Air Cargo Industry Set to Increase Productivity Through Electronic Air Freight Processing

CAAS and IDA collaborate with industry to develop inter-operable solutions to link stakeholders electronically. Benefits include savings in time and cost, improved data accuracy and productivity.

The Civil Aviation Authority of Singapore (CAAS) and the Infocomm Development Authority of Singapore (IDA) have selected three consortia, comprising 37 companies, to develop Infocomm Technology (ICT) solutions to manage paperless airfreight processes in Singapore, as part of the e-freight@Singapore programme. The three consortia, which include shippers, freight forwarders and ICT vendors, were selected through a Call-for-Collaboration (CFC)1, and are led by Innosys Pte Ltd (Solution Name: “e-freight@Singapore Integrating the Air Cargo & Logistics Supply Chain”), Kewill Pte Ltd (Solution Name: “Kewill Electronic Shipment Processing”), and Visiflex Pte Ltd (Solution Name: “Visiflex Cargo Cloud - VCC”).

The three solutions, totaling over S$4 million will link stakeholders in the air cargo supply chain electronically by integrating ICT systems, business processes and data. All three solutions will use inter-operable platforms and standards for data exchanges, giving shippers and freight forwarders wider choices of solutions when these are fully implemented in 2014.

Mr Yap Ong Heng, Director-General, CAAS, said “CAAS is pleased to see the increasing support of the air cargo and logistics industry for the e-freight@Singapore programme, an initiative under the CAAS Aviation Partnership Programme2. The solutions proposed by the three selected consortia is another significant step. Their implementation will lead to enhanced productivity of the entire air cargo and logistics supply chain. In an Air Freight Process Productivity Study commissioned by CAAS, it was found that implementing e-freight@Singapore will potentially achieve significant cost savings of S$18.4 million and improve overall productivity by 1.7 million man-hours annually at the national level.”

The e-freight@Singapore programme aims to take the paper out of the air cargo process and replace it with electronic data and messages through the use of ICT. It seeks to capture data entered at source by shippers, and transmit the data electronically for re-use along the inter-connected supply chain involving other stakeholders such as freight forwarders, government agencies, airlines, and ground handlers. Today, air cargo still relies heavily on paper - an airfreight shipment typically generates up to 30 documents. The processing of these documents adds to the cost and transport time of air cargo shipments.

“IDA is pleased to work with CAAS to support early adopters in the infocomm and air cargo industry to jointly develop solutions that will integrate the entire air cargo supply chain. The capture and re-use of electronic information at source and elimination of manual entries across multiple systems will raise overall industry productivity. The open and interoperable solutions, leveraging on infocomm technologies, will offer greater flexibility for the industry to also integrate with various business partners” said Mr Ronnie Tay, CEO, IDA.

The Singapore Air Cargo Agents’ Association (SAAA) and the Singapore Logistics Associations (SLA) are industry partners supporting the e-freight@Singapore programme. Mr Steven Lee, Chairman, SAAA said, “Forwarders will benefit from the programme through better visibility to track shipments and enable greater data accuracy as it is re-used from source documents. The electronic data re-use also significantly reduces paper documentation, eases regulatory compliance processing and increases overall security.”

Mr Gerry Tan, Chairman Aircargo Committee, Honorary Secretary, SLA added, “e-freight@Singapore could possibly provide us with the added visibility and transparency to enhance the supply chain processes, particularly in the aviation industry. With the seamless information flow from shipper to customer and leveraging on the concept of entering data at source, we can expect an improvement in the speed and efficiency in air-cargo related transportation, and most importantly, at a fraction of investment cost.”

The three consortia responded to the CFC in early 2011 and will develop their solutions over a period of up to one year. Sessions are planned to introduce these solutions to the industry. By 2013, the consortia will pilot deployment among their members before the solutions are rolled-out to the industry no later than 2014.

Enclosed
Annex A: Quotes from Consortia Lead Agency

Annex B: Fact Sheet on e-freight@Singapore Programme

About the Civil Aviation Authority of Singapore (CAAS)
The mission of the Civil Aviation Authority of Singapore (CAAS) is to "Grow a safe, vibrant air hub and civil aviation system, making a key contribution to Singapore's success". CAAS' roles are to oversee and promote safety in the aviation industry, develop the air hub and aviation industry, provide air navigation services, develop Singapore as a centre for aviation knowledge and training, and contribute to the development of international aviation.

About Infocomm Development Authority of Singapore
The Infocomm Development Authority of Singapore (IDA) is committed to growing Singapore into a dynamic global infocomm hub. IDA uses an integrated approach to developing infocommunications in Singapore. This involves nurturing a competitive telecoms market as well as a conducive business environment with programmes and schemes for both local and international companies. For more news and information, visit www.ida.gov.sg.

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