Digital Trade and Transportation Network (DTTN) Business drivers

1. Single Window Development and ImplementationExperience of Hong KongPeter Stokes, CEO, Digital Trade and Transportation Network LtdGurudutt Ponnathar, Head, eTRADE SOLUTIONS, Axway Asia Pacific

2. Digital Trade and Transportation Network (DTTN) Business drivers • DTTN’s mission is enhance the productivity and competitiveness of Hong Kong's trading community by making available • Purchase Process (Purchase / Sales Order; Order Confirmation) • Get products ready for delivery (Packing List / ASN; Commercial Invoice; Inspection Certificate; Insurance) • Local and overseas transportation (Booking; Shipping order; arrival notices; transport docs - Master / house waybill - sea / air; cargo receipt; transport set; EIR; delivery / release order) • Local and overseas transportation (Booking; Shipping order; arrival notices; transport docs - Master / house waybill - sea / air; cargo receipt; transport set; EIR; delivery / release order) • Settlement Process (Letter of Credit; Company Guarantee; Bill of Exchange; L/C collection letter; document arrival notice) • Key document ownership transfer & “print right” with local on-line payments (transport documents e.g EIR; local trade services invoice; payment instruction / confirmation)

3. Guiding Principles • Neutrality • Non-exclusivity • Transparent, accountable & responsible operations • Minimum intervention to any participant’s business processes & relationships • Facilitate & respect market forces • Easy to access & use

4. Three Layer DTTN Model Source: Study for the Development of a Digital Trade and Transportation Network (DTTN) System to Support the Development of Hong Kong as an International Logistics Hub, Final report November 2002

5. Community Role of the DTTN Sellers Buyers Freight Forwarders Carriers / Portals (Inttra, GTNexus) DTTN Core MessagingInfrastructure e.g. Tradelink Communications Gateway Security Services Web Services Banks & Financial Institutions Document Exchange & Transformation Customer Management Support & Operations Management Government & Agencies Inspection Agencies Insurance Institutions Terminals

6. Status (1/2) • The development and operation of the non-exclusive DTTN awarded to Tradelink (http://www.tradelink.com.hk/) • Tradelink set up subsidiary “Digital Trade and Transportation Network Ltd”, to be owned: • 51% by Tradelink • 21% by Government • 28% by industry associations • Established DTTN Standards Advisory Group • Following UBL methodology • Endorsed structures of 15 commercial documents

7. Status (2/2) • Design and Development has commenced with target to launch the DTTN pilot by end 2005 • Planning to interconnect with shippers, buyers, trade service providers, and international service providers for participation in the Pilot: • The pilot is to be a showcase of the potential benefits of DTTN • After the pilot, intend to use the pilot showcase as a platform to launch a “critical mass” marketing program

8. What are the costs to use DTTN? • Low-Cost Community Infrastructure • Charges based on each successfully transformed and delivered document • Initial connectivity, annual & customisation fees will apply • Final pricing details to be determined closer to launch

9. What are the business benefits of DTTN? • Cut operation costs through reduced delays, double handling / data entry & minimized errors • Save time and cost for document delivery • Better financial management, for example: credit, cash flow • Easy, cheap & fast to interconnect with trading partners • any-to-any protocol & document transformation • Retain existing business against competition • more timely and accurate, with value-added services • Significant business and efficiency opportunities • just-in-time supply chain management • e-access to more trading partners

10. Structure and services Source: Study for the Development of a Digital Trade and Transportation Network (DTTN) System to Support the Development of Hong Kong as an International Logistics Hub, Final report November 2002

11. Architecture Access Channels DTTN Secure Message Over HTTP Gateways DTTN Web Portal Services & Applications Communication Gateways FTP, SMTP, HTTP Trade Partner Management Customer Care Load Balancer and Hardware & Software Secure Message Over SMTP Reporting Analysis Message Routing Tradelink Client Support User Profile Manager Web Browser Message Processing Storage Services Gateways Security Services E-mail Client Message Transformation Other Services ebXML Secure E-mail ebXML Secure HTTP Business Activity Monitoring End-to-End Logging and Tracking Services Secure FTP

12. Technology and Interoperability Source: Study for the Development of a Digital Trade and Transportation Network (DTTN) System to Support the Development of Hong Kong as an International Logistics Hub, Final report November 2002

13. Phase 1 Phase 2 Phase 3 Additional service providers G2B/Customs Community Platform ebXML Private Hub EDI ebXML EDI/XML EDINT Back-end govt, Customs, govt depts Time 1997 2002-2004 2005 Digital Trade and Transportation Network Electronic Manifest Trade Declaration Evolution of National Level Trade Facilitation Networks in Hong Kong

14. UNESCAP UNECE UN/CEFACT