Download FREIGHTWISE – development of a management framework for

INTRODUCING FREIGHTWISE —
A MANAGEMENT FRAMEWORK FOR
INTELLIGENT INTERMODAL TRANSPORT
Lars Källström*, Inger Gustafsson, Roman Poersch, Detlev Fischer
BMT Transport Solutions GmbH, Germany
Karpfangerstr. 14
20459 Hamburg
Tel: +49-40-364780
Fax: +49-40-364799
Email: [email protected]
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Introducing FREIGHTWISE – a management framework for
intelligent intermodal transport
Lars Källström*, Inger Gustafsson, Roman Poersch, Detlev Fischer
BMT Transport Solutions GmbH, Germany
Karpfangerstr. 14
20459 Hamburg
Tel: +49-40-364780
Fax: +49-40-364799
Email: lk [at] bmt-ts.com
ABSTRACT
Intermodal transport can reduce the load on the road infrastructure. However, setting up
integrated logistic chains using alternative transport modes requires the trust and close
interaction of a variety of actors involved in managing the chain. FREIGHTWISE tackles this
complexity by developing a framework architecture anchored and validated in a range of
demonstration cases involving commercial and public actors. This framework architecture
comprehensively describes transport chain physical processes and information flows to
facilitate the development of standards-oriented and interoperable transport management
systems. FREIGHTWISE also offers recommendations for policy actors defining legal,
safety- and security-related conditions of transport operations.
KEYWORDS
Intermodal transport, freight transport, sustainability, mobility, modal choice, transport
policy, integrated logistic chains, supply chain management, co-modality, transport
management, framework architecture, interaction infrastructure, transport safety, transport
security, interoperability, standardisation
INTRODUCTION
An important goal of European Transport Policy, as described in the White Paper “Time to
Decide” [1] is to increase the share of intermodal transport as a means to make better use of
existing transport capacities. However, the mid-term review of the White Paper [2] states that
this goal has not been reached, nor has it been possible to achieve the decoupling of transport
development from the economic development. The review introduces the term co-modality
defined as: the efficient use of different modes on their own and in combination, which will
result in an optimal and sustainable utilisation of resources, acknowledging that mobility is
important to support economic development and the creation of new jobs. In this slightly
revised context, the development of intermodal freight transport becomes part of a policy of
integrated logistics to be supported by public efforts to promote interoperability through
standardisation and other initiatives.
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FREIGHTWISE is an integrated project funded through the European Commission's 6th
Framework Programme. The objectives of the FREIGHTWISE project will contribute to
these goals by supporting the Commission in promoting interoperability and the industry by
providing good examples, practical methods and tools. As the project has not yet started, this
presentation is limited to giving some background to the proposal, the problems to be
addressed and a brief review of the work planned.
THE PROBLEM TO BE ADDRESSED
Figure 1 aims at visualizing the complexity of the intermodal transport chain in relation to its
competitor, direct truck transport from door to door. The figure indicates the FREIGHTWISE
approach to developing an efficient management structure, which is considered necessary if
intermodal transport shall have a chance to compete.
Figure 1 - Intermodal transport versus direct truck transport
There are many commercial, technical and organisational obstacles to overcome in the
process of combining a number of transport services to an efficient transport chain. Rapidly
changing business and administrative requirements demand a high level of flexibility from the
transport industry in terms of the services offered and the related management systems.
Integrated transport management also requires a certain level of business integration which
demands trust with a potential perspective of long term co-operation. Information access and
communication possibilities are key elements in this context. Business partners must have the
opportunity to communicate with each other and with the authorities. But many companies
find the threshold for using advanced Information Technology and IT-based management
tools still too high in terms of costs and necessary know-how. Standards are too wide or
inadequate and do not support the interaction of all parties involved.
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THE STARTING POINT
The FREIGHTWISE approach is based on results from several projects in previous
Framework Programmes that aimed at making intermodal transport more efficient. Based on
these results, the FREIGHTWISE goal is to provide a blueprint (a reference architecture) for
the development of an effective management and IT infrastructure for setting up, monitoring,
and managing intermodal chains. This infrastructure will support the interaction with other
service partners in the chain, but also with external actors such as traffic management
services, customs offices, and other relevant public bodies.
The approach is illustrated in the model below (see Figure 2), which was developed in the
EU-sponsored project THEMIS [3, 4]. At the top, there is the shipper or his agent acting as a
Transport Chain Manager (TCM) responsible for delivering the cargo from the consignor to
the consignee. The TCM can subcontract the management of certain parts of the chain, which
is illustrated by S-TCM. On the next level we have the physical transport and the terminal
handling of the cargo. The management of the traffic on the infrastructure used for transport is
illustrated at the bottom of the figure where different traffic management systems (TMS) are
to varying degrees responsible for security and capacity allocation.
Figure 2 - A model of management responsibilities in an intermodal chain
The model does not include asset management, which of course is an important task for the
service providers in order to meet the requirements of their ultimate customer — the shipper.
The model is focused on illustrating the allocation of responsibilities both in terms of physical
handling and information. Basically, each partner in the chain has two tasks: to carry out the
transport, and to provide information. The latter often builds on information provided by
partners upstream the chain. Partners are thus not only consumers, but also producers of
information. They can improve information quality by adding contextual cues (e.g., by
informing on irregularities or by modifying estimates of arrival time).
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When considering the information needed to plan and manage intermodal transport in a wider
context, it is necessary to include a third domain in addition to predominantly commercial
transport management and predominantly public traffic management. By introducing the
“institutional” domain, we include the impact of legislation, regulation and standardization.
FREIGHTWISE aims to develop a framework placed at the intersection of the three domains
(see Figure 3).
Figure 3 - Three domains governing intermodal transport management
The “institutional” domain defines the conditions governing transport and traffic and the use
of the infrastructure. The rules provide a framework for interaction. FREIGHTWISE aims at
providing input for extending this framework to include also rules for interaction and
communication in the intermodal chain, which we call “interaction infrastructure” [5]. This is
in line with the Commission’s efforts to support, for example, a harmonized river traffic
information system [6], a technical specification for interoperability in the rail sector [7] and
lately, the development of a joint European system for road user charges of heavy
vehicles [8].
MOVING BEYOND TECHNICAL ISSUES
The rapid development of ICT is increasing and facilitating communication on a technical
level, but there are a number of additional aspects which have to be addressed if the
communication along the intermodal chain is to be efficient. One is the need for common
definitions and a common architecture; another is the more complex issue of rules for cooperation between the partners in the chain. The lack of common definitions, data dictionaries
and architectures is well known, but there are also wider problems related to the applicability,
scope, and commercial acceptance of standardisation efforts.
The questions related to co-operation and commercial integration are inherently complex due
to the competitive nature of the transport market. Research on Supply Chain Management
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(which can also be applied to the organization of intermodal transport chains) stresses the
need for trust, commitment and collaboration [9]. The need for better integration is often
recognized among transport chain partners, but the practical solutions—for example, defining
the appropriate degree of openness or elements of risk sharing—are not easy to implement.
The sharing of information is a cornerstone of the FREIGHTWISE approach, but it is a
contentious issue in many companies.
The need for transparency among the partners in the intermodal chain is has been analysed by
Gustafsson [10]. She concludes that transparency is a precondition for having knowledge
accessible to all relevant partners, but that it is also seen as a potential threat which requires a
clear definition of the respective roles in the business process. This is why building trust is
important, which has to be acknowledged when designing both the commercial agreements
and the technical solutions.
In order to overcome this hurdle, FREIGHTWISE seeks to build a well structured and
formalised framework containing both technical and organisational aspects. For this the
notion of “interaction infrastructure” has been introduced by Gustafsson. The notion indicates
that interaction is not merely a question of being able to communicate from a technical point
of view, but also there is a need for commonly agreed definitions, basic principles, rules for
co-operation and communication. In parallel to the situation for the physical infrastructure it
is important that “someone” takes the responsibility for the interaction infrastructure,
facilitates the agreements and also maintains it. FREIGHTWISE will explore these options in
co-operation with the European Commission.
METHODOLOGY AND RESULTS
FREIGHTWISE intends to integrate and demonstrate practical ICT-solutions to the
stakeholders in order to enhance the use of ICT and thus make intermodal transport more
competitive. The objective is also to support the Commission in developing policies and
directives related to the area, similar to the RIS directive.
This means that FREIGHTWISE is technically focused on creating a common framework
architecture that comprehensively covers all elements and processes of an intermodal
transport chain, from load units and types of cargo to actors, interchanges, transport services,
schedules, messages and documents. This framework architecture is intended to serve as a
reference point for transport management system development, making available generic data
models, process specifications and message schemes.
The FREIGHTWISE framework architecture can serve both as a reference body to check the
scope and functionality of existing commercial and in-house systems, and as a blueprint for
developing specific Transport Management Systems (or functional extensions to such
systems).
In terms of methodology followed, the framework architecture will draw as much as possible
on successful domain models, message repositories [11] and standards, some of which have
been developed and implemented in previous EU-funded projects. Examples are the TRIM
data model [12] and the Transport Chain Management System (TCMS) [13] that were
developed within the INFOLOG [14] and D2D [15] projects, or the Freight Functional
Framework (FFF) [16] that was developed in the context of the THEMIS project.
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On the other hand, the FREIGHTWISE methodology follows a very definite hands-on
philosophy by engaging a wide range of commercial and institutional/public stakeholders in
the context of 9 business clusters and case demonstrations. Grounding the work in business
cases will help assess the utility of existing architecture building blocks, prepare their
harmonisation and in some cases, validate technical implementation activities. The work on
the demonstration cases has two main stages. In the first stage, the specific status quo of the
selected transport operations and relevant stakeholder requirements will be analysed. Based
upon this analysis, the second stage will develop improvement specifications in close cooperation with the business case partners. The aim is to assess the economic, organisational
and technical feasibility of setting up or re-engineering intermodal transport chains, to spell
out the practical requirements for implementation, and to carry out and validate actual
implementation activities.
Figure 4 provides an overview of the overall project structure. It shows the interaction
between the activities that move from market assessment and requirements to developing the
framework architecture and deriving guidelines and recommendations, and the set of business
clusters and cases which each moves from an analysis of current operations to the
development of improvement specifications. For a number of cases, an integration of
transport management functionality with extant systems will result in demonstrators to be
evaluated, leading towards full-scale operation.
Figure 4 - Overview of the FREIGHTWISE project structure
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The experience gained during the work on the business cases will validate and complement
the requirements that need to be reflected in the generic FREIGHTWISE framework
architecture. In establishing itself as a common reference point for the development of
advanced Transport Management Systems, the FREIGHTWISE framework architecture
should afford many opportunities for easier integration of the overall transport process across
chain actors for all system developments based upon it.
The FREIGHTWISE framework architecture will cover a set of common definitions and
solutions which shall provide:
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easy message exchange between the partners in the intermodal chain
mechanisms for automating intermodal transport management decisions based on
business rules
enabling technology for efficient exchange of schedule information which can develop
into automated mechanisms for establishing new chains in an established “virtual
transport network”
integration of intermodal planning systems with the commercial environment, e.g., of
shippers
interfaces to traffic management systems for shipment planning and incident
management
FREIGHTWISE also addresses other types of measures for promoting efficient ICT solutions,
e.g., regarding the contractual relations between the parties and solutions to inspire trust
between the parties.
Figure 5 - Overview of FREIGHTWISE business cases / transport chains
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The FREIGHTWISE business cases cover a diverse range of international transport chains
across Europe (see Figure 5) with more than 50 private and institutional actors involved. The
range of FREIGHTWISE business cases was selected to offer a broad scope across different
European areas, reflecting different sets of shipper requirements and different modal
combinations. The cases will therefore show critical issues, opportunities and obstacles very
comprehensively, both to validate the generic framework architecture and also to demonstrate
intelligent solutions that will be applicable to similar cases. They will provide a valuable
repository of lessons for other transport actors considering the leap to intermodal transport.
Finally, the validation of the project work will lead to business guidelines for intermodal
development and to policy recommendations applicable on all levels (from a local actors,
such as a port authority, to the European Commission).
REFERENCES
[1] European Commission (2001): WHITE PAPER "European transport policy for 2010: time
to decide" http://ec.europa.eu/transport/white_paper/index_en.htm
[2] European Commission (2006): Keep Europe moving – Sustainable mobility for our
continent. Mid-term review of the European Commission’s 2001 Transport White Paper
http://ec.europa.eu/transport/transport_policy_review/index_en.htm
[3] Thematic Network in optimizing the management of intermodal transport services
(THEMIS) http://hermes.civil.auth.gr/themis/
[4] Källström, L. (2002): Proposal for a feasible, user-driven, system architecture to combine
TMS and intermodal freight operation aspects, THEMIS, Deliverable D3.1
[5] Gustafsson, I. (2006): Presentation at the Transport Research Arena Europe 2006,
Gothenburg 12-15 June
[6] European Commission (2004): Proposal for a directive of the European Parliament on
harmonised River Traffic Information Services on inland waterways in the Community, COM
(2004) 392 Final, 2004.
[7] European Association for Railway Interoperability (2004): Report of presentation of the
Technical Specification for Interoperability "Telematic applications" subsystem for Freight
Services, Version 2.0
[8] European Commission (2003): Proposal for a Directive of the European Parliament and of
the Council on the widespread introduction and interoperability of electronic road toll systems
in the Community (COM (2003) 132 Final
[9] Humphries, A.S., and Wilding, R. (2004): UK defence supply chain relationships A study
of sustained monopoly. Management Decision, Vol. 42 No. 2, pp 259-276, 2004
[10] Gustafsson, I. (2004): Information for transparency in transport chains. Blekinge Institute
of Technology Licenciate Series No 2004:05. ISBN 91-7295-039-0
[11] See for example, the ebXML initiative. http://www.ebxml.org/
[12] TRIM Transport Reference Information Model
http://www.sintef.no/units/informatics/projects/trim/
[13] Logit Systems AS (2006): TCMS d2d. Managing door-to-door transport.
http://www.bmt-ts.com/en/about/tcms-d2d.pdf
[14] For an overview of the INFOLOG project, see http://www.bmt-ts.com/infolog/
[15] For an overview of the D2D project, see http://prosjekt.marintek.sintef.no/d2d/
[16] THEMIS project (2002): Assessment of the Freight Functional Framework and the
feasibility of business cases
http://hermes.civil.auth.gr/themis/assets/library/pdf/Task%203-4.pdf
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