The response to COVID was proof of this, as the ports that had digitized their processes had fewer problems guaranteeing the continuity of their operations.

At IDOM, we are fully prepared to provide support to those countries or ports that do not yet have this tool at their disposal

On this last point, it should be noted that IDOM has led the design of Port Community Systems (PCS), such as the Port of Algeciras Bay (TELEPORT 2.0) or the PCS of the Ports and Airport of Jamaica (JamaicaPCS), achieving a significant reduction in time and costs in logistics operations. As a result of its implementation, TELEPORT 2.0 is estimated to generate annual savings of EUR 17 million, while JamaicaPCS is estimated to generate annual savings of EUR 10 million.

Last but not least, an additional benefit of this type of system is its ability to bring port communities together and strengthen them in a way that enhances their robustness and maturity. This cohesion facilitates the confidence of port communities to undertake ambitious and holistic projects that require the participation of several actors in the port logistics chain.

In short, PCS have proven to be an indispensable tool for the ports that have implemented them. Many countries have a “PCS ambassador“, usually from the public administration, who flies the flag of neutrality and promotes the project within the port community. And you, do you know who would be the best administration or organization to promote this type of initiative in your country? At IDOM, we are committed to supporting those countries or ports that do not yet have this tool, accompanying them from the initial idea phase, through the detailed design and ending with the implementation of the platform.