Advantages of Using Port Community Systems

1. Advantages of Using Port Community Systems The volume of international trade has increased tremendously over the last few decades. Huge cargo is transported from one corner of the world to another majorly via sea ports. Companies are competing to get an edge over their peers to penetrate foreign markets. Supply chains all over the world are optimising their process with the help of scientific methodologies and innovative technologies to increase overall efficiency. Logistics plays a pivotal role in the development of businesses and seaports are the key junctions of trade because more than 90% of goods are traded by sea. There are a variety of operations being carried out on the port at a given moment. This includes loading and unloading of goods, customs procedures, document verification, repair and maintenance of machinery, distribution etc. Hence there is a need to organise the operations at seaports and make trading less chaotic, transparent and smooth. One of the methods to optimise activities at seaports is by using the Port Community System. What is a Port Community System? It can be defined as a centralised hub for integrating the electronic flow of trade-related documents and information between the port and other stakeholders such as shipping lines, freight forwarders, agents, surveyors, container freight stations, importers, exporters, customs brokers, government authorities etc. It facilitates the exchange of messages electronically and securely through the system. Advantages of the Port Community System: Enhanced Communication: As mentioned above, there are numerous parties involved in port operations. It is important to have clear and precise communication between the two parties for the smooth operation of the trade. If there is no or ambiguous communication between these parties, the whole operation becomes chaotic and fragmented which leads to delays, loss of money, rise in labour cost and disorder. But the port communicate Reduction in Cost: With the help of the port community system, it is easy to connect with landside cargo communities such as truck fleet operators, port workforce etc. by making contracts and agreements digitally. Advanced information-sharing features help during the delay in vessel berthing and road congestion. It helps in saving operational costs caused due to delays and miscommunication. Documentation: Trading requires many documents for customs clearance, contracts with other parties and complying with government regulations. But with the help of port community systems, all the documentation is done

2. digitally. All the documents are easy to access and complete in all respects. It saves a lot of time in preparing the intricate contract. In addition, physical documents require a lot of space. However, with the help of a port or cargo community system, all the documents are digitally saved in their system and there is no need for big space. Paperless operation is good for the environment too. Enhance Security: Trading involves a huge sum of money. It is thus important to maintain a high level of security during all operations. There are chances of a data breach or leakages which may give critical information into the wrong hands. However, the port community system is a secured platform, the access to information is given to authorised stakeholders only after verification. Hence there are no chances of data compromise. User Friendly: APort community system platform can be operated on a computer or by a specialised app on mobile phones. One of its features is that they are user-friendly and easy to operate. No special knowledge is required to share documents or message other parties. Customer Satisfaction: With the help of the e-port community system or Freezone community system, customers have detailed information about their shipments. These systems provide transparency in every operation and keep the customer informed.