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CrimsonLogic

Copyright 2013 Private & Confidential


CrimsonLogic
Copyright 2013 Private & Confidential
All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogic Pte Ltd. All information contained in this presentation is disclosed to you on the basis of a
prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic.

1
Role of ICT learning from
Singapores TradeXchange


Green Freight and Logistics
27 June 2014
Singapore
Presented By:
Jonathan Koh
All rights reserved. CrimsonLogic and the Shell Device are trade marks of CrimsonLogic Pte Ltd. All information contained in this presentation is disclosed to you on the basis of a
prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic.

CrimsonLogic
Copyright 2013 Private & Confidential 2

Introduction and
Overview of
TradeXchange


How PPP worked


Innovations and
future plans
AGENDA
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Copyright 2013 Private & Confidential
ABOUT CRIMSONLOGIC
CrimsonLogic is a trusted partner to
governments worldwide.
We help governments design and run
innovative and sustainable services to
collaborate more seamlessly with their
citizens and ecosystem.
We work closely with our customers to
continuously enhance the e-services,
to drive adoption and usage of the
e-services.
Shareholders
3
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TRADE FACILITATION SOLUTIONS
Free
Trade
Zone
System
Single
Window
System
Strong Infrastructure and Security Management Policies for reliable service delivery
Consultancy Services and Domain based software components
Port
Community
System
Customs
Management
System
CrimsonLogic
Trade Facilitation Solutions

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Integrate Customs, Port And Trade licensing information
services to establish National Single Window.
Promote convenient services, information sharing and
interoperability to enhance the trade competitiveness.
Challenges
Security & Border
Protection
Economy and Trade
Competitiveness
Strategy
CHALLENGES
TRADE FACILITATION
5
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TRADE DEVELOPMENT STRATEGY
6
Trade Development Strategy
Trade
Facilitation
Infrastructure
Development
Trade
Promotion
Trade
Relations
Management
Trade Facilitation should be part of an overall trade
development strategy whose purpose is to develop and
expand sustainable trade flows to support the countrys
economic development.
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WORLD BANK
TRADING ACROSS BORDERS INDICATORS
7
Region
Trading
Across
Border
Rank
Document
s to
export
(number)
Time to
export
(days)
Cost to
export
(US$ per
container
)
Document
s to import
(number)
Time to
import
(days)
Cost to
import
(US$ per
container
)
East Asia & Pacific .. 6 21 856 7 22 884
Latin America &
Caribbean .. 6 17 1,283 7 19 1,676
Singapore 1 3 6 460 3 4 440
Hong Kong SAR, China 2 3 6 590 3 5 565
Korea, Rep. 3 3 8 670 3 7 695
Malaysia 5 4 11 450 4 8 485
Taiwan, China 18 5 10 655 6 10 720
Thailand 24 5 14 595 5 13 760
Brunei Darussalam 39 5 19 705 5 15 770
Philippines 42 6 15 585 7 14 660
Myanmar 113 9 25 670 9 27 660
Cambodia 114 8 22 795 9 24 930
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UN/CEFACT Recommendation no. 33

Since formally approved by the
UN/CEFACT in September 2004, the term
Single Window has become ubiquitous
and synonymous with Trade
Facilitation




SINGLE WINDOW
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EVOLUTION OF SINGLE WINDOW
9
World Bank Trading Across Border Report 2012
49 economies provides a Single Window
20 have SW that links all OGAs
29 have SW that does not

World Bank Trading Across Border Report 2013
71 Economies have a Single Window
Source: UNECE Paper - Ten Years of Single Window Implementation , World Bank Doing Business 2012/2013
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Copyright 2013 Private & Confidential 10
INTERNATIONAL TRACK RECORD
Country Project Year Business Model
1 Singapore TradeNet

/ TradeXchange 1989 PPP


2 Mauritius Mauritius TradeNet 1994 PPP
3 Ghana Ghana Community Network 2002 PPP
4 Saudi Arabia SaudiEDI 2002 PPP
5
6
7
8
Panama Panama Canal Authority
Colon Free Trade Zone
Panama Customs
Panama Single Window
2004
2008
2009
2013
Self Funded
Self Funded
Self Funded
Self Funded
9 Madagascar Madagascar (GASYNET) 2007 PPP
10 India Port Community System 2007 Self Funded
11 Ivory Coast Ivory Coast TradeNet 2008 PPP
12 Qatar Qatar Customs Clearance Single Window 2008 Self Funded
13 Trinidad & Tobago Trinidad & Tobago Single Electronic Window 2010 Self Funded
14 Mozambique Mozambique TradeNet 2010 PPP
15 Chile Chile Single Window 2012 Funded
16 Brunei Brunei National Single Window 2012 Self Funded
17 Kenya Kenya Electronic Single Window 2012 Self Funded
18 UAE UAE Circulars and Permits 2012 Self Funded
19 Oman Integrated Customs Management System & Single
Electronic Window
2013 Self Funded
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Singapore
TradeXchange


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TRADEXCHANGE


Singapore's Integrated IT Platform for Trade
Neutral IT platform
Enables information exchange between commercial entities and government
Main users: trade & logistics community
Rolled-out in Nov 2007



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Some of
TradeXchange


Services
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Trade Permit
Preparation
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TRADE PERMIT PREPARATION
Declarant, using the VAS
Providers TradeNet Front-end
System, completes the pre-
populated forms for submission

Shipper sends shipment &
trade data in electronic
form, to their Declaring
Agents
Trade declaration data
is received by the
Government Agencies
electronically
1 2
3
New Process
Government Agencies
Importers/ Exporters Freight Forwarders
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1. Eliminates the need to send hardcopy documents like invoices,
packing lists to Freight Forwarders / Declaring Agents

2. Reduces data entry by Freight Forwarders/ Declaring Agents
Decreases chance for data entry errors

3. Delivers data seamlessly to Declaring Agents
Results in faster declaration turnaround time
Easier compliance to AED

TRADE PERMIT PREPARATION
Benefits
TIME SAVINGS!
up to
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Marine Cargo
Insurance
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MARINE CARGO INSURANCE
For exceptional cases, human
intervention is necessary
Based on a pre-arranged cover insurance, the applicant
submits relevant data to their insurance company through
TradeXchange


For standard cases, approval is automated and the
applicant can print the certificate
1
2
OR
New Process
Back-end
System
Importers/ Exporters Freight Forwarders
Insurance
Companies
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Copyright 2013 Private & Confidential
Real-time submission of applications
Amendments are made quicker and easier
Reduces overall cost
Reduces data entry by the insurance company
Faster turnaround time
Enables Self-Printing of insurance certificate

MARINE CARGO INSURANCE
TIME SAVINGS!
up to
Benefits
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Trade Finance
Service
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TRADE FINANCE SERVICE
Automates the processing of
data for financing
Buyers
1
2
Buyer and supplier send their
commercial data to the banks
electronically
New Process
Back-end
System
Banks
Suppliers
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Copyright 2013 Private & Confidential
Supplier
Improves cash-flow
Decreases time of working capital being tied up
Increases reach to retailers
Bank
Reduces data entry
Eliminates manual verification processes
Buyer
Potentially reach more suppliers by reducing the strain on those
suppliers cash-flow
TRADE FINANCE SERVICE
Benefits
Less Costly
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TAIWAN SW
Integration with Customs Clearance
System plus :

Marine Net & various Ports systems

Cargo Movement Security

Advance Cargo information

Facile TradeNet (Trade Licensing &
Permist by Bureau of Foreign Trade)
Source: www.wto.org/english/tratop_e/tradfa_e/.../overall_impl_tpkm_e.doc

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S KOREA UTrade HUB
Support the whole cycle of trade process
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PPP
Managing &
Transferring Risk
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RISK ALLOCATION
Government Risks Risks
Design
Development Operation
Asset
Renewal
INPUTS
Risk Allocation Traditional Procurement Model
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Risk Allocation Typical PPP Model
RISK ALLOCATION VIA PPP
Government
Design
Construction Operation
Asset
Renewal
Special
Purpose
Vehicle
Government Risks
OUTPUTS
Transferred
Risk
Transferred
Risk
Shared
Risk
CrimsonLogic
Copyright 2013 Private & Confidential
Objective:




Optimal risk transfer will enhance Value for Money


RISK TRANSFER
RISK TAKEN BY PARTY BEST PLACED TO MANAGE IT
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Structuring the PPP
Establishing a Special
Purpose Vehicle
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CONTRACTUAL ARRANGEMENT
Service Contract
Appoint Special Purpose Vehicle
(SPV) as National Information Trusted
Broker and award the concession to
collect user service fee for a minimum
period of 5 years
Sharing IP ownership with SPV
Allow SPV to introduce value-added
services
Customs
OGAs
Ports
Government
SPV
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Structuring a PPP Contract
Typical Special Purpose Vehicle (SPV) Structure

STRUCTURING A SPV CONTRACT
Design &
Development
Multi-Year
Operations
Market
Adoption
Sub-Contracts Sub-Contracts
SPV PPP
Contractor
Government
PPP Contract
Equity
Investors
Equity
Shareholder
Agreement
Credit
Agreement
Lenders
Debt or Bond
SPV
Consultants
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Copyright 2013 Private & Confidential
Government Owned SPV
Singapore - CrimsonLogic
Taiwan TradeVAN
Korea KTNet
Japan - NACCS
Public or Public-Private SPVs
Hong Kong TradeLink
Ghana - GCNet
Mauritius MNS
Madagascar - GasyNet
EXAMPLES OF SPVS IN ASIA PACIFIC
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Innovations and future
plans -
The concept of Inter-
organization Information
Systems (IOS)
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INTER-ORGANIZATION INFORMATION SYSTEMS
Background - Trends for Collaboration in international trade:

Advanced economies have developed alternative concepts of highly
specialised collaborative platforms to establish collaboration and
information sharing between the different stakeholders of the
international supply chain. These inter-organization information
exchange and collaboration platforms have become crucial for the
competitiveness and compliance of trade esp in the highly developed
economies.

The role of inter-organization collaboration platforms features
interoperability among different inter-organization collaboration and
information exchange platforms.

The United Nations is proposing a framework that provide an
environment in which different Inter-organization Information Systems
exchange and collaborate.

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INTER-ORGANIZATION INFORMATION SYSTEMS
The Network of Networks of Inter-Organization collaboration for
cross-border supply chain:
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INTER-ORGANIZATION INFORMATION SYSTEMS
Classification Model for different Inter-organization Information Systems
in an economy:
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Copyright 2013 Private & Confidential
RECOMMENDATIONS
National
Integration &
collaboration
framework
for the Inter-
organizational
Information
Systems (IOSs)
e.g. TradeNet,
MariNet,
PortNet, CCN,
JPOnline, etc.
Development of a globally networked Single Window
= Nation-to-
Nation
collaboration
data &
information
exchange
among
Customs
agencies in
support
bilateral trade
agreements
and policies


Next Gen
Single Window
x =
Develop Global
connectivity
Adopt
international
connectivity
and data
harmonization
standards to
achieve
information
exchange in
global supply
chains
x
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Copyright 2013 Private & Confidential

Thank you


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