Wednesday, June 13, 2007

Shanghai, Savannah ports to test new tracking program

By William Saunders
TBR Staff

New technology for Radio Frequency Identification tags for cargo containers is developed at the Maritime Logistics Innovation Center on the Georgia Tech Savannah campus. (Photo: Savannah Morning News)

(Photo: Savannah Morning News)

Exchange | Business
Mary Carr Mayle | Wednesday, June 13, 2007 at 12:30 am | (SEE ENHANCED VERSION)

Shanghai International Port Group, the Georgia Ports Authority and Savi Networks are finalizing plans to launch a Radio Frequency Identification-based network that automatically tracks the location and security of containerized cargo transported between the Port of Shanghai in China and Savannah.

The three companies announced their partnership - the Shanghai-Savannah Express Trade Lane Project - last week at the third annual China Trade and Logistics Conference, which took place at the Savannah International Trade and Convention Center.

"This is essentially about finding how technology can fit into a supply-chain that will move containers faster as well as more securely. This combination is crucial to making something like this work" said Page Siplon, executive director of the Maritime Logistics Innovation Center at Georgia Tech's Savannah campus, one of the state's centers of innovation.

"This is a great project for Savannah as some 40 percent of the containerized cargo coming into our port comes from mainland China," Siplon said.

The Shaghai ports group and Savi Networks jointly developed a localized China RFID program that uses an electronic seal and integrates a hand-held Global Positioning System to help make each container as close to 100 percent secure as possible.

"We're embarking on this pilot to ensure that SIPG provides our customers and China customs with state-of-the-art information services," said Bao Qifan, executive vice president at SIPG in a news release.

Efficiency and security

of all shipments

The program is designed to optimize the efficiency and security of domestic and global shipments, he said.

"The extension of our real-time information service to the Port of Shanghai adds yet another critical link to our growing network throughout the global supply chain," said Vic Verma, chief executive officer of Savi Networks.

Georgia Ports already has the open-architecture Savi Networks' RFID readers located in the gates at GPA's Garden City Terminal.

After the successful completion of the project, SIPG and Savi Networks will extend its Radio Frequency Identification-based solution and SaviTrak information service to terminal facilities operated by SIPG at the Port of Shanghai, one of the world's largest and busiest ports and key gateway for products manufactured in China and shipped to the United States.

"The infrastructure is already in place in Savannah," Siplon said.

"This pilot program will concentrate on how policy, procedure and process needs to work alongside technology on both ends of the supply chain."

An end goal of the project is to develop a working model of what U.S. Customs calls a "green lane" - those containers moving on a secure supply chain - could look like.

Siplon is a proponent of the green-lane concept, which would speed the flow of commerce while also enhancing security.

"There are two debates going on right now," he said.

"One says we should inspect 100 percent of the cargo coming in to our ports. The other, which the green lane would address, says we should strive for a situation where almost none of it needs to be inspected.

"If you know where a container is, where it's been, what's in it, who's handled it, if it's been opened or tampered with, then you should have less of a need for an inspection," he said.

"Having a 'green lane' would give certain customers the ability to move their containers as efficiently - and securely - as possible, while freeing Customs up to focus more resources on other issues."

About Savi Networks

Majority-owned by Lockheed Martin Co., Savi Networks LLC operates a global information network that uses automatic identification and data collection equipment and software to provide shippers with information about the identity, location and status of their ocean cargo containers and contents. Savi Networks provides the SaviTrak information service that allows shippers, logistics service providers and transportation companies to manage and monitor their shipments over a secure Internet connection.